We have not been able to utilize our potentials in full. We lack positive mind set to do something
big & that is also reflected in tourism field also. The biggest challenge for us to change our
We have to understand our real problems and many of those are influenced by internal factors
and external factors. Internal one includes a firm determination to formulate a clear-cut policy
which should have tourism friendly directives. The Policy is totally inconsistent and policy is
even changing with change of Government.
Tourism is an easy prey to put loads of taxes by successive Governments - no tax incentive,
no priority to tourism, no human resource development incentives - with taxes the destination
has become an overpriced product - we can't give the matching price which our competitors
are offering. We are loosing business to our competitors on this account.
In external terrorism is a big challenge. This is going to continue which has further been
aggravated by rising energy prices, inflation, interest rates, upward insurance fees, spread of
avian flue- these are serious threat for tourism sector and we need to put in place crisis
management programme. We are yet to do our homework united.
We are too dependent on cash rich long distance European/USA Canada Region for our
international tourist arrivals. Anything negative happens in India, tourism becomes the first
casualty and these tourists avoid India - these countries are over smart in issuing advisories and
we do not response to fast first. To counter attack we have to work out strategies to attract
middle budget tourist's form the neighboring countries. Inter-regional-SARC region, middle
east, which are with in 3 to 4 hrs flying time & can give us traffic through out the year.
We have many things to offer, many unique products - it is hard to communicate all that to all
visitors and now it stand as a challenge to properly position these products in these neighboring
markets. All these products are acceptable to them.
We have failed to reach new markets as we lack funds to do market research. We are now
quite late to know about the Chinese market. They are moving to many unexplored
destinations and they are quite high spenders, spending $ 175-200 per day per person. When
going abroad like Indians spend lot of their savings in shopping. We have to reach this
lucrative market. Business to business provide essential links & India should make right
platform for reaching this new market. This is going to give real volume to our arrivals.
New communications technologies are changing fast with visible impact on our way of life. The
internet today has dramatically changed the world. What could not be ascertained by personal
visits now can be known with comfort and authenticity with a button click. Our tour operators
have to meet this challenge by updating their system.
Concept of Border free world is in fashion & there is new grouping - E.U., Middle East, African
Union, COTAL and Visa free and easy movements with in the region. We have to ensure we
follow a visa free or liberal visa policy. We have still a very rigid entry formality - visa, RAP,
PAP, Inner line permit and photography restrictions, high fees which are very annoying for
We are not moving with new trends.
A new industry structure is emerging like acquisitions of Thomas Cook in the travel industry, Air
Sahara in the travel industry which is new mantra of success i.e. look for global giants and net
work with them but there will be smaller & faster moving players. These companies have their,
own set of challenges.
The giants will bring its own set of complexity along with an opportunity to exploit its size and
scope as well as large number of professionals with durable competitive age.
The smaller & faster moving players will depend on speed & their nimbleness to create a distinct
Indian Tourism has to understand the unique value propositions and develop business support,
incentives. Accordingly - This will ultimately bring the ultimate benefits to clients.