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Colloquium Paper: Retail Tourism - An Indian Perspective
 

Colloquium Paper: Retail Tourism - An Indian Perspective

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It is acknowledged world over that the concept of shopping is an integral part of any tourist venture in more ways than one. The success of shopping festivals is overwhelming in Asian countries. The ...

It is acknowledged world over that the concept of shopping is an integral part of any tourist venture in more ways than one. The success of shopping festivals is overwhelming in Asian countries. The research paper aims to understand if an India Shopping Festival is possible and test it against the secure background of existing Retail Tourism models and suggest steps to be adopted if proven possible. The research project approachs both the tourism and retail industries with a new and fresh perspective and views the two to be complimenting halves of an integrated retail tourism business.

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    Colloquium Paper: Retail Tourism - An Indian Perspective Colloquium Paper: Retail Tourism - An Indian Perspective Document Transcript

    • RETAIL TOURISMAN INDIAN PERSPECTIVESUBMITTED BY:ANIRUDH U.DEPARTMENT OF COMMUNICATION DESIGNBATCH 2004-2008COLLOQUIUM PAPER COMPILED UNDER THE GUIDANCE OFMS. RUPA AGARWAL, CC – FC, NIFT, MUMBAI.NATIONAL INSTITUTE OF FASHION TECHNOLOGYMUMBAI
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    • 3NATIONAL INSTITUTE OF FASHION TECHNOLOGY,MUMBAI.B. F. Tech in Communication DesignBATCH: 2004 – 2008CERTIFICATEThis is to certify that this research work entitled ―Retail Tourism – An Indian Perspective‖is a bonafide work of Mr. Anirudh U. towards the partial fulfillment of requirement for theUnder Graduate Degree in Communication Design (Year 2007) of NIFT, Mumbai.Ms. Rupa Agarwal,Center Co-Ordinator and Research Mentor.
    • 4
    • 5ACKNOWLEDGEMENTThe Research Paper has been the result of constant revision and upgradation of knowledge gathered andideas generated based on the same. It is with great sincerity that I express my gratitude towards all those whowere responsible for the successful completion and compilation of this project.To, Ms. Rupa Agarwal, Chairperson & Course Co-ordinator, Communication Design, National Institute of FashionTechnology, Mumbai; my guide and mentor who steered my path and methodology concerning my research; andfor her criticism and support regarding its compilation.To, Ms. Sushmita Das and Mr. Nitin Kulkarni, Associate Professors, NIFT, Mumbai; and Mr. A. N. Bandi,Head Librarian, NIFT, Mumbai; for being a resource for data and for contributing towards the detailing in researchand its documentation.To, Mr. Gopal Rao and Mrs. Kamala Rao, both academicians and family friends; for their invaluableinputs towards the preparation of the synopsis which formed the backbone for this research project.To my family, for having stood by my beliefs and convictions, and for their unquestioning faith in all myacademic decisions.To my friends for their constant criticism and encouragement throughout the Project; which has mademy research a wholesome endeavor.Heartfelt gratitude,ANIRUDH U.Communication Design, NIFT, Mumbai.2004 – 08.
    • 6PREFACEThere are two Indias in this country,One India is straining at the leash, eager to spring forth and live up to all the adjectives that the world hasbeen recently showering upon us.The other India is the leash.One India says, give me a chance and I’ll prove myself. The other India says, prove yourself first and maybethen you’ll have a chance.One India lives in the optimism of our hearts. The other India lurks in the skepticism of our minds.One India wants. The other India hopes.One India leads. The other India follows.But conversations are on the rise. And quietly, while the world is not looking, a pulsating, dynamic new India isemerging.For some time now, our nation has sprung, stumbled, run, fallen, rolled over, got up, dusted herself andcantered, and sometimes lurched on.But today, the ride has brought us to the edge of a great precipice.And one India – a tiny little voice at the back of the head – is looking down at the bottom of the ravine andhesitating.The other India is looking up at the sky and saying, it’s time to fly.(Extract from the India Poised Campaign – The Times of India).
    • 7CONTENTS1. Introduction 09.1.1 Tourism in India 09.1.2 Retail in India 10.1.3 Purpose of the Study 11.1.4 Aims and Objectives 11.1.5 Scope and Limitations 11.1.6 Methodology 11.1.7 Conclusion 13.2. Tourism in India 14.2.1 Scale of Global Tourism 14.2.2 Scale of Tourism in India 14.2.3 Tourism in India – A Critical Analysis 15.2.4 Information and Statistics 16.2.5 Future Outlook – A Comparative Analysis 22.2.6 Trend Forecast – A Summary 26.3. Retail in India 30.3.1 India Retail 2005 30.3.2 Key Retailing Formats in the Indian Apparel Sector 32.3.3 Status Check 33.3.4 Future Market Characteristics – Market Prospects 33.3.5 Emerging Trends in Fashion and Retail 34.3.6 Luxury Retailing 34.3.7 Malls in India 35.4. Retail Tourism 38.4.1 Dubai Shopping Festival – A Case Study 38.4.2 The Visa Story 44.4.3 Retail Theme Vacations – The Asian Scene 49.4.4 Singapore Shopping Festival 50.4.5 The Face of Singapore Fashion Festival 51.4.6. International Fashion Weeks 52.4.7 MICE Tourism 53.
    • 85. Inference 57.5.1 India Viable 57.5.2 Internet Holds Much Promise 57.5.3 Incredible India 57.5.4 Initiatives 58.5.5 Airport Development 59.5.6 Latest Spending Trends 62.5.7 Developing a Magazine Around the Destination 62.5.8 Visiting Journalism Programme 63.5.9 Discounts 63.5.10 Smart Cards 63.5.11 Landmarking 63.5.12 Transportation 64.5.13 Cultural Promise 64.6. Conclusion 65.7. Appendix 1: List of tables and Charts 66.8. Appendix 2: Articles and Excerpts 67.9. Bibliography 76.
    • 91. INTRODUCTIONIn the modern context of India, the country is being applauded as the world‘s largest democracy, oneof the fastest growing economies of the globe and a destination to reckon with. It has been a rather proudstatement when India Shining was acknowledged worldwide. At this instance the outlook of tourism wasemphasized to promote and increase cash flow into the nation. The country was appealing for lodging of moreand more foreign tourists and then as expected the economy opened up. With the start of a new millennium,progress could only measured by percentages if one needed to still remember numbers.1.1 Tourism in IndiaWith the establishment India as a land of multiple opportunities in terms of its rich culture andheritage, its colours and vibrance, its alternative healing therapies and charming hosting attitude, the land ofthe spices, snake-charmers and fakirs ceased to inhibit the white-traveller. The open arms of the hospitablecountry welcomed more immigrants and the number of landings from a foreign destination grew by leaps andbounds. Air travel became easier and more affordable. The complications of language seemed to blur with theanglicization of most urban tongues. An intricate web developed throughout the vast lands of the nation andtourism India became a flourishing industry. Pilgrimage and holiday destinations, adventure sports andbeaches, wildlife and wellness all contributed towards the wholesomeness of the industry.International travel ceased to be a delight of the wealthy and an assignment of the business class.Leisure and shopping were integrated to compliment the expanding visions and horizons of the middle andupper middle class so as to further boost the industry and earn a handsome exchange of foreign currency.This exchange of culture prompted an increased inflow of foreign travelers and the concept of India as atourism destination was firmly established. The increased inward traffic of tourists also prompted a lot ofdomestic travelers to explore and understand India in a much better way to be in a position to exaggerate onthe awesome incredibleness of the country. The white sands of Kovalam to the frigid snows of the Himalayas,the variety of tourist destinations were ceaseless and this newness took traveling within the country to a newhigh. The development of transportation facilities added fuel to the fire of travel and ultimately rail and airnetworks were strengthened to an extent that was unparalleled in the history of the nation. Budget andpackage tours became the new age mantra and this prompted off season traveling along with the cashing inon the peak season with international travelers.1.2 Retail in IndiaBy the year 2000, the developing economy of the country saw a new entrant into its business - Retail.The convenience store down the lane saw competition that was unheard of in the Indian context. The conceptof supermarkets and hypermarkets soon mesmerized the upwardly mobile middle class of the desi societyand departmental stores gave a run for all petty shops that housed clothes. The emerging of Food Bazaar,Shoppers‘ Stop and Westside completely held the attention of the frequent shopper and the concept offashion and style soon made a mark on their mindsets.India has today developed into a country wherein at least the urban populace has resorted toconvenience rather than economization. An extra rupee for all the convenient services is not given greatthought to. A visit to the shopping mall has become routine and not an event that requires preplanning.
    • 10Clubbing and party hopping has become a necessity to unwind and the culture of spas has become arequisite to relax. It is often with great care that any Indian makes changes at the basic level of disposing ofincome, as it is often ingrained into their systems that they need to save – for the future, for their children, fortheir parents and so on endlessly – rather than to spend it for personal enjoyment.The heightened euphoria of going places charmed the people; they needed something to take backas souvenirs that would compliment the memories of the various trips. Lifestyle and culture were thusexchanged and the capacity of such fashionable exchanges prompted the development of regional flavoursthat is indeed the charm of India. The intense diversification provided variety beyond all imagination and thevarious cottage and craft industries of the country spearheaded the provision to develop and diversify beyondtheir limited means. The association of such crafts with the growing retail businesses added to the localexperience of a well traveled person.The association of mere shopping as an experience that must be included in the itenary of any visitorwas viewed at as a growing cultural change. The association of the two industries in this sense, at the basic,grass root level, the merging confluence of the tourism industry with retail ventures is what can be termed asRetail Tourism.1.3 Purpose of the StudyIt is acknowledged world over that the concept of shopping is an integral part of any tourist venture inmore ways than one. The success of shopping festivals is overwhelming in Asian countries. The researchpaper aims to understand if an India Shopping Festival is possible and test it against the secure backgroundof existing Retail Tourism models and suggest steps to be adopted if proven possible.1.4 Aims and ObjectivesThe research project aims to approach both the tourism and retail industries with a new and freshperspective and views the two to be complimenting halves of an integrated retail tourism business. In order tostreamline the working scenario, the following aims and objectives have been outlined:1. To analyze the history and the prevailing conditions of the Indian tourism industry.2. To establish the concept of Retail Tourism and demarcate it in the present retail scenario.3. Study different international retail theme vacations or ventures and propose adaptations for an Indianmodel.4. Understand the various communication models involved and analyze success by establishingstandards and comparing.5. Propose continuous assessment and research towards Retail Tourism in India.
    • 111.5 Scope and LimitationsThe scope of the project encompasses the study of several retail models like Dubai, Singapore,Malaysia etc; involving data collection from Government ministries and agencies; as well as interaction withseveral retail industry leaders. It is also being executed within an academic purview and will thus be limited tothe access as defined by the agencies to a student of an undergraduate capacity. The time frame is alsodefined by schedules and limited by the modules as proposed by the institute.1.6 Methodology1.6.1 National and International level researchThis industry research is based on a core set of research techniques:- National-level desk research, company research and analysis, store checking, trade interviewing withnational players and market analysis.- International-level desk research, multinational company research and analysis, trade interviewing withnational players and market analysis.1.6.2 Desk research- National Statistical Offices, other governmental and official sources.- Inter-governmental bodies and other official international sources.- The national and international specialist trade press.- National and international trade associations.- Industry study groups and other semi-official sources.- Reports published by major manufacturers/distributors/retailers/suppliers.- Online databases.- The financial, business and mainstream press.1. 6. 3 Store checksStore visits in major outlets of all relevant types to gather up-to-date information on product types andbrands. Comprehensive store visits and product/brand range audits ensure that country-by-country researchestablishes the whole range of available product types and individual brands currently on the market. Storechecks also provide valuable data on packaging, pricing, display, marketing and merchandising trends, aswell as useful insight into the retail channel distribution pattern of the product market. The results, combinedwith desk research findings, provide a basis of solid and detailed market information on which to conducttrade interview surveys.
    • 121. 6. 4 Trade surveysTrade interview surveys are conducted to:- Fill gaps in the available published data per company.- Generate a composite industry view of the size/structure/strategic direction of the overall market.- Evaluate the experts‘ views on current trends and market developments.Interviews are conducted with a variety of players in each industry (viz., suppliers, manufacturers,wholesalers, distributors, trading companies, retailers and service suppliers) as well as third party analystsand observers from the trade press, industry associations and industry study groups, and with representativesof relevant regulatory bodies. Trade surveys are particularly important for areas of market analysis notcovered by any official or semi-official sources. Market size and share data are generated by surveying a widerange of industry personnel, in companies in different functions (from supply to delivery) in order to gainvarious perspectives. It is also crucial to test each respondent‘s information and views against those of otherrespondents in order to ensure reliability and to eliminate bias (intentional and unintentional) from any singlesource.1. 6. 5 Company analysisAnalysis of the leading players in the industry calls for a programme of company research, in turnbased on interviews with the companies themselves and (where relevant) with their suppliers and customers.Corporate intelligence research also draws on sources such as:- Company annual reports- Analysis of annual accounts- Independent analyst reports- Trade press coverage- Financial and mainstream press coverage1. 6. 6 ForecastingFuture outlook for each industry and sector-specific sales forecasts are key elements of marketintelligence. We shall ask some simple questions: how will the market perform from here in comparison withits performance over the last 5-10 years? Will its historic trend (whether growing, stable or declining) nowspeed up, continue as previously or slow down? Will a decline bottom out or will rapid growth peak andplateau? Forecasts represent many of the essential conclusions we have reached about the current state ofthe market and how it works. Importantly, the analysis will also state the assumptions and trade opinionbehind whether our predictions are optimistic or pessimistic, so that our clients can use the statistical forecastswith confidence.
    • 131. 6. 7 Data standardizationUpon completion of the country-by-country research phase, data standardization checks take place toensure international comparability across the global database. Comparative checks are carried out on percapita expenditure levels, growth rates, patterns of sub-sector breakdowns and retail distribution shares.Where irregularities are found between proximate national markets, supplementary research is conducted inthe relevant countries to confirm and/or amend those findings. This process ensures that there is internationalcomparability across the database – that consistent product sector and sub-sector definitions have been used,that value data has been accurately collated and converted to the common currency of US$ and thatdiscrepancies between different published sources have been examined and reconciled.1.7 ConclusionThe Retail Tourism concept is not new to the world, but is indeed new in the Indian context. The paperis an exploration in the realization of a venture facilitated by the overlap of the tourism and the retail industries.Also, the renewed outlook of the Indian economy is the driving and key moderating factor that will be thefoundation of any such ambitious project.An explanation of the academic efforts is what is detailed in this paper and it moves to summarize thepossibility of the actual realization of the India Shopping Festival and also hints possible execution leads thatwill establish the Retail Tourism venture.
    • 142. TOURISM IN INDIATourism has been a major social phenomenon of the societies all along. It is motivated by the naturalurge of every human being for new experience, adventure, education and entertainment. The motivations fortourism also include social, religious and business interests. The spread of education has fostered a desire toknow more about different parts of the globe. The basic human thirst for new experience and knowledge hasbecome stronger as communication barriers are overcome by technological advances. Progress in airtransport and development of tourist facilities has encouraged people to venture out within the country and toforeign lands.The importance of tourism as an instrument for economic development and employment generationhas been well recognized the world over. It is the largest service industry globally in terms of gross revenue aswell as foreign exchange earnings. Tourism is one economic sector in India that has the potential to grow at ahigh rate and can ensure consequential development of infrastructure of the destinations. It has the potentialto stimulate other economic sectors through its backward and forward linkages and cross sectoral synergieslike agriculture, handicrafts, transport etc.2.1 SCALE OF GLOBAL TOURISM1According to the World Tourism Organization (WTO), the year 2005 saw more than 800 million touristarrivals and tourism receipts were of the order of USD 682 billion. The World Travel and Tourism Council(WTTC) for 2006 had predicted the travel and tourism will generate 234 million direct and indirect jobs world-wide accounting for 8.7% of the global employment, and will contribute up to 10.3% of the global GDP.According to the same estimate, the global travel; and tourism activity is expected to increase by 4.7%between 2007 and 2016.2.2 SCALE OF TOURISM IN INDIA2The world tourist arrivals in the year 2005 were 808 million as compared to 766 million during the year2004, showing an increase of 5.6 per cent during the year 2005 as compared to previous year. The basicprofile of International tourism remained more or less the same during 2005. Europe and ―Asia & the Pacific‖were the most important tourist receiving regions, accounting for about 74.0 per cent of the world touristarrivals in 2005.Table 2A
    • 15There has been a remarkable growth in the recent years, in foreign tourist arrivals in India due tovarious efforts made, including promoting India through the ‗Incredible India‘ campaign in the overseasmarket. It has increased by about 65% from a level of 2.38 million in 2002 to 3.92 million in 2005, while theforeign exchange earnings have grown by about 96% during the same period. In the year 2006, the touristarrivals have increased to 4.43 million, registering an impressive increase of 14.2% when compared to theprevious year. The foreign exchange earnings from tourism have also shown a phenomenal growth from US$5730.86 million in 2005 to US$ 6569.34 million in 2006, achieving an increase of 14.6%. The contribution oftourism to the GDP of the country has been 5.9% in 2003-04, while employment in tourism sectors both directand indirect has been 41.8 million in the same year accounting for 8.78% of the total employment in thecountry. It was estimated that by the end of 2006-07, the total employment generated in the tourism sectorwould stand at 51.9 million.It is universally acknowledged that the tourism resources in the country have the potential to generatesignificantly higher levels of demand from the domestic and international markets, which if exploitedintelligently in a sustainable manner, can prove to be proverbial engine of growth for the economy. TheNational Tourism Policy of India formulated in the year 2002 promotes the following objectives: Position tourism as a major engine of economic growth; Harness the direct and multiplier effects of tourism for employment generation, economicdevelopment and providing impetus to rural tourism; Focus on domestic tourism as a major driver of tourism growth. Position India as a global brand to take advantage of the burgeoning global travel trade and the vastuntapped potential of India as a destination; Acknowledges the critical role of private sector with government working as a pro-active facilitator andcatalyst; Create and develop integrated tourism circuits based on India‘s unique civilization, heritage, andculture in partnership with States, private sector and other agencies; and Ensure that the tourist to India gets physically invigorated, mentally rejuvenated, culturally enriched,spiritually elevated and ―feel India from within‖.2.3 TOURISM IN INDIA – A Critical Analysis32. 3. 1 Strengths Rich culture and heritage. Variety of landscapes, lifestyles and cuisine. Rich tradition in handicrafts. Colourful fairs and festivals.
    • 162. 3. 2 Weaknesses Poor accessibility to many tourist destinations due to basic infrastructure bottlenecks. Lack of tourist infrastructure & basic amenities at many tourist destinations. Lack of information about tourist destinations. Unfavourable brand image as a tourist friendly destination.2. 3. 3 Opportunities Global trend towards exotic destinations like India. Tourism potential unexploited.2. 3. 4 Threats Aggressive marketing and promotion by competing destinations in Asia like Malaysia.2.4 INFORMATION AND STATISTICS4The Market Research Division of the ministry of Tourism is responsible for the collection, tabulationand the dissemination of information on various aspects of tourism in India. The statistics being collectedregularly by the division include data on foreign tourist arrivals, domestic and foreign tourist visits, occupancyrates of approves hotels, etc. Periodical surveys are also undertaken to assess the profile of the tourists,expenditure patterns, tourist preferences and satisfaction levels, availability and adequacy of infrastructuralfacilities and so on. This Division also undertakes studies and gets master plans/perspective plans/detailedproject reports (DPR) prepared for the development of tourism in the country.2. 4. 1 Foreign Tourist ArrivalsThe foreign tourist arrivals, during the year 2006, have been estimated as 4429915, registering agrowth of 13.0% as compared to the corresponding period of the previous year. A statement of the month-wise estimate is slated with corresponding figures for the previous two years in Table 2B and 2C.2. 4. 2 Foreign Exchange Earnings from TourismTourism has become an important segment of the Indian economy contributing substantially to itsforeign exchange earnings. The estimated foreign exchange earnings during 2006 were Rs. 29603.56 Croreas compared to Rs. 25172.28 Crore during the same period in 2005, showing a growth of 17.6%. A statementof the monthly estimates is detailed as follows in Tables 2D through 2G.
    • 17Table 2BTable 2C
    • 18Table 2D Table 2ETable 2FTable 2G
    • 192. 4. 3 Domestic TourismThe potential of domestic tourism has grown substantially during the last few years to increase in theincome levels and emergence of a dynamic urban middle class. However, there are no precise estimates oftotal domestic tourist traffic in the country. All the State/Union Territory Governments were persuaded to setup Statistical Cells for the collection of data and domestic tourism statistics through accommodationestablishments and furnish them to the Ministry of Tourism on a monthly basis. As per the figures reported,the domestic tourist visits during the year 2005 are estimated to be 390 million, showing a growth of 6.6% ascompared to the year 2004.Table 2H
    • 20Table 2I Table 2JTable 2KTable 2L
    • 212. 4. 4 Recent Developments5International recognition ―Conde Nast Traveller‖, the world‘s leading travel and tourism journal, ranked India amongst top 4preferred holiday destinations in the world. ABTA (Association of British travel Agency) ranked India as No. 1 amongst top 350 places for 2006. The ‗Incredible India‘ campaign ranked as the highest recall advertisement worldwide by ―Travel andLeisure‖. World Travel Awards received for (a) Asia‘s Leading Destination, (b) Asia‘s Leading TravelDestination Television Commercial, (c) World‘s Leading Responsible Tourism Project for EndogenousTourism Project, and (d) Asia‘s Leading Tourism and Convection Bureau. Euro Effies Award received for the ‗Incredible India‘ Campaign.Efforts to overcome shortage of accommodationIn order to meet the rising demand of accommodation due to increased growth of tourist arrivals, theMinistry of Tourism brought out guidelines for classification of Apartment Hotels, Time Share resorts andGuest Houses. The Ministry sanctioned Capital Subsidy for 43 budget category hotels and Interest subsidy for86 budget category hotels. 146 new hotel projects with 12623 rooms were approved. In addition, 29 ForeignTechnical Collaboration proposals for hotel projects and 20 cases of Foreign Direct Investments were cleared.It was also decided to build up required inventory of budget category rooms available with houseowners by classifying these facilities as ―Incredible India Bed and Breakfast Establishments‖, under ‗Gold‘ or‗Silver‘ category. This facility will make rooms affordable fort the common tourist, who wish to visit India andalso give them an opportunity to stay with Indian families and experience Indian culture and authentic Indiacuisine.India – a 365 days a year destinationThe International medial campaign covering Europe, US and Canada, Australia, the Far-East and theAsia Pacific region aims to promote India as a ‗must-see‘ destination. The campaign focused on both genericand niche areas to convert India into a destination for 365 days a year. ‗Chasing the Monsoon‘ is a new themefor the West Asian market. Fresh creative commercials were also launched this year. The campaign wasbacked by a strong net campaign which featured on several well known portals like Yahoo!, MSN, as well asseveral international country specific sites.Domestic campaignFor the domestic market, the campaigns were aimed to popularize the culture and natural beauty ofdifferent regions, pilgrim sites, and new Tourism products like Adventure and Rural Tourism etc. Campaignson the 4 zones of the country were simultaneously launched.
    • 22Tourism as a multi sectoral activityTourism is a multi sectoral activity characterized by a wide range of suppliers i. e., airlines, hotels andconnectivity infrastructure where co-ordination, monitoring and speedy implementation is of paramountimportance. Several steps were taken for the upgradation of key tourism sites. Connectivity has beenimproved by the 4 laning of highways and Cruise tourism is also being given thought to. The Railways arelooking at possibilities of introducing tourist trains in Private Public Partnerships to connect identified circuitsand destinations. The issue of increased air connectivity in the domestic as well as overseas sector is beinganalyzed.2. 5 FUTURE OUTLOOK – A Comparative Analysis6Under the banner of ‗Incredible India‘ a vigorous marketing campaign is being followed with strategyand improved infrastructure to position India as a global brand. The following four point journey is beingsought to be achieved to a large extent among the target tourists in source markets: From non-awareness to awareness. From awareness to interest. From interest to desire. From desire to action (booking a holiday).The efforts being made are resulting into India, registering a growth of 78% in foreign tourist arrivalsand a growth of 122% in foreign exchange earnings in 5 years time. Share of India in world arrivals was just0.37% in 2001, and is likely to be 0.53% in 2006. It is proposed that keeping in mind all variables inenvironment, the product opportunities, the market scenario, and the following goals need be reached in aprojected 5 years time:Table 2M
    • 232. 5. 1 INTERNATIONAL TOURISMVisitationTo achieve international visitor levels of 10 million by 2011.Source marketsTo diversify principal source markets to include countries such as South Africa, Israel, Spain, Japan,China, South Korea, Australia, Brazil, Argentina, etc. which offer high growth potential and from where presentlevel of inbound tourists is below par.To concentrate on countries like South Africa, Mauritius, Kenya, Malaysia, Fiji etc. with a large Indiandiasporas for greater visitations from those countries. Similarly, target the Persons of Indian Origin (PIOs) andNon-Resident Indians (NRIs) elsewhere to create greater resonance in them to visit the country of their originand discover their roots. Target the ‗Baby Boomers‘ group of Europe and America by creating in them a desireto discover one of the oldest civilizations in the world and enjoy the plurality of cultural enjoyments that thiscountry has to offer.RevenuesTable 2NTable 2PTable 2O
    • 24To maintain and increase the per capita spending of international visitors.To attract higher quality tourists, increasing per head spending, resulting in higher revenues. Toconcentrate on Cruise tourism, MICE tourism sectors which are considered to be higher revenue generatingsectors of tourism.SeasonalityTo reduce the seasonality in international tourist arrivals by targeting markets like Australia, Spain etc.It should be ensured that the drop in arrivals during the ‗lean season‘ is not more than 15% of the annualaverage.Tourist arrivals during 2005 were the highest during the month of December and lowest during May.Maximum Number of Tourist arrived during the quarter October - December, constituting 31.9 per cent,followed by January - March, constituting 28.3 per cent, July - September, constituting 21.4 per cent and April- June constituting 18.4 per cent. Arrivals during the winter months of 2005 comprising January to March andOctober to December were 60.2% during 2005 compared to 59.9% during 2004.Average length of stayTo maintain and initiate measures to ensure that the duration of stay is sustained, if not extended.Purpose of StayTo retain focus on Leisure Travellers.To promote business related travel, including MICE market by promoting convention Centers ofinternational standards in major cities or at major tourist centers.ExpenditureTo prepare strategies to increase per capita expenditure on shopping and other non-accommodation,non-transportation heads, to match international benchmark of 30%.2. 5. 2 DOMESTIC TOURISMTable 2Q Seasonality – Graph 2R
    • 25VisitationTo achieve a level of 760 million for domestic tourist visits by the year 2001 at an average annualgrowth of 12%.To compliment international travel with domestic travel in order that seasonality is eliminated.To promote greater dispersal of domestic visitations in order to spread the benefits of tourism to allareas.2. 5. 3 OTHER GOALSAccommodation UnitsTo increase approved quality accommodation units from the current level of about 100,000 rooms toat least 200,000 rooms by 2011, to meet the increased requirement of tourism.To set up hotels on the surplus land with the Airports Authority of India, near International Airports asper international practices.To promote development of Budget Hotels at surplus land at Railway Stations.In order to achieve these objectives, it is necessary that momentum is created and sustained so thatthe full potential of the sector, as a major engine of economic growth, is realized, and the benefits ofassociated development are also cherished. It is proposed that besides the development of world classinfrastructure and launching aggressive marketing campaigns, access and connectivity to India should beimproved and new forms of tourism must be taken up with renewed zeal and efforts. India should be made afull year destination rather than an October-March destination by diminishing the seasonality factor andpromoting the Himalayas and the beaches during the summer and the coastal regions during the monsoons.India‘s competitiveness as a preferred holiday destination is enhanced with the rationalization of taxes,liberalization of the visa regime, improvements of the airports, removing barriers to travel, enhancing touristsafety and security, improving signage etc. the following objectives may be referred to:Positioning and Maintaining Tourism Development as a National Priority Activity: Provide effective linkages and close co-ordination between various departments Ministries of theGovernment. Plan and implement a professionally managed integrated communications strategy to increaseawareness about tourism and its social and economic impact on the society.Enhancing and Maintaining the Competitiveness if India as a Tourist Destination Take effective steps for easier and faster availability of visas. Increasing air connectivity and seat capacity from major overseas markets. Improving facilities and quality of services at international and major domestic airports. Rationalization of taxes.Improving India’s Existing Tourism Products Further and Expanding the Same:
    • 26 Develop sustainable beach, coastal and cruise tourism. Package and market India‘s wide variety of traditional cuisines. Encourage adventure and rural tourism. Develop and promote round-the-year tourism. Pursue medical tourism and take advantage of MICE tourism.Creation of World Class Infrastructure: Identify travel circuits for development as international standard destinations. Construction and improvement of highways for good connectivity with tourist destinations. Introduction of special tourist trains and establishment of budget hotels.Developing Strategies for Sustained and Effective Marketing Plans: Maintain and develop the India tourism brand position established. Evolve and maintain a system of market research activities in India‘s major source markets tocontinuously receive, analyze and respond to information on pricing, security issues, health, safetyand quality of tourism services, products etc. Make use of the various technological tools including the internet for advertising. Further encourage e-commerce portals to extend effective marketing support to small and medium enterprises and alsooffer competitive packages.2. 6 TREND FORECAST – A Summary72. 6. 1 Recent trends and developments in tourism in IndiaDomestic tourism driving the industryWith 390 million Indians on the move in 2005, it is little wonder that it is domestic travellers thatsustain the travel and tourism business. Domestic business travel and visiting family/friends, as well aspilgrimages, contributed to the 13% growth in number of trips within the country that year.Outbound gets interestingThe number of outbound travellers from India grew by 15% to 6.2 million in 2005. This was almosttwice the number of arrivals witnessed by the country. A booming economy, with GDP growth of more than7%, rising disposable incomes, higher aspirations, and cheaper air travel to countries such as Malaysia,Thailand and Singapore and better products from the industry enticed Indian travellers. This has prompted anumber of global tour operators to enter the Indian tourism market either directly or through strategicalliances.Arrivals and tourism earnings growth slow downGrowth in arrivals and incoming tourism earnings slowed down substantially in 2005, to 14% and19%, respectively. The slowdown followed a particularly good performance in 2004, with global travel
    • 27recovering from various health and natural disaster scares in the previous two years. Returning Indiansconstitute a significant proportion of incoming arrivals and as both the country and long haul travel becamemore expensive, they chose other holiday destinations instead of returning to their home country.Destinations with overseas Indians top list of arrivalsThe UK and the US lead arrivals into the country. Combined, they accounted for 33% of total arrivalsin 2005. The Middle East, including Dubai, the UK and the US were the favourite destinations in terms ofdepartures. Popular new destinations for Indians include Southeast Asian countries such as Singapore,Thailand, Malaysia and Hong Kong. Cheaper airfares and competitive holiday packages have made thesefavoured vacation spots.US popularity diminishesThe US Patriot Act has led to a number of changes, as the American government becomes morestringent about its visa rules. As a result, there were huge delays and backlogs for visa processing, with someinstances of visa call dates for tourist visas being given four months after the travel date. Hence the country‘spopularity as an outbound destination diminished in 2005, with European destinations, particularly the UK,favoured instead. However, the number of departures to the US still remained ahead of those to the UK.2. 6. 2 Key driving forces in Indian tourism industry8Budget airlines - New kid on the block in air travelAt Rs1,103 billion in 2005, India‘s transportation industry is the largest sector of the travel and tourismindustry. The sector outperformed the review period CAGR (Compound Annual Growth Rate) performance in2005, with 15% sales value growth. Investment in international quality roads, the launch of low cost carriers aswell as the expansion of the railways were responsible for driving growth.Six new low cost carriers were launched in India in 2005, and there seemed to be room for more.SpiceJet Ltd was the outstanding success during the year. As competition heated up, prices came down,making the Indian consumer the winner in all respects. Promotional fares as low as Rs1 were launched, butthis was limited to short periods, as fuel price hikes and taxes made it difficult for companies to sustain thesefares. Tier II city routes that were earlier sidelined or ignored were taken note of and serviced. The airline sub-sector outperformed the growth of the transportation sector as a whole in 2005.
    • 28After low cost carriers it is budget hotels nextTravel accommodation in India accounts for only 12% of the travel and tourism industry in valueterms. The skewed nature of hotel accommodation in India is evident from the fact that it constituted 5% of theaccommodation market in terms of number of outlets, but accounted for 28% of sales value. The hotel sub-sector achieved growth of 18% in current value terms in 2005, which was driven by increasing demand,notably in business travel.The huge gap between demand and supply of hotel rooms drove up occupancy levels and averageroom rates (ARR‘s) to new highs during the review period. Hotels generally cater to foreign visitors, corporatebusiness clients and high-end Indian travellers, as hotel accommodation is out of the reach of the averageIndian. Indians are increasingly seeking world-class facilities, such as clean and comfortable accommodation,Internet connection, and perhaps even fitness facilities, at local prices.In response to changing consumer needs, leading luxury and business hotels player Indian HotelsCompany Ltd shifted its focus to budget hotels and rolled out the first indiOne hotel, its budget brand, inBangalore in South India. Interglobe Enterprises signed a joint venture with Accor, in March 2005, to developbudget hotels in India under the brand name Ibis.On-line travel retailer MakemyTrip.com shifts focus to IndiaThe travel retail sector constituted 17% of the travel and tourism industry in 2005, and was the secondlargest sector, valued at Rs274 billion. With 25% growth in 2005, it was responsible for driving much of thevalue growth in the overall market. Sensing opportunities in this area, with Indian travellers becoming moreInternet savvy, dropping costs of broadband and a general increase in access to information, on-line travelretail intermediary MakemyTrip.com shifted its focus from returning Indians primarily from the Americanmarket to Indians within the country.Low cost carriers and Indian railways popularize the InternetE-ticketing and e-travel in India took off as a result of efforts by Indian Railways in late 2004,accompanied by good deals offered by new generation budget airlines, which sell most of their stock throughthe Internet. An estimated 7,000 tickets with an average price of Rs1,500 each are sold each day on theIndian Railways website. However, in terms of value sales, Internet rail transportation constitutes a lowerproportion of the total than air transportation.Consumers sought out Internet access through various means and made sure they did not get left outof the benefits – usually price discounts. On-line hotel reservations in India have also picked up, but constitutejust 3% of the business. According to the Internet and Mobile Association of India, 16% of on-line shoppersspent in the Rs10,000 plus range, including spending on computers, hotel rooms, jewellery, airline tickets andhome appliances.Company-owned sites, as well as specialized travel portals, drew in travellers in thousands. Travelagents also recognized the importance of the Internet as a means to distribute and market various deals,drawing in 7% of business from this medium. Much of it is still, however, not real-time.
    • 29REFERENCES:1. Page 9, Annual Report 2006-07, Ministry of Tourism, Government of India.2. Ibid.3. Page I-13 of 18, Final Report on 20 Years Perspective Plan for Development of Sustainable Tourism in Maharashtra, Dalal MottMacdonald, 2003.4. Pages 100-102, Annual Report 2006-07, Ministry of Tourism, Government of India.5. Pages 18-20, Ibid.6. Pages 24-26, Ibid.7. Executive Summary, Euromonitor survey – Travel and tourism in India.8. Ibid.All tables and graphs are generated by the Bureau of Immigrations and the Reserve Bank of India for the Annual Report 2006-07,Ministry of tourism, Government of India.
    • 303. Retail in India3. 1 India Retail 20051The Indian Retail market, rated as the second most attractive destination among emerging marketsglobally, is in the midst of a gigantic transformation, thanks to a plethora of changes within and outside thesegment. With mounting international and domestic pressure to open up the economy, with Indian corporatehouses and investors taking active interest in retailing, and with the Government realizing the importance ofmodernizing the sector, Organized retail could well become a major driver of the economy in the years ahead.The sector can greatly induce consumer spending in the domestic market, which in turn is bound to lend thenecessary push to achieving higher production levels.3. 1. 1 India – The 4thLatest Economy in the WorldIndia is the fourth largest economy in the world in Purchasing Power Parity (PPP) terms after USA,China and Japan. It has grown steadily since economic reforms were initiated in the early 1990‘s. GrossDomestic Product (GDP) has averaged a growth of around 6% per annum in the last 10 years, and has pickedup further momentum in the past three years, achieving between 6 and 8.4% growth. In 2003, India becamethe second fastest growing economy in the world with a growth rate of 8.2%. The outlook for the future isequally buoyant.One of the key developments during India‘s growth path has been a favourable shift towards theservices sector, which now accounts for almost 50% of the total GDP. Led by services such as IT,telecommunication, healthcare and retailing, this sector is likely to play an even more important role in theIndian economy.With a huge and growing consuming class, India is considered to be one of the preferred destinationsfor investments in the world. According to UNCTAD‘s World Investment report 2004, Foreign DirectInvestment (FDI) inflows to India grew by 24% to US$4.26 billion in 2003 from US$ 3.44 billion in 2002,putting India among the top 10 FDI destinations among developing economies and fourth among Asiannations.3. 1. 2 Huge Private Consumption offers Attractive Opportunities in Most CategoriesAccording to Images-KSA estimates, private final consumption expenditure in India was estimated atINR 1,690,000 crore in 2003-04. Retail sales contribute of total consumption expenditure. Food andbeverages (including tobacco), accounted for a significant half share as well. Clothing and Footwearconstituted 5% and furniture a further 4%. The consumption of consumer durables has picked up over thepast few years with 8.6 million television sets being sold last year. The rates of mobile phone subscriptionshave also been instep with world standards.
    • 313. 1. 3 Organized Retail Still a Fraction of the overall potential, but Well on TrackRetailing in India is one of the significant contributors to the Indian economy and accounts for about35% of the GDP. The sector is in a fragmented state with over 12 million outlets operating in the country andonly about 4% of them being larger than 500 square feet in size. This is in comparison with 0.9 million outletsin USA, catering to more than 13 times of the total market size. Thus India has the highest number of outletsper capita in the world with a widely spread retail network but with the lowest per capita retail space (@2square feet per person as compared to 16 square feet for one person in USA)The retail industry in India estimated at INR 930,000 crore (2003-04) is expected to grow at 5% perannum. In line with predictions made in 2002, organized retailing is well on its way to an INR 35,000 croremarket by 2005. The size of the organized retail market stands at INR 28,000 crore in 2004, thereby makingup only about 3% of the total retailing market. Moving forward, organized retail is expected to grow at the rateof 25-30% per annum and is estimated to reach an astounding figure of INR 100,000 by 2010. Further, itscontribution to total sales is likely to rise to 9% by the end of the decade.Clothing and Textile constitute the largest block of organized retailing in India and if we were toconsider all fashion and lifestyle segments like Jewellery, Healthcare etc. into one common segment, thenfashion as such would constitute about 60% of the organized retailing pie.Of all the retail segments, Watches are the most organized with about 40% of the market beingcontrolled by branded and organized players. The next organized sector is that of Footwear (25%) followed byclothing (13.6%). Titan Industries deserves the credit for having revolutionized and galvanized time-wearretailing, while in the case of footwear the credit goes to Bata and to Liberty also off late.Table 3A Table 3B
    • 323. 2 Key Retailing Formats in the Indian Apparel Sector2Small Traditional Retailers: These are small shops selling low priced apparel with limited display systemsand limited ranges targeted at the middle and lower income segment.Multi-branded Outlets (MBOs): These constitute the largest segment of apparel retailing. These outlets offera wide range of brands enabling comparison in terms of prices, fits and styles. MBOs enjoy wide distributionand are present in all major cities and big towns. They have fewer walk-ins than departmental stores, butmore than specialty store or exclusive outlets.Exclusive Stores: These outlets of leading brands can be company-owned or franchised. These outletsshowcase entire product range and help in creating brand awareness by offering a superior retailingexperience.Department Stores: This format has emerged as a major retailing channel for both Indian and internationalclothing brands targeted at the upper middle and higher income segments. Apparel is the most importantproduct group sold by these stores, accounting for two-thirds of their sales. Major players in this segment areShoppers‘ Stop, Lifestyle, Pantaloons and Westside. In terms of performance, department stores haveobserved a 35-40% growth in turn over from the preceding year.Studies reveal that traditional formats like unorganized retailing and multi-branded outlets continue todominate the apparel retailing sector though a defined modern shift has been witnessed over the past fewyears.Most international brands, such as Marks and Spencer, Benetton and Lacoste, have established theirretail presence in the country through the franchising route. In fact, a large number of Indian brands have alsoadopted the franchising route for expansion due to the relatively lower level of investment involved. Further, alot of international brands have entered into shop-in-shop arrangements with the leading department stores ofthe country.New formats like hypermarkets with their value offerings and appeal to a larger section of the societyare further likely to increase the penetration of organized apparel retailing in the country. Already, apparelmakes up for a large portion of the sales in Big Bazaar or Vishal Megamart.Malls are expected to be one of the drivers of the growth of apparel retailing in India, as they offerlarger spaces to fashion products. Most of the malls are trying to attract department stores as their anchortenants and are therefore offering attractive terms to these large format stores. The oversupply of malls in thecoming years will give departmental stores more bargaining power to negotiate favourable terms andconditions with mall developers.Private labels are gaining prominence in departmental stores as retail margins on their sales is 30-50% higher than on branded apparel. Westside is a pioneer in this regard with private labels contributing morethan 90% of its total turnover.
    • 333. 3 Status Check3Opportunities are abundant, across formats and categories, as the new Indian consumer has clearlydemonstrated a readiness for all organized ruling segments. Moreover, as has been the case in retail marketsacross the globe, the influx of foreign brands into India shall transform the retail landscape as domesticplayers grow bigger and become more innovative in the face of enhanced competitive pressures.All this can only spell good news for the Indian consumers who will be inundated with a flurry of state-of-the-art products and services at reasonable prices – a state they have long craved for.Reasons why Indian Organized retail is on the Brink of a RevolutionThe last few years have seen rapid transformation in areas like:1. Scalable and profitable retail models are well established for most of the categories.2. Indian consumers are rapidly evolving and accepting modern formats overwhelmingly.3. Retail Space is no longer a constraint for growth.4. India is on the radar of Global Retailers.5. Suppliers/Brands are willing to partner with retailers.3. 4 Future Market Characteristics – Market Prospects4The Retail business is expected to touch Rs. 1, 125, 000 crore by 2006, with further growth oforganized retail. Huge investments are likely in this sector in the next 4-5 years. Newer players will come inwhile existing players will increase their penetration. There is already a trend in the favour of large retailformats. Consumers are also looking for ambience and convenience in shopping. The following drasticmovements can be witnessed in the sector: Private labels will start to play a significant role, especially in clothing. Convenience stores will witness rapid growth. Twenty four hour shopping will also be introduced andwould become popular. As consumers will be ready to pay a premium for service at odd hours, thetimings of the shops will have to adapt to the needs of these consumers. Most companies will identify logistics as a major source of competitive advantage. More transactions will be done on the internet, especially between manufacturers, retailers andagents. The chaos of different state sales takes may eventually disappear over time. Retailers will demand higher levels of services from suppliers. Operations of over-land courier companies will become more efficient, along with the handling ofopen, packed and rack merchandise. IT will play an important role in logistics and inventory related issues in the newer retail formatsemerging in the near future.
    • 34 Malls will continue to grow at a rapid rate and will penetrate into second rung cities like Pune,Chandigarh, Indore, Lucknow, Kanpur, Nagpur and Ludhiana. Brands will proliferate and foreign brands will follow. Disposable incomes are expected to continue their trend upward even as consumer is getting‗younger‘. Land costs will remain high and corporates will enter the mall business.OpportunitiesWe need to expand the size of the organized retail market and this can be done by: Creating cost effective yet quality retail options by malls and retail developers. Worldwide, food, entertainment and shopping form a powerful combination for shoppers. If theseindustries work together, we can increase consumer catchment areas and improve mall traffic. Increase shopping frequency and quality of retail experience.3. 5 Emerging Trends in Fashion and Retail5We are being increasingly integrated into global trends. The drivers of this integration are media,inbound and outbound travel; and also the role of Indian cinema, TV and music. For example, fashion stripeswere seen in apparel the same time in India and Europe in the summer of 2005, with several fashion forwardconsumers expecting to get the latest in international fashion here in India. The trends observed may be listedas follows: Continuous and consistent need for innovation. Integration of global trends, yet a distinct rise of Indianism. E.g: the Kurti is in fashion to a large extent;the McAloo Tikki as a burger at McDonalds etc. End-to-end value proposition will be the key driver of all buying where end-to-end is the sum total ofthe product, service, retail experience, brand image and emotional connect in relation to price.3. 6 Luxury Retailing6Where and when was luxury missing from India? It may have ebbed in between, but the high tide isjust about beginning. Pegged at about Rs. 2,500 crore, the premium fashion market has been growingsteadily at about 20% and is expected to move further ahead. In a market thirsty for innovation, and newideas, a saturated and developed world is beckoning, and the time is perfect for the exploitation.A clear and equivocal result of modern capitalism and the Industrial Revolution has been theunbashed material culture of the 21stcentury. The importance of essentially unnecessary objects ofconsumption – that is what luxury retailing props itself upon for its survival and continued sustenance.
    • 35Currently Asia is where all the action in the luxury market is. Despite the fact that India‘s urban consumer isliving the high life of caviar and cartier, luxury retailing in India is yet to catch up.Luxury retail is prompted by a strong economic climate, increasing international travel and brandawareness, and in most cases, an aspirational positioning the brand gets to start with. ―New Delhi isconsidered a good market by many brands for being flamboyant, having distinct seasons and being thecountry‘s capital while Mumbai is considered, besides being the financial capital, being the center for diamondtrade and Bollywood,‖ says Pranay Sinha, CEO, Select Infrastructure Ltd. Prasanna Bhaskar, India countrymanager for Louis Vuitton chips in, ―there is a lot of hidden wealth in pockets like Rajkot and Vadodara,southern Hyderabad etc., which we need to reach out to.‖We have reached a stage where brands are more willing to come in and set up shop here. Thanks tothe entry of MNC‘s that led to bigger pay packets, the IT boom, nuclearization of families with both membersearning, and increasingly younger ‗aspiring‘ population, that has a bigger percentage of Indians equipped withmore purchasing power than they could have ever imagined. As of now there are five hotspots in the countryas far as luxury retailing goes – the Taj and the Grand Hyatt, Mumbai; Oberoi and Maurya Sheraton, NewDelhi and the Leela, Bangalore. Other places to reckon would be Vama and the Courtyard in Mumbai and theSasket Dome in the Taj, New Delhi.One needs to bring in professional retailers into retailing of luxury. They must be comfortable withluxury themselves. That is the reason one finds that most in the business of retailing have backgrounds likeinternational MBA‘s, wives of industrialists, industrialists themselves and such other known people.3. 7 Malls in India7On studying marketplace conditions, one gets a clear indication of why commerce is such animportant interwoven addition within humanity. From a design and architectural standpoint, historicalreferences hold true through the centuries to current day practices. Modern era shopping center developmentin the west started around the 1950‘s and 60‘s, and this same evolution is happening in areas of Asia atpresent. But there is a fundamental difference between developments in the emerging markets, such as India,and what happened in the developed world, post World War II.The Indian real estate sector should see the western evolution of the business as an operationalmodel. That is what will take it to the furthest and quickest, to its maximum potential. Realizing thecomplexities and dynamics facing the sector at present, it is about alignment of interests – about a win-winsituation for retailers, developers, government agencies, investors, capital market people, and ultimatelyconsumers. And if it can draw the course through all the technical aspects of the business, the development ofthe best practices, and all the fine-tuning in leasing, merchandising and marketing efforts, it will help sustainthe most profitable growth for the industry over the time it will take to build it up.
    • 36Unlike foreign counterparts, where ‗have enough‘ has saturated the market, Indian consumers arenow demanding bigger and newer retail formats. The reasons for this retail boom are:A fast growing Indian middle income segment with high discretionary income The current Indian mid-segment of about 300 million will increase to around 520 million in the next fiveyears. The Indian economy is growing annually at a rate of 6.5%, while our population is keeping pace at1.7% annually.Growing number of women in the workforce There has been an increase in the number of dual-income households in India. Over 16% of the total population, of Indian women, work full-time. There are higher pressures on time.Changing aspiration and lifestyle orientation India‘s super affluent class of 17 million people will increase to 35 million in five years. Over 40 million Indians have the same purchasing power as Americans. Consumer spending grew at an annual pace of about 6% in the last 10 years.Growing number of Indians are in the age bracket of 16-25 years. A younger, brand conscious, earning population. Nearly 81% of Indians at present are below 45 years of age.Openness to credit Lower interest rates are making buying more affordable to Indians.
    • 37REFERENCES:1. Pages 151-152, ‗India Retail Report 2005‘, IMAGES Yearbook, Fashion and Retail, Volume 1, No. 2.2. Page 153, ‗India Retail Report 2005‘, Ibid.3. Pages 173, 182, ‗Indian Retail – Where it Stands‘, Ibid.4. Pages 48-49, ‗Sizing up What India Wears: 2005‘, Ibid.5. Pages 93-95, ‗Opportunities and Challenges‘, Hemachandra Javeri, Ibid.6. Pages 121-132, ‗Luxury Retail‘, Ibid.7. Pages 249, 250, 270, ‗Malls in India‘, Raminder Grover and Shubhranshu Pani, Ibid.Table 3C
    • 384. RETAIL TOURISMOver the past few years many countries have put the spotlight on tourism retailing with the aim ofbuilding stronger ties between the tourism industry and the retail sector. The objectives are to build tourismyield by promoting greater opportunities to position ‗shopping‘ within the destination experience, improvevisitor services and protect the nation‘s reputation as a welcoming host to visitors. Ultimately, the aim is toencourage visitors to spend more thereby increasing the economic footprint of tourism.Put simply, it is in India‘s interests to ensure visitors have every opportunity to shop and to leave thecountry with empty pockets and as satisfied customers. Major retailers now recognise the potentialcontribution tourism can make to their business. Governments are recognising the strong tie betweenshopping and yield. The tourism industry has also come to understand that tourism retailing goes beyond thetraditional duty free stores and extends to mainstream retailing, tourism precincts, airports, neighbourhoods,specialty stores and markets.4. 1 DUBAI SHOPPING FESTIVAL – A Case Study1Dubai - A city of merchants, cultural crossroads, second largest of the seven United Arab Emiratesand probably the most well known; a country where the dust of the desert is clearing to reveal the potential forone of the most significant international cities of the 21st century. Under the guidance of Sheikh Mohammedbin Rashid bin Maktoum, it has forged a reputation as one of the most important and vibrant cities in theMiddle East.4. 1. 1 What to do in Dubai2Dubai is one of the seven emirates in UAE. It has a great tourist infrastructure and it is easy to enjoythe beaches, mountains, oases, camel racing, deserts, and any number of sports. Dubai provides its touristsand residents lot of activities to do and keeps them busy all year through. There are innumerable things to dofor the whole family - plenty of sun, shopping and sports combined with Dubai history and culture. TheEmirate provides a blend of the exotic east and the sophisticated west together with its status as the sportingcapital of the Middle East, and award winning hotels and resort facilities to match. In just 20 years, Dubai hastransformed itself from desert backwater to modern nation by becoming one of the worlds hottest touristdestinations. The museum is a must for visitors of all ages.Dubai is both a dynamic international business centre and a well laid-back tourist escape; a city wherethe sophistication of the 21st century walks hand in hand with the simplicity of a bygone era. There are a lot ofthings that you can do while in Dubai. Dubai is filled with souks, selling traditional goods and gold jewelry.There are endless opportunities for bargains. No visit to Dubai would be complete without a trip into thedesert. Most desert safaris offer camel riding, dune driving, sand-skiing and spectacular sunsets. The emiratehas many well-qualified tour companies offering such activities as desert safaris by 4-wheel drive, sand-skiing,moonlit bedouin barbeques, camel riding and dhow cruises.
    • 394. 1. 2 Attraction3Dubai is a treasure trove of historical attractions and there is perhaps no better place to delve into thelands past than at the Dubai Museum housed beneath the 180-year-old Al Fahidi Fort in Bur Dubai. TheBastakiya district is a step back in time, with traditional courtyard houses and wind towers. Sheikh Saeed Al-Maktoums House is one of the oldest houses in the city, as well as one of the best examples of traditionalMiddle Eastern architecture. Built entirely of stone along medieval Fatimid lines, the Jumeirah Mosque and itstwo minarets are unmistakable. Other historical attractions in the city include the Grand Mosque, the Juma Al-Majid Cultural and Heritage Centre, the Dubai Heritage Village, the Tower of Arabs and Majils Gallery.Dubai is a futuristic metropolis boasting year-round sunshine that has become a playground for therich and famous. It has a multitude of superb outdoor attractions, from championship quality golf courses andspas to water sports and desert adventures to be enjoyed. Spectators can enjoy a host of premier sportingevents such as the worlds richest horserace, the Dubai World Cup at Nad Al-Sheba; the Dubai Desert ClassicGolf Tournament, the Dubai Tennis Championships, Rugby Sevens, the Emirates Grand Prix power-boating;the UAE Desert Challenge, and of course, camel racing. Enjoy a fascinating Abra water taxi ride across theDubai Creek to the myriad shops at Deiras Shindagha quarter famous for its textiles and electrical goods.Dubai is popularly referred to as the City of Gold because of its famed Gold Market, and shopping inall its forms - from vast malls to bustling markets - has long been one of Dubais principal attractions. Onepopular legend suggests that the name Dubai may have derived from Daba, meaning a prospering orflourishing market. Dubais famed markets are located on both sides of the creek, with the colourful SpiceMarket enticing shoppers with its exotic aromas, and the enormous Gold Souk dazzling with every form andstandard of precious metals and glittering jewels. "Visitors can enjoy all the international pursuits - golf, watersports, horse racing, polo and nightlife. Plus theres the attraction of the desert itself, with the opportunity to bepart of an Arabian adventure." Dubai is the exemplary home of sand, sun and shopping, all together. Thetourists can discover the two sides of Dubai-the lustrous, future-oriented world of large mirrored skyscrapers,air-conditioned cool malls and artificial islands; and on the other side, old Dubai, which is perhaps mostevidently epitomized by its primordial mosques and countless souks.The city is expanded all along the both banks of the Creek. The central business district of Dubai isdivided into two parts- on the northern side Deira and to the south Bur Dubai. A tunnel and two bridgesconnect both of the districts. Both the cities are decorated with sites of tourists interest, fine mosques, busysouks, public buildings, shopping malls, office towers, hotels, apartments and villas. As you would cast yourfirst look at the city, you would feel the city to have a primarily modern face that represents an ever-changingskyline of new developments. The city offers everything, from outstanding mirror and concrete skyscrapers toaffable modern buildings, which further incorporate the traditional Arabian architectural features and motifs.The emirate embraces a wide variety of scenery in a very small area. In a single day, the tourist canexperience everything from rugged mountains and awe-inspiring sand dunes to sandy beaches and lushgreen parks, from dusty villages to luxurious residential districts and from ancient houses with wind-towers toultra-modern shopping malls.One of the citys top attractions is its excellent shopping. As an open port with low import duties,Dubai can offer an incredible range of top brand names at cheaper prices due to the tax-free environment,
    • 40and shopping tourists are drawn from around the world to this paradise of malls, souks, boutiques andmodern department stores selling everything from Paris fashions to Japanese electronics. The annualShopping Festival attracts millions of tourists to the city for a shop-till-you-drop holiday.Major Attractions of Dubai are as follows:Burj Al ArabWild Wadi Water ParkDubai CreekDubai World Trade CenterWonderland Water Park4. 1. 3 Shopping4Dubai is labelled the "shopping capital of the Middle East". With so many shopping malls and souks,there is no better place to find products at unbeatable prices. Cars, haute couture clothing, jewellery,electronics, furnishing, sporting equipment, and any other goods will likely all be under the same roof. Retailprices are very reasonable because of its open port and low import duties and the variety of productsavailable. Free of tax, many top brand-name products are cheaper in Dubai than in their countries of origin.Products like gold and jewellery, high fashion, electronics, and carpets and handicrafts can be bought foramazing deals that are unmatchable anywhere else in the world. Even major brand name products, widelyavailable in the city, are often less expensive in Dubai than in their country of origin. The major shoppingareas of the city are Al Faheidi Road, Al Rigga Road, Al Karama, Al Satwas Al Dhiyafah Road and BeniyasSquare. The modern shopping malls, located throughout the city, contrast with the sights, sounds and smellsof the traditional souks.The Dubai Shopping Festival is known throughout the world for not only being an opportunity forfantastic shopping and bargains, but also as one of the worlds most entertaining festivals including grandfirework displays, great prizes to be won, and of course the excitement of being in Dubai itself. One of thehighlights of the festival is the Global Village, with thirty eight pavilions from as many countries all displayingtheir traditional and modern wares and local cuisine, there is no shortage of things to do.Normal shopping hours in Dubai are from 9am to 1pm and 4pm until 9pm or later. Some boutiques inthe residential areas do not open until 9.30 or 10.00am. Most supermarkets stay open all day, from Saturdayto Thursday. All shops close for prayers on Friday from 11.30am to 1.30pm. Shopping malls and most shopsare open on Friday evenings until late. Souks have been called "the heart of urban Arabia", and Dubai hasplenty. These range from the traditional, dusty, alleyways of the spice souk, a stones throw from the Creek, tothe modern fish souk with the many varieties caught in Gulf waters and the fruit and vegetable souk with itsbustle and vivid colours. Dubais most famous market of all is the gold souk. Here, prices are very reasonableand largely determined by weight, rather than design and craftsmanship.The Dubai Shopping Festival (DSF), known in Arabic as Layali Dubai, was first started in February1996 by the Dubai government as purely a retail event aimed to promote trade in Dubai. Since then it hasbecome an annual shopping, entertainment, and cultural extravaganza that continues to promote tourism inDubai and draws people from around the world each year.
    • 41The festival shopping event lasts for one month and its slogan is One Family, One World, OneFestival, but is also called the festival Where the celebrations last a month and the memories, a lifetime.During DSF, Dubai offers the world‘s best brands at the world‘s lowest prices. Although Dubai is considered ayear-round shoppers‘ paradise, during DSF the city becomes the most exciting shopping destination in theworld. Dubai has bustling textile and spice souks (traditional markets), the renowned Gold Souks with over400 jewellery shops, two electronic markets and over 25 world-class shopping malls.More than two million visitors attend the Dubai Shopping Festival each year. Sponsored by DubaiDuty Free, DSF offers an array of entertainment for the whole family - children‘s events, international fashionshows, visiting artists, street-side performances, nightly fireworks, musical shows, film festivals, numerouscultural events reflecting the emirate‘s cosmopolitan character and record-busting feats. Dubais beautifulparks will be used for various entertainment activities such as Cable Car rides introduced to coincide with DSF2000, Dubai Creek Tours, Mini Fun Fair, Space Ship, Remote-control boats, World of Ice, Flower Garden,Park Taxis, Spiderman Zone, Trampoline, helicopter tours, China Town and Acrobatics Show. Once again,Dubais beautiful streets will be turned into colourful venues for a host of DSF activities, exuding theexcitement of the unique shopping festival. Street performers, clowns, magicians and fun-fairs will keepvisitors entertained throughout the festival.SHOPPING MALLS5Most shopping centers or malls in the UAE are much more than shopping destinations, many are well-designed attractive venues with food courts and entertainment areas. The modern shopping malls, locatedthroughout the city, contrast with the sights, sounds and smells of the traditional souks. Bargaining is the normin the souks and even in shops it is wise to ask for the best price, particularly if paying by cash.A number of huge new malls have opened in recent years. Mall of the Emirates, featuring HarveyNicholls, Aspreys and Debenhams, has 223,000 square meters of shops and an indoor ski area. DowntonDubai will cover 351,000 square meters when it is completed and Mall of Arabia, which will be located inDubailand, is destined to be the largest in Dubai. For years, shopping in Abu Dhabi was overshadowed by themore sophisticated centers in Dubai. In recent years however, magnificent new shopping centers have beenbuilt in Abu Dhabi. All the major High Street brands e. g. Oasis, Next, Laura Ashley as well as internationalhaute couture are well represented.DUBAI SOUKS6Souks, or traditional street markets, have been called "the heart of urban Arabia", and Dubai has agood selection of them. Souk is the arabic word for market or place where any kind of goods are brought orexchanged. Traditionally, dhows from the Far East, China, Ceylon, India would discharge their cargos and thegoods would be bargained over in the souks adjacent to the docks. Each Souk has merchants who specializein the same products and the traditional style of doing business by enthusiastic and sometimes melodramatichaggling over endless cups of sweet tea or Turkish coffee is common. One rule prevails - if you do finallyagree a price with a merchant you are morally obliged to buy the item from him at your price. Just walkingaway is considered bad manners. The Dubai Souks range from the traditional, dusty alleyways of the SpiceSouk, a stones throw from the Creek, to the most famous market of all - the Gold Souk.
    • 42Dubai souks are located on both sides of the Creek. Discover narrow alleyways selling handicrafts,carpets and every spice imaginable. The slightly larger lanes are where you will find the gold souks, which areshops overflowing with gold, said to offer the lowest prices in the world. Haggling is a tradition in the souks.Find the wonders of aromatic spices and the beauty of hand-crafted gold through the labyrinth of narrowwinding alleys on the Deira side of the creek. In the spice souk you will find perfumes, incense, and deliciousfoods piled in sacks awaiting your haggling skills. Walk a bit further toward the gold souk and be dazzled bythe glittering displays in each shop window. Choose from gold necklaces, earrings, bracelets, and evendesign your very own jewelry. Bargaining with shopkeepers is expected and encouraged.You will find the antique market near the souks where you can buy coffee pots, Arabian chests,daggers, Bedu jewelry and carvings at excellent prices. If interested in buying textiles or silk, head for CosmosLane in Bur Dubai or the streets of Satwa, where numerous shops sell a vast array of colorful fabrics. You canalso find excellent electronics on Al Fahidi Street in Bur Dubai. This area is lined with electrical and electronicsshops. Dubai is awash with local markets, and the Creekside souks are a remnant of its days as a thrivingport for smugglers and traders in the 19th century. While much has changed since then, the Deira and BurDubai souks still have plenty of goods that are worth haggling over, from spices and silks to electronics andgold.4. 1. 4 The Dubai Shopping Festival7The Dubai Shopping Festival (DSF), known in Arabic as Layali Dubai, was first started in February1996 by the Dubai government as purely a retail event aimed to promote trade in Dubai. Since then it hasbecome an annual shopping, entertainment, and cultural extravaganza that continues to promote tourism inDubai and draws people from around the world each year. On February 15, 1996, the travel industry in theMiddle East heralded the beginning of a new dawn - the birth of the most impressive shopping cumentertainment mega event. An entirely new concept, it succeeded brilliantly in showcasing what co-operationbetween private sector and public sector could do to create a mind-boggling achievement.Initially, Dubai Shopping Festival was conceived as a pure retail event, the primary aim of which wasto revitalize the retail trade in Dubai. It was later developed into a comprehensive tourism product in line withDubais far-sighted stance to set global standards in every field. Dubai Shopping Festival is basically ashopping paradise. Dubai is know around the world as such a paradise throughout the year, but they really layout the red carpet during shopping festival month, with over 2,300 retails outlets participating, that offereverything imaginable from gold, perfume, haute couture, cars, electronics to handicrafts and textiles. Alongthe lines of the stature that Dubai has achieved with its clarity of vision, innovation, initiative and drive, theFestival was shaped under the committed leadership of His Highness Sheikh Mohammed Bin Rashid AlMaktoum, UAE Vice President and Prime Minister and Ruler of Dubai. As months of preparations went intocreating Dubai Shopping Festival, the shopping festival matured into a major retailing cum entertainmentextravaganza.Today, one of the biggest beneficiaries of the event is the tourism sector. Hotels, travel agents andtour operators contribute to the selling of the event worldwide and it would be fair to assume, run at the peak
    • 43levels of operation during the event. Every year, Dubai Shopping Festival lives up to its promise of staging themost exciting activities for the whole family inspired by the theme One World, One Family, One Festival. Asuniversal brotherhood, happiness, excitement, joy and adventure became the signature trademarks of DubaiShopping Festival, the Festival itself became a tribute to the inherent ambition and strength of the people ofthe United Arab Emirates. Local and multinational brands acknowledged their faith in the event, and brandslike Visa, Pepsi and Emirates Airlines became partners to DSFs growth. Most hotels and apartments also getinvolved offering special offers during the period, even the world famous Burj Al Arab is included in the hotels.With all these special discounts available many would feel that would suffice, but Dubai goes quite a few stepsfurther. They are scores of raffles that offer very attractive prices outlined below, and Emirates and most otherairlines flying out of Dubai offer discounted airfares and much needed excess baggage allowances during thefestival.There are other events as well, including international fashion shows, childrens events, streetsideperformances, nightly fireworks, film festivals, and many other cultural events that reflect the emiratescosmopolitan character. Plus one of the biggest events of them all, the Dubai World Cup also takes placeduring the festival and with a staggering US$ 12 million purse that makes it the richest horse race in the world- not something to miss.The next DSF will witness fresh creative inputs and innovative promotions that will go a long way inattracting more visitors to the Emirate.DSF Growth8The DSF has established itself as the leading special "shopping" event in the world, others have triedwith their own success, but no one has really been able to match the passion and success of this greatfestival. In its first year in 1996, 1.5 million people attended and in 1999 this figure increased to a staggering2.4 million which resulted in incremental sales of US$ 1.12 billion, and these figures have been growing eversince. In 2005 there was an estimated 3.3 million!Yearly Visitors InformationGoing back for the beginning of Dubai shopping festival, and due to the huge number of visitors,through the previous eight cycles we conclude that the event attracted at its first cycle in 1996 1.6 millionvisitors during 43 days. This number reaches the same total in the next cycle in no more than 31 day.While in 1998, the number of visitors increases to be 2.2 in the same period, and in 1999, the eventattracted 2.4 million visitors in 28 days. The fifth cycle witnesses a high growth in its visitors, which end at 25million visitors during 31-day only and 2.55 visitors in 2001. In 2002, the number increase to reach 2.68 in 31festival days. Dubai shopping festival 2003, attracted the largest number of visitors, one could say, it was thebest among other cycle since it recorded the highest number: 2.92 million visitors in no more than 32 festivaldays.
    • 44Cost Per YearThe average cost in the first festival cycle at 1996 was DHS 2.5 Billion and DHS 2.79 at 1997. At thethird cycle in 1998, the cost was DHS 3.81 Billion, and in 1999 the cost close at DHS 4.15 billion. While at2000 the cost surge to DHS 4.31. At the last three years, the average cost ranges between 4.50 at 2001, 4.60at 2002, 5.12 at 20034. 2 THE VISA STORY9In 2004, 3.4 million international visitors arrived in India compared with 2.7 million in 2003. Accordingto the Ministry of Tourism data, visitors to India spent Rs. 222.5 billion during their stay in 2004; with anaverage spend of Rs. 65,460 per person. International Visa cardholder spend in India was Rs. 41 billion in2004, equivalent to 18% of total foreign exchange from tourism. In 2004, 15% of total spend by visitingInternational Visa Cardholders in India was made by cardholders from other Asia Pacific countries. This waslower than the average for the Asia Pacific region as a whole, which reached 45% in 2003.The top 5 Visa spending countries of origin in 2004, were the United States, the United Kingdom,France, Australia and the United Arab Emirates. These countries collectively accounted for 64% of the totalVisa spend in India by international cardholders. The most popular spend categories were accommodation(25%), retail stores (24%), clothing (10%), household goods (8%) and mail and phone order (3%).International Visa Cardholders made 5.4 million transactions in India in 2004. Average spend per transactionwas about Rs. 7632. Cardholders from Japan, China and Switzerland recorded the highest average spend pertransaction.Table 4BTable 4A
    • 454. 2. 1 Overview of Inbound Traveller Activity in IndiaIn 2004, 3.4 million international visitors arrived in India compared with 2.7 million in 2003. Accordingto the Ministry of Tourism data, visitors to India spent Rs. 222.5 billion during their stay in 2004; with anaverage spend of Rs. 65,460 per person. This places India 11thin terms of visitor numbers and 7thin terms oftotal visitor spend. During the last decade, both international visitor arrivals and foreign exchange earningsthrough tourism in India have been experiencing moderate single digit growth or decline during periods ofglobal uncertainties. The high growth rates seen in 2003 and 2004 - 15.3% and 23.5% for tourist arrivals, 21%and 40% for tourism receipts respectively – were considered the best performance in India‘s tourism history.4. 2. 2 Visa Spend in India by International CardholdersInternational Visa cardholder spend in India was Rs. 41 billion in 2004. Spend was up 42% from 2003and has been growing for the past six years, at about an annual average growth rate of about 20%.4. 2. 3 Growth in Merchant Locations Accepting CardsOne of the difficulties foreign tourists often face is the conversion of currency for local purchases.Wider merchant acceptance of payment cards along with more ATM facilities could increase touristexpenditure and India‘s foreign exchange earnings. With improvements in India‘s card payment infrastructure– better telecommunications connectivity at lower cost, more advanced technology and equipment as well aswider card usage, the number of merchants accepting cards in India has been growing rapidly. In 2004 therewere more than 160,000 merchants in India, concentrated not only in the main metropolitan areas, butcovering both tier I and II towns and cities. Today 150 towns and cities accept payment cards.As the number of card-accepting merchants increases, the scope of acceptance also expands. Cardsare now not used only at traditional outlets such as hotels and entertainment outlets, but at diverse types ofmerchants like supermarkets, handicraft shops, medical service providers or departmental stores. However,while there is a clear trend that more merchants are accepting cards for payment, a vast majority of merchants
    • 46around the country still remain cash-based. Further expansion of card acceptance infrastructure across thecountry would help facilitate tourist spending.4. 2. 4 Who are the Biggest Visa Spenders in India?Intra-regional spend is relatively low but steady.In 2004, only 15% of the Visa spend in India originated from within the Asia pacific region. Intra-regional Visa spend in India has been steady at around 16% for some time and is relatively low to the averagefor the Asia Pacific region as a whole (45% in 2003).Cardholders from the US and UK are the biggest spendersThe top 10 Visa spending countries in 2004 were the US (Rs. 12.8 billion), the UK (Rs. 8.7 billion),France (Rs. 2.2 billion), Australia (Rs. 1.5 billion), and the UAE (Rs. 1.3 billion). The top 5 countries accountedfor 64% of the total Visa spend in India by international cardholders in 2004. The largest upward movers havebeen the UAE and Australia, up from 10thand 6thpositions respectively. The largest downward mover isJapan, which has fallen in importance from the 4thto the 8thplace.
    • 474. 2. 5 Where are International Cardholders Spending in India?In 2004, the top five locations which attracted the highest visa international inbound spend in Indiawere New Delhi (24%), Mumbai (20%), Bangalore (11%), Chennai (8%), and Jaipur (5%). The top 10 citiesaccounted for 83% of total Visa spend, down from 85% in 2003. Among the top 10 spending destinations inIndia, Pune experienced the fastest growth (83%) followed by Jaipur (69%) and Agra (59%). The fastestgrowing smaller destinations in India were Noida (196%), Gurgaon (186%), Covelong (133%) and Amritsar(127%).4. 2. 6 What are International Cardholders Buying in India?Accommodation services and retail goods attract the most Visa spendsDuring 2004, international Visa cardholders spent most on accommodation (Rs. 10.1 billion), RetailStores (Rs. 9.6 billion), clothing (Rs. 4 billion), household goods (Rs. 3.1 billion), and mail and phone order(Rs. 1.3 billion). Mail order purchases mainly consist of transactions made via the Internet or mail and phonewith direct marketing merchants, for goods such as computer network information services, onlinesubscriptions, shopping at e-malls or online portals.Top retail spendingAmong all other retail merchants in India, bedsides clothing and household goods which are classifiedas separate broad spend categories, international Visa cardholders spent most on jewelry (Rs. 3.9 billion),travel agencies (Rs 2.3 billion) and departmental stores (Rs 1.1 billion)
    • 484. 2. 7 Average Visa Spend Per TransactionAverage spend per transaction is recoveringThe total number of transactions made by Visa cardholders in India has increased by 151% since1999. Cardholders made a total of 5.4 million transactions compared with 2.1 million in 1999. In 2004, mosttransactions were made at retail establishments (1.16 million), accommodation (940,000), clothing stores(880,000), restaurants and food stores (340,000) and household goods stores (300,000). The average spendper transaction by international Visa card holders in India was Rs. 7,632.Cardholders from Japan and China have highest average Visa spend per transactionAverage spend per transaction by international Visa cardholders in India during 2004 was highestamong cardholders from Japan (Rs. 11,250), China (Rs. 10,518), and Switzerland (Rs. 10,501).
    • 49Accommodation generates highest Visa spend per transactionAverage transaction size sheds light on the categories of merchants that are generating larger ticketsizes and the types of goods and services that can potentially bring higher value tourist spending. Averagetransaction size of Visa cards was highest when used to pay for accommodation (Rs. 10,816), followed byhousehold goods (Rs. 10,437), transportation (Rs. 9,939), education (Rs. 8,941) and medical services (Rs.8,861).4. 2. 8 Preferred Visa Card Transaction Payment MethodGrowing proportion of transaction via e-commerce and mail/phone orderWhile most of the Visa transactions made by international cardholders at Indian merchants take placein person, the relative importance of mail and phone order and online payments is increasing. These aremainly purchases at direct marketing merchants, for computer network information services, e-malls or onlineportals.4. 3 Retail Theme Vacations – The Asian Scene10Hong Kong is in a battle for the hearts, minds and wallets of consumers, Asian shopping festivals areupping the ante, with each one trying to outdo the other with ever more flamboyant marketing ploys. "Theshopping festival is a growing industry and almost every big city in Asia has its own indigenous annual event,"says Laila Suhail, chief marketing officer of the Dubai Shopping Festival in the United Arab Emirates.As next years Asian travel event calendar shows, there is no shortage of new or newly repositionedshopping festivals. And for as long as they continue to bring in the travelers, tourism authorities in the regionwill continue to market the idea of retail-theme vacations. Just ask Singapore and Hong Kong. According tothe Chan Tat Hon, assistant chief executive (leisure) of the Singapore Tourism Board, "This years GreatSingapore Sale proved to be a roaring success with both retail sales and visitor arrivals hitting record highs."In July, the closing month for the countrys eight-week shopping fest, 877,000 visitors arrived in the country, afigure that officials attribute to the festival. Combined with June, there were 1.9 million visitors, a 9 percent riseover the same period in 2004. Singapore forecasts that the number of tourists will double to 17 million andtourism receipts to triple to 30 billion Singapore dollars, or $18 billion, by 2015. Chans research shows that,on average, half of total visitor expenditure in Singapore went to shopping. "Shopping is key to overseasvisitors from the Asia-Pacific region," he says. Eight countries from the region ranked among the top 10markets by shopping expenditure: Hong Kong, Indonesia, China, India, Japan, Malaysia, Australia andThailand. "Asians love to shop and eat and eat and shop. They are among the best retail consumers in theworld," says Noridah Kamarudin, Hong Kong office director of Tourism Malaysia. Kuala Lumpurs Mega SaleCarnival runs for six weeks from the end of July to the start of September, a consolidation of the threediscount shopping periods a year that it used to tout.
    • 50Hong Kong, which only last year repackaged its summer end-of-season sale into the Hong KongShopping Festival, attributes its increase in tourists this year to the festival. It "turned the slow summer periodinto another peak travel season," said a spokesperson for the Hong Kong Tourism Board. Shopping anddining spending was also up during this period by 24 percent. With such lucrative returns, festivals arecompeting hard to win the favor of shoppers. Bangkok promotes its "Amazing Thailand Grand Sale" duringJune and July with very aggressive marketing campaigns. In Malaysia, the government staged a streetcarnival including fire-eaters in shopping districts. Singapore runs its shopping festival alongside arts and foodfestivals. Last summer it offered tourists opportunities for free foot massages as part of its shoppingcampaign.During its festival, Hong Kong offered 2 million Hong Kong dollars, or $258,000, worth of Lucky Drawprizes, including diamonds and luxury watches. And every night the territory put on a "Symphony of Lights"fireworks and sound show on the harbor.4. 4 Singapore Shopping Festival11The Great Singapore Sale was first held 12 years ago. Since then it has gained strength, support andsponsors from year to year and today is an important landmark on the Singapore calendar. It has become anannual Singapore shopping festival with sale all over the island in the month of June and July. Today theSingapore Sale is akin to other retail festivals like the Singapore Fashion Festival, the Singapore Jewelfestand Singapore Food Festival.The Most Affordable Shopping DestinationSingapore emerged as the most affordable shopping destination in the Asia Pacific region, accordingto an international survey. No wonder then that Singapore is South-East Asia‘s Shopping Capital. Thesefestivals are held to attract the top tourist dollar. Another interesting fact is that tourists spent 50% of theirholiday budgets on shopping in Singapore alone. With tough competition from other Asian countries,Singapore has constantly innovated to come out with a winning formula when it comes to Shopping Sales andfestivals.Now tourists who spend above $300 a day can partake of lucky dips where they can win footmassages, to relieve their aching feet. Another interesting aspect of the Singapore Sale is the SingaporeShowcase where one can buy Uniquely Singapore souvenirs and gift items. The Singapore shopping festivalis never a standalone festival - at any given time there are numerous performances, events and attractions toenthrall the mall rat. You can shop at malls which are also open for late night shopping. Top that up with afabulous dinner at any of Singapore‘s eating joints and you have a perfect day.Shop with Peace of MindOne area of shopping in Singapore is that you are assured of a decent quality of merchandise andservice. The country‘s stringent laws make it a customer‘s delight and there are adequate forums to seek
    • 51redressal for defective goods and services. With the biggest brands available in Singapore, there is no needto zip down to Italy or France. Just jet to Singapore and shop to your heart and wallet‘s content.4. 5 The Face of Singapore Fashion Festival 200612Singapore, 14 February 2006 – One of Asia Pacific‘s most exciting fashion festivals for international andlocal designers, retailers and the public at large has a very famous and fashionable friend.From 24 March to 2 April 2006, foreign visitors and Singaporeans had a chance to experience astunning world-class festival that has established itself over the years as a major event in the calendars ofinfluential fashion powerhouses, brand owners, celebrities, fashion aficionados, the press and shoppers.Orchard Road, Singapore‘s famous shopping street was once again the Festival‘s ‗Fashion Central‘. FF06boasts an enthralling and eclectic range of premium fashion events featuring the best trend-setting looks hotoff the world‘s top catwalks. Building on the previous year‘s success, more than 50 events are scheduled forthe 2006 Festival which will showcase a range of luxury designer brands, cult and ―underground‖ fashionnames, high-street fashion, emerging designers as well as eminent regional and Singapore labels. As themost fashion forward event in the region, FF06 will even offer a rare glimpse of some Autumn/ Wintercollections from international brands, seen for the first time in the region.To date, highlights include the launch of Unique (a first for Asia, outside of London) by Topshop, FoxKids, the new exclusive labels of Machka (Turkey), Trucco (Spain), Coast (UK), Part 2 (Denmark), RobertCary-Williams (UK), Jessica Noy (UK), Marks & Spencer, Coats, Martina Pink, Moonstone, Tamara B, TangsStudio (Tangs), Island Shop (Gamut), G-Star, Diane von Furstenberg, Missoni, Ashley Isham, alldressedup,Hansel, Baylene and Nicholas. The Festival schedule also features L‘Oreal/Matrix and Lancôme Shows aswell as a designer discovery programme with regional designers vying for the coveted top prize.Since its inception in 2001, the Singapore Fashion Festival has grown to become one of the foremostpremium Fashion Festivals in Asia and a signature in Singapore‘s annual Calendar of Events. The firstregional consumer-focused fashion event where Spring/ Summer collections are made directly available fromthe catwalk to consumers, the Festival plays a significant role in positioning the unique city as a key regionalfashion hub and a leading fashion shopping destination. In an official capacity, Lily Cole will be ‗The Face ofthe Festival 2006‘, appearing in a number of high-profile collection shows that will be part of the OfficialSchedule, as well as attending gala events. Tipped as one of the hottest and most in-demand internationalcatwalk and campaign models, Lily has been described as a British girl who resembles a maiden in a pre-Raphaelite painting — a signature look that is influencing and exciting fashion insiders throughout the world.Singapore Fashion Festival 2006 (FF06) is proudly presented by the Singapore Tourism Board. TheSingapore Fashion Festival is one of the many Uniquely Singapore events by the Singapore Tourism Board.It is the first regional consumer-focused fashion event where Spring/Summer collections are made directlyavailable from the catwalk to consumers. Since its inception in 2001, the Singapore Fashion Festival hasbecome one of Asia‘s key fashion events.
    • 524. 6 International Fashion Weeks13In the past few years, dozens of smaller fashion weeks have popped up in all parts of the world -making for a packed international calendar. Fashion weeks are being held by cities in India, Turkey, Iceland,Malaysia and Australia. The Russian Fashion Week in Moscow is now the largest fashion event in EasternEurope. If done right, fashion weeks can be huge generators of revenue. Many are tied to the tourismindustry, but local designers benefit by getting a chance to show their wares to global buyers.First staged in 2001, New Zealand Fashion Week in Auckland is an event with a major impact ontourism and on the economy. An economic impact report on the 2004 event found that it generated 33 millionNew Zealand dollars, or $21.6 million, for the New Zealand economy in terms of total output, an estimated 30million dollars for Auckland, and millions more in incremental foreign exchange earnings for designers."Our ability to compete in a global creative economy is critical to New Zealands future economicgrowth and fashion is an important component within that context," said Mapihi Opai, chief executive of thenonprofit Fashion Industry, New Zealand. But in addition to giving the economy a lift, playing host to a fashionweek sends the signal that culturally a country has arrived. "A refreshing sense of national identity and pridehas emerged from the achievements of our creative sectors - something that has otherwise traditionally beenrestricted to feats of sporting prowess," said Opai, adding that its benefits go well beyond the fashion world.Other countries, too, are increasing their attention to holding fashion events that are off the beatenpath. "Japan said recently that it will do more with fashion shows, and theres bound to be more in China,"said Kim Winser, president and chief executive of Aquascutum, a British label. "There are a lot of peopleconnected to the fashion industry in these places who could never have the opportunity of getting to the bigfour, so its fabulous to have something more localized." Fashion experts say they are thrilled by the spread offashion weeks and that they do not detract from the major shows in Paris, London, Milan and New York. "Inplaces like India and China, there are enormous markets that have been really rather untapped when it comesto fashion," said Tim Gunn, chairman of the fashion design department at Parsons - The New School forDesign in New York.In India, for example, some 60 designers sent their lines down the catwalks at the Wills Lifestyle IndiaFashion Week in New Delhi in early September. The five-day biannual event attracted about 160 buyers,including 70 international ones. Indias fashion business, estimated at $50 million, is diminutive whencompared with the rest of the world. But its expanding by about 11 percent a year. With a boom in the retailmarket and an economy growing at about 8 percent, Indian designers have started pushing ready-to-wearclothing after years of designing mostly lavish bridal wear. "The industry is important to our economy as itcreates wealth, employment generation, and earnings for different service providers, while also preserving thetraditional crafts skills that add value to garments and give us as a comparative advantage," said RuchiSharma, manager of events at the Fashion Design Council of India. She said the success of fashion week hashad a ripple effect. "It has led to the setup of many design hubs where designer wear is easily available,"Sharma said.
    • 534. 7 MICE Tourism14India is not just one of the worlds oldest civilizations, it is also the worlds largest democracy, and hasmade stupendous progress among developing nations. Indias impressive variety of history and culture, fromthe ancient Gangetic Kingdoms to the present state, harmoniously blend to form a unique atmosphere in overa million square kilometers of scenic sights. A continent-sized country, India possesses an amazing wealth ofsights and sounds, tastes and textures. From a bustling cosmopolitan city to the quiet countryside, hill stationor a beach resort, India has destinations, which offer a backdrop of unmatched beauty for a business meet.You will find a fascinating amalgam of tradition & culture, beauty & nature, style & splendour, warmth, feelings& courtesies, comfort & convenience virtually everything the modern conference organizer or delegate couldexpect. Conferences here bring fresh meaning of the concept of combining work with pleasure.What makes India different from any other destination is the myriad of experiences that it offers. Thisis one land where the ancient and the modern co-exist. India has literally everything that a visitor wants toexperience and offers people a complete holiday both physical and mental. This is perhaps the reason whywe have so many repeat visitors. To quote Mark Twain, "India is the cradle of the human race, the birthplaceof human speech, the mother of history, the grandmother of legend and the great grandmother of tradition.Our most valuable and most instructive materials in the history of man are treasured up in India."Amidst the countless ways that India can capture world attention as a tourist paradise, there alsoexists a dynamic business opportunity as a splendid venue for international conferences and conventions ofno less than global standards. India is undoubtedly a unique Conference Destination as it offers cultural andheritage sites, the exotic and mystical, excellent facilities of beach and adventure holidays which can becombined as pre and post conference tours.Enchanting Indias image as a conference destination is also projected through the chains of Hotels,providing international standards in facilities and services, exclusive business hotels and exotic resorts, withmeeting rooms of distinction, spacious convention facilities, modern business centers and a wide range ofconference facilities.India is in a continual process of upgrading its MICE (Meetings, Incentives, Conferences &Exhibitions) facilities. There are multiple plans on the anvil for more world-class convention centers, airportsthat contest with the best in the world and efforts to team the famous Indian hospitality with customization asper a visitors requirement. You could also offer the credit to the world class incentive programs, her ability toheal spiritually, her unmatched offering as a health destination or continually improved infrastructure facilitiesthat over 3 million foreign tourists thronged her this year generating over US $30 billion as revenue, even asmost other preferred hotspots marked a decline in their tourism graphs.The inbound MICE (meetings, incentives, conventions and events) segment is growing at 15 to 20%annually. It is estimated that the total national and international MICE meetings market all over the world is inexcess of $270 billion. According to industry estimates, the Indian in-bound MICE market in first seven monthsin 2004 was $20 million, which is 40% more than the same period last year. India ranks 27th in the GlobalMeetings market.
    • 544. 7. 1 The InfrastructureIndia provides an impressive combination of accommodation and other conference support facilities tohold a successful Conference. To mention a few; Vigyan Bhawan in New Delhi, Centre Point, RenaissanceHotel and Convention Center in Mumbai, the BM Birla Science and Technology Centre in Jaipur, the JaypeeHotels & International Convention Centre, Agra and the Cochin Convention Centre, Kochi etc together withfacilities in the business hotels and resorts at various centers in the country. India is going the global way andMICE is fast becoming a major part of its travel and promotional budgets. In the Indian context, incentives is atpresent the largest component of MICE but in a maturing market, its only a matter of time before the entiregamut of MICE activities are undertaken by the Indian corporate world.With the expansion in the network of airlines operation on the domestic routes, better tourist surfacetransport systems including the Indian Railways, new centers of information technology, many new conventioncenters, hotels and meeting facilities, India is now an important MICE destination. The Indian sub-continent isemerging as one of the finest Incentive destinations in the world owing to the diverse culture and geography.From the icy Himalayas to the tropical islands and from citadels in the desert to verdant jungles it is a world initself. With the emergence of exciting new destinations every year one has unparalleled choices for theincentive operator here. The incentive programmes are a combination of old world charm and traditioninterlaced with modern cosmopolitan sophistication.Today, there are distinct travel divisions within tour companies and airlines that exclusively targetMICE movement. Destinations have also begun to market MICE products to specialized agencies and thecorporate world at large. The business of MICE holds enormous potential for any country. It is estimated thata person travelling to a country for a conference or convention spends anywhere four to eight times more thana normal leisure traveller. They spend more on food, more on business centre services.India is globally connected to a network of over 50 international airlines and several domestic airlines,which provide convenient connectivity within India. Added to this is an elaborate network of surfacetransportation system. There is an excellent Railway system running through the entire country. All-importantcities are connected with state-of-the-art Shatabdi & Rajdhani Express trains. Special trains like Palace onWheels and Royal Orient Express, comprising of air-conditioned saloons decorated in the old Maharaja styleoffer guests a chance to stay on the train and visit colourful Rajasthan and fascinating Gujarat. An excellentnetwork of roads, national and state highways, luxury coaches, Indian & foreign-make vehicles add to theconvenience and comfort of surface travel. And, to add to this, India offers an educated manpower basewhere fluency in English and other official international languages can be expected.A large number of Convention Centers are available in India with a seating capacity of up to 1700persons. The important conference centers in the country are at New Delhi, Mumbai, Agra, Bangalore,Chennai, Cochin, Goa, Hyderabad, Jaipur & Kolkata. Some important hotel chains like the Taj Group, ITC-Welcomgroup, the Oberois, Meridien Hotels; Marriott Hotels etc. also have excellent conference facilities. Theexhibition industry has also gained fresh impetus with exhibition centers like Pragati Maidan in New Delhi, theNehru Centre in Mumbai and the Chennai Trade Centre in Chennai amongst several other options.
    • 554. 7. 2 Facilities available at all the Recommended Venues: Convention Centers, Conference & Banquet Halls Exhibition Centers Auditoriums & Stadiums for hosting opening/closing ceremonies & other events Accommodation in good 5-star and 4-star hotels Restaurants & Bars Recreation activities like Golf Course, Yoga & Ayurveda Centre, Discotheque, Sports like Tennis,Squash, Badminton, Health Club with Spa facilities Easy accessibility in terms of domestic and international flights.4. 7. 3 Top 10 Reasons For Hosting A Meeting/Conference 15 Education Training Decision Making Information Exchange Research Sales Strategic Planning Team building Product Launch Problem solving4. 7. 4 Top 10 Factors Influencing Venue Selection Facility availability Reputation for high quality service Travel distances for attendees Promotional qualities Image of venue Price Value for money Weather Activities offered AccessibilityREFERENCES:
    • 561. en.wikipedia.org/wiki/Dubai_Shopping_Festival2. www.dubaishoppingfestival.com/dsf/dsf-dubai.htm3. www.dubaicity.com/dubai_shopping_festival/dubai_shopping_festival.htm4. www.asiatraveltips.com/DubaiShoppingFestival.shtml5. guide.theemiratesnetwork.com/living/dubai/shopping_festival.php6. goasia.about.com/cs/uae/a/dubaishopping.htm7. travelguides.lastminute.com/sisp/index.htm?fx=event&event_id=392258. www.ameinfo.com/132487.html9. http://www.visa-asia.com/ap/center/valueofvisa/industrywatch/includes/uploads/India_Tourism_Report2005.pdf10. ―The shopping wars heat up in Asia‖, by Alexandra A. Seno, International Herald Tribune; November 10, 2005.11. http://www.singaporefashionfestival.com.sg/mediareleases.htm12. http://app.stb.com.sg/asp/new/new03a.asp?id=460313. ―Big 4 fashion weeks get new company‖, by Shelley Emling, International Herald Tribune; October 3, 2006.14. http://www.incredibleindia.org/newsite/cms_page.asp?pageid=86615. http://www.joburg.org.za/unicity/tourism_ch3_3.stm
    • 575. INFERENCE5. 1 India ViableThe study set out to establish the stand alone view-points of the tourism and the retail industry in Indiaand has examined the facts, figures and opinions against the backdrop of existing models of the retail tourismideas abroad. It is therefore clearly justified that the synergy between these two dynamic industries is not onlypossible, but is in fact beneficial in many ways to the economy of the country and this is the driving vision thatsustains the paper. The metros of India are the first target of such an ambitious model. Mumbai, New Delhiand Bangalore are the promising arenas which will probably initially host the first leg of the ‗India ShoppingFestival‘. The other cities which will most expectedly vie for a share in the pie are expectedly Hyderabad,Chennai, Ahmedabad and Pune. The sectoral and linguistic barriers are presumably overlooked consideringthe data collected on the connectivity of the cities and the increased responses to multi-cultural tourist inflows.The mapping of these cities with respect to retail destinations is key, and the research is presented withconviction, on the premise, that such a ‗Shopping Festival‘ is executable in the Indian context.5. 2 Internet holds much promiseAccording to International Data Corporation (IDC), India is expected to record the highest compoundannual growth rate (CAGR), of 84%, among Asia-Pacific countries in e-commerce revenues between 2003and 2008, exceeding the CAGR of 81% expected in China. It is estimated that travel will account for one thirdof this. Much of the growth is expected to be driven by intermediaries. By 2010, India is expected to have 100million Internet users, with the majority of them aged 25-39. Transportation and accommodation transactionswill grow as they seek out newer experiences and get more comfortable with the medium. Across all thesectors, much higher growth is expected from the Internet in contrast to bricks-and-mortar businessoperations. 16% of travel retail business in 2010 is expected to be sourced through the Internet, as thenascent dynamic packaging sub-sector picks up due to the efforts of on-line retailers.5. 3 Incredible IndiaIndia‘s travel and tourism market was valued at US$42 billion in 2005, and is growing rapidly. Indiaemerged as the fifth most preferred destination by the world‘s travellers in a survey conducted across 134countries. India also figures in the Annual Readers‘ Travel Awards 2005, which were announced by theprestigious magazine Conde Nast Travellers UK in its September 2005 edition. A 5,000 year history, culture,religion and alternative medicine fascinate both budget and luxury travellers alike.The Department of Tourism‘s resolve in promoting Indian tourism has strengthened as it recognisesits potential. Tourism in India is the third largest foreign exchange earner, accounting for 2.5% of GDP. Theoutlay on tourism development rose to Rs7,860 million in 2005/2006, from Rs3,500 million in 2003/2004, and
    • 58continued to focus on the ―Atithi Devo Bhavah‖ campaign, targeted at the inbound foreign tourists in thecountry. Translated literally this means ―Guest is God‖.Incredible India is by far the largest addressed vehicle of communication to both the domestic and theinternational market and it has a footprint matched by communication models of the other successfulcampaigns like ‗Uniquely Singapore‘ or ‗Malaysia – Truly Asia‘. The cultural diversity of India is well portrayedand this is exploited to benefit the inflow of tourists to identified circuits. The proposal stands to reason thatthe already established medium is further utilized in the promotion of another new concept which we haveenvisioned.5. 4 Initiatives5. 4. 1 The Visitor Shopper – A Profile Shopping is one of the most popular tourist activities. Additional deposits of information are available through commercial operators and other agencies.The challenge is sourcing and distributing this information throughout the industry. There would be great benefit in developing a more detailed profile of the visitor shopper and makingthis information available to the retail industry.5. 4. 2 Revitalising Shopping – Products, Experience, Services In order to encourage visitors to spend additional money through shopping the industry needs tocreate a premium retail experience. This will involve product & marketing innovation and superiorcustomer service as well as providing specific visitor services. Training can lift the competencies of the retail industry in serving the visitor market. Additional skills,such as the ability to speak another language, will be a valuable competitive advantage.People travel to experience ‗difference‘. The Government is committed to bringing high-yield visitorsto India and industry must deliver on the essence of ‗Brand India‘ - i.e. authentic, high quality products andexperiences. The tourist must be pre-approved of the quality.5. 4. 3 Incredible India and Tourism YieldThe campaign focuses on Indian values, and positions India in ―a different light‖ – promoting thedestination as an aspirational experience. Incredible India has applications beyond tourism and should beembraced by all of India‘s industry – it is a brand for the country.While tourism makes a large economic contribution to the Indian economy, the tourism industry facesa growing challenge to improve yield – irrespective of which definition of yield is chosen. Some destinations
    • 59and markets in India are maturing which presents a challenge to find profitable growth and to benchmark thereal economic value of tourism, not just visitor numbers. Tourism India‘s mandate is to increase visitorexpenditure and regional dispersal and industry must support this objective. Segmentation is crucial andrequires re-thinking about visitor needs and sophistication. We must highlight the importance of moving awayfrom our ‗perceptions‘ of the market, and identifying the needs of high-yield markets and providing servicesthat suit the niche or segment. Wishfully penning it we can speak of 3 P‘s to grow tourism yield: ‗Partnership‘with the states and industry, ‗Product‘ which is second to none, and ‗Passion‘ for tourism.5. 4. 4 The Retail Sector’s Regulatory Environment Trading Hours: Deregulation and greater consistency of trading hours would improve the Indianshopping experience. The increase in the Duty Free Allowance will make shopping in Australia more attractive to visitors. Consumer protection and accreditation can provide extra assurance for visitors as well as a point ofdifferentiation for operators. However, accreditation should not encumber the industry with excessiveregulation. Further research can be undertaken by Government agencies on visitor shopping, with input from theindustry as to the nature and scope of the research: desired experiences, expenditure, niche marketsetc. Establish partnerships as a way of sharing information. Determine the application of Brand India to the retail industry and the ways the industry can effectivelyleverage Brand India.5. 4. 5 Skills and training in tourism, retail, and hospitalityThe shortage of skilled workers in tourism and hospitality is an issue for India and impacts on manyoperators. The shortage is also affecting the retail sector. Although the need for bilingual skills is important,the availability of bilingual workers is decreasing. It will become even more challenging to recruit bilingual staffat hospitality wages. It is suggested that developing cross-cultural skills in tourism and hospitality workers.This included basic courtesies like patience and respect for our overseas visitors.5. 5 Airport developmentMost of India‘s major airports are undertaking significant development, both aeronautical and non-aeronautical. Such expansion has been coined ‗aerotropolis’, to describe the significant commercial, retail andleisure developments within and also surrounding airports. In the same way that seaports, rivers, rail androads stimulated development, airports are the new hubs at the centre of a city‘s growth.A number of factors have brought about this trend: Technology advances;
    • 60 Globalization; Reducing transport costs; The speed imperative.However, airports are not simply becoming shopping centres with runways. There are also unique andcomplex processes for planning and development at airports. It involves much more than simply building ashopping centre next to a terminal. Because of this, partnerships are vitally important in airport development.For example, Chattrapati Shivaji International Airport is working in close partnership with their retailers and thesuppliers to retailers. At the centre of partnerships is the need to understand the imperative of eachstakeholder e.g. investors are attracted to passenger growth. Regional planning must respond. Rather thanopposing airport development, there are important economic and social opportunities to be leveraged, as wellas lessons for planning.From a tourism perspective, India‘s airports generally deliver the first and last impressions forinternational visitors. Airport owners, investors, regulators, tenants and suppliers must be forward-thinking intheir approach: Product mix: There is potential for the best of Indian products as well as global brands in the mix atairports. Passenger processing: Delays in passenger processing negatively impact landside and airsidespending. Government and industry must work together to improve the productivity of customs,immigration and quarantine ‗hurdles‘ at airports.We must understand the following points when planning for airports as retail opportunities: The primary driver of facility visitation is not shopping. Retail is not necessarily core business. The primary drivers of purchases are different. Not all retail formats work in these types of facilities.Location and pathway analysis1- Increased turnover of 10-15% at arrival lounge.
    • 61
    • 62The majority of infrastructure and tourism facilities achieve significantly lower returns from retailprogrammes than they could, owing to the following reasons: Not enough floor space dedicated to retail. Retail not integrated into flow points New facilities not designed around retail requirements. Not enough attention is paid to branding. Insufficient management attention/skill for retailing. Poor understanding of people flowing through facilities and potential to capture their retailrequirements.5. 6 Latest Spending Trends Insights and data are crucial in retailing. Information on visitor shopping could be used moreeffectively to awaken the retail sector to the opportunities in this area. Retailers should use the information made available by the tourism sector. In recent years, domestic tourists‘ expenditure on shopping has grown more than total expenditure. The industry needs more information, particularly qualitative information, about tourism and shopping. Areas of interest for future research are:o Qualitative data: motivation for shopping and desired shopping experiences, satisfactionlevels, segmentation of Asian markets.o A comparison of intention to spend and actual spend.5. 7 Developing a Magazine around a DestinationEach Indian city has by far developed distinct ―personalities‖. Each city is unique and defined by itspeople, culture, activities and experiences. A magazine based on each city vying to be the next retail tourismhub could be published to aid the tourists. The magazines could be used as a destination marketing tool – they successfully capture the spirit ofthe cities. The development of the magazines is similar to the development of Incredible India – both try tocapture the essence of each city and its people. The magazine must be closely aligned with some of the brand values underpinning Brand India –irreverence, optimism, originality. The magazines inspire spending by providing ―tips‖ for readers on experiences and activities,available around the city. The magazines can prove to be highly successful advertising channels for retailers.5. 8 Visiting Journalism Programme (VJP)2
    • 63Writers and broadcasters can be invited to the country with the aim of generating favourable publicityon India as a tourist destination and a retail hub. Stories can be generated along broad lines including highfashion, architecture, food and wine, street-wear, boutique shopping, theme malls etc. it has been observed inAustralia that the VJP has generated $2.3 billion in publicity sales.5. 9 DiscountsThe attractions of sales have always prompted shopping initiatives even in dormant shoppers.Thereby allotting multi-seasonal sales in the retail arena, spread across different cities will offer opportunitiesto promote a festival which will bond people culturally and economically, thereby establishing a union of sortsin the industry.5. 10 Smart CardsThe application of smart cards could be made use of in the identification of a tourist who is keen topart-take in the India Shopping Festival. The card could compliment credit cards when being utilized inmerchant outlets and can have a pre-paid aspect which will enable the same tourist to use the same card fortransportation or pay phones for example. It combines the memory of a SIM card with the utility of a loyaltycard thereby being a souvenir or its own.5. 11 Landmarking3Retail destinations may be land-marked, or specializedmaps may be personalized to meet the requirements ofindividual tourists and the integration of the shopping trail intothe city tour will benefit and enhance retail tourism. Such retailmaps are common in the west wherein internet portals likeworldatlas.com provide illustrative maps of sections of citieslike New York, Chicago, Los Angeles, London etc. This will aidthe tourist in more than one ways as it will provide directionsas well as prompt the visit to the store considering the crowdedfacades in a city like Mumbai which has high density foot trafficand the stores may go virtually unnoticed.
    • 645. 12 TransportationThe key to any successful tourism venture is connectivity and transportation within the targeted citiesas well as between them is indeed a factor that must be given a lot of thought to. The introduction of commonpasses will solve a majority of problems considering that the tourist today has innumerable opportunities totravel by a variety of modes like the metro, the local trail, buses and taxis. The familiarization of fares and theirstandardization will aid the tourist in a big way. The mapping of popular destinations and their retailassociations will be on the priority of the executing agency and the interlinking of the many modes of transportwill involve Government aid too. It is interesting to note that the organization of local transport is multilayeredand classified and this will also need to be clearly sorted before diving in to the retail tourism venture.5. 13 Cultural PromiseNo trip to India is complete without a cultural experience. Retail and tourism must heavily bank upondelivering this promise of cultural, traditional and ethnic variety that has forever been the unique selling pointof Indian tourism. The shopping venture will initially lean towards the established ethos of Fabindia or theBombay Store, but eventually sales will register as economic inputs in the retail sector by tourist clients. TheIndia Shopping Festival will therefore encompass a milieu of colours, fabrics and interwoven customs whichwill eventually behold the interests of the tourist shopper who is enchanted into the Indian retail scenario.REFERENCES:1. http://www.ttf.org.au/events/pdf/forums/tourismretail_NOV04/TTF17NOV2004_URS.pdf2. Tourism NSW Olympic Media Servicing Post Analysis, 24 November 2000, Australian Tourist Commission.3. www.worldatlas.com/custom/retail/retaila.htm
    • 656. CONCLUSIONBy 2020, the government of India expects travel and tourism to contribute Rs. 8,500 billion to GDP,almost four times the value in 2005. With successive governments committed to reform, a strongmanufacturing sector and a private sector that already has a critical mass that is needed to drive growth, it isunlikely that the strong growth in GDP is likely to be reversed. The rising middle class is also becomingincreasingly affluent, mobile, Internet savvy and more sophisticated in terms of what is demanded in terms oftourism products and services, and more importantly the price they are willing to pay for it.A boom is expected in travel accommodation, as more serviced apartments, budget hotels (2-starcategory) and highway motels are established.Significant changes are expected in travel retail, with the arrival of more international players, such asLe Passage and Cox & Kings, particularly in outbound travel. British company Cox & Kings plans to relocateits corporate headquarters from London to Mumbai as a result of its being bought out by its Indian arm in late2005. Global interest also includes the American millionaire Alfred Ford with plans to set up a Himalayan skiresort. Internet intermediaries are expected to expand significantly and grow the market without significantlyadding to volume growth. Rural tourism and medical tourism for inbound tourists will also give rise to newproducts and services in this sector.Until recently, not much emphasis had been given to the maintenance and development of thehistorical and heritage sites in India, which resulted in a large number of tourists staying away from these.However, the Indian government‘s increasing investment in the upgrading and modernisation of infrastructurewill translate into better facilities, amenities and access to the leading tourist attractions and sites. This is theexpected development that will aid retail tourism as a concept and sustain it to implementation based on thefact that there is realization from the world audience that tourism and retail are entwined entities that mutuallybenefit from each other and leads to the economic growth of the involved society.The justification stands to reason that retail tourism is indeed possible in India and the direction canbe charted out like suggested in the inference.
    • 667. APPENDIX – 1: List of Tables and ChartsPg 14, Table 2A – Economic Benefits of TourismPg 17, Table 2B, 2C – Foreign Tourist Arrivals in India, 2006.Pg 18, Table 2D, 2E – India‘s Foreign Exchange Earnings Through Tourism (In Crores).Pg 18, Table 2F, 2G – Monthwise India‘s Foreign Exchange Earnings Through Tourism (In Crores), 2006.Pg 19, Table 2H – Foreign Tourist Arrivals and Estimated Foreign Exchange Earnings for 10 Years.Pg 20, Table 2I, 2K – Domestic Tourist Visits (In Million).Pg 20, Table 2J, 2L – Share of Top 10 States/UTs in Domestic Tourist Visits, 2005.Pg 22, Table 2M – Share of India in World Tourist Arrivals.Pg 23, Table 2N – International Tourist Arrivals by Regions.Pg 23, Table 2O, 2P – Share of Top 10 Markets for India in Tourist Arrivals (in Millions), 2005.Pg 24, Table 2Q – Estimated Foreign Exchange Earnings per Tourist in Select Countries in 2005.Pg 24. Table 2R – Seasonality Graph for Tourist Arrivals in India, 2005.Pg 31, Table 3A – Categorywise Private Final Consumption Expenditure, 2003-04.Pg 31, Table 3B – The Organized Retailing Pie.Pg 37, Table 3C – Operational Malls Across India (December 22, 2004).Pg 44, Table 4A – DSF: Total Number of Visitors.Pg 44, Table 4B – DSF: Total Spend.Pg 45, Chart 1 – Visitor Arrivals and Total Visitor Spend in India (1999 – 2004).Pg 45, Chart 2 – Visitor Spend by International Cardholders and Total Visitor Spend in India (1999-2004).Pg 46, Chart 3 – Number of Merchants Accepting Cards in India.Pg 46, Chart 4 – Visa Spend in India by Region of Cardholder Origin (1999-2004).Pg 46, Chart 5 – Top 10 Visa Spenders in India, 2004.Pg 46, Chart 6 – Contribution of Top 10 Cities.Pg 47, Chart 7 – Top 10 Cities, International Inbound Spend Growth.Pg 47, Chart 8 – Visa Spend in India by International Cardholders by Broad Spend Category, 2004.Pg 48, Chart 9 - Visa Spend in India by International Cardholders by Retail Category, 2004.Pg 48, Chart 10 – Total Number of Visa Transactions and Average Transaction Size (1999-2004).Pg 48, Chart 11 – Top 10 Visa Spenders in India by Average Transaction Size, 2004.Pg 48, Chart 12 – Top Broad Spend Category by Average Transaction Size, 2004.
    • 678. APPENDIX – 2: Articles and ExcerptsThe Times of India, Bangalore. December 21, 2006.The Times of India, Bangalore. December 22, 2006.
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    • 69The Week, January 7, 2007.
    • 70The Week, December 31, 2006.
    • 71The Times of India, Bangalore. December 28, 2006.
    • 72The Times of India, December 28, 2006.
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    • 74Dubai - Retail and Tourism Going Hand in Hand, DSS Proves it RightReleased on: September 24, 2007, 5:10 amPress Release Author: Shushmul MaheshwariPress Release Summary: Dubai is called a shopper‘s paradise and the events ithosts annually support it. This year‘s DSS attracted 30-40% more tourists than2006 and consequently, turned out to be a money-spinning festival for retailers.Press Release Body: According to a latest market research report ―Middle EastRetail Sector Analysis (2007-2010)‖ by RNCOS, with huge number of shoppingcenters, retail units, and malls cropping up all over the city, Dubai could possiblybe on its way to enlist itself among the most densely shopped cities of the world.This aggressive retail activity in the city is expected to account for around 50% ofits GDP by 2009.Also, the report has identified tourism an instrumental parameter in deciding theretail sales of the city. The city generated around 35% of retail sales fromtourism industry in 2006 and it is expected to touch 50% by 2010. The researchreport discusses the other factors too affecting the retail industry in the MiddleEast region in both positive and negative ways.As per the report, Dubai Summer Surprises (DSS) plays a vital role in the retailtourism sector of Dubai. In 2005, this event alone attracted around 50% of the totaltourists.2007 commemorated the tenth edition of DSS (from June 21 to August 31) and aspredicted, attracted more trippers than ever before.DSS 2007 witnessed an anticipated 30-40% rise in both sales and footfall over theprevious edition because of increased influx of tourists and residents. This sharpgrowth is generally ascribed to the DSS-related attractions and promotions offeredin abundance by airlines, hospitality, travel and tourism, and retail sectors tovisitors.Apart from the annual events, emerging markets are also increasing the touristinflux to Dubai. Large number of inbound tourists from regions such as Far Eastflocked to the city all through 2006. In the first six months of 2006, hotel guestsfrom Far East in Dubai crossed 152,000 and in the later half of the year, the numbersurpassed 177,000.Experts say that consumer spending during the DSS 2007 has dwarfed the previousfigures and exceeded AED 3 Billion, translating into high revenue generation forretailers. In 2006, around one million square meter of retail space in Dubai, withover 50% (around AED 1.3 Billion) of cumulative consumer spending, took away the
    • 75major pie of DSS 2006 expenditure.As the retail space in expanding in Dubai at an outstanding pace, retailers in thecity, as per the RNCOS report, alone have to record sales worth over US$ 7.5 Billionby 2009 to maintain this enormous increment in shopping space and retail activities.
    • 769. BIBLIOGRAPHYReports:1. Euromonitor survey – Travel and Tourism in India.2. The Annual Report, 2004-05, 2005-06, 2006-07; Ministry of Tourism, Government of India.Books:1. IMAGES Yearbook, Fashion and Retail, 2005.2. IMAGES India Retail Report 2005.3. IMAGES India Retail Report 2006.Newspapers (Online Included):1. The International Herald Tribune.2. Business Standard.3. The Times of India.4. Hindustan Times.5. The Economic Times.6. The Hindu Business Line.Magazines and Journals:1. The Week.2. India Today.3. Images – Business of Fashion.4. Images Retail.Websites:1. http://www.biztradeshows.com/india2. http://www.researchandmarkets.com/travelandtourisminindia3. http://www.incredibleindia.org4. http://www.tourism.gov.nic5. http://www.ttf.org.au/events6. http://www.iht.com/articles/2006/12/06/business/hkecon.php7. http://www.iht.com/articles/2006/06/15/bloomberg/sxsingretail.php8. http://www.jradata.com/index.html9. http://www.jradata.com/html/prod-sp_fash.html10. http://www.iht.com/articles/2006/06/05/bloomberg/sxbaht.php11. http://www.tourismofindia.com/hi/temkanniyakumari.htm#shopping12. http://www.jradata.com/html/youth-fash.html13. http://www.indiastat.com/India/ShowData.asp?secid=29&ptid=0&level=1http://www.indiastat.com/India/newsarchieve.asp?secid=29&id=37&t=Tourism14. http://www.iht.com/articles/2006/03/16/bloomberg/sxmuk.php15. http://www.biztradeshows.com/india/india-tradeshows.mp?industry=travel-tourism16. http://www.iht.com/articles/2005/11/10/travel/trlede11.php
    • 7717. http://www.iht.com/articles/2005/06/26/bloomberg/sxmuk.php18. http://www.biztradeshows.com/india/19. http://www.iht.com/articles/2005/04/07/bloomberg/sxmuk.php20. http://travelvideo.tv/news/more.php?id=A9635_0_1_0_M21. http://www.visa-asia.com/ap/center/valueofvisa/industrywatch/includes/uploads/India_Tourism_Report2005.pdf22. http://retail.in.india.businesscamber.com/sh.cfm?sq=Retail+tourism+in+india23. http:// www.singapore-shopping-guide.com24. http:// www.visitthunderbay.com/pdf/marketing_plan_2007.pdf25. http:// www.thehindubusinessline.com/2002/06/23/stories/2002062301190200.htm26. http://www.worldatlas.com/custom/retail/retaila.htm27. http:// www.nycif.org/sect_retail.html
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