Ramesh Ramanathan, the new chairman of All India Resort Development Association (AIRDA) talks about making the government aware of the benefits of the timeshare sector and the role it plays in economic development in the interior regions of India By Sudipta Dev
What are the key focus areas for you as the new chairman of AIRDA?
At AIRDA the work objectives are clearly defined. As the new chairman I see my role in consolidating the gains and increasing the membership drive of AIRDA. This means reaching out to more players in the hospitality industry, sharing with them the benefits of being in the timeshare sector and enrolling them as members. The second objective is to make the industry more transparent to the customers and put in place processes and procedures which will deliver this. The third focus area is to urge the government to consider the benefits of a growing timeshare sector and accord benefits on par with the hotel sector.
The major concerns of the industry that you would like to highlight or address.
Timeshare is perhaps the fastest growing segment of leisure tourism, clocking around 20 per cent CAGR over the last several years. The industry being relatively nascent in India has not yet been given the due consideration in respect of policy issues and incentivisation. This needs to be addressed. Other key areas will be to increase transparency and overall standards of business in order to improve consumer satisfaction.
What kind of policy eco system is needed for the development of the vacation ownership industry in India?
Timeshare plays a significant part in the economic development of India’s vast interiors where most of its resorts are located. AIRDA has recently conducted a survey to assess the economic value in addition to the local economy by the timeshare resorts in the regions. Another aspect is the mixed use of hotel and timeshare units. This is the preferred business model the world over and should be followed in India too. There is a need to cover all hospitality segments with the same policy approach in terms of incentives and other benefits. In other countries there is no differentiation between hotels and resorts. Timeshare is a driver of domestic tourism and has to be encouraged to play a larger role in its growth. India provides a ready domestic market base of over 800 million as compared to around six million foreign tourists. Our policy may therefore focus on catering to the domestic tourist infrastructure which in turn will provide a ready platform for receiving increased numbers of foreign arrivals. We would make an appeal to the government to evaluate the multiple benefits of timeshare and the role it can play to enhance economic growth in areas where other industry segments are not prepared to invest. Our prime minister’s “make in India” focus can be applied to the timeshare industry provided major policy concerns are addressed.
What are the growth expectations of the industry in the next five years?
Timeshare industry is perhaps the only customised holiday option in the leisure tourism segment. Being a lifestyle product it caters to the rapidly changing lifestyles of both young and old alike. Considering the resilient nature of the Indian economy which is expected to grow rapidly in the coming years, coupled with increasing disposable incomes we expect high growth prospects for the timeshare industry in the country. In the coming years we can see a higher growth than what has been achieved so far.
Do you foresee the emergence of any interesting trends?
A larger basket of products and services to cater to growing consumer trends in terms of holiday preferences, improved technology for reducing downtime and improve delivery to the customers. Perhaps an increased synergy between hospitality segments to optimise operations and others.