India leisure market to NSW

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1 India leisure market to December 2013 Introduction Overseas travel from India is growing and growing fast. Over the past five years outbound travel from India has more than doubled. The United Nations World Tourism Organisation forecasts 50 million outbound travellers by A report on the India travel market by Amadeus (January 2013) predicts the 4.5 million arrivals to Asia-Pacific destinations two years ago will grow to almost 70 million by The nature of India s economic development, changing attitudes towards travel, the expansion of travel infrastructure (including international airports) are increasingly coming together against the backdrop of India s massive population. In such a scenario, even modest increases in average disposable income will result in tens of millions of people into the market for overseas leisure travel. Australia ranks eighth amongst all out-of-region outbound destinations for Indian travellers. It is well placed to increase its market share of the outbound Indian market with our sizable Indian community (estimated in the last census to be just over 295,000) and our strong economic and cultural ties with India. Indian travel preferences are clearly changing. Movement towards experiential, eco and outdoor-based adventure tourism for younger affluent Indians have all been identified as strong trends. Luxury travel has also been identified as have niche and special-interest trips. Overseas travel has now acquired bragging rights for those who can afford it. Family ties are very important in India and having grown up children who are living overseas is an opportunity for long stay visits by Indian parents to countries such as Australia. To capitalise on India s overseas travel potential in Australia, Air India commenced direct services to Sydney and Melbourne on 30 August It has been 22 years since Air India flew to Sydney. The new service is Australia s only direct air link to India. (Source: Department of Immigration and Citizenship, year ended September 2013). Definition and Notes For the purpose of this factsheet the India leisure market has been defined as those visitors from India whose purpose of visit is for Holiday or for Visiting Friends and Relatives (VFR). This recognises the overlapping nature of Holiday and VFR travel across a range of trip characteristics. Comparisons to the leisure market in general or the average leisure market visitor in this fact sheet are made using the same combination of purpose of visit. Figures for this factsheet are from Tourism Research Australia s International Visitor Survey for the year ending September 2013.

2 MARKET SIZE In the year ending September 2013, there were 159,300 Indian Australia spending just under 10 million nights in our country. Leisure visitors from India contributed 69% of all India Australia and 55% of all India nights. For Australia as a whole, the size of the India leisure market in 2013 was 110,000 visitors. This was 15% more than in 2012 and more than the 6% increase for the overall leisure market. The India leisure market to Australia is almost twice the size it was five years ago. When measured in terms of the number of nights, the increase is even higher. The India leisure market spent just under 5.5 million nights in Australia in 2013, an increase of 19% compared with 2012 and almost twice the number of nights five years ago. Locations within India responsible for the majority of the leisure market Australia in 2013 include Maharashtra (17%), Delhi (16%), Karnataka (12%), Tamil Nadu (10%) and Kerala (8%). Combined these locations account for just over 60% of Indian leisure Australia in and Victoria dominated both visitor numbers and nights from the India leisure market to Australia. hosted overnight stays for just over half the market in 2013 (51% or 56,000). Victoria hosted 47 % of Indian leisure visitors or 51,700. There was a considerable gap between these States and the third most visited State, Queensland (26%). Another sizeable gap exists between Queensland and other States such as South Australia (9%) and Western Australia (8%) of visitors. It is clear that the three Eastern seaboard States dominate Indian leisure visitation. This dominance is even more pronounced when looked at from a visitor night s perspective. Victoria and New South Wales accounted for almost three-quarters (73%) of all India leisure market nights spent in Australia in destinations accommodated 1.9 million nights, 0.2 million less than Victoria. The India leisure market s average length of stay in Australia was 50 nights, considerably longer than the average length of stay of 27 nights for all leisure visitors to Australia. Indian leisure visitors had an average length of stay of 34 nights in, shorter than the national average which was influenced by longer length of stays in Victoria and South Australia and Western Australia. The top ten regional destinations visited by the India leisure market to Australia were Sydney and Melbourne which received 47% and 45% of visitors, respectively. The Gold Coast attracted 14 % of India leisure market Australia, followed by Brisbane with 9%, Tropical North Queensland 9%, Adelaide with 8 % and Perth 7%. Sydney and Melbourne also dominated the number of nights spent in regions in Australia. Melbourne attracted 35% of nights followed by Sydney with 32% of nights. The two destinations accounted for just over two-thirds of the India leisure market s nights in Australia. 2

3 VISITOR PROFILE The profile of the India leisure market in the year ending September 2013 is as follows: The India leisure market who visited was dominated by unaccompanied travellers (38%) and adult couples (36%). Combined, these two travel party types accounted for just fewer than three-quarters of all India leisure market the State. Family groups accounted for 21% of the market. In comparison to the overall leisure market, unaccompanied travellers were less important (38% vs. 48%), whereas adult couples were more important (36% vs. 24%), as were family groups (21% vs. 13%). India leisure market in 2013 were much more likely to be female than male (64% vs. 36%). The biggest age segment was aged years (31%), followed by 60 years+ (28%), years 28% and years (13%). Compared to the overall leisure market to the India leisure market was older with 59% aged 45 years or over vs. 44%. Both the India leisure market to and the leisure market overall were dominated by visitors arriving in Australia without package arrangements (83% and 78% of visitors respectively). India leisure market were slightly more inclined to be on their first visit to Australia (63%) compared to the average (53%). India leisure market in 2013 were much more likely to stay with friends and relatives (58%) compared to other forms of accommodation. More than one third of visitors stayed in hotel, resort, motel, motor inn accommodation (37%). Other accommodation types were insignificant. This profile represents a considerable difference compared to the average for the leisure market to where 48 % used hotel, resort, motel, motor inn accommodation while 38% used the accommodation of friends or relatives. When analysed as a percentage of nights spent in the various types of accommodation, it is clear that staying with friends and relatives dominates (84% of India leisure market nights in ). Rented house/apartment accounted for 10% of their nights while Hotel, resort, motel, motor inn accommodation attracted just 5% of their nights in ; In terms of the type of transport used between stopovers, the India leisure market is far more likely (47%) to use a private or company car than the leisure market in general (29%), which is likely to be due to the India leisure market s preference for staying with friends and relatives and perhaps therefore, the ability to travel in their host s car. Use of aircraft is similar (41% India leisure market vs. 34% for the leisure market to overall). The India leisure market visitor is however, less likely than the leisure market in general to use local public transport (4% vs. 14%), a charter or tour bus (0.1% vs. 10%) and taxis or hire cars (9% vs. 12%). The India leisure market s use of rental vehicles was similar to the overall leisure market (5% vs. 6%). 3

4 Sixty per cent of the India leisure market visited the Blue Mountains in year ending September This market s trips to the Blue Mountains were primarily taken as a daytrip from Sydney. This is also true of the leisure market in general; although the percentage is slightly lower (56%). Wollongong/South Coast was the other place in visited by the India leisure market in 2013, primarily for a daytrip at a similar rate of visitation as the leisure market to in general (18% vs. 16%); Places and attractions visited in Sydney Compared to the leisure market in general, the India leisure market was more likely to visit Sydney s tourist attractions rather than its tourist precincts. Places visited by the India leisure market in 2013 are compared with the overall leisure market to in the table below. Table 1: Places and attractions visited in Sydney visited by the India leisure market India Leisure Leisure Sydney Opera House 83% 78% Sydney Harbour Bridge 79% 73% Sydney Aquarium 40% 20% Sydney Tower Eye 29% 18% Royal Botanical Gardens 22% 38% Sydney Wildlife World 21% 8% Taronga Zoo 18% 15% Australian Museum 10% 9% Star City Casino 8% 12% Museum of Contemporary Art 4% 10% Art Gallery of 1% 2% Darling Harbour 78% 69% Bondi 50% 48% Manly 29% 33% Chinatown/Haymarket 25% 47% The Rocks 25% 47% Kings Cross 14% 27% Activities Both India leisure market and the leisure market in general had very high participation rates in activities which involved a social element (95% of India leisure vs. 98% overall). The participation rates for Local attractions/tourist activities was also similar (81% India leisure vs. 80% overall) as was that for Outdoor/Nature (84% vs. 86%) and the activities involving Arts/Heritage (59% v 63%). Members of the India leisure market were, however, far less likely to engage in activities involving Active outdoor/sports than the general leisure 4

5 market (21% India leisure vs. 36% overall). There was also a gap between the participation rate in Indigenous culture activities (7% India leisure vs. 19% overall). The top ten individual activities undertaken by the India leisure market in comparison to the overall leisure market are provided in the table below. Table 2: The top ten individual activities undertaken by the India leisure market India Leisure Leisure Go shopping for pleasure 82% 80% Eat out / dine at a restaurant and/or cafe 82% 88% Go to the beach (incl swimming, surfing, diving) 77% 74% Sightseeing/looking around 72% 78% Go to markets 61% 51% Visit wildlife parks / zoos / aquariums 50% 46% Visit national parks / State parks 47% 55% Charter boat / cruise / ferry 42% 43% Visit history / heritage buildings, sites or monuments 40% 41% Visit botanical or other public gardens 40% 46% Information Sources The table below lists information sources used by India leisure visitors in comparison to the overall leisure market. Table 3: The main information sources used by the India leisure market before their trip to Australia India leisure leisure Friend or relative living in Australia 53% 33% Internet 30% 48% Travel Agent 20% 19% Previous visit(s) 9% 16% Friend or relative who has visited Australia 7% 12% Travel book or guide 3% 15% In contrast to the average leisure visitor to, India leisure market visitors relied far more on friends and relatives living in Australia as an information source to help plan their trip to Australia and much less upon the internet. The use of travel agents is the same for both markets, and the level of information obtained from previous visits is higher with overall 5

6 leisure than with the India leisure market visitors. There was far less use of a travel book or guide. Internet Use and Access The reasons for using the Internet by the India leisure market in comparison to the overall leisure market are provided in the table below. Table 4: Reasons for using the Internet by the India leisure market India leisure leisure Other reasons 80.2% 70.4% To find out more about Australia after you decided to visit 46.4% 51.0% To look for airfares or air schedules: - for travel to Australia 46.2% 50.8% To help plan your Australian trip itinerary 41.1% 45.8% To participate in travel-related chat rooms about Australia 36.3% 36.3% To find out about events or activities within Australia 35.7% 32.5% To find out about accommodation in Australia 25.9% 40.0% To organise VISA's and travel insurance relating to this trip to Australia 25.5% 33.2% To look for airfares or air schedules: - for travel within Australia 19.3% 20.9% To help plan other transport options within Australia 18.5% 23.0% To help decide whether or not to visit Australia 10.4% 12.8% To find a travel agent for Australia 3.6% 8.6%. Despite the lower use of the Internet by the India leisure market compared to the overall leisure market to, it is nonetheless useful to consider how the internet is used for travel planning. The India leisure market was relatively similar in the reasons for using the Internet to plan their trip with the overall leisure market, with the main uses being to find out more about Australia, to look for airfares and schedules for flights to Australia and to plan the itinerary. The main difference with the overall leisure market was less use of the internet to find out about accommodation in Australia, which was not surprising given the India leisure market s preference for staying in the homes of friends and relatives. The India leisure market to is less likely than overall the leisure market to to book some elements of their trip on the internet prior to arrival (21% vs. 48%). 6

7 Indian leisure were more likely to use a netbook/laptop to access the Internet during their trip to Australia than any other device. Smartphones were the second most used device though less used by the India leisure market than by the overall market. Indian leisure visitors were more likely than the overall leisure market to access the Internet via a PC in their accommodation, which was not surprising given their preference for staying in the homes of friends/relatives. The table below compares how the Internet was accessed by the India leisure market in comparison to the overall leisure market. Table 5: How the internet was accessed during the trip by the India leisure market India leisure leisure Netbook/Laptop 40% 35% Smart phone 37% 59% PC in Accommodation 35% 22% ipad 20% 23% More information For more information and statistics about international see the snapshots under Tourism - Research & Reports on the Destination Corporate website at 7

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