travel & tourism’s top ten emerging marketindia’s economy 2010 •real gdp grew at above 10%...

Travel & Tourism’s Top Ten pEmerging Market

Tourism Intelligence InternationalPresented by:

www.tourism-intelligence.com

gVienna, October 2011

www.tourism-intelligence.comwww.tourism-intelligence.com

Travel and Tourism Top Ten Emerging Markets

India


India the Future Superpower


India’s Economy 2010y

•Real GDP grew at above 10% in 2010Real GDP grew at above 10% in 2010

•GDP at current prices grew between 2000 and 2010 at 12%.

GDP t t i b 11% b t•GDP at current prices grew by 11% between 2000 2010.

•Inflation rate peeked in 2009 at 15% and dropped to 9% in 2010.


Source: International Monetary Fund, 2011

India might be the largest b 2050economy by 2050


Source: Citigroup, 2011

GDP based on PPP in International Dollars 2010



Real GDP growth 2010



Exchange rates: Rupee against major currenciesmajor currencies


Source: xe.com, 2011

Population Size of Selected Countries (millions 2011)(millions 2011)

12101400

1210

1000

1200

800

000

312400

600

82 620

200

0India USA Germany UK


Source: United Nations Statistical Division, 2011

Population forecast(2011 2100 in billions)(2011-2100 in billions)

India China United States of America Europe

1,82

p

1 21,41,6

0,81

1,2

0,40,6

00,2

2011 2021 2031 2041 2051 2061 2071 2081 2091 2100



Natural increase of population per 1000 inhabitants 2005 20101000 inhabitants 2005 – 2010

14,81316 ,

1214

5 6718

10

2,659

5,671

246

-202

Germany United United States India-1,913

-4-2 Kingdom of America



Population Demographics(i th d )(in thousands)

600 0000-19 20-39 40-64 65+

500 000

600 000

400 000

300 000

100 000

200 000

0

100 000

2011 2035 2050 2100


2011 2035 2050 2100Source: United Nations Statistical Division, 2011

Indian social classes 2011 to 2025(in millions)(in millions)

8002011 2025

670

583

700

800

509 525583

500

600

379

300

400

73

200

300

731,5 9,5

0

100

D i d A i Middl Cl U Cl


Deprived Aspires Middle Class Upper Class

Source: McKinsey, 2011

Outbound Travel from India13.200.00014.000.000

10.000.000

12.000.000

7.184.5018.000.000

3 056 3604.415.513

4 000 000

6.000.000

3.056.360

2.000.000

4.000.000

0

991

992

993

994

995

996

997

998

999

000

001

002

003

004

005

006

007

008

009

010


19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20

Source: Ministry of Tourism and Culture, 2011

Growth of Indian Outbound travel(2002 2010)(2002-2010)

25,0%

16 1% 16 1%17,3%

19,2%20,0%

16,1% 15,6% 16,1%

11 1%

15,0%

8,2% 8,3%

11,1%

10,0%

1,8%5,0%

0,0%02 03 04 05 06 07 08 09 10


Source: United Nations World Tourism Organization, 2011Source: Ministry of Tourism Government of India, 2011

Indian expenditure(in US$ Billions)(in US$ Billions)

2830

25

20

8 3 8 710,7

12,1 11,5

10

15

8,3 8,7

5

10

02005 2006 2007 2008 2009 2020


2005 2006 2007 2008 2009 2020Source: United Nations World Tourism Organization, 2011

Balance of Payments on Indian Travel (2001 2010)Travel (2001-2010)

Credit Debit

12.000

14.000

10.000

12.000

6.000

8.000

2 000

4.000

0

2.000

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10


01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10

Source: Handbook of Statistics on the Indian Economy, 2011

Number of Indian Passport Holders

52 5160

52,5150

40

25,8

20

30

8,51

15,58

10

20

01979 80 1989 90 1999 2000 2010


Source: Ministry of External Affairs. Government of India, 2011

1979-80 1989-90 1999-2000 2010

Share of Outbound Travel by Indian airports in 2009airports in 2009

Ahmedabad Others 8%Mumbai

24%Bangalore Kolkata 3%

2%

C li t 7%

5%

Hyderabad %

Calicut 7%

Delhi 19%Trivandrum 6%

5%

Chennai 12%Cochin 9%

6%


Source: India Tourism Statistics, 2011

Top Indian Outbound Destinations(in thousands in 2009)(in thousands in 2009)

0 200 400 600 800

733

726

Kuwait

Singapore

718

597

Bahrain*

Thailand

590

549

Malaysia

USA

449

273

China

UK

247

231

Saudi Arabia

Hong Kong


* Data taken from the year 2007Source: United Nations World Tourism Organization, 2011

Indian Outbound travel by Regions(in thousands 2009)(in thousands 2009)

2500

2042

1478

2000

1478

9071000

1500

666 561

234 127500

1000

127 23 150


Source: United Nations World Tourism Organization, 2011

Destination Trends by Regions(2005 2009)(2005-2009)

2005 2006 2007 2008 2009

2.000.000

2.500.000

1 000 000

1.500.000

500.000

1.000.000

0


Source: United Nations World Tourism Organization, 2011

Purpose of Visit of Indian travellers

60%UK* USA Australia

49%50%

60%

34%29%

33% 33%40%

29%27%28%

19% 20%20%

30%

10%7%

11%10%

20%

0%Business VFR Holiday Others


Source: Visitbritain.org, Otti.com, tourism.australia.com, 2011

Indian Average Length of Stay by Outbound DestinationsOutbound Destinations

58,6Australia

42,7

58,6

USA

Australia

24

27

New Zealand

UK

12,50

24

Ireland

New Zealand

9Egypt

6

0 10 20 30 40 50 60 70

Thailand


Source: OTTI, Australia Tourism, visitbritain.org,Daily News and Analysis, 2011

Choice of Accommodation

Hotel / B&B 18%

Other 4%R d B&B 18%Rented accommodation25%

Friends & Family y

53%


Source: Visitbritain.org, 2011

Indian outbound Source Markets

Regions % Share of outbound Travellers

North and West 60%SouthEast

25%10%

Others 5%


Indian source Markets by CharcteristicsCharcteristics

Megacities Boomtowns Niche CitiesMumbaiDelhiK lk t

SuratJaipurK

AmritsarLudhianaCh di hKolkata

ChennaiBangalore

KampurLucknowNagpur

ChandigarhFaridabadJalandharBangalore

HyderabadNagpurBhopalCoimbatore

Jalandhar

Megacities:Large in terms of markets and populationBoomtowns:Boomtowns:Large population and high expenditure per household Niche Cities:S ll l ti hi h dit h h ld


Small population higher expenditure per household

Source: Kishore Biyani’s Future Capital Research and NationalCouncil of Applied Economic Research’s, 2011

Free Visas Destinations from India

• Afghanistan• Argentina • Mauritius• Argentina• Bangladesh

• Mauritius• Mongolia

• DPRK• Jamaica

• Nepal• South Africa• Jamaica

• Maldives• South Africa• Uruguay


Academic sessions start in India in June-JulyJune-July.

• Festival season begins in India in late


est va seaso beg s d a ateSeptember continuing till March

•Calmness

Tolerance

•Generosity

Hospitably•Tolerance

•Modesty

•Hospitably

•A careful observation

•Harmony

•Personal autonomy•Personal autonomy

www.tourism-intelligence.com •Respect towards all ages, religions and races

Indians are High Spenders

T i dit ll b• Tourism expenditure grew annually by 11% between 2005 and 2009

• Indians spend US$6,130 per trip to the USUS

• But US$1,600 per trip to the Asian iregions


Source: United Nations World Tourism Organization, Otti, 2011

Cruise trips are on a rise

Indian cruises grew annual by 15% over thelast years


last years Source: Travel Trends Today, June 2011

Indian Travellers are relatively young

• And will become younger due to thewww.tourism-intelligence.com

• And will become younger due to the country’s demographic profile

Mc Donald’sFamily RestaurantFamily Restaurant


What Indians do when in the US

85%Shopping

44%

78%

Sightseeing

Restaurants

30%

38%

Amusement Parks

Historical places

17%

20%

Countryside

National Parks

15%

15%

Nightclubs/Dancing

Small Towns

y

14%

15%

0% 20% 40% 60% 80% 100%

Gallery/Museum

Nightclubs/Dancing


0% 20% 40% 60% 80% 100%Source: Otti, 2011

The Indian Traveler • Male (65%)

• Young

• Well educatedWell educated

• And experiences new wealth


Travel for holiday and shopping purposes on short haul


Travel for business purposes on long haul trips


Which is likely to change in the future

Sightseeing, visiting famous places

The Indian traveller …LikLikes to go shopping and sightseeingWants to learn about a new cultureResearches on the


Internet and books via travel agencies

Strategies to Woo, Wow and Win the Indiansthe Indians


Bollywood Superstar Khan declared Paris as his favourite family holiday destination


Engaging travel agents as ‘Special’agents for the countryagents for the country


FAMILIARISATION tours


Unique activites and attractions


Cater to Indians’ gastronomic questsquests


Offering family packages


Target high-value niche markets



Cultural events (e.g. sports)

• Respect and understand the culturaldifferences of the Indian culture


Hitler’s symbolwar hate and discordwar, hate and discord


Hindu symbol forPeace love and serenityPeace, love and serenity


• Engage your local Indian communities


Indian choir visits Indian community


• Researches on the Internet and

books via travel agencies


• Don’t forget the S’s – sightseeingshopping, social-nightlife andstatus-seeking experiencesstatus-seeking experiences.


travel & tourism’s top ten emerging marketindia’s economy 2010 •real gdp grew at above 10%...

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