The 28th Annual Convention of the Indian Association of Tour Operators (IATO) was a milestone in many ways – not only did it draw the highest number of delegates, it also brought the convention to Maharashtra after two decades. The convention witnessed major announcements made by the state chief minister that will go a long way in giving a fillip to tourism in the state. The inaugural session saw chief minister Prithviraj Chavan reveal some tourism focused key decisions. “We are now really focused on making Maharashtra a prime tourism destination, there is a world class experience that we can offer,” he said. One of the important decisions is the creation of a cruise terminal. “I am happy to announce that there will be an international quality cruise terminal to give a whole new dimension to tourism in Mumbai. We will also be able to give you a good news very soon regarding the issue of luxury tax and reduction of ATF cost,” said Chavan. The state is also focused on ensuring that the foreign tourists who come to Mumbai before heading to other destinations in India are made to stay for a longer duration in Maharashtra and explore its many attractions. One of the key projects to ensure this is leveraging the magic of Bollywood. “Plans are in an advanced stage to open a Bollywood Museum in Mumbai,” mentioned Chavan. To help the hotel and restaurant industry, the number of permissions required to open an eating outlet will be reduced. “We are also trying to sort out the issue regarding bars and nightclubs in Mumbai,” added Chavan. Convention tourism will be developed in Mumbai, Pune, Aurangabad and Nagpur. The CM had met the executive committee of IATO at a breakfast meet and had noted their concerns and suggestions.
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Pointing out that wherever the IATO convention has been held there has been no off-season for tourism, Subhash Goyal, president, IATO stated, “We ask the CM to give us the tools to enable that. We will start a tourism and economic revolution from Mumbai and Maharashtra. Bollywood is a huge asset that needs to be capitalised and shown to the world. ” Rajeev Kohli, chairman, 2012 Convention mentioned that IATO members control over 80 per cent of tourism related foreign exchange earnings in the country. “We believe, as a collective, we can take up any challenge thrown by global turbulence. This year we have the highest number of speakers, both international and domestic and the greatest content ever. We need to debate strategies for the future,” added Kohli.
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Critical debate
Debate on the current status of the tourism industry vis-a-vis government policies was one of the key highlights of the convention. The fact that the industry needs to think out-of-the box, become more tech savvy and look at new source markets was emphasised. The concerns ranged from the problem foreign tourists face in getting an Indian visa to high airfare and airport taxes.
“We are outpricing ourself in the market. If the attitude of the finance ministry does not change, it will remain a disadvantage,” asserted Goyal. He revealed that IATO is doing a comparative analysis of neighbouring countries and is coming out with a report that will have have comparisons with the taxation here. This will be ready in a month or two. E M Najeeb, chairman and MD, Air Travel Enterprises was of the view that most politicians have not understood the value of tourism as an industry. Very few states have tourism friendly taxation policies. He stressed on the need to form a consortium of the Indian tourism industry (like FICCI), which is able to make an impact on policy.
Refuting the grievances of the industry, R H Khwaja, secretary of tourism, Government of India reminded them about the many tourism-friendly initiatives taken by the government – from increasing the number of countries who can now get visa on arrival to the inter ministerial coordination committee that has already had two meetings. “One vision, one mission approach is needed,” asserted Khwaja.
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State tourism perspective
Vipul Mittra, principal secretary, tourism, Government of Gujarat spoke about how following a successful tourism promotion campaign when people start visiting a state in large numbers, the state government has to create the right infrastructure for these tourists. He pointed out that Gujarat has also launched intra-state flights and has also made considerable investment in the digital space.
Sunil Kumar Pinto, minister of tourism, Government of Bihar felt that in the current tough times instead of competing, the states should support each other. “In Bihar we are investing a lot in improving our tourism infrastructure as well as promoting our tourism products. We have witnessed an increase in tourism arrivals. In fact almost one-fifth of the foreign tourists who come to India, visit Bihar,” said Pinto. The neighbouring state of West Bengal is also making concerted efforts to market itself as a single product. “Government of India has sanctioned Rs 50 crore for Dooars that has many wildlife sanctuaries and tea tourism. New circuits are also being formed,” stated Rachhpal Singh, minister of tourism, Government of West Bengal.
Acknowledging that India is probably the only country in the world that has every attraction for tourists, Chhagan Bhujbal, minister of tourism, Government of Maharashtra rued, that unfortunately this great wealth has not been effectively utilised. “Tourism industry in Maharashtra has tremendous potential for growth but has been unexplored. One big advantage that we have is that all tourism centres are connected to big cities. MTDC is in the process of forming a committee with stakeholders for tourism development in Aurangabad,” he stated, adding that business tourism destinations like Mumbai have to be converted into leisure tourism.
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Focus on Maharashtra
The session on ‘The Treasurers of Maharashtra’ highlighted the state’s varied tourism offerings and the efforts taken by the Maharashtra government. The session was moderated by Reema Lokesh, editor, Express TravelWorld and Express Hospitality and the panelists included Dr Jagdish Patil, managing director, MTDC; Laxmikant Deshmukh, managing director, Film City; Manjiri Bhalerao, heritage tourism expert; Sudhir Patil, director, Kesari Tours; N Vasudevan, chief conservator of Forests Mangrove Cell, Mumbai; Sarang Kulkarni, marine biologist and scuba diving expert and Yogesh Kardile, a freelance photojournalist.
Elaborating on the state’s multifaceted tourism offerings – from Bollywood to pilgrimage, MICE to wine tourism, beaches to wildlife Patil said, “Mumbai city in itself has a lot of potential and recently a committee has been set up to look into the various issues and work towards enhancing the tourism offerings of the state. On the infrastructure front, there is still a lot left to be completed and we also want to improve the marine features. At the famous Lonar crater we want to develop tourism facilities, set-up an astronomical observatory, a museum and a science park. We have acquired land for these projects. We are also focusing on beach tourism and will develop eco-friendly amenities.”
Giving his views on heritage conservation, Bhalerao said, “As much as 80 per cent of rock cut caves in India are in the state. We need to work closely with the Archaeological Survey of India (ASI) and create awareness among travellers of the potential.” Talking about offerings for marine tourism, Kulkarni mentioned, “Tarkarli and Sindhudurg have water-sports activities, the state tourism department has taken the initiative to start snorkeling activity in Sindhudurg and will be launching its first scuba diving school in Tarkarli.”
Shifting focus to Bollywood tourism, Deshmukh made a presentation on the future plans of Film City. He said, “We are looking at making Film City as a unique complex where tourists can spend more than one day. The complex will have entertainment rides, a Bollywood museum and a biodiversity park, along with budget, four- and five-star and hotels, as well as dormitories in the next five years. We aim at attracting 5,000 tourists per day.”
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Bridging the gap
One of the important sessions was a panel discussion on how tour operators and hoteliers can bridge the gap. It was moderated by Homa Mistry, chief executive officer, TrailBlazer Tours India. The panelists for the session were Hemany Mediratta, VP-Travel Trade, Oberoi Hotels & Resorts; Delna Jasoomoney, GM-Travel Industry Sales, Taj Hotels Resorts & Palaces; Pradeep Kalra, senior VP-sales and marketing, Sarovar Hotels and M Shilendran, VP sales, CGH Earth.
Kickstarting the session with the hope to bridge the communication gap between tour operators and hoteliers, Mistry asked the panelists on whether the relationship was driven only by demand and supply in the market. Responding to the question, Shilendran said that although the relation is driven by the demand and supply, it is the trust and understanding that the party needs to have for smooth operations.
When asked about the reason behind price variations and different categories of rates offered by hotels to tour operators and end consumers, Kalra said, “The price point demand depends on the customers’ need and preferences. It is 8-9 per cent of sales that comes from tour operators. ” As sometimes there is a lot of overbooking, hoteliers urged the trade to maintain a discipline in bookings and not indulge in last minute cancellations. Mediratta said, “There should be more discipline on how rooms are booked by tour operators and we will make sure that there are no overbookings.” He also mentioned that for the off-season period The Oberoi has come up with the concept of special packages.
After deliberating on adopting various policies and procedures in order to ensure smooth functioning between the two parties, the panelists agreed that there is a need to work together for a win-win situation.
