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India Tourism Report Q3 2011

Business Monitor International, June 2011, Pages: 69


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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.

India Tourist Recovery Continues

In Q111 data released by the Indian Ministry of Tourism in April 2011 showed that the tourism industry continued to grow strongly in Q1 2011, building on the recovery experienced in the latter part of 2010. In the first three months of the year, arrivals reached 1.73mn, representing growth of 11.1% year-on-year (yo- y). February experienced a particularly high surge in arrivals, growing by an impressive 15.1% y-o-y to 692,000. The report believes this high level of arrivals was largely due to the beginning of the Cricket World Cup in February, accounting for a slight dip in arrivals growth in March, to 7.4% y-o-y.

The report expects this positive growth trend to continue in 2011, as the industry returns to pre-2008 levels. As such, the report anticipates arrivals to reach 6.04mn in 2011, up from 5.42mn in 2010, although the risks to this forecast are to the upside, should the ongoing global economic recovery continue at its current pace.

Focus on Maharashtra

Maharashtra is India’s most popular state in terms of visitor arrivals, reflecting its position as one of the most heavily populated regions in the country. It is located in west-central India, with a long coastline containing several major ports and also a variety of popular beach locations. Maharashtra is a popular centre for domestic tourism but the state is aiming to increase the number of foreign visitor arrivals. As arrivals began to pick up in 2010, the state set itself an ambitious target of boosting tourist arrivals by 60% by 2015.

Strikes Take Place At Air India

A strike began at national carrier Air India on April 27 2011, disrupting around three-quarters of its flights. The strike was led by approximately 800 workers from Indian Airlines, which was merged with Air India in 2007. The former Indian Airlines workers claim that they are paid less than their counterparts from Air India, owing to differences in the way their salaries are calculated, with Air India pilots having a larger fixed salary component and Indian Airlines employees more reliant on pro rata payments for flight hours worked. As many flights have been cut during the industry downturn, salaries have suffered accordingly. While the Delhi High Court ruled against the strike, ongoing industrial action disrupted a high number of flights, forcing the airline to lay on special services for key routes or to rescue stranded passengers.


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