Transcript Country Report INDIA - USAID Jordan Knowledge Management Portal

Overview of the Indian
Market to Jordan –
Opportunities and
Challenges
Mr. Shireesh Sharma
Managing Director and CEO, Celebrations!, JTB
MBR in India
SUMMARY
•
•
•
•
•
•
Country Profile
Outbound Tourism Overview
Factors Affecting Growth
Selection of Destination
Expected Growth
India & Jordan so far
FACT SHEET
• Location: South Asia
• Area: 3.28 million square kms – 7th largest
in the world
• Coastline: 7,517 kilometres . Of this, 5,423
kilometres belong to peninsular India and
2,094 kilometres to the Andaman,
Nicobar, and Lakshadweep Islands.
• Climate: The Indian climate is strongly
influenced by the Himalayas and the Thar
Desert, both of which drive the
economically and culturally pivotal
summer and winter monsoons.
COUNTRY PROFILE…CONTD
• Capital: New Delhi. India is a federal constitutional republic governed under a
parliamentary system consisting of 28 states and 7 union territories. It is one of the
five BRICS nations.
• Population: the second-most populous country with over 1.2 billion people, and the
most populous democracy in the world.
• Demographics: With 1,210,193,422 residents reported in the 2011 provisional
Census, India is the world's second-most populous country.
Population grew at 1.76% per annum during 2001–2011, down from 2.13% per annum in
the previous decade (1991–2001).
The human sex ratio is 940 females per 1,000 males. (2001 Census)
The median age was 24.9. (2001 census)
There are 27 million-plus cities in India, with Mumbai, Delhi, Kolkata, and Chennai being
the largest. (2001 Census)
The literacy rate was 74.04%: 65.46% among females and 82.14% among males. (2011
Census)
COUNTRY PROFILE - ECONOMY
According to International Monetary Fund, as of 2012,
• Indian economy is nominally worth US$1.843 trillion.
• ‘Ninth-largest economy by market exchange rates.
• It is at US$4.057 trillion, the fourth-largest by purchasing
power parity (PPP).
• Average annual GDP growth rate of 5.8% over the past two
decades, and reaching 10.4% during 2010.
• One of the world's fastest-growing economies.
• Ranks 138th in world in nominal GDP per capita and 129th in
GDP per capita at PPP.
COUNTRY PROFILE - ECONOMY
According to International Monetary Fund, as of 2012,
• According to a 2011 PwC report, India's GDP at purchasing
power parity will overtake that of the United States by 2045.
• During the next four decades, Indian GDP is expected to grow
at an annualized average of 8%, making it potentially the
world's fastest-growing major economy until 2050. The report
highlights key growth factors:
 a young and rapidly growing working-age population;
 growth in the manufacturing sector due to rising education and engineering
skill levels; and
 sustained growth of the consumer market driven by a rapidly growing middle
class.
OUTBOUND TOURISM OVERVIEW
•
•
•
Fastest-growing outbound travel market in the world. International tourism
departures from India have grown from 3.7 million in 1997 to 9.8 million in 2007
and international tourism expenditures have increased from US$ 1.3 billion in
1997 to US$ 8.2 billion in 2008 and over 12 million in 2010 and expected to reach
over 20 million by 2015
According to Pacific Asia Travel Association (PATA), 40% of all outbound trips by
Indians are for business purposes, while leisure, visiting friends and relatives (VFR)
and other reasons each account for 20% of outbound trips from India.
According to the travel trade, international leisure travelers belong to the 25-65
years age group, a larger proportion being males (65%) than females (35%). They
are well educated and belong to the upper socio-economic strata of society.
Majority are married (75%) and have children living in the household. Two-thirds
of leisure travelers tend to holiday abroad with family.
OUTBOUND TOURISM OVERVIEW… CONTD
• An average Indian traveler spends US$1,700 dollar per trip, which
amounts to a US$15 billion Indian outbound market. Most of the money
came from their own pockets, and not from bank-loans.
• Increased Internet access throughout India has facilitated strong growth in
online bookings. While 60 million Indians had Internet access in 2007, that
number is expected to more than double by 2010. There are also more
than 70 million cell phone users in the country, with an additional 5 million
being added every month.
• Of those Indians who travel internationally,
– 64% named sightseeing as the main purpose of their trip,
– 47% reported they travel abroad to explore new countries
– 25% said they travel abroad to relieve stress, to have a good time, or to visit family and
friends.
OUTBOUND TOURISM - TRENDS
• The Indian Outbound traveler is well educated and well informed
– comes from Key metros or next tier cities
– Is using his savings to fund the outbound trip
• Conventional travel agents are the mainstay of outbound travellers
– – Personalized relationships and trust keep them ahead of impersonal channels like
‘online’
– – Travelers search Online but buy offline
• Segments of outbound travelers stand apart from each other on travelling
companions, accommodation choice and stage in life etc.
– Families with children
– Young singles and couples without children
– Those from Tier 2 cities
FACTORS CONTRIBUTING TO THIS
GROWTH
• With more than 1.3 billion inhabitants and GDP increasing by
more than 8% every year, the country offers enormous
potential for future growth in outbound travel
• There are "56 dollar-billionaires in India, and 126,000 dollarmillionaires! The size of the Indian middle class currently
stands at somewhere over 350 million: roughly the size of the
population of the US and growing at an estimated 40-50
million a year.
FACTORS CONTRIBUTING TO THIS
GROWTH
• With over 28 million passport holders in the country who are potential
travelers, the source market for outbound travel is wide and complex
because of its size and variety. According to the primary research among
the travel trade, the main source regions are west and north (including
central India) together accounting for about 65% of all outbound travel,
followed by south (25%) and east (10%).
• It is estimated that more than half of these people are less than 35 years
old, for whom travel is an exciting proposition. With the GDP in the
country growing by 8% per annum, disposable incomes have increased
rapidly. Indian outbound travelers, once considered low spenders, are now
recognized as high-yield visitors.
FACTORS CONTRIBUTING TO SELECTION
OF DESTINATION
• In terms of travel destination selection, top factors
that influence destination selection for Indians are:
–
–
–
–
–
–
safety and security;
variety of things to see and do;
overall image of holiday destination;
good tourist facilities;
infrastructure; and
the ease of obtaining visas.
FORECAST
• WTTC says India will be the Third fastest generator of Travel
and Tourism Demand from 2010 - 2019 with an annualized
growth of 8.2%
• India shall depict the fifth fastest growth in Business Travel
from 2010 - 2019 at the annualized rate of 7.6%, only behind
China (among large nations)
• India is only next to Sao Tome & Principe to grow their travel
and tourism exports from 2010 - 2019 at the annualized
growth rate of 13.8%
INDIA FOR JORDAN
• Jordan entered India in March 2009
• Marketing strategies were recommended to focus on
following tourism products that befit the Indian
market:
– Business Tourism – MICE
– Leisure Tourism – Historical, Cultural & Wellness
– Religious Tourism
A WELL PLANNED STRATEGY
• 2009 Focus:
– Educate the trade with Jordan’s tourism offerings in the 3
segments (MICE, Leisure & Religious)
– PR & Media Campaigns
• 2010 Focus (In addition to above):
– Advertising campaigns to create consumer awareness
– Cooperate with trade to bring action
– Create awareness in Bollywood (Film Industry)
THE CHALLENGING YEAR - 2011
•
•
•
•
•
Shift in gears
Continue advertising campaign
Focus on PR and Media
Enhanced support to trade
Increased Press Trips
THE RESULT
• In 2009, the number of Indian visitors stood at
approx 29,000
• In 2010, this number grew to 53,000
• And till Sep 2011, the statistics according to JTB
stand at 31.2 % up at approx 55,000. We are waiting
for the figures for last quarter of 2011.
SAMPLES – PR & MEDIA PUBLICITY
SAMPLES – ADVERTISING CAMPAIGN
SAMPLES – COOP CAMPAIGNS WITH TRADE
SAMPLES – CELEBRITY SHOOTS
BOLLYWOOD & TOURISM
•
•
•
•
Kuch Kuch Hota Hai – UK
Fanna – Poland
Don 2 – Germany
Jindagi Na Milengi Dobara – Spain
CONCLUSION
• So what brings Results?
–
–
–
–
Higher Visibility
Media
Word of Mouth
Movies (Bollywood)
THE NEED FOR FUTURE
• Enhance cooperation with JTB activities
–
–
–
–
–
Trade shows
Advertising
Road shows
Film shoots
Consumer Promotions
THANK YOU