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 2023, DreamFolks achieved a milestone with over 90 per cent of its business being driven by exclusive lounge bookings, accompanied by a surge in revenues. Speaking about this, Liberatha Kallat, the Founder and Managing Director informs further about the company’s shift towards diversification in the year ahead, with an emphasis on expanding services to include enterprises.
Anticipating 2024, Kallat pointed to DreamFolks’ strategy which will aim to diversify their service portfolio beyond lounges, extending into lifestyle offerings and catering to enterprises. This also includes implementing the launch and benefits of the recent Club Card in December 2023, tailored to diverse travel and lifestyle preferences. Currently, the majority of DreamFolks’ clients are banks. Going forward, the company looks at driving 20 per cent of its revenue from non bank companies and services including beauty, grooming, healthcare and more.
“We are broadening our horizon, focusing not only on banks and network providers but also on enterprises. Our roadmap involves adding more diverse services, evolving our portfolio to meet evolving consumer needs,” she said, hinting at the launch of new services expected in 2024.
Kallat said that every enterprise is their target going forward as DreamFolks is keen on offering these benefits not just to employees but also to clients and channel partners. “We’re planning to sell these services directly to enterprises through various channels, with a current emphasis on this sector.”
“Moving ahead, we will constantly evolve, seeking to incorporate more services that cater not only to travel but also to lifestyle. The reason why we launched The Club Card; it bridges gaps, offering various services beyond lounges. It’s about creating holistic packages that encompass both travel and lifestyle, ensuring a seamless experience for travellers,” she added.
The recently launched DreamFolks Club offers various membership packages designed to cater to travel and lifestyle needs. With a one-year validity and starting price ranging between INR 8000-10000, the Club introduces four card variants. The entry-level package offers complimentary access to airport lounges within India.
Presently, DreamFolks operates as a travel services aggregator, leveraging an exclusive in-house technology platform to enable entities such as Banks, Card Networks, Airlines, OTAs, in crafting personalised offerings for their customers. DreamFolks also oversees lounge facilities and associated perks for leading Indian Banks, including HDFC, Axis, ICICI, and others.
Responding to the travel needs of Southern India, the charter flights from Bengaluru will serve as a gateway, offering direct and exclusive access to Bhutan. With the southern region already contributing over 45 per cent to the companies’ business in Bhutan, this initiative aims to bridge the gap created by the lack of direct air connectivity.
Travel has become a priority with huge shift in lounge usage
According to Kallat, the surge in airport traffic and increased credit card penetration became key drivers for the company’s success. “With about 90 per cent of our revenue attributed to lounge services and a market share exceeding 90 per cent, the visible queues and bustling lounges validated this growth,” she stated.The shift in Indian travellers’ priorities post-pandemic also played a contributory role in this growth, added Kallat. “Travel has become a priority, with travellers wanting to spend quality time with loved ones. India’s increased travel, coupled with airport expansions and privatisation, notably by Adani in tier two and three cities, has transformed the travel experience,” she added.
Moreover, there has been a huge shift in airport lounge usage, noted Kallat, adding that the inception of the club card stemmed from this noticeable trend. She stated how families, even children, have started to view the airport lounge as a key part of the travel experience, arriving earlier to enjoy the amenities before their flights. “Leisure travellers and families now dominate the lounges, marking a shift from the business travellers predominantly using the lounges” she told ETTravelWorld.
As a prominent airport services aggregator India, DreamFolks has always been the first to introduce groundbreaking innovations, Kallat remarked, adding that technology remains the key cornerstone in their company’s growth. “Our journey, from web access to self-checking kiosks, demonstrates our commitment. The industry will witness backend innovations that end-users might not immediately notice, but we’ll continue pioneering these changes,” she added.
She further emphasised the company’s efforts in enhancing technological platforms, ensuring they remain ahead of the curve and built to last. “Over the past five years, we’ve upgraded technology to ensure long-term sustainability. Compared globally, we’re a decade ahead in building sustainable technology,” she added.
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The state government has mooted, and is moving ahead with, a proposal for developing a tourism township in either Vagamon or Munnar that will be facilitated by the UAE government.
It is unclear at this point if there will be direct involvement of the UAE government or whether the UAE government is only a facilitator for participation by private companies. There are worries that a tourism township in Idukki district’s environmentally fragile areas could lead to further ecological devastation. The Gadgil and Kasturirangan reports explicitly discourage such tourism and construction initiatives in the Western Ghats and adjoining areas.
The tourism township proposal was initiated by the state government on November 9, 2023, following which a communication was sent by the tourism department to the revenue department on December 13. According to a communiqué by the principal secretary (revenue) to the land revenue commissioner (accessed by TOI), the government directed the land revenue commissioner to find suitable land in Vagamon or Munnar for the project.
A high-level meeting was convened by the chief secretary on December 18, in which senior officials of tourism and revenue departments participated. “A meeting will be convened presided over by the chief secretary on December 18 in his committee room, to discuss developing tourism township in the hill stations in the state under the aegis of the UAE government,” the communiqué sent by principal secretary (revenue) said. “A report has to be furnished to the government, at the earliest, after examining whether suitable land is available in Vagamon or in Munnar, in Idukki, suitable for the tourism township project proposed by the UAE government,” the communique added.
The Chief Minister of Himachal Pradesh said that infrastructure is being developed as per the modern-day requirements for the convenience of the visitors. He also informed that there were about 9,000 hotels in Himachal and considering the influx of tourists, the operation of homestays is also being regulated, to attract more tourists in the state.
Since the matter is yet to be placed by the government in the public domain, the UAE govt’s exact role is unclear. “The proposal was made when the UAE ambassador met the chief minister. When the government gets a proposal for a major investment, why deny it? The government is looking forward to an eco-friendly project since these two places that have been shortlisted are ecologically fragile areas,” a senior government official told TOI on condition of anonymity. In case of direct involvement of the UAE government, the Centre’s decision will be decisive as a sovereign government acquiring property in India can be routed only through diplomatic channels. In case, the project is a private initiative, parallels will be drawn to Kochi SmartCity which was presented initially by the then UDF government as an information technology initiative that later turned out to become a UAE-based private company’s integrated township in Kakkanad.
Real estate development of this magnitude in the name of tourism envisaged in Munnar and Vagamon goes against the recommendations of Western Ghats Ecology Expert Panel (Gadgil Committee) and the Kasturirangan Report. The government had recently framed detailed guidelines for constituting a Munnar Hill Area Authority with an aim to ensure sustainable development with uniformity, take appropriate decisions on encroachments and to protect the environmental uniqueness of the Munnar area. With regard to Vagamon, even basic land records are unavailable — these include basic tax register (BTR) and field measurement book (FMB) that will have concrete information on land holdings and exact extent and location of government land and porambokes in Vagamon village.
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IntrCity SmartBus, a leading player in the intercity bus travel sector, has reported an impressive growth trajectory in 2023, showcasing a resilient performance despite challenges posed by the pandemic. In an exclusive interview with ETTravelWorld, Kapil Raizada, Co-founder, IntrCity SmartBus, shared insights into the company’s achievements, technological advancements, and the evolving trends in the travel industry.
Significant Growth Trajectory in 2023
Raizada highlighted IntrCity SmartBus’s exceptional growth, revealing, “Our network has demonstrated rapidly growing consumer adoption, with annual revenues in FY23 growing 6.5x compared to FY21. This growth has been accompanied by a continuous increase in margins, even during the pandemic interruptions, with the gross profits increasing 9.0x over the same period.”
He emphasised the company’s financial performance, stating, “In the first half of the current fiscal year, we have achieved a revenue of INR 178 crore with an EBITDA profit of INR 2.9 crore. Annual revenues are expected to cross INR 350 crore this year, along with the first full year EBITDA profits.”
In terms of operational scale, Raizada reported, “The IntrCity SmartBus network now reaches 2.5 lakh seats per month with over 100 million passenger-seat-kilometers. The brand is now the market leader across several routes in both North and South India, commanding a 15-20 per cent market share in a traditionally highly fragmented industry.”
Key Drivers and Consumer Experience
Discussing the key drivers for SmartBus’s success, Raizada highlighted, “IntrCity SmartBus functions as a mobility platform, revolutionizing the perception of bus travel and positioning it as a convenient alternative to overnight long distance trains.”
He detailed the unique selling points that set IntrCity SmartBus apart, stating, “Travellers can experience the comfort of private cabins with flat beds for enhanced privacy. Additionally, boarding points with Wi-Fi-enabled AC lounges provide a space to unwind and recharge, complete with in-built washrooms, and on-table food service to ensure hygiene and convenience.”
Raizada emphasised the company’s commitment to safety, mentioning, “IntrCity SmartBus has implemented various measures acknowledging the safety concerns people face, especially women and older individuals, face while traveling on buses. To address these concerns, the platform provides buses equipped with CCTV and WiFi, real-time bus tracking, and secure boarding areas.”
Technological Innovations for Efficiency and Safety
IntrCity SmartBus leverages advanced technology for tasks such as route optimisation, real-time tracking, and enhancing passenger safety. Raizada explained, “The IntrCity Mobility System incorporates several applications including the Consumer Platform, Operator Dashboard, Crew App, IOT-based Fleet Analytics, and a 24/7 Command Centre. This complete platform caters to all aspects of organizing intercity bus services, offering travelers a seamless and exceptional journey experience.”
Uber India has released highlights of its annual data report – How India Ubered – encapsulating the key trends from how India moved this year. The analysis from the trips in 2023 revealed some very interesting trends about cities with the highest number of trips, the total number of kilometres covered in Uber rides, popular travel trends in intercity travel, the city with the most late-night trips, and also several rider preferences.
He detailed the use of IoT fleet analytics, stating, “The platform employs IoT fleet analytics to establish a network of ‘connected buses,’ ensuring seamless, on-the-go monitoring and efficient operations. This technology allows real-time performance monitoring and analytics for each vehicle, contributing to overall smooth performance.”
Addressing Urban Congestion and Intercity Connectivity
Raizada discussed SmartBus’s role in addressing urban congestion and enhancing intercity connectivity, saying, “SmartBus strategically tackles urban congestion and enhances intercity connectivity through innovative measures. IntrCity SmartBus network provides an affordable & reliable shared public transport, which is the core of creating a greener, de-congested mobility ecosystem.”
He detailed the routing strategy, mentioning, “Our network routing is designed so as to ensure that each bus addresses a specific geographic segment of a city, so as to minimize the distance that travelers have to commute to reach the nearest boarding point of their IntrCity SmartBus.”
Speaking about the diverse demographics of IntrCity SmartBus travellers, Raizada stated, “IntrCity SmartBus caters to a diverse demographic of travellers, influenced by evolving trends and preferences.” He highlighted shifts in travel patterns, saying, “During the Diwali break, there was a significant uptick in travel in and around Goa. Tourist destinations such as Tirupati, Goa, and Manali are projected to experience more than a twofold growth compared to the previous year.”
Raizada also emphasised the platform’s adaptability, noting, “These observations suggest a dynamic and diverse traveler base for IntrCity SmartBus, with preferences spanning both leisure and functional routes. The platform remains adaptable to evolving demographics and travel trends, ensuring a comprehensive and responsive service to meet the diverse needs of its passengers.”
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Wellcation as a trend particularly has disrupted the travel and hospitality industry as of late. It has become a popular concept that blends gastronomy, spa/fitness indulgence, and wellness as a focus to embrace personal well-being.
Particularly in India, which is home to alternative wellness methods and techniques to deal with modern-day health issues, making it the perfect global destination for wellness vacations.
India, with its rich heritage of alternative wellness methods, is poised to become a global destination for wellness vacations. Market reports predict a substantial growth of USD 1,299.84 billion in India’s health and wellness sector between 2020 and 2024, indirectly propelling the ‘wellcation’ industry. The diverse geography and landscapes in India position it as an ideal global wellcation hub.
In a recent discussion with ETTravelWorld, Navneet Nagpal, Principal Consultant at Spectra Hospitality Services, shed light on the evolving trends in the travel and hospitality industries.
Wellcation – A disruptive trend
One of the key topics discussed during the interaction was the growing trend of ‘Wellcation,’ which has significantly disrupted the travel and hospitality sector. Nagpal highlighted that Wellcation, a concept blending gastronomy, spa/fitness indulgence, and overall wellness, has gained immense popularity.
During the discussion with ETTravelWorld, Nagpal shared several key insights. The importance of offering the right product at the right price with the right operator was emphasised. “It was noted that asset managers are increasingly becoming a commodity in the industry. Spectra, a company involved in hospitality and real estate, is actively engaged in glamping projects in Bangalore and is also establishing an experience centre in Goa to drive sales for a larger real estate project that includes a 30-room resort, wellness centre, and farm,” he said.
As we wrap up 2023 and move towards a new year, it is noteworthy to see the hospitality industry’s significant shift towards sustainability and responsible tourism. Travellers are increasingly seeking eco-friendly accommodations and experiences that positively impact the environment and local communities. Recognizing the urgency to address environmental and social challenges, the industry is prioritizing sustainable tourism as a crucial element in the journey toward a better future.
The concept of wellness is evolving into holistic wellness, with hotels incorporating spacious green areas. Nagpal further elaborated that successful projects have been completed in locations such as Kashmir, Gir (wellness retreat), and Goa. Further, Spectra has two projects that are currently under pre-opening in Bangalore, with another upcoming project in Coorg. The discussion also identified several roadblocks in the industry, such as skill gaps post-pandemic, the need for better education in sustainability and technology, and the increasing importance of AI and automation. “To address these challenges, sustainability initiatives, such as the use of solar panels and the elimination of plastic, are being implemented across all projects overlooked by Spectra. In addition, existing properties are adapting to wellness and leisure trends,” he mentioned.
On being asked about a valuable advice for industry stakeholders, Nagpal, a seasoned hospitality professional, also advised brand operators and hospitality professionals to be flexible for their specific market, rework their numbers for viability, and align with market demands.
As the travel and hospitality industries navigate post-pandemic challenges, Spectra Hospitality Services, through its insightful initiatives and partnerships, aims to lead the way in embracing and driving these transformative trends.
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On January 30, 2020, the World Health Organization (WHO) declared the coronavirus outbreak a public health emergency of international concern, and the same year, the United Nations World Tourism Organization (UNWTO) reported that over 100 million direct tourism jobs were at risk. The economies of tourism-dependent countries suffered extensively, but a recovery is in full flow.
The aviation analytics firm Cirium has stated that global airline capacity is slated to finally surpass its 2019 levels. This signals a significant recovery from the losses that the global travel market suffered during the pandemic.
Air travel is on the upswing across the world, and India in particular exemplifies this resurgence. India’s domestic air traffic touched a new peak on April 30 this year, with over 456,082 passengers travelling in a single day as 2,978 flights took to the skies.
Today, Big data is being leveraged by the tourism industry in every possible way. According to an analysis conducted by Global Data, the AI market which was valued at USD 81.3 billion in 2022, is expected to grow at the rate of 35% by 2030. These tools are being incorporated into devices, business applications and productivity tools for seamless business operations.
In October, Booking.com and McKinsey & Company released ‘How India Travels’, a report projecting India as the fourth-largest global spender in travel by 2030, with expenditure that is expected to reach up to USD 410 billion. This indicates a 173 percent increase from 2019, when Indian travellers cumulatively spent over USD 150 billion. Interestingly, the report also indicates that in 2022, Indian travellers helped in the recovery of the tourism industry by spending 78 percent of the 2019 levels, while Asia as a whole reached just about 52 percent. The number of trips taken by Indian travellers is also slated to increase to 5 billion in 2030, even as the air traffic in India continues to grow at twice the pace of its GDP (Gross Domestic Product).
The phenomenon of ‘revenge tourism’ (people taking big trips to take revenge against the pandemic) could also have something to do with this spurt. Avid travellers in India and across the world are shedding off their pandemic ennui with a vengeance to jet off towards their dream destinations. This year, among these travellers in India, there was also a large segment of first-time flyers.
Many of these new travellers are from the millennial and Gen Z generations, who consider travel to be an experiential and aspirational activity. The growing popularity of travel influencers has also increased the tourist influx to aspirational and ‘trending’ locations. These could range from a highly-rated homestay in Leh to an Aurora ‘glamping’ resort in Iceland!
Indians are also spending far more on luxury travel now, and Thomas Cook India reports a 50% jump in business class travel versus last year. In March this year, they noted a 5-10% growth in demand for premium seats compared to 2019-20.
Analysts expect growth to be powered by the growing Chinese and Indian middle classes — as well as a younger generation more keen to travel than their parents. But OAG warns the region’s tourism has sometimes been over-reliant on China, and for now Chinese visitor numbers are still way below pre-pandemic levels as the Asian superpower grapples with a challenging economic slowdown.
However, for this boom to be sustainable, the aviation industry must formulate a way to deal with not just an increasing demand for better connectivity and convenience but with spiralling turbine fuel prices, supply chain challenges, and financial distress that have grounded many ambitious airlines. Engine issues and inadequate MRO infrastructure need attention as well.
Updated airports, modern fleets, smart air traffic management systems to prevent delays and congestion, and a skilled workforce are some of the key elements that can support this growth.
We are witnessing a renaissance indicative of India’s unmatched ability to rise above unprecedented challenges brought on by and following the global pandemic. If we continue to capitalise on the limitless opportunities for growth, India’s post-pandemic narrative will become even more inspirational and dynamic.
The author is Group Chairman, Sky One
DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
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The Indian hotel industry is on the cusp of a remarkable recovery, with strong demand anticipated to drive double-digit revenue growth in FY2024, according to a report by ICRA. The sustained revival in domestic leisure travel, along with demand from meetings, incentives, conferences, and exhibitions (MICE) and business travel, is poised to play a pivotal role in this resurgence. Furthermore, the return of foreign tourist arrivals (FTAs) and the impact of events such as the G20 summit and the ICC World Cup 2023 have bolstered the industry.
Revenue and occupancy projections
ICRA’s report reveals that pan-India premium hotel occupancy is estimated to reach approximately 70-72 per cent in FY2024, following a recovery to 68-70 per cent in FY2023. Additionally, the average room rates (ARRs) for premium hotels are expected to range from INR 6,000-6,200 in FY2024. Although occupancy is projected to reach a decade-high, the Revenue Per Available Room (RevPAR) is predicted to remain at a 20-25 per cent discount to the FY2008 peak.Several factors are contributing to this resurgence. Improvements in infrastructure and air connectivity, favorable demographics, and a rise in large-scale MICE events due to the opening of new convention centers are fostering a robust demand. The report highlights that larger players will benefit from both revenues and profit shares generated through hotel expansions via management contracts and operating leases.
Regional insights
Mumbai and Delhi, being gateway cities, are expected to experience occupancy rates exceeding 75 per cent in FY2024, driven by transient passengers, business travelers, and MICE events. While Pune and Bengaluru might lag behind other markets, they are also expected to witness significant improvements in FY2024 compared to FY2023. ARRs, although trailing the FY2008 peak, are anticipated to see a healthy year-on-year increase in FY2024.
PATA’s forecasts predict that international visitor numbers by the end of 2023 will reach approximately 76 per cent of the pre-pandemic levels in 2019. This trend is anticipated to continue, reaching 107 per cent in 2024 and 116 per cent in 2025. The relaxation of restrictions and the reintroduction of group travel are expected to further improve the situation by the end of 2023.
Operating margins and sustainability measures
The Indian hotel industry has successfully sustained many cost-rationalisation measures adopted during the Covid-19 pandemic, coupled with the benefits of operating leverage. Margins have expanded significantly when compared to pre-Covid levels. Companies have also transitioned to renewable power sources, managed cost inflation, and maintained strict control over fixed costs, bolstering margins. Although ICRA anticipates some moderation in margins from FY2023 levels due to hotels undergoing renovations and maintenance activities, they are expected to remain notably higher than pre-Covid levels.Debt metrics & capital structures
With increased earnings and cash flows, ICRA expects the capital structure of hoteliers to improve. Asset monetization is likely to focus on non-revenue generating assets. Debt metrics for hoteliers are projected to surpass pre-Covid levels in FY2024. The extent of improvement in return on capital employed (RoCE) is contingent on the expansion strategy and may be limited by the high capital cost of new properties due to increased land and construction costs.
Supply dynamics
Although the supply of hotel rooms has witnessed a revival in recent months, the report indicates that the supply is expected to grow at a CAGR of 3.5-4 per cent over the medium term, lagging behind the demand. Land availability constraints in premium micro-markets of metros and larger cities are limiting the addition of new supply, with rebranding or property upgrades and greenfield projects mainly found in suburbs. There has been an increase in per-room construction costs by 20-25 per cent compared to pre-Covid levels due to cost inflation.
ICRA’s report underscores the resilience of the Indian hotel industry and its potential for robust growth in the coming fiscal year. With the ongoing recovery, this sector stands poised to be a key contributor to the nation’s economic revival and a prime destination for travelers from across the globe.
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In a major development for the state, the Government of Uttar Pradesh has earmarked INR 130 crore for the establishment of a Tourism Facilitation Centre in Ayodhya. This investment promises to set in motion a significant economic transformation in the tourism sector, particularly in the eastern region. The primary objective behind this initiative is to enhance international tourism in the sacred city, ultimately reshaping its economic landscape.
According to an initial analysis conducted by myATITHI.global, a community platform dedicated to supporting Micro, Small, and Medium Enterprises (MSMEs) in the hospitality, tourism, and travel industry, the creation of this Tourism Facilitation Centre is anticipated to yield remarkable results. Notably, it is expected to inject hundreds of crores into the state’s revenue and create over a thousand direct job opportunities.
Projections suggest that this strategically positioned Centre will emerge as a major revenue generator for the state. Experts have also estimated that it has the potential to annually contribute hundreds of crores to Uttar Pradesh‘s economic prosperity.
As the Tourism Facilitation Centre takes shape, the state’s revenue streams are poised for a significant upswing, stated the analysis. This boost will not only benefit local businesses but also enrich the state treasury, enabling the government to make critical investments in public services and infrastructure, it added.
The analysis also noted that the exact revenue figures will depend on various factors, including the number of tourists, their spending behaviors, and the operational success of the facility. Nonetheless, it is undeniable that Ayodhya’s strategic location makes it a lucrative hub for tourism revenue.
Beyond the financial forecasts, this initiative holds the promise of unlocking a plethora of employment opportunities. Both the formal and informal sectors are expected to reap significant benefits, with the potential for job creation spanning a wide spectrum of roles.
In a month’s time, the forthcoming Homestay Policy will be launched alongside a Caravan Policy. This aims to promote a more flexible and itinerary-free recreational van experience, complete with dedicated caravan parks with essential facilities and services. Looking ahead, Goa Tourism is also eyeing new initiatives to increase both domestic and international footfalls to the state, shared the Tourism Minister, Rohan Khaunte.
Preliminary estimates indicate the creation of thousands of direct job positions, encompassing roles such as administration, management, and service, along with countless opportunities for local artisans, vendors, and small businesses.The ripple effect of this development is expected to bring about a substantial yearly economic upswing in Ayodhya and its environs, the analysis mentioned.
Given Ayodhya’s cultural and spiritual significance, it stands to be the primary beneficiary of this transformative project. According to the sources, the state government has initiated the project by floating an e-tender and shortlisting potential companies. The final selection will be made following the opening of financial bids.
The Tourism Facilitation Centre, once completed, will offer a range of amenities, including an office, art and crafts center, food court, amphitheater, parking facilities, dormitory, and a shopping complex. The analysis highlighted that this multifaceted facility is poised to become an economic lifeline for the city and its residents.
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Dhordo, a part of the Indian state of Gujarat, has been recognised as one of the 54 Best Tourism Villages in the 2023 edition by the United Nations World Tourism Organization (UNWTO). Located in Kutch, Dhordo village is renowned for its rich culture and banni hospitality and attracts visitors for its intricate mud craft and Mutwa embroidery, besides the renowned 100-day Rann Utsav.
The UNWTO, in this third edition, selected 54 villages from a pool of nearly 260 applications. An additional 20 villages have joined the Upgrade Programme, with all 74 villages now forming part of the UNWTO Best Tourism Villages Network. Also joining the list of these 20 villages is Madla in India’s Madhya Pradesh.
This distinction celebrates villages that excel in nurturing rural regions while preserving landscapes, cultural diversity, local values, and culinary traditions.
These village selections were announced during the UNWTO General Assembly held in Samarkand, Uzbekistan.
“Tourism can be a powerful force for inclusivity, empowering local communities and distributing benefits across regions,” emphasised UNWTO Secretary-General Zurab Pololikashvili. “This initiative acknowledges villages that have harnessed tourism as a catalyst for their development and well-being.”
Besides Dhordo (India), the list of Best Tourism Villages for 2023 includes Al Sela (Jordan), Barrancas (Chile), Biei (Japan), Caleta Tortel (Chile), Cantavieja (Spain), Chacas, and Chavin de Huantar (Peru), Dahshour (Egypt), Hakuba (Japan), Higueras (Mexico), Huangling (China), Zhagana, and Zhujiawan (China), among others.
Launched in 2021, the Best Tourism Villages by UNWTO initiative is part of the UNWTO Tourism for Rural Development Programme. As per UNWTO, the programme works to foster development and inclusion in rural areas, combat depopulation, advance innovation and value chain integration through tourism and encourage sustainable practices.
In 2022, Jammu and Kashmir received a record 1.88 crore tourists. The current year is set to surpass this achievement, with foreign and domestic arrivals exceeding expectations. Sharing this and more, Secretary of Tourism & Culture, J&K Govt, Syed Abid Rasheed Shah, talks to ETTravelWorld about the role of sustainable tourism in U/T, plans to develop 300 new destinations and active involvement of youth.
Villages participating in this initiative are evaluated under nine critical areas, including cultural and natural resources, promotion and conservation of cultural resources, economic sustainability, social sustainability, environmental sustainability, tourism development, governance and prioritisation of tourism, infrastructure and connectivity, and health, safety, and security.The initiative comprises three primary pillars: Firstly, the “Best Tourism Villages by UNWTO” pillar recognising exceptional rural tourism destinations with accredited cultural and natural assets, a commitment to preserving community-based values, and a dedication to innovation and sustainability spanning economic, social, and environmental dimensions. Secondly, the “Best Tourism Villages by UNWTO Upgrade Programme” provides vital support to villages in their pursuit of meeting recognition criteria, addressing identified shortcomings during the evaluation process.
Lastly, the “Best Tourism Villages Network” acts as a platform for sharing experiences, best practices, learning, and opportunities among its members, welcoming contributions from experts and both public and private sector partners engaged in promoting tourism as a catalyst for rural development.
For the fourth edition of recognising more rural destinations, the call for submissions will take place in the first months of 2024.
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The UK’s Travel & Tourism sector is on track to exceed its 2019 peak this year, according to the World Travel & Tourism Council (WTTC)’s 2023 Economic Impact Research (EIR). The sector is projected to contribute GBP (British pound sterling) 252.4 billion to the UK economy, surpassing the pre-pandemic high of GBP 248.5 billion in 2019.
WTTC also anticipates that the sector will create nearly 380,000 jobs in 2023, effectively recovering most of the jobs lost during the COVID-19 pandemic. This will bring the total workforce in the Travel & Tourism sector to over four million, accounting for about one in nine workers in the UK.
International visitor spending in the UK is expected to reach GBP 26.18 billion, just 6 per cent below the 2019 peak of GBP 38.6 billion.
Looking back at 2022, the sector’s GDP contribution increased by 65 per cent to more than GBP 237 billion, representing 9.5 per cent of the economy, approaching the 2019 high of 9.9 per cent. During the same period, the sector created 1.1 million additional jobs, reaching a total of 3.6 million jobs nationally, equivalent to one in ten jobs in the UK.
The sector has now recovered 1.5 million of the 1.7 million jobs lost during the pandemic. International visitor spending also saw significant growth, surging over 300 per cent from 2021 to nearly GBP 30 billion.
Domestic visitor spending fully recovered in 2022, matching the pre-pandemic high of GBP 165 billion, indicating the enduring popularity of staycations.
Julia Simpson, WTTC President & CEO, emphasised the sector’s significance, with Travel & Tourism creating one in every ten jobs and contributing over GBP 250 billion annually to the UK economy. She urged the UK government to aim higher for the sector’s recovery and long-term growth, expressing concerns about the removal of VAT-free shopping for international tourists, which could lead high-value tourists to choose other destinations.
Between January and July 2023, a total of 700 million tourists embarked on international trips, marking a 43 per cent increase compared to the same period in 2022. July emerged as the busiest month, with 145 million international travellers. The UNWTO data indicates that international tourism is well-positioned to reach between 80 per cent and 95 per cent of pre-pandemic levels by the end of 2023.
Looking ahead to the next decade, WTTC forecasts that the sector will increase its GDP contribution to nearly GBP 315 billion by 2033, constituting nearly 11 per cent of the UK economy, and employing over 5 million people, with one in seven Britons working in the sector.In Europe, the Travel & Tourism sector contributed EU 1.9 trillion to the regional economy in 2022, just 7 per cent below the 2019 peak. WTTC projects that the sector’s GDP contribution will surpass EU 2 trillion in 2023, nearing the 2019 highpoint.
Despite employing nearly 35 million people in 2022, an increase of 2.9 million from the previous year, the sector still lags behind pre-pandemic levels by 3.2 million jobs. WTTC anticipates a full recovery of these lost jobs by the end of 2024.
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