a quarterly report by - Technopak

•Offer
incentives like visa on arrival or free transit visa
perspective
a quar terly repor t by
•Organize
culinary fairs in collaboration with the top 5-star hotels in the country in order to showcase
culinary styles across cultures
Looking Forward Together
Each day, the tourism industry meets the aspirations of millions of people who want to travel to share
experiences, to encounter different cultures. It has grown in response to increasing demand and it has
been at the forefront of innovation, adapting its services and harnessing the best new technologies to
deliver consistent quality and value for money.
The results are evident in more jobs and greater prosperity, enhanced customer choice and experience,
and widened understanding around the world. The tourism industry is uniquely well placed to play a crucial
role in how the world meets new challenges of this century.
The prospect of solutions to today’s and tomorrow’s world problems is brought closer when enlightened
governments and engaged local communities choose to work together with the industry. The common
determination to co-operate more closely has raised the possibilities for ensuring that growth is managed
to stimulate economic activity around the world, that communities are respected, that the worlds resources
are protected and the barriers of distance, inequality of opportunity or lack of imagination are overcome.
The tourism industry is eager to harness its imagination and energy to this open ended challenge and it
looks forward to sharing the common task with government and industry.
Challenges Before the Industry
The tourism industry in India is faced with certain challenges of regulatory as well as external nature. These
are highlighted below.
Regulatory Challenges
•Complex
Tax Structure: The hospitality industry faces multiple tax structures at the central and state level.
This makes payment of taxes quite cumbersome.
•High
Taxes: The taxes charged are compounded by the luxury taxes which push up the average room
cost.
Volume 02 / 2009
| Volume 02
External Challenges
•Economic
Slowdown: The hospitality industry has been hit by the global economic meltdown. Foreign
tourist arrivals have been badly hit and occupancy levels across the country have fallen.
•Impact
of Terrorism: The recent terrorist attacks in Mumbai have shaken the confidence of MNCs and
business travelers. Many have been forced to re-consider their travel plans and subsequently, the winter
season which implies brisk business for the hospitality industry has seen far lower occupancies.
•Cost
of Land: When compared to other markets across the globe, in India, the cost of the land constitutes
a very large chunk, especially in case of large infrastructure projects. This delays the breakeven of these
projects and discourages further investments.
•Cost
of Debt: The cost of debt in India is higher than the cost of debt in other countries. This again
discourages further investments.
•Skilled
Manpower Shortage: The industry is facing a manpower shortage which pushes up the cost of
acquiring quality talent.
Indian Tourism : Managing Growth by Breaking Barriers |
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