The party is still on, say industry players but Modi’s move will see some leaner saat pheras in popular wedding destinations By Saloni Bhatia
A Ken Research published in February, 2016 stated that the wedding industry in India was at its peak projected to grow at an incredible rate of 10 per cent in the coming five years. The report predicted that the market which grew at a Compound Annual Growth Rate (CAGR) of 9.9 per cent during the financial year 2010- 2015, was anticipated to increase to Rs 1.6 trillion by 2020. But this was before demonetisation hit the industry in November last year and changed the demographic of destination weddings, at least momentarily. Budgets were trimmed, functions cut short and many planners looked at cheaper destinations following the client’s commands.
Annushree Agarwal, director, Theme Weavers Designs, a wedding destination company based out of Gurgaon, shares that the firm has not suffered major downfall post demonetisation. She says, “As a company we have not faced any problem as our major dealings were through digital transactions but the industry surely suffered due to last minute cancellations or reduction in costs. Many clients were seen shifting to economical venues or reducing the food cost to make up for the lack of cash.”
In the last five years, the wedding segment had seen a major rise in destination weddings as more couples opted for luxurious weddings in exotic locations stretched over a period of five to ten days. Destinations like Thailand, Bali in Indonesia and Macao have been attracting a significant number of Indian weddings due to their scenic locations and travel time from India. Arzan Khambatta, head India, Macao Government Tourist Office (MGTO), “Demonetisation has definitely impacted the destination wedding market significantly in the last few months, especially international destination weddings and the effect is expected to linger till atleast the third quarter of 2017. In fact, there was an Indian wedding planned in Macao in the month of December 2016, which had to be deferred because of the announcement. However, we are of the opinion that this segment will surely regain its attractiveness and will bounce back to its glory sooner than later.”
Kunal Rai, head, events and weddings, Tamarind Global, shares, “Royal weddings in Jaipur and Udaipur and beach weddings in Goa became all-time favourites for weddings away from home. In the past couple of years, Indians have explored further and chosen some Asian destinations like Bangkok, Phuket and Hua Hin in Thailand. Some Middle Eastern destinations like Dubai, Abu Dhabi, Oman and Ras Al Khaimah also started trending and these are still popular.” Tamarind Global, a professional event management company, offers special services as wedding hosts – from managing exquisite decor, multiple cuisines options, complete logistics to the final execution. Rai reiterates that the India inbound market has definitely seen some impact as foreign tour operators and tourists are raising doubts before booking their holidays to India but the outbound wedding market has not been adversely affected, despite the cautious approach.
Cautious approach
A look into how international wedding destinations have been performing post demonetisation shows that there has not been a huge impact as anticipated, though people have become more cautious and are having less elaborate ceremonies and sometimes reduction in the number of guests. Speaking on behalf of Indonesia Tourism, Shelly Chandhok, country manager, VITO (Visit Indonesia Tourism Office) India states, “As destination weddings are planned well in advance, demonetisation did not affect the overseas wedding season in a big way to our destinations, and hopefully it will settle down by the time the 2017 wedding season begins. There are various exotic locations, high end hotels and resorts ready to host Indian weddings. As destination weddings are for the High Networth Individuals (HNI) segment, we present unique locales and ideas to them for a memorable event.”
Thailand has seen limited cancellations. That a wedding celebration in Thailand can be tailor-made to suit every kind of budget that a family would have, could well be one of the reasons. “The country’s close proximity to India, value for money, world class hotels and resorts, beautiful beaches, availability of Indian food, exceptional service, availability of Pandit, Mehendi artist, and hospitality are some of the reasons which reconfirm the certainty that a dream wedding will turn to a reality in Thailand within a comfortable budget,” mentions Pinki Arora, marketing representative North & East India, Bangladesh & Nepal, Tourism Authority of Thailand. The choice for a wedding in Thailand ranges from pristine beaches of KhaoLak, Koh Samui, Phuket, Krabi, Pattaya and Hua Hin, to the lush green mountains of Chiang Mai and KhaoYai or a city and riverside wedding in Bangkok.
South Africa has seen a surge in inbound Indian tourist arrivals in the past years and features some unique destinations that can host grand Indian weddings. Hanneli Slabber, country manager India, South African Tourism, informs, “South Africa has piqued the interest of many because of the fall of African Rand vis-à-vis Indian Rupee in recent times, thus boosting the spending power. While the industry as a whole has been hit post demonetisation, South Africa as a destination hasn’t seen any drastic impact. Primarily because demonetisation has adversely hit the businesses dealing with only cash transactions whereas outbound travel, and especially international destination weddings, witness mostly cashless transactions.”
Despite the recent anxiety in the destination wedding segment, both domestic and outbound, is expected to show a healthy growth in the future. Led by the idea of perfect fairytale weddings, the young Indian HNIs are very clear on their exotic wedding destinations and unique demands. The demand has led more vendors to enter the market offering unique concepts and locations. Khambatta says, “There have been a few very glamorous, mega Indian weddings in Macao in the past, however, Macao has not been explored as an Indian wedding destination to its potential yet and there is still a lot of scope for growth in this segment. With its unique cultural mix, excellent infrastructure, easy and seamless connectivity from India, no visa requirement and glamorous hotels, Macao can be a perfect destination for a grand Indian wedding.”
He adds, “We plan to invest time and energy in exploring this segment further. We would be networking closely with the key influencers like the wedding and event planners to increase awareness about the various aspects of Macao as a perfect wedding destination amongst them. To add to this, we would also be undertaking some consumer promotions to promote Macao as a wedding destination to the right target audience.”
Rai states, “Jaipur, Udaipur, Goa and Kerala are the usual favourites for customers. Tying the knot against the backdrop of historical sites and royal facades or a gorgeous beach, with a splash of Indian colour, cuisine and hospitality draws many couples to these stunning Indian destinations. Internationally, Bali, Kota Kinabalu, Dubai, Ras Al Khaimah, London, Valencia, Monte Carlo, Tuscany are doing great.”
Commenting on the current trend in South Africa, Slabber mentions, “We also see a lot of destination wedding parties opting for Cape Town and the Garden Route – this is especially the trend where one party is an NRI. Both Cape Town and locations along the Garden Route provide the perfect background with spectacular scenery and breathtaking natural beauty while at the same time offering incredible ease for planning destination weddings.” South Africa also boasts of some distinctive locations and wedding ideas ranging from bush weddings in the forests, vineyards as the backdrop or city weddings with a Cape Town view.
Upcoming season
“Weddings will continue to be an integral part of Indian culture and society, the maximum impact could be on the size i.e. the number of guests. We feel the budgets shall remain the same as it is a once in a lifetime occasion and the target segment of HNIs will always have budgets for a memorable wedding,” asserts Chandhok. Agarwal says, “Domestic locations like Jodhpur cost as good as an exotic destination in Thailand. Therefore people will have equal options and the decision will be made on personal choice.” Currently busy planning another wedding in Jodhpur, he points out that weddings will continue to happen in the luxury segment but people will be more cautious about their spending.
Tamarind Global has already signed for three weddings in Ras Al Khaimah over a period of three months in the coming season and has many queries for locations in London. Commenting on how Indians are experimenting with new international destinations, Rai says, “Yes definitely, clients are continuously experimenting with destinations that are exotic and unexplored. The destination wedding market continues to grow and progress and it is our priority to stay ahead in this evolving market.”
Looking at a positive year ahead, Arora states, “As far as Thailand is concerned, we are quite optimistic that Indian weddings in Thailand will continue to remain popular. Not only weddings but celebrations such as anniversaries, birthdays, family reunions and other celebrations are also being held. Thailand is also getting popular for bachelor and bachelorette parties.”
South Africa is increasingly gaining popularity for being an ideal wedding destination, offering a huge variety of stunning locations for not only one’s dream wedding but also an extraordinary honeymoon. Slabber mentions, “We are looking forward to a spectacular year, especially for the destination wedding market as Indians are now more aspirational to have unique weddings. Today, we find that most couples are looking for an elegant yet relaxed wedding celebration that allows them to enjoy not only each other’s company but also the company of family and friends. They are seeking settings that are exquisite and intimate to make their special day that much more memorable.”
Where international destinations like Ras Al Khaimah, Tuscany, Amalfi, Monte Carlo may see some exotic weddings in the future, conventional Indian destinations like Goa, Jaipur, Jodhpur remain in demand on the domestic front. Some new offerings on the list are, Mandu and Panchmarhi in Madhya Pradesh; Alibaug and Lonavala near Mumbai, Kovalam and Alleppey in Kerala among others. Recently the Indian Railways also proposed leasing of platforms to hold wedding receptions or parties. Though it seems like a far fetched thought, unique ways are being conceptualised to tap India’s wedding market.