Travel & Tourism s Top Ten Emerging Market Presented by: Tourism Intelligence International Vienna, October 2011
Travel and Tourism Top Ten Emerging Markets India
India the Future Superpower
India s Economy 2010 Real GDP grew at above 10% in 2010 GDP at current prices grew between 2000 and 2010 at 12%. 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 economy by 2050 Source: Citigroup, 2011
GDP based on PPP in International Dollars 2010 Source: International Monetary Fund, 2011
Real GDP growth 2010 Source: International Monetary Fund, 2011
Exchange rates: Rupee against major currencies Source: xe.com, 2011
Population Size of Selected Countries (millions 2011) 1400 1200 1210 1000 800 600 400 200 0 312 82 62 India USA Germany UK Source: United Nations Statistical Division, 2011
Population forecast (2011-21002100 in billions) India China United States of America Europe 2 1,8 1,6 1,4 12 1,2 1 0,8 0,6 0,4 0,2 0 2011 2021 2031 2041 2051 2061 2071 2081 2091 2100 Source: United Nations Statistical Division, 2011
Natural increase of population per 1000 inhabitants 2005 2010 16 14,813 14 12 10 8 6 4 2 0-2 -4 2,659 5,671 Germany United United States India -1,913 Kingdom of America Source: United Nations Statistical Division, 2011
Population Demographics (in thousands) 600 000 0-19 20-39 40-64 65+ 500 000 400 000 300 000 200 000 100 000 0 2011 2035 2050 2100 Source: United Nations Statistical Division, 2011
800 Indian social classes 2011 to 2025 (in millions) 2011 2025 700 670 600 500 583 509 525 400 379 300 200 100 0 73 1,5 9,5 Deprived Aspires Middle Class Upper Class Source: McKinsey, 2011
Outbound Travel from India 14.000.000 13.200.000 12.000.000 10.000.000 8.000.000 7.184.501 6.000.000 4.000.000 3.056.360 360 4.415.513 2.000.000 0 19 991 19 992 19 993 19 994 19 995 19 996 19 997 19 998 19 999 20 000 20 001 20 002 20 003 20 004 20 005 20 006 20 007 20 008 20 009 20 010 Source: Ministry of Tourism and Culture, 2011
25,0% Growth of Indian Outbound travel (2002-2010) 2010) 20,0% 15,0% 16,1% 1% 1% 17,3% 15,6% 16,1% 19,2% 10,0% 8,2% 8,3% 11,1% 1% 5,0% 0,0% 1,8% 02 03 04 05 06 07 08 09 10 Source: United Nations World Tourism Organization, 2011 Source: Ministry of Tourism Government of India, 2011
30 Indian expenditure (in US$ Billions) 28 25 20 15 10 83 8,3 87 8,7 10,7 12,1 11,5 5 0 2005 2006 2007 2008 2009 2020 Source: United Nations World Tourism Organization, 2011
Balance of Payments on Indian Travel (2001-2010) 2010) 14.000 12.000 10.000 8.000 6.000 4.000 2.000 Credit Debit 0 01-0202 02-03 03 03-0404 04-0505 05-0606 06-0707 07-0808 08-0909 09-10 Source: Handbook of Statistics on the Indian Economy, 2011
Number of Indian Passport Holders 60 50 52,5151 40 30 25,8 20 15,58 10 8,51 0 1979-80 1989-90 90 1999-2000 2010 Source: Ministry of External Affairs. Government of India, 2011
Share of Outbound Travel by Indian airports in 2009 Ahmedabad Others 8% Mumbai Kolkata 3% 2% Bangalore 5% 24% Calicut t7% Hyderabad 5% Trivandrum 6% Delhi 19% Cochin 9% Chennai 12% Source: India Tourism Statistics, 2011
Top Indian Outbound Destinations (in thousands in 2009) 0 200 400 600 800 Kuwait Singapore Bahrain* 733 726 718 Thailand Malaysia USA 549 597 590 China 449 UK Saudi Arabia Hong Kong 273 247 231 * Data taken from the year 2007 Source: United Nations World Tourism Organization, 2011
Indian Outbound travel by Regions (in thousands 2009) 2500 2000 2042 1500 1478 1000 500 0 907 666 561 234 127 23 15 Source: United Nations World Tourism Organization, 2011
Destination Trends by Regions (2005-2009) 2009) 2.500.000 2005 2006 2007 2008 2009 2.000.000 1.500.000 1.000.000 500.000 0 Source: United Nations World Tourism Organization, 2011
Purpose of Visit of Indian travellers 60% UK* USA Australia 50% 49% 40% 30% 34% 28% 33% 33% 29% 27% 20% 19% 20% 10% 7% 10% 11% 0% Business VFR Holiday Others Source: Visitbritain.org, Otti.com, tourism.australia.com, 2011
Indian Average Length of Stay by Outbound Destinations Australia 58,6 USA 42,7 UK New Zealand 24 27 Ireland 12,50 Egypt 9 Thailand 6 0 10 20 30 40 50 60 70 Source: OTTI, Australia Tourism, visitbritain.org, Daily News and Analysis, 2011
Choice of Accommodation Other 4% Hotel / Rented B&B 18% accommodation 25% Friends & Family 53% Source: Visitbritain.org, 2011
Indian outbound Source Markets Regions % Share of outbound Travellers North and West 60% South 25% East 10% Others 5%
Indian source Markets by Charcteristics Megacities Boomtowns Niche Cities Mumbai Delhi Kolkata Surat Jaipur Kampur Amritsar Ludhiana Chandigarh h Chennai Bangalore Hyderabad Lucknow Nagpur Bhopal Coimbatore Faridabad Jalandhar Megacities: Large in terms of markets and population Boomtowns: Large population and high expenditure per household Niche Cities: Small population higher h expenditure per household h Source: Kishore Biyani s Future Capital Research and National Council of Applied Economic Research s, 2011
Free Visas Destinations from India Afghanistan Argentina Bangladesh DPRK Jamaica Maldives Mauritius Mongolia Nepal South Africa Uruguay
Academic sessions start in India in June-July. Festival season begins in India in late September continuing till March
Calmness Tolerance Modesty Harmony Personal autonomy Generosity Hospitably A careful observation Respect towards all ages, religions and races
Indians are High Spenders Tourism expenditure grew annually by 11% between 2005 and 2009 Indians spend US$6,130 per trip to the US But US$1,600 per trip to the Asian regions Source: United Nations World Tourism Organization, Otti, 2011
Cruise trips are on a rise Indian cruises grew annual by 15% over the last years Source: Travel Trends Today, June 2011
Indian Travellers are relatively young And will become younger due to the country s demographic profile
Mc Donald s Family Restaurant
What Indians do when in the US Shopping Restaurants 78% 85% Sightseeing Historical places Amusement Parks National Parks Countryside Small Towns Nightclubs/Dancing Gallery/Museum 44% 38% 30% 20% 17% 15% 15% 14% 0% 20% 40% 60% 80% 100% Source: Otti, 2011
The Indian Traveler Male (65%) Young Well 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 Likes to go shopping and sightseeing Wants to learn about a new culture Researches on the Internet and books via travel agencies
Strategies to Woo, Wow and Win the Indians
Bollywood Superstar Khan declared Paris as his favourite family holiday destination
Engaging travel agents as Special agents for the country
FAMILIARISATION tours
Unique activites and attractions
Cater to Indians gastronomic quests
Offering family packages
Target high-value niche markets
Cultural events (e.g. sports)
Respect and understand the cultural differences of the Indian culture
Hitler s symbol war, hate and discord
Hindu symbol for Peace, 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 sightseeing shopping, social-nightlife and status-seeking experiences.