Country Club (India) Ltd

For the Indian tourism sector, 2008-09 was a year of unprecedented
 challenge. International tourist arrivals into India declined sharply
 On account of the global economic crisis and the terror-strike in
 Mumbai.  Inflow growth slowed from 14.3 per cent in 2007 to 5.6 per
 cent in 2008.  The point I am trying to make is that despite the
 double-blow, the Indian tourism sector outperformed the global tourist
 arrivals growth of 2 per cent in 2008. Just as the economic rebound in
 India reflects its resilience, these numbers showcase the fact that
 there is something fundamentally going for India as far as the tourism
 and hospitality sector is concerned.
 
 A number of realities need to be recognized when appraising the
 implications of the tourism sectors potential in driving international
 economies. The industry is one of the largest employment creators and
 wealth distributors with sustainable implications. For instance, the
 size of the global tourism industry is .6 trillion whereas the global
 software industry size is a mere 0 billion. The tourism industry
 globally generates over 250 million jobs whereas the software industry
 generates only 20 million jobs. Nearly 8 per cent of global employment
 is tourism- dependent.
 
 I do not need convincing that as Indias tourism sector grows, it will
 generate more jobs and catalyse the economy. / know. A study by the
 World Travel and Tourism Council demonstrates that between 2008 and
 2018 the highest annualised real growth of travel and tourism demand
 
 worldwide, at 9.4 per cent, will occur in India. To make this a
 reality, we need to focus on infrastructure, develop niche sectors and
 open up new areas. Although Indias USP is its matchless heritage
 positioning, on the ground there is shockingly poor sanitation and
 safety. A continuing constraint is our lack of quality on-the-ground
 experience. The Incredible India branding cannot be isolated from this
 reality. Essentially, a brand is what a brand does. The campaign cannot
 be sustained if the quality of experience offered to tourists does not
 remain credible. Infrastructure development and destination management,
 therefore, hold the key to Indias sustained growth in the tourism
 sector.
 
 India needs more hotels, particularly budget accommodation. Some 1,700
 hotels in India have about 96,000 rooms, but only about 30 per cent of
 them cater to the medium market segment. India needs another 150,000
 rooms in three years to sustain tourism growth and counter the tourism
 potential of room-rich countries like China. High land prices,
 antiquated land laws and absence of single-window clearance are also
 sectoral constraints.
 
 Then there is the potential of Indias domestic tourism, which can help
 counter the seasonality of inbound tourism and the ongoing industry
 weakness. What needs to be done in this area is enhanced awareness
 among the rising Indian middle-class about new experiences (chasing the
 monsoon), new attractions (plantation holidays), new adventures
 (exploring the Himalayas) as well as pilgrim circuits, heritage and
 monuments.
 
 What gives me optimism is this: even though BRIC countries (Brazil,
 Russia, India and China) account for half the worlds population, only
 5 per cent of their populations have travelled abroad compared to
 almost 50 per cent in the developed countries. When more people in
 these geographies have their basic needs fulfilled-as is happening in
 India4 and China - they will begin to travel more extensively than
 before. A little of that potential is already visible: a recent report
 by Visit Britain highlights that Indian tourists outspend Americans in
 Britain. There is an increasing trend of young travelers breaking away
 from five-star deluxe tourism. The retiring baby boomers in the US and
 Europe, comprising the affluent older consumers, are setting new trends
 of short breaks-multiple short holidays in a year seeking authentic
 experiences, which will calatyse cultural tourism. That is when a
 destination like India will score over other for its sheer richness in
 history and culture.
 
 India is attractively placed to capitalize on this emerging trend. The
 Internet has made it possible for service providers to interface
 directly with customers; it is possible to buy tickets (rail or air)
 from half the world away without needing to stand in queue. Technology
 has reduced costs, accelerated travel and reduced bottlenecks.
 
 To take this into the next league, we need to reinforce the five
 critical Cs ,a civic governance (improve the quality of tourism
 infrastructure), capacity building (taxi drivers, guide and immigration
 staff), communication strategy (constant innovation of the Incredible
 India campaign and penetrate new markets), convergence of tourism with
 other sectors and
 
 civil aviation (better airport infrastructure, rationalisation of taxes
 and continued opening of the skies).
 
 To enhance tourist confidence. Union Ministry of Tourism is launching a
 new scheme Visit India 2009, offering various incentives to foreign
 tourists and the tourism industry. These value addition services will
 be offered to tourists visiting the country during the period April
 2009 - March 2010. The proposed incentives: one complimentary
 international air passage for a traveling companion, one night
 complimentary stay in the hotel booked by the traveler, complimentary
 sightseeing in any one city of their choice and a complimentary rural
 eco-holiday. The idea is to provide one additional service for every
 service paid for by the tourists with the help of top airlines and
 organizations like Hotel Association of India (HAI) and Indian
 Association of Tour Operators (IATO).
 
 Besides, more Indians are rediscovering their home land for a price
 lower than travelling abroad. People no longer need month-long
 vacations to satisfy their wanderlust and indulge in a foreign
 destination. Instead of adding to costs through airline tickets and
 accommodation, there is a greater attraction in exploring Indian
 eco-tourism, conservation camp sites and national parks.
 
 At Country Club, we are alive to these realities in the following ways:
 
 # Identified opportunities to expand on potential international soil «>
 Consolidated our presence on Indian shores
 
 # Identified avenues to make clubbing a holistic family experience
 
 * Launched medical tourism options through Country Spa in India and the
 Middle East to start with
 
 - Identified our timeshare business, Country Vacations, as a key
 revenue driver and are actively acquiring properties to set up designer
 country homes
 
 While the downturn of the economy has certainly affected the tourism
 industry, we recognise that people will not deny themselves the
 pleasure of travel. In the next five years, we hope to have 100 owned
 properties (domestic and international) against the current 53, with
 almost half a million members as part of the Country Club family.
 
 Y. Rajeev Reddy