Tag Archives: FICCI

The formal collaboration between the Cambodia Oknha Association (COA) and the Federation of Indian Chambers of Commerce and Industry (FICCI) has formally given way to the establishment of the India-Cambodia Joint Business Council (ICJBC). Cambodia’s tourism ministry revealed that Cambodia welcomed 68,836 Indian guests last year, a jump of 102%.

Inbound tourism to India is expected to grow at a compounded annual growth rate of 12 per cent from 2022 to 2027, driven by rising disposable incomes, growth of the middle class, and increasing awareness of India as a tourist destination, revealed a report by Nangia Andersen in association with FICCI.

FICCI organized the 6th National Tourism Investors Meet recently, where Suman Billa, Director, Technical Cooperation & Silk Road at UNWTO talked about creative destruction; He said “We all know that the world post pandemic is going to be very different from the world as we knew before. If we were a destination, it would be very surprising if post pandemic we start with the same products and same businesses that we had before the beginning of the pandemic because the world has changed tremendously since then. Every business and every product that is out there has been questioned, investigated and they have come to new forms”.

Naveen Kundu, Managing Director, EBIXCASH Travel Services has been appointed as the Co-Chairman for the domestic tourism committee of FICCI. In the new role, Naveen will be involved with various government agencies & tourism committees to strengthen the footprints of domestic tourism in India. This committee will be working as a sub-committee under the aegis of FICCI Tourism Committee to address the various issues and roadblocks in terms of domestic travel and technology, which act as a hindrance for sustaining the rapid growth of this sector. “My vision has always been to enhance the domestic tourism demand of what is called the untouched India for which I already havew a couoke of national awards by the Government of India , build a core team at FICCI team who can help promote & push the fulfilment of the domestic tourism products across India such as hoteliers , Ground operators of various states , transport suppliers , individuals and companies from the artisan in-dustry  and local bodies .Domestic & Regional tourism is the key indicator for inclusive economic development & job creation,” said Naveen Kundu.

The Ministry of Tourism (MOT) held a virtual conference with the tourism and hospitality sector associations of the industry recently, which was led by Yogendra Tripathi, Secretary Tourism, MOT, along with senior officials of the Ministry. The Associations represented through remote conferencing were FAITH, CII, FICCI, PHDCCI and IMAI. The industry put forth a number of ideas and suggestions for tiding over the crisis created by COVID-19 in the sector of tourism and hospitality. The Ministry on its part shared the concerns and assured the associations that the government is very much with them in this grim hour and that they would work towards the suggestions put forth. There would be a lot of thrust on promoting domestic tourism was a common takeaway. MOT is using its social handles to create awareness of the need to stay at home safe in the period of lockdown and prepare to travel once the world opens up. In the meantime, the course modules of the Institutes of Hotel Management are being held online and faculty and students are using technology to remain abreast with their course curriculum.

Tourism, hospitality and aviation are among the worst affected sectors that are facing the maximum brunt of the present crisis, revealed a report on impact of COVID-19 on Indian economy by FICCI. The survey suggests that there has been a drop in both inbound and outbound tourism of about 67% and 52% respectively since January to February as compared to the same period last year, owing to large scale cancellation of travel plans by both foreign and domestic tourists. Of all the segments of the hospitality sector, the M!CE segment has been hit the most with the cancellation of major trade events. The tourism industry expects the situation to further deteriorate in March and in the forthcoming summer season i.e. April-June, says the report.

A recent whitepaper titled ‘Indian Tourism Infrastructure- Investment Opportunities & Challenges’ released by FICCI, reveals that employment generated through in 2017-18 was 81.1 million, which was almost 5 million more than what it was in 2016-17 (75.90 million). In 2015-16 employment created by tourism was 72.3 million, which was 69.5 million and 67.2 million in 2014-15 and 2013-14 respectively. The reports used data released by Ministry of Tourism (MOT), which was based on Tourism Satellite Account (TSA), which comprises of a set of 10 standard tables which are key to estimating the economic contribution of tourism in the economy. According to 3rd TSA, the share in employment generated by tourism increased from 12.19 in 2016-17 to 12.38 in 2017-18.

According to FICCI’s recent report titled ‘Opportunities and Financing  Outlook for Aviation Sector’, there will be a huge number of aircraft deliveries in India in the next few years. The report quoted a CAPA study, which estimated that out of 400 aircraft deliveries by FY22 to Indian carriers, 70-80 per cent of them will be either on direct lease or sale and leaseback transactions. To fulfil growing demand, the Government has envisaged huge capex of around US$ 15.5 billion towards development of Greenfield airports, expansion of Brownfield airports, fleet addition & maintenance by Indian Carriers and strengthening ancillary services like skill development, MRO, Cargo handling, amongst others in the value chain. This development plan by airports and airlines requires strong support from Banks, Lessors, Private Equity Firms and other Financial Institutions to cater their funding requirement.

The online sales of travel booking is likely to increase at a CAGR of 14.8 per cent during 2017–21, according to FICCI and KPMG India’s latest knowledge paper titled ‘Expedition 3.0- Travel & Hospitality Gone Digital’. This uprising of digital travel in India can be attributed to the increasingly digitally savvy Indian travellers. In 2017, India was projected to have accounted for 3.7 per cent of the global digital travel sales — making it the third-largest market by value in the Asia-Pacific (APAC) region. The Indian government’s move to remove high currency notes out of circulation in November 2016 is expected to have further catalysed the growth of digital travel sales in the country 2017. The most significant reform in travel has been brought by mobile applications, which have enabled the whole user experience to be available on-the-go. These include usage of mobile tickets/boarding pass, mobile check-in for hotel rooms, cab hailing applications, and even cloud passports in some countries — in addition to the basic features such as search, booking, payment, invoicing and customer support.

Foreign Exchange Earnings (FEE) from tourism stood at USD 28.9 billion (INR 1.97 trillion) in 2018, which accounted for 5.4 per cent of the total exports, according to a latest FICCI-Yes Bank report. The contribution is further expected to increase by 6.8 per cent in 2019 and rise by 5.6 per cent p a by 2029 to reach INR 3.63 trillion. However, India ranks 14th in terms of absolute FEE and 122nd in terms of share of visitor exports in total export. India is also the third largest globally in terms of investment in travel & tourism with an investment of USD 45.7 billion (INR 3.12 trillion) in 2018, accounting for 5.9 per cent of national investment. This is expected to increase by 9.4 per cent in 2019 to INR 3.42 trillion, and further rise by 7.4 per cent p a till 2029, taking the share in national investment to 6.1 per cent.