The US Embassy in India has seen a significant increase in tourist visa adjudications this year according to recent remarks by a senior embassy official. In Fiscal Year 2023, the embassy adjudicated over 700,000 tourist visa applications, an 185 per cent increase from the previous year.
Highlighting the immense scale of operations, the consulate officer revealed that the US embassy, along with its four consulates, constitutes the second-largest consular operation globally, following Mexico. With a total staff of almost 350, the embassy’s workforce has expanded significantly, indicating a concerted effort to manage the increasing demand for visa services.
“We had over 700,000 adjudications in 2023 representing a remarkable 185 per cent increase compared to the previous year. Moreover, India ranks as the largest source of work and student visas globally, further underscoring US’s significance in the visa landscape,” the officer stated.
This makes it the highest single year volume for tourist visas ever processed in India. The official noted they expect the volume to surpass the previous record of 745,000 applications set in 2018.
“I think this year we might actually surpass that we hit records and everything else we do,” the officer said.
While tourist visas make up over 50 per cent of the embassy’s total visa workload, the official stressed they prioritise other visa categories like work and student visas as per US law. However, they have increased staffing levels by over a third to handle the growing demand.
In terms of overall tourist numbers, Indonesia welcomed a staggering 11.67 million visitors in 2023, almost double the number in 2022. Bali alone received 5.23 million visitors, accounting for nearly half of Indonesia’s total tourism arrivals. To boost arrivals from India, plans for Vistara direct flights from Bombay and strengthening Delhi departures are in the pipeline.
To address the surge in demand, the embassy has implemented measures to enhance efficiency and reduce wait times. Despite technical challenges, such as the transition to a new appointment system, efforts to streamline the process have yielded positive results. Notably, wait times have decreased by 75 per cent over the past year, with further improvements expected in the future.”Our wait times have dropped by 75 per cent in the last year. There were over 1000 days in December of 2022 and now they range low to hundreds to around four now,” he stated.
One significant change involves preventing the hoarding of appointment slots by visa travel agents, ensuring fair access to all applicants. This has contributed to a more equitable distribution of appointments and reduced instances of exploitation.
However, the officer acknowledged the ongoing challenges posed by India’s vast population and the corresponding demand for visas. While the embassy remains committed to addressing these challenges, resource limitations necessitate a strategic approach to managing visa operations effectively.
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Hotel industry in India is slated for a healthy revenue growth of 11-13 per cent in the next fiscal after a strong 15-17 per cent growth in the current fiscal, backed by steady domestic demand and ramp up in foreign traveller demand, stated a CRISIL Ratings analysis. The strong demand dynamics along with modest new supply will keep the operating performance of the industry healthy over the near term.
The healthy operating performance will augur well for the industry profitability where the earnings before interest, taxes and depreciation (EBITDA) will continue the strong momentum over the current and the next fiscal. This, along with limited capital expenditure, will keep the credit profiles strong. The analysis of branded hotel companies with 70,000 rooms across categories, indicates as much.
“The domestic travel demand, which remained a key driver this fiscal, will sustain next fiscal as well. This momentum will be supported by healthy economic activity which drives business demand and continuing leisure travel demand which reinvigorated post the pandemic. While the demand will remain strong, the growth rate is expected to taper off next fiscal due to high base. Consequently, the average room rates (ARRs) are expected to grow 5-7 per cent next fiscal against 10-12 per cent this fiscal and the occupancy is expected to remain healthy at current levels of 73-74 per cent,” stated Anand Kulkarni, Director, CRISIL Ratings.On the other hand, the foreign tourist arrivals in India, despite a growth this fiscal, are estimated to remain 10 per cent below pre-pandemic level and pick-up in the same will provide fillip to the hotel demand next fiscal. Foreign tourist arrivals are expected to be at 9.5-9.8 million persons this fiscal against 7.9 million last fiscal and 10.6 million in fiscal 2019, as per CRISIL.
Looking ahead to 2024, Sodhi predicts a resurgence in corporate travel, with business travellers displaying increased confidence and planning trips to foster business growth and strengthen professional relationships. Notably, major global airlines are expected to exceed pre-pandemic capacity levels, with two percent more seats offered in 2024 compared to 2019, albeit with a six percent reduction in the number of flights.
Apart from the aforementioned factors, demand in the MICE (meetings, incentives, conventions and events) segment is also expected to remain healthy as corporates have resumed their activities post the pandemic induced hiatus.In addition to demand, favourable supply situation is one of the critical drivers of the strong performance of the industry.
“Greenfield capex is expected to remain muted with the new room addition remaining at 4-5 per cent per fiscal over the next couple of years. While the demand rebound has boosted the industry sentiments, the cost dynamics still remain a constraining factor for new capex. High land costs, sizable increase in construction costs, long gestation period coupled with cyclicality in the sector is resulting in cautious new capex in the sector. Therefore, brands may keep adding rooms through management contracts, which will limit their upfront capital costs,” added Nitin Kansal, Director, CRISIL Ratings.
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In conversation with ETTravelWorld, Rita Saffioti, BBus MLA Deputy Premier, Treasurer, Minister for Transport; Tourism- Government of Western Australia highlighted a significant surge in Indian tourists to the destination, boasting a 30 per cent increase since pre-Covid times.
“This surge is coupled with a significant growth in the Indian community in Western Australia. The combination of family visits and leisure travel has contributed to a climbing visitation rate. The Indian population in WA has become the third largest in the state, indicating exponential growth that we expect to continue,” she stated, adding that India’s is a fast growing tourism market, with vast untapped potential.
In 2019, India stood as WA’s 11th largest visitor market, witnessing about 31,000 visitors in the state. Fast forward to September 2023, visitor numbers rebounded impressively to 87 per cent of pre-Covid levels. In one of recent interactions with ETTravelWorld, the minister stated that this notable uptick in tourism figures from India, has propelled the country from becoming 11th to the 7th largest market for Western Australia. This growth was driven notably by a nearly 50 per cent increase in spend per person.
“We view India as a crucial market for our tourism sector, and we are eagerly committed to fostering its further growth while concurrently amplifying our endeavours to raise awareness about Western Australia within India,” she stated.
Saffioti had also recently spearheaded a delegation to India aimed at fortifying bilateral relations, exploring fresh avenues for collaboration with the Indian travel trade, and addressing pertinent challenges, including the prospect of establishing a direct flight route.
“There’s a clear interest in establishing direct links, but aircraft availability remains a challenge. The surge in travel post-Covid has led to high demand, and while direct links are not proposed in the short term due to this constraint, we’re actively eyeing for future opportunities when aircraft become available,” she told ETTravelWorld.
Pilgrimage tourism in India earned per cent1.3 lakh crore in 2022, as compared to per cent0.65 lakh crore in 2021, according to the Ministry of Tourism. Post-renovation, the Kashi Vishwanath Dham in Varanasi experienced an unprecedented rise in footfall, attracting 70 million visitors last year, a dramatic increase from the roughly 8 million who visited in the preceding year, demonstrating the growth of spiritual tourism year on year. It is to be noted that 5 per cent of international travel is attributed to pilgrimage reasons.
Saffioti further noted that, based on available reports and indicators, India’s expanding middle class demonstrates a keen interest in exploring new destinations and indulging in unique experiences. Noting the travel segments currently under scrutiny, Saffioti disclosed that the Western Australian government is actively targeting high net worth individuals, in addition to families and honeymooners.She highlighted the adventurous inclinations of this demographic, citing their interest in activities like self-driven expeditions and deep-sea diving adventures. She emphasised the importance of maintaining focus on these unique adventure experiences, given the fact that WA boasts some stunning natural attractions including the coral reef in Exmouth, Rottnest Island, pristine beaches, and unique experiences in the northwest and Kimberley regions.
Additionally, the minister noted culinary tourism as another segment of interest, as the state has an abundance of fresh, locally-sourced cuisine and gastronomic experiences including wine regions.
In terms of marketing strategies, the minister outlined plans for intensified engagement with travel agents and tour operators. “We’re considering more familiarisation tours for the agents to experience Western Australia firsthand, along with enhanced engagement with tour operators. Explaining our unique attractions like the Ningaloo Reef and Rottnest Island will be crucial, alongside increasing marketing budgets for targeted campaigns,” she mentioned.
Notably, Western Australia just concluded its inaugural India Roadshow post-pandemic, spanning three days of meetings with tourism, travel, and trade partners based in India from February 5 to 7.
Collaboratively organised by Tourism Western Australia (WA) and Business Events Perth, the roadshow featured 16 representatives from WA’s hotels, attractions, experiences, and Regional Tourism Organisations (RTOs), showcasing their offerings to over 300 Indian agents in New Delhi and Mumbai.
When asked about any specific target cities for engagements in India going forward, the minister highlighted Chennai, Mumbai, and Delhi as priority markets. She said the aim is to leverage existing ties and explore new opportunities for collaboration.
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After the introduction of rooms and new host pricing tools in May and updates on lower prices and verified listings this September, homestays and short-term rental platform, Airbnb has announced major upgrades and new features to address top suggestions from its community. Breaking the news, Tara Bunch, Global Head of Operations, Airbnb shared details on the three big upgrade areas being rolled out by the platform for the winter release.
The new upgrades
“The first big upgrade is the guest favorites, which is a new category,” said Bunch. “We have taken 2 million of our most loved Airbnb listings (the most dynamic ones from among 7 million listings) based on ratings, reviews, reliability, quality of the listing and highlighted the top guest favorites. These listings will have a badge that would indicate that they are a guest favorite, so other guests can easily find them when searching for a listing,” said Bunch.
“We are also revamping our ratings and review pages to include a number of new features that now allow guests to sort reviews and be able to see more relevant information,” shared Bunch on the second upgrade. The feature includes reviews based on distribution, star ratings, user and host behaviour and suggestions based on comparison of similar amenities, among others. “The idea is to make the listings more relevant and helpful for guests. We would like to give them much more visibility and a lot more information before they book,” she said.
The second Pullman hotel after the one in Delhi will be opened in Amritsar and is set to open its doors in 2027. Accor’s portfolio in India already boasts 61 properties under brands like Raffles, Fairmont, Sofitel, Pullman, Grand Mercure, Novotel, Mercure, and ibis. With a strong pipeline of 30 properties under development in India, Pullman Amritsar adds to the diverse range of options available to travellers across the country.
And, the third big upgrade is the listings tab. “This is for hosts,” said Bunch. “It essentially is a part of the host application where you check out the amenities in the listing,” she said. The upgrade has these amenities organised into groups (like bathroom amenities, bedroom amenities outside amenities, kitchen amenities, living room amenities) and allows the host to go through – room by room – and look at a smaller list and click the ones that are relevant for them.“What has us excited is that not only will there be more information about the listing, it would also allow current hosts to go back and play with this new listings tab. This would help guests find all the amenities in the listing, and at the same time, help the host to highlight just how many amenities their listing has,” said Bunch.
The other upgrades feature improved competitive pricing and feature comparison tools for hosts for more visibility. “The hosts would now be able to compare service fees, cleaning fees being charged by similar facilities. And the guests would be able to see which listing would give them the best deal in the same neighbourhood with similar size and amenities. “We think this will really help hosts to ensure that they remain competitive from a pricing standpoint,” she said.
Wilson explained that over 50 per cent of Sabre’s business is outside of North America, with India being a significant part of the company’s portfolio. Sabre works with a variety of partners in India and takes an open approach by using open APIs to integrate with providers of travel and tourism services. This approach allows for flexibility in adopting technology solutions, making it accessible to a broad range of hotels.
“The other improvements for the host include an earnings dashboard and some new features around co-host messaging and co-host payouts being able to split them between, a host and a co-host,” added Bunch.
While the Guest Favorites, revamped ratings and reviews, the new Listings tab, and additional upgrades for hosts will begin rolling out this week, hosts can try new features today by enrolling in Airbnb Early Access, AirBnb said.
Smart lock integration will be coming to Early Access for listings in the US and Canada later this year. Pricing visibility and compare prices will be available next year, it added.
“Pricing is a big deal for guests and hosts. The leaning in on those pricing tools as well as pricing transparency has been a focus and as the platform has grown and become bigger, a lot more options are now available to guests. We just want to make it easier for them to find that perfect listing for them,” said Bunch.
The India market
“India is one of our most important highest growth markets – both from a guest and host standpoint – and we are incredibly committed to this market. It is also an important market to us from a talent standpoint. We recently opened up the India hub tech hub in Bangalore and we continue to invest heavily there,” said Bunch.
“From a growth standpoint, Asia Pacific as a region has fully recovered to pre pandemic levels. We are seeing great growth, gross nights growing 23% in Q3 of 2023 compared to 2019. That’s massive growth in such a large region. Nights and experiences booked grew 27% in Q3 compared to 2022 so that’s another big, large growth and impact,” she said.
Under the new policies, the first 100 homestays will get INR 2L grant and up to 20L for caravan infra. Additionally, the initial 100 Bed & Breakfast establishments that have successfully completed one year and are registered with the tourism department can claim reimbursement of INR 1,000 registration fee. Property and road taxes will also be subject to reimbursement. The new Carvan policy allows the private operators to establish standalone caravan parks at scenic locations.
“In addition to it being one of our biggest growth markets, it is a market that – looking at the Oxford Economics report – showed that we supported over 85,000 jobs and contributed over 920 million dollars to India’s GDP between April of 2022 and March of 2023. We are making a big impact in the economy,” Bunch said.
According to Bunch, the new travel culture among the middle class has played a big role in its growth. “In India, millennials are leading the chart when it comes to bookings on Airbnb, followed by GenZs and GenXs. India is eager to travel and explore the world. So we think it’s a huge opportunity for us to grow,” said Bunch.
Building partnerships
“On our part, we have been working closely with the local governments to highlight India and properties in India,” said Bunch. Airbnb recently signed a MoU with the Ministry of Tourism to showcase India’s rich cultural heritage through a spotlight on heritage stays across the country. At the state level, over the last year, it signed MoUs with Goa, Madhya Pradesh and Maharashtra, among others, to promote lesser-known destinations, conduct capacity-building workshops and raise awareness amongst communities on how to leverage their homes to reap economic benefits.
“There’s a lot of work happening in these areas. We are looking at these government partnerships as one of a critical approach to building the tourism ecosystem in India and through that also promoting more homestays,” she said.
Besides Gwalior, the UNESCO Creative Cities Network welcomed a diverse array of new members, including another Indian city, Kozhikode. Each of these contributed their unique cultural strengths to the global stage. These cities, representing seven fields including Crafts and Folk Art, Design, Film, Gastronomy, Literature, Media Arts and Music, were recognised for their commitment to integrating culture and creativity into their development strategies.
Women and economic empowerment
“Hosting, a home or a room in your home in one of those areas, can create a lot of economic empowerment in smaller, maybe non-urban communities where this is an excellent opportunity to make some extra money for your family. In particular, it’s a great opportunity for women,” said Bunch.
“Women hosts in India earned over 1.6 billion Indian rupees in the first 3 quarters of this year. In fact, a third of guest favorites in India are hosted by women. It’s a huge opportunity for economic empowerment of women. And more broadly, all Indians are particularly helpful in terms of spreading tourism to more rural communities, low density urban communities, and empowering local people who are looking for that extra money and can really help them make ends meet,” she added.
Growing preference for hosted accommodations
According to Airbnb, most popular outbound destinations for Indian travellers (based on nights booked data in India when comparing January 1 to September 30 2023, with the same period last year) were UK, US, Canada, UAE, France, Italy, Germany, Indonesia and Thailand.
“North America and Western Europe have long been popular outbound destinations for travellers from India. These destinations also factor into the popular psyche by featuring in Bollywood films,” she shared.
“Post pandemic we have seen different countries open up at different rates. But in Southeast Asia, we have seen a lot of growth in Korea and Japan. Travel and visas have become easier and people are feeling safe travelling. We saw domestic travel continue to remain pretty strong. And now we are seeing cross border travel increasing. It is exciting to see a really positive upside in our markets in Asia,” she concluded.
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