For the Indian tourism industry these are the best of times, for the tourists visiting India they are the worst of times. India received a record 3.8 million inbound tourists in 2006, a growth of 15 % over 2006. The country earned $6 billion in foreign exchange between January to October 2007 from the tourism industry.
Even as India becomes the destination of the world, even as its hotels and destinations get f?ted by the top tourism magazines as the world?s best, its woeful lack of infrastructure stands exposed. The constrains are so serious in almost all sectors that they endanger the sustainability of this boom in tourism. Industry estimates point out that inbound tourism is expected to grow at a compound annual growth rate of 22.65 % from 2007- 2011. Tourism infrastructure on the other hand is lagging woefully behind.
The civil aviation sector, the back bone of the tourism boom, is the most problematic. The two major airports of Delhi and Mumbai are in a total mess. The respected Foreign Policy Journal of the USA recently ranked the Delhi airport as the worst in the world. Chaotic increase in flights, poor parking for cars, near-miss accidents and a run-down national airline all contribute to give a poor picture of India as soon as the foreigner lands here. Smaller airports at places like Bangalore are lacking in basics like top quality radars.
The hospitality industry has done no better. There is a woeful lack of quality three-star hotels and you have a tariff structure way out of tune from the amenities offered by the five-star hotels in India. A room in Delhi or Mumbai at a decent five-star hotel can cost upwards of Rs 15,000. When seen in tune with the falling dollar, India is becoming an unaffordable destination. Already a recent research report concluded that for a week’s stay in India the expenditure incurred by a tourist is the third highest in the world if you factor local travel and stay into the trip.
India needs three-star hotels urgently. However the tourism policy provides far greater tax incentives and encourages more five-star hotels and even these are not being completed in time. While the nation constantly ranks as warm and hospitable ? the industry does not have trained staff that can give world class service. The warm hospitality often gets lost in transition when a meal is mixed up or an order delayed at a grand hotel resort.
A less noticed boom has taken place in domestic travel in India. In 2006 low-cost airlines sold 140 % more tickets than in the previous year. More and more Indian are traveling within India. These tourists rarely get value for money. Often a trip from say Goa?s airport to downtown can cost as much in cab fare as the air fare that got them to the destination.
The ministry of tourism and that of civil aviation, along with the industry representatives would do well to tune down the cacophony of incredible India and firm up some credible infrastructure alternatives if they are serious about sustaining the growth in the tourism sector. The sector is critical from the employment potential it offers in a skill-short economy and needs to be nurtured with care.