India is expected to see a significant increase in visa applications this year, with 380,000 visitors projected to arrive in the US. Out of the total visitors entering the US, the New York City remains the number one entry point with more than 60 per cent Indian tourists embarking on their US journey through New York.
New York City is home to the world’s busiest airport system and the number one port of entry for US international travellers. New York City welcomed a total 61.8 million travellers in 2023, marking a recovery of 93 per cent of the City’s record 2019 visitation levels. It remains on track to welcome 64.5 million visitors this year.
New York City welcomed 336,000 India travellers – marking full recovery of the market’s pre-pandemic visitation levels – with 383,000 expected to visit this year.
During 2023, the New York City saw the average length of stay increase to 11 days (up from 9.9 days pre-pandemic) and spending increased from an average USD 1,955 to USD 2,200 per person per trip. Compared to all overseas visitors to NYC, Indian visitors skew to more leisure, tend to travel alone, and stay in hotels. Indian visitors generally prefer to book air travel to NYC in March, April, and May.
India continues to be a significant source of international visitors to New York City, and various initiatives taken by the New York City’s tourism board underscores the their commitment to providing Indian travellers with a warm welcome and a memorable experience.
New York City Tourism + Conventions, the official destination marketing organisation and convention and visitors bureau for New York City’s five boroughs, successfully wrapped up three-city Sales Mission in India earlier this year, where it hosted events across Mumbai, Delhi and Ahmedabad. The tourism board also recently launched online travel trade academy with Hindi subtitles providing increased education and sales support for travel trade.
As part of this mission, representatives the NYC Tourism delegation engaged with key stakeholders and travel agencies in three feeder cities – including Ahmedabad (first time post pandemic) – across India and showcased the diverse offerings that New York City has for Indian travellers.
“We were pleased to be back in India, a rapidly growing feeder market for New York City tourism, for our annual sales mission, said Makiko Matsuda Healy, Senior Vice President, Tourism Market Development for New York City Tourism + Conventions. “Recently, we introduced the Travel Trade Academy program, thoughtfully enriched with Hindi subtitles to ensure that the Indian travel trade can fully engage with the five-borough destination. By incorporating Hindi subtitles, we aim to empower the trade to adeptly respond to evolving consumer demands, providing a diverse and personalised array of NYC experiences that resonate with the preferences of the Indian audience.”
The decision to ramp up efforts to draw Indian tourists follows a significant backlash against the Maldives triggered by derogatory remarks made against India and Prime Minister Narendra Modi on social media by three Maldivian officials. This backlash led to numerous cancellations of reservations and a drop in plans to visit the Maldives by Indian tourists, including several celebrities.
Talking about the growth of tourism in New York from the Indian market, Healy said the development has been really promising. “India has increasingly become a significant source market for international visitors for NYC. Factors such as improved air connectivity, growing disposable income among Indian travelers, and the appeal of New York City’s iconic attractions, diverse culture, and shopping opportunities have contributed to this growth. Additionally, targeted marketing efforts, collaborations with travel trade partners, and initiatives to enhance the overall visitor experience have also played a role in attracting more Indian tourists to NYC,” she added.
During the Sales Mission in Delhi, Beate Mauder Kakkar, Managing Director, Indiva Marketing, who represent New York City Tourism + Convention in India in conversation with ETTravelWorld discussed marketing strategies for promoting New York City tourism to India.
When asked about the key focus areas and activities of the Tourism Board’s mission to India, Kakkar said metro cities like Mumbai and Delhi are the top sources of visitors but smaller emerging cities like Ahmedabad are also important targets. “Throughout the year, the Board conducts various initiatives in India through their trade and PR managers based in the country,” she added.
Talking about the re-branding of NYC & Company to the New York City Tourism + Convention, Kakkar said, “The new name is a lot clearer and better understood,” adding that it aims to improve communication around the city’s tourism and conventions efforts.
Whereas, Healy reaffirmed that the primary goal of the rebranding, which happened last year, was to strategically position the organisation to continue leading NYC’s tourism economy and reestablish its purpose and mission as the official destination marketing organisation and convention and visitor’s bureau for one of the world’s greatest destinations.
“The rebranding of New York City’s tourism efforts has likely had a positive impact on the Indian market, evident in increased visibility and clarity about who we are and how we can support the travel trade. By clearly defining who we are and establishing our new brand, we hope to further cement our position in the market and increase the desirability for key trade to partner with us in-market,” she added.
Dubbed “TIME FOR TAIWAN,” the program comprises nine comprehensive modules covering a wide array of topics, ranging from cultural insights and visa procedures to transportation options, accommodation choices, itinerary planning, MICE incentives, Indian restaurants and venues. Through engaging content and interactive webinar sessions, participants will gain invaluable insights about Taiwan.
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The San Francisco Travel Association, the official destination marketing organisation for the City and County of San Francisco, unveiled its 2023 visitor impact results and provided insights into the 2024 forecast during its annual Marketing Conference held at the San Francisco Museum of Modern Art. The conference highlighted discussions on AI and other cutting-edge technologies shaping the visitor experience, as well as destination sales and marketing initiatives.
2023 Visitor Impact:
In 2023, San Francisco attracted 23.1 million visitors, marking a 5.2 per cent year-over-year increase. These visitors contributed significantly to the city’s economy, with total visitor-related spending amounting to USD 9.3 billion. Notably, visitor spending saw an 18 per cent growth to USD 8.8 billion, with an additional USD 494.6 million in meeting planner and exhibitor spending.
The robust convention activity played a pivotal role in driving lodging gains, particularly evident in the substantial increase in hotel room nights attributed to delegates attending events at Moscone Center. This surge amounted to 618,298 room nights, an 82.6 per cent jump from the previous year.
2024 Forecast:
San Francisco Travel forecasts further growth in visitation and overall visitor spending for 2024, fueled by increased leisure and business travel. The projected visitor volume is set to reach 23.7 million, with international visitors contributing USD 5 billion towards the expected USD 9.45 billion in visitor spending.Key Projections for 2024:
– Hotel occupancy is anticipated to reach 65 per cent.
– Average daily rate (ADR) is projected to grow by 3.3 per cent to USD 251.91.
– Hotel Revenue per available room (RevPAR) is expected to increase by 4.7 per cent to USD 163.82.
Scott Beck, President and CEO, San Francisco Travel, emphasised the importance of attracting more conventions and events to the city, recognizing their substantial impact on San Francisco’s economy.
Mayor London Breed shared her enthusiasm for welcoming more visitors back to the city, emphasising the ongoing efforts to ensure San Francisco remains a welcoming, safe, and exciting destination for all.
Notably, New South Wales welcomed the highest number of international visitors, accumulated the most visitor nights, and boasted the highest visitor expenditure nationwide. The international segment contributed a substantial USD 11 billion to the visitor economy. Additionally, NSW experienced the most substantial growth in international visitor numbers, nights, and expenditure among all states and territories, with an increase of 1.8 million visitors, 42.8 million nights, and USD 6 billion in expenditure.
International Visitation and Airport Growth:
International visitation played a significant role in San Francisco’s tourism recovery in 2023, growing by 26 per cent. Notably, China regained its position as the top international market for visitor spend in San Francisco.
In 2023, San Francisco International Airport (SFO) experienced substantial growth, serving over 50 million passengers, an 18.7 per cent increase from the previous year. SFO added several new and returning routes, enhancing connectivity with key international destinations.
Outlook:
The San Francisco Travel Association is optimistic about the city’s tourism recovery, with visitor spending expected to surpass pre-pandemic levels by 2025 and visitor volume by 2026. The impact of San Francisco’s visitor economy is anticipated to fully rebound by early 2027.
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As the nation eagerly anticipates the presentation of the Interim Budget 2024 in the Lok Sabha on February 1, all eyes are on the Union Finance Minister Nirmala Sitaraman for new announcements and policy amendments. Among the sectors with high expectations is the Indian travel and tourism industry, which is advocating strongly for industry and infrastructure status, policy reforms, and taxation benefits to support infrastructure development.
The travel and tourism sector holds significant economic importance, contributing 5.8 per cent to India’s GDP in 2022 and aiming for a target of USD 1 trillion by 2047. In light of this, industry leaders have shared their wishlist for the budget with ETTravelWorld, highlighting key areas for transformation and growth.
Infrastructural focus
Madhavan Menon, Executive Chairman, Thomas Cook India, emphasised the need for infrastructural focus, including the establishment of new airports through private participation, rapid expansion in rail, road, and waterways, and development of high-growth areas like religious circuits and hidden gems such as Lakshadweep. Menon also called for tax reforms, including reduced income tax levels, LTA exemptions, and standardisation of TCS on foreign travel packages.
“As a key fundamental for the sector, setting up of new airports via private participation must become a priority – thus creating a viable hub & spoke model; also rapid expansion in rail, road and waterways (sea and river cruises). Additionally, infrastructure development for high growth areas like religious circuits and underleveraged hidden gems (Lakshadweep),” he said.
Simplifying visa requirements
Aloke Bajpai, Co-founder & Group CEO, ixigo, expressed optimism about the government’s increasing focus on boosting domestic and inbound travel, particularly from tier 2, 3, and 4 cities. Bajpai highlighted the importance of infrastructure development, technology integration, and last-mile connectivity in spiritual and cultural hubs across India. He also stressed the significance of reducing aviation turbine fuel (ATF) costs to pre-pandemic levels to improve air travel accessibility.
” Simplifying visa requirements to encourage visa-free entry for tourists visiting India is another action point that can significantly enhance foreign tourist arrivals. Overall, we look forward to budgetary measures that foster growth, innovation, and sustainability within the travel and hospitality sector, ultimately strengthening India’s position as a premier travel destination,” he said.
Budget expectations: Finance Minister Nirmala Sitharaman is presenting the interim budget on February 1. The tourism and hospitality sector has high hopes for helpful government policies to cater to the rising domestic tourism demand with quality infrastructure and services. For years, the hospitality industry has been advocating for infrastructure status, which would grant hotel projects access to affordable debt on par with other industries.
Vishal Suri, MD, SOTC Travel, advocated for a multi-pronged approach in the budget, including the consolidation of TCS rates on outbound tours, removal of deterrents to technology adoption, and expedited infrastructural development through schemes like Udan Yojana and Vande Bharat routes.GST input on holiday businesses
Nishant Pitti, CEO & Co-founder, EaseMyTrip, called for crucial reforms to strengthen and revitalise the tourism sector, including GST input on holiday businesses, strategic reduction in income tax, and streamlining of TCS structure. Pitti also emphasized the importance of infrastructure development, technology integration, and health safety measures across various travel sectors.
“We expect the Government to allow GST input on holiday businesses, a strategic reduction in income tax to catalyze growth in the country’s tourism industry, and the streamlining of the TCS structure to a more favourable 5 per cent slab. Additionally, we expect a comprehensive overhaul of tax exemption policies related to Leave Travel Allowance (LTA), urging the Government to consider an annual allowance and the inclusive coverage of the entire tour package cost under LTA, surpassing the limitation to only flight expenses,” he said.
Komal Seth, Founder & Director, LINKIN REPS, highlighted the need for tax reductions, infrastructure status, and simplified processes for hotel budgets and digital payments to revitalise the hospitality industry. “Addressing GST concerns, I advocate for revising the 18% tax on rooms priced at 7500 and above to attract more guests. Streamlining processes with a central single window clearance for hotel budgets and encouraging UPI-backed digital payments are also vital for growth,” she said.
Chirag Agrawal, Co-Founder of TravClan, emphasised incentives for investment in hospitality infrastructure and fast-tracking development projects to improve traveller experience. “Additionally, initiatives like Digiyatra are a welcome move by tourists and the industry. It is a global first. The government should continue to adopt & invest in technology that can improve the traveler experience,” he mentioned.
Exemption on customs for Non Schedule Operators
Kanika Tekriwal, Founder, JetSetGo, outlined expectations regarding customs issues, sale and leaseback transactions, and bringing aviation fuel under GST to improve operational efficiency in the aviation sector. “Also, we hope that the government will provide clarity on sale and lease back transactions in case of Gift City. Currently, there is no clarity on how custom duty will be applicable in such cases, and we hope that the government will exempt custom duty in case of sale and lease back transactions involving Gift City companies. Lastly, we hope that the government will bring aviation fuel under GST,” she recommended.
As an industry, the medical tourism sector anticipates supportive measures from the upcoming budget. The budget is anticipated to acknowledge and support this growing sector. Financial incentives, streamlined visa processes for medical tourists, and investments in healthcare infrastructure, promoting alternative healthcare services, addressing mental health, and fostering public-private partnerships are some of the key expectations.
Overall, industry leaders are optimistic about the potential of the Union Budget 2024 to address key concerns and foster growth, innovation, and sustainability within the travel and hospitality sector, thereby strengthening India’s position as a premier travel destination.
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