Tag Archives: India

“India and Oman continue to work together in the tourism sector, facilitating easier movement and exchanges between the two nations,” said Salim bin Mohammed Al Mahrouqi, Minister of Heritage & Tourism, Oman. Noting that Indians are number two in terms of tourism influx to Oman, he sought further improvement in tourism ties between the two countries.

India’s aviation traffic is expected to clock 11-12% CAGR over the medium term, driven by faster growth in the international segment, Jefferies said. In hotels, the industry revenue per available room is expected to clock 7-8% CAGR going ahead after double-digit growth seen in the past two to three years, it said while suggesting a structural demand upturn in the travel sector.

As airports embrace digital innovation, India positions itself to lead the world with its vision of a fully biometric-enabled and contactless airport experience. The Indian government and aviation authorities are keen on developing a robust framework for biometric systems that aligns with global practices. India is poised to lead the charge with the upcoming implementation of facial authentication technology for international air travel, scheduled for a pilot project in June 2025, said Siddharth Sharma, Head- IT Operations, Digi Yatra.

Willie Walsh, Director General, International Air Transport Association (IATA) expressed confidence that India would ease bilateral flying rights, especially as Indian carriers like Air India and IndiGo broadened their fleets with wide-body aircraft. He underlined the benefits of such agreements, highlighting that an increase in the rights will enable Indian airlines to offer more direct international connections.

Celebrating its 30 years of diplomatic relations with India, South African Tourism held a Press Meet in New Delhi. During the address, Patricia de Lille, Minister of Tourism, South Africa, announced the launch of a new digital Entry Travel Agreement (ETA) system to boost tourism ties with India. The move will replace the existing e-visa programme to simplify and expedite the visa application process. She said they have cut down extra documentation required for the visa application to three international documents across South African missions. She further revealed that mass visa processing for group travellers will now be made possible via a recently gazetted Trusted Tourist Tour Operator System Scheme that is primarily targeted at the Chinese and Indian markets. So far, 23 Indian tour operators have applied for this program in its first phase, demonstrating the positive response it has already received. The system will take effect on 20 January 2025. Highlighting that air connectivity remains a challenge for Indian tourists, Patricia de Lille, Minister of Tourism, South Africa, said, “We will be meeting Indian carriers, including Air India, IndiGo, and SpiceJet to explore possibilities of direct flight between India and South Africa as we currently lack any direct route.” The session was focused on economic growth and strategic collaboration, delving into the future travel outlook, India-focused initiatives, and key insights to shape and strengthen outbound Indian travel to South Africa.

Phillipa Harrison, Managing Director, Tourism Australia, leading a delegation of 15 CEOs from the Australian tourism industry to meet with senior travel trade officials in New Delhi and Mumbai, has said that India is the 5th largest inbound market for arrivals for the year ended August 2024, with total arrivals for the year ended August 2024 were 423,400.

India has recorded the second-highest increase in domestic airfares in the Asia-Pacific (APAC) and West Asian regions, climbing by 43% in the first half of 2024 compared to pre-pandemic levels in 2019, second only to Vietnam (63%), according to a study conducted by Airports Council International (ACI). India ranks third in fare increases during the same period in international skies, behind the United Arab Emirates (UAE) and Malaysia.

Suggesting that India has to create an enabling environment for the market forces to unleash with aggression in terms of investments in the sector to realise the sector’s true potential, Suman Billa, Additional Secretary, MOT, said, “Tourism currently contributes 5.6% to the country’s GDP which is quite low. The task is to double it in the next 10 years by encouraging market forces to invest aggressively in the sector.”

Pradeep Shetty, President, Federation of Hotel & Restaurant Associations of India (FHRAI), revealed that India’s hospitality industry contributes 12-13% to the GDP and employs over 12% of the workforce. These figures place the industry ahead of both the automobile and IT sectors in terms of economic contribution.

India is presently the world’s fastest-growing aviation market with demand surpassing the supply of aircraft and a strong order book of more than 1,500 aircraft from airlines in India. India’s skies are dominated by low-cost carrier IndiGo which holds around 60% market share and the Tata group airlines, with around 30% market share. As more than 80% of India’s commercial fleet is leased, there is tremendous potential for aircraft leasing activity within India. Even if some of these aircraft are leased from India, it will bring down the costs as the leases will be immune to exchange rate volatility. Leasing done through foreign jurisdictions like Ireland is vulnerable to exchange rate fluctuations. GIFT City – Can it snatch leasing business from Dublin? The Government of India has recognized the potential of the aircraft leasing and financing business. Accordingly, in October 2020, ‘aircraft lease’ was designated as a ‘financial product’ that can be offered by entities set up in International Financial Services Centres (“IFSCs”) in India. IFSCs are essentially special economic zones dedicated to financial services. IFSCs provide tax benefits and flexibility in foreign currency transactions. In the last few years, there has been a surge in activity from the Gift City, India’s first IFSC, with more than 28 aircraft lessors already registered, which have leased more than 120 aviation assets, including aircraft, helicopters and engines. The success of GIFT city to a large extent hinges on tax incentives. Recognising this, the Indian Government provides a range of tax benefits to units established in the GIFT City, similar to some of the well-established aircraft leasing hubs like Ireland, Singapore, and Dubai. These tax benefits include a tax holiday for any 10 …