Category Archives: Associations

The World Travel & Tourism Council (WTTC) has urged the Indian government to co-ordinate a countrywide response to the Supreme Court ruling, which has banned the sale of alcohol within close proximity of highways. David Scowsill, President & CEO, WTTC, said: “While we acknowledge the importance of implementing policies that address the abuse of alcohol when driving, we call on the Indian Government to reverse or amend the current ruling. I do not believe that this ban was aimed at the travel industry. It is an unbalanced approach that will have negative consequences for the country’s economy, as business and leisure customers cancel their bookings in those establishments affected. The impact of the ban on drunk driving is impossible to measure, as businesses beyond the stipulated 500 meters will still be allowed to sell alcohol. Businesses within the proposed banned distance, including many hotels, restaurants and bars that serve tourists, will lose customers and revenue. This not only means less income but also means that many people will lose their jobs as a direct result.” The unintended consequences of this ban are that it will have a significantly negative effect on hotels and restaurants in this zone, and will curtail future job creating investment in the industry. Scowsill continued: “Travel & Tourism is an extremely important income stream within the country, the sector contributed INR14.1 trillion (USD208.9 billion) or 9.6% of India’s GDP in 2016 and supported over 40.3 million jobs, which is 9.3% of total employment in the country. India’s Travel & Tourism sector is forecast to be the third fastest growing in terms of total GDP over the next decade. WTTC welcomes the commitment to this sector as …

India has moved 12 places up to 40th position from 52nd in Travel and Tourism Competitive Index (TTCI) of World Economic Forum. Dr. Mahesh Sharma, Minister of State (I/C) for Tourism & Culture, said, “We are pleased to announce that India’s tourism industry has moved up 12 places since 2015, and now occupies 40th rank globally while countries like Japan, China, US, and Switzerland have improved by less than five positions. The ranking is a witness to the several initiatives that have come into effect, such as the liberalisation of visa, formation of tourist helpline 1363, initiation of welcome kits, among many others. Demonetisation has not had much of an impact as we have observed a six-fold growth after it came into action.” He further elaborated that while tourism’s global growth has been 3.9 per cent in 2016, India alone recorded a 10.7 per cent growth, with a CAGR of about 8.4 per cent. The safety and security ranking has also increased by 15 points since the previous year.

The Skål Delhi chapter has announced the Executive Committee for the term 2017-19 in which Sunil Gadhiok, who was earlier the Vice President, has now been elevated to the post of President. Similarly, the new core committee members include Greesh Bindra, Vice President; Ranjit Vig, Secretary; Ajay Bhatnagar, Treasurer; Sanjay Datta, Immediate past President; Homa Mistry, Member; Ankush Nijhawan, Member (Director Young Skål); Rajinder Rai, Member; Tekla Maira, New Member; Rohit Khosla, New Member, Sunny Sodhi, New Member. Speaking on the focus of the new committee, Sunil Gadhiok said, “With the commencement of the new team, we will continue aiding memberships to the chapter which currently stands at a 200-member strength. Skål Delhi is the second largest Skål chapter globally and our aim is to take it to the top. The Young Skål chapter has also been initiated and we would like to drive memberships to nurture talent and shape them into strong leaders of the future. In terms of club activities, members can expect more team-building activities and events that are in sync with the current happenings, along with expert speakers to give more value for the membership. CSR has always been one of our priorities and the emphasis will continue for the coming term.”

India’s Travel & Tourism sector ranks 7th in the world in terms of its total contribution to the country’s GDP, shows a new report by the World Travel & Tourism Council (WTTC). According to the new data, Travel & Tourism generated Rs. 14.1 trillion ($208.9 billion) in 2016, which is the world’s 7th largest in terms of absolute size, the sum is equivalent to 9.6% of India’s GDP. India’s Travel & Tourism sector was also the fastest growing amongst the G20 countries, growing by 8.5% in 2016. A further 6.7% growth is forecast for 2017. India’s strong Travel & Tourism figures are predominantly generated by domestic travel, which accounts for 88% of the sector’s contribution to GDP in 2016. Additionally, the sector supported 40.3 million jobs in 2016, which ranks India 2nd in the world in terms of total employment supported by Travel & Tourism. The sector accounts for 9.3% of the country’s total jobs. Visitor exports, money spent by foreign travellers in India, only represents 12% of tourism revenues and in 2016 totalled Rs. 1.5 trillion ($22.8bn).  This is 5.4% of the country’s total exports, compared to a global average of 6.6%. Data from the UN World Tourism Organisation (UNWTO) shows that India received only 9 million international arrivals in 2016, placing it 40th in the world, and a tenth of those received by top-ranking France. Over the past few months India has already starting to address this gap and made significant changes to visa facilitation, which will help to boost international arrivals. WTTC data suggests that visitor exports will grow by 5.4% in 2017. David Scowsill, President & CEO, WTTC, said, “India is a tremendous Travel & Tourism …

Travel and hospitality associations came together to analyse the impact of the Supreme Court’s liquor ban judgement and will lay out a future course of action after due deliberations on the issue with the government after a week. “This is a very challenging time for us as an industry. We are going to analyse the judgment in detail and go through how we can still serve guests and how we can manage employment impact,” said Kapil Chopra, President, The Oberoi, during a press conference held in New Delhi. Associations such as WTTC, FHRAI, NRAI, HRAH and IATO participated in the press conference. Chopra said, “We totally respect the Supreme Court’s judgement but the biggest challenge that we foresee is the loss of employment in both the hotel and restaurant sector. Also I don’t know how the government sees it but if it has to be 500 metres, it at least should be motorable distance because when people go out to pick liquor, they go by road. Generally hotels and restaurants do not sell bottles of liquor, you have to sit and consume it; now that sitting and consumption can happen in your home or in your car. So there are lot of issues we need to discuss with the government before we actually make a verdict. “If you look at Prime Minister Narendra’s Modi first five points, tourism is among those and there is a lot of work that’s happening around e-visas but what are we going to do with those e-visas when people will not apply for it. We need to make sure that India is being seen as a welcoming country, with friendly laws, strong compliance and strong focus on …

During its AGM held in Thiruvananthapuram, the members of the IATA Agents Association of India (IAAI) unanimously decided to withdraw their support to Emirates Airlines. Speaking about this move, Biji Eapen, National President, IAAI, says, “In case of non-adherence to regulatory requirements, we have decided not to sell or promote Emirates or any of its ancillary services  from April 1, 2017 onwards.” The association had earlier written a letter to Emirates requesting it to withhold its proposed reduction of commission from April 1, 2017 and retain the present level of commission  at three per cent gross or more till the Kerala High Court verdict. Eapen adds, “Our case WP25752/2013 and WA1136/2015 in the Hon High Court of Kerala for implementation, execution, and enforcement of DGCA Order March 5, 2010 is now scheduled for division bench hearing on May 25, 2017.”

Air India has led the way towards increasing agents livelihood and recognising their distribution channel. Subsequent to an in-depth interaction with the Travel Agents Association of India (TAAI) and its suggestions made to the national carrier, the airline has announced a new assured incentive/PLB Scheme for the FY 2017-18. Air India will file additional commission of two per cent with BSP and the same will be deducted by agent as cut and pay as per BSP cycle. This will be apart from the normal IATA commission of one per cent. Jyoti Mayal, TAAI member Managing Committee & Chairperson (Airline Council), says, “We really appreciate Air India’s move to recognise and support each and every IATA agent. After a long time, I feel that our industry is regaining its glory. Under the leadership of CMD Ashwani Lohani, we have seen them work very closely with the travel fraternity – first by bringing in credit cards then web parity and now with a level playing field where every agent gets incentivised on selling each and every ticket on Air India. I would now urge all IATA members to support our national carrier to make it a leading carrier in Indian skies. As an Airline Council Chairperson, I would love to see our national airline regaining its glory and profitability. We at TAAI took this initiative with the airline to set standards in the industry and promote all agents.” The incentives shall be calculated on basic fare for domestic and for international it will be calculated on Basic Fare +YQ. There is no target for the scheme and will be valid for all tickets sold within the territory of India by IATA agents …

The Federation of Associations in Indian Tourism and Hospitality (FAITH) has suggested an upper GST rate of 12 per cent for the tourism and hospitality industry and handed its detailed recommendations to the Ministry of Finance. The industry comprises of air travel agents, business exhibition services, hotel and hospitality services, tour operators, rent a cab and vacation ownership. The representation has been made considering strategic forex, employment, economic and GST rationale and rates for tourism, travel and hospitality sector of India. An upper limit of 12 per cent has been suggested for hotels and hospitality and vacation ownership segment. For the air travel agents the recommendation was given to continue presumptive rate on all income and keep GST at 1 per cent or less. For the tour operators, FAITH requested to introduce a presumptive rates mechanism of GST at 1.2 per cent considering difficulty of getting GST input credits from unorganised sector and the burden of compliance of registration with different states. It has been requested to exempt outbound tour operators and business exhibitions selling outbound from India from GST since provision of services are out of India. In the case of rent a car, a GST rate of 5 per cent has been suggested failing which, maximum 12 per cent has been deemed acceptable. FAITH has urged for a special GST exemption on forex income for tour operators, hotels and businesses earning forex if it can be a criteria with MoF for GST. Addressing the adventure tourism industry, FAIH has requested MoF to consider special GST exemption based on J&K and a very high component of local, unorganised labour involved.

FICCI Digital Travel, Hospitality and Innovation Summit opened with over 125 delegates. The attendees from various verticals of the travel and hospitality industry like technology providers, travel management companies, hotels, airlines, online travel agencies, GDS, etc., attended the event. The FICCI-Avalon knowledge paper-Travel 2.0-The Next Generation of Travel, was released at the event which details suggestions on mapping the travel industry better and trends that can offer insight to grow the industry. Suman Billa, Joint Secretary, Ministry of Tourism, said, “Travellers are moving away from exploring routes to exploring experiences. Social media is a legitimate research source and reviews are becoming increasingly important. Bloggers as a marketing channel have become important as they turn around niche products and create interest groups. The digital space has opened avenues for not just big players but even the smaller players in the industry can position themselves through digital platforms. Going digital is imperative and we have to see how fast we can become digital and at the same time look into what different we can offer in order to stay relevant in the market. The brick and mortar agencies have to embrace the technology curve and take on the challenge.” Jyotsna Suri, Chairperson, FICCI Tourism Committee and Chairperson and MD, Lalit Suri Hospitality Group, said “Adapting and adopting technology is the need of the hour and at FICCI we are happy to take on this vertical and offer a platform for thoughtful discussions and deliberation on the future of travel.”

According to WTTC’s Economic Impact Report 2017, South Asia was the second fastest growing region in terms of travel in tourism in 2016, with a growth rate of 7.9 per cent. Southeast Asia (8.3%) was the region with the fastest growing travel and tourism sector in 2016, driven by the expanding Chinese outbound market and the countries own growing markets. Latin America (0.2%) was the slowest growing region. Globally, travel and tourism grew by 3.3 per cent in 2016, generating $7.6 trillion worldwide, which is 10.2 per cent of global GDP when the direct, indirect and induced impacts are taken into account. The sector supported a total of 292 million jobs in 2016, which is 1 in 10 of all jobs in the world. David Scowsill, President & CEO, WTTC, said, “This is the sixth year in a row that travel & tourism has outpaced the global economy, showing the sector’s resilience, and the eagerness of people to continue to travel and discover new places, despite economic and political challenges across the world.” The sector is expected to grow by 3.8 per cent in 2017, generating $ 7.9 trillion. This growth is slower than previously forecast, as a result of a downgrade to the global economy and a dampening of consumer spending.