HONG KONG’S blue-eyed boy last year, the India market, is showing signs of weakening for the SAR, dropping 5.1 per cent in the first six months over the same period last year, after a spectacular rise of 44.8 per cent in 2010 due to new direct flights.

Some Indian outbound travel agents are quick to blame Hong Kong’s high room rates, along with a more aggressive campaign by Macau, for the dip.

“Bookings to Hong Kong have dropped 10-15 per cent in the first six months, as my clients have been unwilling to pay the rates demanded by hotels,” said Ashwani Gupta, managing partner, Dove Travels.

The average room rate grew 17.1 per cent to HK$1,222 (US$157) in the first six months, half a per cent higher than the peak of HK$1,216 in 2008.

Shiban Kotru, president of Uniglobe Travel, warned the slump in Indian arrivals to Hong Kong would continue if room rates rose further and if a shortage of room supply was not addressed soon. “Compared to other cities in Asia such as Bangkok and Kuala Lumpur, hotel rates in Hong Kong are prohibitively expensive.

“Indians can, for instance, stay in Bangkok’s five-star properties at prices charged by three- and four-star hotels in Hong Kong,” he said, adding that his clients now preferred Kuala Lumpur and Bali, where room rates were still within “acceptable limits.”

– Read more in TTG-PTM Official Daily – Day 3 issue

THE US and Eurozone debt crisis is starting to bite, with Asian inbound operators saying there is cause for concern.

Different agents are reporting dips from various European markets, depending on how their overseas principals are performing and which segments of the market they are in. In general, however, a slack in the summer season, which is nearly ending, has not gone unnoticed, while winter numbers are just not there, according to sellers.

World Express Malaysia, for instance, saw a dip of 10-12 per cent this summer from Europe overall. “A bit of decrease here and there from each overseas agent becomes one huge thing,” pointed out executive director Cherry Lee.

Go India Journeys is seeing group sizes shrinking and accommodation being downsized to three- or four-star hotels. “There are some worrying signs,” said COO, Amit Prasad. “Margins are under attack. This is why we’re lobbying to prevent the implementation of new hotel taxes in India, which may cause India to be outpriced.”

For many, Spain is one market that is in the doldrums. Those who had the business of Nobeltours, for example, now have to make up for the numbers they used to get from the Spanish operator.

Since news got out that Nobeltours’ Chinese partner had refused to handle its passengers because of its accumulated debts (TTG Asia e-Daily, August 24), a chain reaction followed from other partners. Nobeltours now has to put its house in order before it can resume tours.

But for its Asian partners such as Asian Trails, that has meant 1,000 pax less in the books, to Vietnam and Myanmar mainly.

– Read more in TTG-PTM Official Daily – Day 3 issue

A NEW trade association devoted to India outbound has been formed, while major Indian inbound players that have started to tap outbound expect the level to match their inbound volume in the next two to three years.

The new grouping, Society of Foreign Travel Operators (SFTO) India, received government clearance a month ago and has elected Ajay Jaipuria of Travel Oytser as president and Sandeep Jain of Ad-Voyage Travels as vice president.

India has many trade associations, but they cover mainly ticketing, inbound and domestic travel. SFTO hopes to bridge the outbound gap. Said Jain: “We are aiming for 5,000 members. They include agents, airlines, overseas NTOs – anyone who is serious about tapping India outbound.”

There is no shortage of interest, as the market’s mighty potential shows signs of erupting. Already, there are some 12 million travellers a year – double the number of inbound arrivals.

The Estonia tourism authority, for instance, wants to work with SFTO to bring 200 Indian agents to Estonia for an educational in April, said Jain.

– Read more in TTG-PTM Official Daily – Day 2 issue

INDIAN players brushed off yesterday’s Delhi bomb blast as an aberration that will not dent tourism growth, even as some buyers interviewed by the Daily showed concern.

The bomb exploded in front of the High Court, 2km from the venue of PATA Travel Mart, which was being inaugurated by India’s tourism minister Subodh Kant Sahai.

Indian tourism officials were deadpan when queried by the Daily about the impact of terror on their inbound hopes during yesterday’s PATA media briefing.

On the floor, Indian sellers put on a stoic face. Vikram Madhok, managing director, Abercrombie & Kent, said: “The US had its 9/11, and so did India (referring to the Mumbai attack), but we came back beautifully. Our growth story remains intact.”

Arjun Sharma, managing director, Le Passage to India, said: “This is a random occurrence, and it is always sad when lives are lost. But tourism is resilient. I will discount this as an aberration and it will be business as usual after the intial shock.”

Buyers are split over the impact, with those from more crisis-sensitive markets such as the US and China saying India inbound will suffer a price.

– Read more in TTG-PTM Official Daily – Day 2 issue

PUNJAB’S wealthy city of Amritsar is preparing for an influx in inbound visitors, having scored its first foreign airline, which will be commencing flights from London on October 13.

Heathrow-based airline BMI (British Midland International) has picked the city as its first Indian destination, a significant coup for Amritsar, which is connected to international destinations like the UK, US and Canada, but only via Indian carriers. A Star Alliance member, BMI’s thrice-weekly flights will offer possibilities for codesharing to other Western markets.

There is also talk that Kingfisher Airlines is scheduled to start direct flights to Bangkok, while Air India is looking at flights to Vienna.

Agents are already putting together packages that combine Amritsar with Dalhousie, Chamba, Chandigarh and Dharamshala, which will also incorporate Delhi, Agra and Jaipur.

Hotels by Sheraton, Taj, Holiday Inn, Radisson Blu, Park Plaza and Ramada are also set to open their doors by 2013.

In addition, the Punjab state government is developing tourism projects aided by US$570 million from the Asian Development Bank, as well as receiving training and technical help from the United Nations World Tourism Organization. New products include farm stays, luxury train journeys and wetland ecotourism.

– Read more in TTG-PTM Official Daily – Day 2 issue

GROWTH in the Indian outbound leisure market to Australia has been good despite the strong Australian dollar, say agents, although incentives may weaken next year.

Qantas Holidays business development manager-India and South Asia, Shobhana Gautum, said: “We closed the financial year ending June 2011 with an 80 per cent growth in India outbound to Australia, New Zealand and Fiji, with more than 80 per cent going to Australia.”

Gujarat-based Anytime Hotels CEO, Rishi Budhadev, added that the volume of traffic to Australia handled by his agency in the last five months had already surpassed what was recorded for the whole of the last financial year. “Many Indian travellers have seen Asia, and want something new,” he said.

Delhi-based Uniglobe Indica Travels president Shiban Kotru said that while it now cost 30 per cent more to visit Australia, Indian travellers were “discerning enough to know the destination offers good value” and the disposable income of Indian consumers had also increased.

Tourism Australia projects tourism earnings from India to exceed A$1 billion (US$1.1 billion) this year, compared to A$844 million in 2010.

– Read more in TTG-PTM Official Daily – Day 2 issue

CHENGDU Culture & Tourism Development Group (CCTDG) and PATA inked yesterday a memorandum of understanding, committing to strengthen Sichuan’s tourism standards and branding.

Chengdu is the capital city of Sichuan province, and this is CCTDG’s first training and research partnership with an international tourism organisation.

Research topics are likely to focus on travel trends, future projections and tourism crisis management, said Ouyang Ge, manager of CCTDG European project team.

Training sessions, which are expected to begin next January, will be conducted by PATA and offered free of charge to any tourism practitioner in Sichuan, said Yin Jianhua, board chairman of CCTDG.

“Our strategic cooperation with PATA will help us understand international travel trends and place us in a better position to attract international visitors,” said Yin.