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India Tourism Report Q1 2011
Business Monitor International, Dec 2010, Pages: 68
Business Monitor International's India Tourism Report provides industry professionals and strategists, corporate analysts, tourism associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on India's tourism industry.
Visitor Arrivals Poised For Strong 2010
Data released by the Indian Ministry of Tourism in September 2010 showed that tourist arrivals continued to grow strongly into the third quarter of the year. Arrivals totalled 3.8mn in the first nine months of the year, representing year-on-year (y-o-y) growth of 10.0%. Growth appears to be accelerating throughout the year, with y-o-y growth in September reaching 12.6%, compared to 9.0% in August, 4.1% in July and 8.0% in June.
These figures suggest that India is returning to its usual cycle of strong growth towards the end of the end during the high tourist season. Although figures have not yet been released for October, when the Commonwealth Games were held, we believe that the September arrivals bode well for strong growth in October. Although arrivals may then dip in November, following many visitors choosing to take holidays during the Games, the Christmas season should continue the trend for recovering arrivals.
Commonwealth Games Passed Off Successfully
New Delhi hosted the 19th Commonwealth Games between 3 and 14 October 2010. The run-up to the Games was marred by concerns about whether preparations were completed on time, particularly with regard to the unfinished athletes’ village. Several countries stated that they would not send their teams to the Games unless the conditions were improved. In the end, preparations were largely finished in time and all countries sent their teams. The games were generally agreed to be a success, but the bad publicity surrounding the preparations has been negative for India, undermining the impression of organisation and modernity that the country had hoped to project. The games therefore were probably not as productive in terms of attracting potential as the government had hoped, meaning that tourist arrivals are unlikely to receive a long-term boost from the games.
Air India Considers Renaming Carriers
Struggling national carrier Air India is considering renaming several of its constituent companies and relocating them in an attempt to improve operational finances. Air India has stated that it will rename its parent company National Aviation Company of India Limited (NACIL). Its regional low-cost service, Air India Express, will be renamed, potentially as India Hopper, and be relocated from Mumbai to Thiruvananthapuram, in Kerala. As most of the carrier’s customers are from Kerala, this relocation is intended to reduce costs and improve staff efficiency.
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