Colloquium Paper: Retail Tourism - An Indian Perspective

RETAIL TOURISM
AN INDIAN PERSPECTIVE
SUBMITTED BY:
ANIRUDH U.
DEPARTMENT OF COMMUNICATION DESIGN
BATCH 2004-2008
COLLOQUIUM PAPER COMPILED UNDER THE GUIDANCE OF
MS. RUPA AGARWAL, CC – FC, NIFT, MUMBAI.
NATIONAL INSTITUTE OF FASHION TECHNOLOGY
MUMBAI

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NATIONAL INSTITUTE OF FASHION TECHNOLOGY,
MUMBAI.
B. F. Tech in Communication Design
BATCH: 2004 – 2008
CERTIFICATE
This 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 the
Under Graduate Degree in Communication Design (Year 2007) of NIFT, Mumbai.
Ms. Rupa Agarwal,
Center Co-Ordinator and Research Mentor.

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ACKNOWLEDGEMENT
The Research Paper has been the result of constant revision and upgradation of knowledge gathered and
ideas generated based on the same. It is with great sincerity that I express my gratitude towards all those who
were responsible for the successful completion and compilation of this project.
To, Ms. Rupa Agarwal, Chairperson & Course Co-ordinator, Communication Design, National Institute of Fashion
Technology, Mumbai; my guide and mentor who steered my path and methodology concerning my research; and
for 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 research
and its documentation.
To, Mr. Gopal Rao and Mrs. Kamala Rao, both academicians and family friends; for their invaluable
inputs 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 my
academic decisions.
To my friends for their constant criticism and encouragement throughout the Project; which has made
my research a wholesome endeavor.
Heartfelt gratitude,
ANIRUDH U.
Communication Design, NIFT, Mumbai.
2004 – 08.

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PREFACE
There 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 has
been 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 maybe
then 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 is
emerging.
For some time now, our nation has sprung, stumbled, run, fallen, rolled over, got up, dusted herself and
cantered, 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 and
hesitating.
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).

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CONTENTS
1. 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.

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5. 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.

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1. INTRODUCTION
In the modern context of India, the country is being applauded as the world‘s largest democracy, one
of the fastest growing economies of the globe and a destination to reckon with. It has been a rather proud
statement when India Shining was acknowledged worldwide. At this instance the outlook of tourism was
emphasized to promote and increase cash flow into the nation. The country was appealing for lodging of more
and 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 India
With the establishment India as a land of multiple opportunities in terms of its rich culture and
heritage, its colours and vibrance, its alternative healing therapies and charming hosting attitude, the land of
the spices, snake-charmers and fakirs ceased to inhibit the white-traveller. The open arms of the hospitable
country welcomed more immigrants and the number of landings from a foreign destination grew by leaps and
bounds. Air travel became easier and more affordable. The complications of language seemed to blur with the
anglicization of most urban tongues. An intricate web developed throughout the vast lands of the nation and
tourism India became a flourishing industry. Pilgrimage and holiday destinations, adventure sports and
beaches, 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 and
upper 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 a
tourism destination was firmly established. The increased inward traffic of tourists also prompted a lot of
domestic travelers to explore and understand India in a much better way to be in a position to exaggerate on
the 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 new
high. The development of transportation facilities added fuel to the fire of travel and ultimately rail and air
networks were strengthened to an extent that was unparalleled in the history of the nation. Budget and
package tours became the new age mantra and this prompted off season traveling along with the cashing in
on the peak season with international travelers.
1.2 Retail in India
By 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 concept
of supermarkets and hypermarkets soon mesmerized the upwardly mobile middle class of the desi society
and 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 of
fashion and style soon made a mark on their mindsets.
India has today developed into a country wherein at least the urban populace has resorted to
convenience rather than economization. An extra rupee for all the convenient services is not given great
thought to. A visit to the shopping mall has become routine and not an event that requires preplanning.

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Clubbing and party hopping has become a necessity to unwind and the culture of spas has become a
requisite to relax. It is often with great care that any Indian makes changes at the basic level of disposing of
income, as it is often ingrained into their systems that they need to save – for the future, for their children, for
their 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 back
as souvenirs that would compliment the memories of the various trips. Lifestyle and culture were thus
exchanged and the capacity of such fashionable exchanges prompted the development of regional flavours
that is indeed the charm of India. The intense diversification provided variety beyond all imagination and the
various cottage and craft industries of the country spearheaded the provision to develop and diversify beyond
their limited means. The association of such crafts with the growing retail businesses added to the local
experience of a well traveled person.
The association of mere shopping as an experience that must be included in the itenary of any visitor
was 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 as
Retail Tourism.
1.3 Purpose of the Study
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.
1.4 Aims and Objectives
The research project aims to approach 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. In order to
streamline 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 Indian
model.
4. Understand the various communication models involved and analyze success by establishing
standards and comparing.
5. Propose continuous assessment and research towards Retail Tourism in India.

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1.5 Scope and Limitations
The 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 with
several retail industry leaders. It is also being executed within an academic purview and will thus be limited to
the access as defined by the agencies to a student of an undergraduate capacity. The time frame is also
defined by schedules and limited by the modules as proposed by the institute.
1.6 Methodology
1.6.1 National and International level research
This industry research is based on a core set of research techniques:
- National-level desk research, company research and analysis, store checking, trade interviewing with
national players and market analysis.
- International-level desk research, multinational company research and analysis, trade interviewing with
national 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 checks
Store visits in major outlets of all relevant types to gather up-to-date information on product types and
brands. Comprehensive store visits and product/brand range audits ensure that country-by-country research
establishes the whole range of available product types and individual brands currently on the market. Store
checks also provide valuable data on packaging, pricing, display, marketing and merchandising trends, as
well as useful insight into the retail channel distribution pattern of the product market. The results, combined
with desk research findings, provide a basis of solid and detailed market information on which to conduct
trade interview surveys.

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1. 6. 4 Trade surveys
Trade 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 analysts
and observers from the trade press, industry associations and industry study groups, and with representatives
of relevant regulatory bodies. Trade surveys are particularly important for areas of market analysis not
covered by any official or semi-official sources. Market size and share data are generated by surveying a wide
range of industry personnel, in companies in different functions (from supply to delivery) in order to gain
various perspectives. It is also crucial to test each respondent‘s information and views against those of other
respondents in order to ensure reliability and to eliminate bias (intentional and unintentional) from any single
source.
1. 6. 5 Company analysis
Analysis of the leading players in the industry calls for a programme of company research, in turn
based 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 coverage
1. 6. 6 Forecasting
Future outlook for each industry and sector-specific sales forecasts are key elements of market
intelligence. We shall ask some simple questions: how will the market perform from here in comparison with
its performance over the last 5-10 years? Will its historic trend (whether growing, stable or declining) now
speed up, continue as previously or slow down? Will a decline bottom out or will rapid growth peak and
plateau? Forecasts represent many of the essential conclusions we have reached about the current state of
the market and how it works. Importantly, the analysis will also state the assumptions and trade opinion
behind whether our predictions are optimistic or pessimistic, so that our clients can use the statistical forecasts
with confidence.

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1. 6. 7 Data standardization
Upon completion of the country-by-country research phase, data standardization checks take place to
ensure international comparability across the global database. Comparative checks are carried out on per
capita 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 in
the relevant countries to confirm and/or amend those findings. This process ensures that there is international
comparability 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 that
discrepancies between different published sources have been examined and reconciled.
1.7 Conclusion
The Retail Tourism concept is not new to the world, but is indeed new in the Indian context. The paper
is 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 the
foundation of any such ambitious project.
An explanation of the academic efforts is what is detailed in this paper and it moves to summarize the
possibility of the actual realization of the India Shopping Festival and also hints possible execution leads that
will establish the Retail Tourism venture.

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2. TOURISM IN INDIA
Tourism has been a major social phenomenon of the societies all along. It is motivated by the natural
urge of every human being for new experience, adventure, education and entertainment. The motivations for
tourism also include social, religious and business interests. The spread of education has fostered a desire to
know more about different parts of the globe. The basic human thirst for new experience and knowledge has
become stronger as communication barriers are overcome by technological advances. Progress in air
transport and development of tourist facilities has encouraged people to venture out within the country and to
foreign lands.
The importance of tourism as an instrument for economic development and employment generation
has been well recognized the world over. It is the largest service industry globally in terms of gross revenue as
well as foreign exchange earnings. Tourism is one economic sector in India that has the potential to grow at a
high rate and can ensure consequential development of infrastructure of the destinations. It has the potential
to stimulate other economic sectors through its backward and forward linkages and cross sectoral synergies
like agriculture, handicrafts, transport etc.
2.1 SCALE OF GLOBAL TOURISM1
According to the World Tourism Organization (WTO), the year 2005 saw more than 800 million tourist
arrivals 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 INDIA2
The world tourist arrivals in the year 2005 were 808 million as compared to 766 million during the year
2004, showing an increase of 5.6 per cent during the year 2005 as compared to previous year. The basic
profile 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 tourist
arrivals in 2005.
Table 2A

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There has been a remarkable growth in the recent years, in foreign tourist arrivals in India due to
various efforts made, including promoting India through the ‗Incredible India‘ campaign in the overseas
market. It has increased by about 65% from a level of 2.38 million in 2002 to 3.92 million in 2005, while the
foreign exchange earnings have grown by about 96% during the same period. In the year 2006, the tourist
arrivals have increased to 4.43 million, registering an impressive increase of 14.2% when compared to the
previous 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 of
tourism to the GDP of the country has been 5.9% in 2003-04, while employment in tourism sectors both direct
and indirect has been 41.8 million in the same year accounting for 8.78% of the total employment in the
country. It was estimated that by the end of 2006-07, the total employment generated in the tourism sector
would stand at 51.9 million.
It is universally acknowledged that the tourism resources in the country have the potential to generate
significantly higher levels of demand from the domestic and international markets, which if exploited
intelligently in a sustainable manner, can prove to be proverbial engine of growth for the economy. The
National 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, economic
development 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 vast
untapped potential of India as a destination;
 Acknowledges the critical role of private sector with government working as a pro-active facilitator and
catalyst;
 Create and develop integrated tourism circuits based on India‘s unique civilization, heritage, and
culture 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 Analysis3
2. 3. 1 Strengths
 Rich culture and heritage.
 Variety of landscapes, lifestyles and cuisine.
 Rich tradition in handicrafts.
 Colourful fairs and festivals.

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2. 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 STATISTICS4
The Market Research Division of the ministry of Tourism is responsible for the collection, tabulation
and the dissemination of information on various aspects of tourism in India. The statistics being collected
regularly by the division include data on foreign tourist arrivals, domestic and foreign tourist visits, occupancy
rates 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 infrastructural
facilities and so on. This Division also undertakes studies and gets master plans/perspective plans/detailed
project reports (DPR) prepared for the development of tourism in the country.
2. 4. 1 Foreign Tourist Arrivals
The foreign tourist arrivals, during the year 2006, have been estimated as 4429915, registering a
growth 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 Tourism
Tourism has become an important segment of the Indian economy contributing substantially to its
foreign exchange earnings. The estimated foreign exchange earnings during 2006 were Rs. 29603.56 Crore
as compared to Rs. 25172.28 Crore during the same period in 2005, showing a growth of 17.6%. A statement
of the monthly estimates is detailed as follows in Tables 2D through 2G.

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Table 2D Table 2E
Table 2F
Table 2G

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2. 4. 3 Domestic Tourism
The potential of domestic tourism has grown substantially during the last few years to increase in the
income levels and emergence of a dynamic urban middle class. However, there are no precise estimates of
total domestic tourist traffic in the country. All the State/Union Territory Governments were persuaded to set
up Statistical Cells for the collection of data and domestic tourism statistics through accommodation
establishments 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% as
compared to the year 2004.
Table 2H

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Table 2I Table 2J
Table 2K
Table 2L

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2. 4. 4 Recent Developments5
International recognition
 ―Conde Nast Traveller‖, the world‘s leading travel and tourism journal, ranked India amongst top 4
preferred 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 and
Leisure‖.
 World Travel Awards received for (a) Asia‘s Leading Destination, (b) Asia‘s Leading Travel
Destination Television Commercial, (c) World‘s Leading Responsible Tourism Project for Endogenous
Tourism Project, and (d) Asia‘s Leading Tourism and Convection Bureau.
 Euro Effies Award received for the ‗Incredible India‘ Campaign.
Efforts to overcome shortage of accommodation
In order to meet the rising demand of accommodation due to increased growth of tourist arrivals, the
Ministry of Tourism brought out guidelines for classification of Apartment Hotels, Time Share resorts and
Guest Houses. The Ministry sanctioned Capital Subsidy for 43 budget category hotels and Interest subsidy for
86 budget category hotels. 146 new hotel projects with 12623 rooms were approved. In addition, 29 Foreign
Technical 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 house
owners 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 and
also give them an opportunity to stay with Indian families and experience Indian culture and authentic India
cuisine.
India – a 365 days a year destination
The International medial campaign covering Europe, US and Canada, Australia, the Far-East and the
Asia Pacific region aims to promote India as a ‗must-see‘ destination. The campaign focused on both generic
and niche areas to convert India into a destination for 365 days a year. ‗Chasing the Monsoon‘ is a new theme
for the West Asian market. Fresh creative commercials were also launched this year. The campaign was
backed by a strong net campaign which featured on several well known portals like Yahoo!, MSN, as well as
several international country specific sites.
Domestic campaign
For the domestic market, the campaigns were aimed to popularize the culture and natural beauty of
different regions, pilgrim sites, and new Tourism products like Adventure and Rural Tourism etc. Campaigns
on the 4 zones of the country were simultaneously launched.

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Tourism as a multi sectoral activity
Tourism is a multi sectoral activity characterized by a wide range of suppliers i. e., airlines, hotels and
connectivity infrastructure where co-ordination, monitoring and speedy implementation is of paramount
importance. Several steps were taken for the upgradation of key tourism sites. Connectivity has been
improved by the 4 laning of highways and Cruise tourism is also being given thought to. The Railways are
looking at possibilities of introducing tourist trains in Private Public Partnerships to connect identified circuits
and destinations. The issue of increased air connectivity in the domestic as well as overseas sector is being
analyzed.
2. 5 FUTURE OUTLOOK – A Comparative Analysis6
Under the banner of ‗Incredible India‘ a vigorous marketing campaign is being followed with strategy
and improved infrastructure to position India as a global brand. The following four point journey is being
sought 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 arrivals
and a growth of 122% in foreign exchange earnings in 5 years time. Share of India in world arrivals was just
0.37% in 2001, and is likely to be 0.53% in 2006. It is proposed that keeping in mind all variables in
environment, the product opportunities, the market scenario, and the following goals need be reached in a
projected 5 years time:
Table 2M

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2. 5. 1 INTERNATIONAL TOURISM
Visitation
To achieve international visitor levels of 10 million by 2011.
Source markets
To 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 present
level of inbound tourists is below par.
To concentrate on countries like South Africa, Mauritius, Kenya, Malaysia, Fiji etc. with a large Indian
diasporas for greater visitations from those countries. Similarly, target the Persons of Indian Origin (PIOs) and
Non-Resident Indians (NRIs) elsewhere to create greater resonance in them to visit the country of their origin
and discover their roots. Target the ‗Baby Boomers‘ group of Europe and America by creating in them a desire
to discover one of the oldest civilizations in the world and enjoy the plurality of cultural enjoyments that this
country has to offer.
Revenues
Table 2N
Table 2PTable 2O

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To maintain and increase the per capita spending of international visitors.
To attract higher quality tourists, increasing per head spending, resulting in higher revenues. To
concentrate on Cruise tourism, MICE tourism sectors which are considered to be higher revenue generating
sectors of tourism.
Seasonality
To 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 annual
average.
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 and
October to December were 60.2% during 2005 compared to 59.9% during 2004.
Average length of stay
To maintain and initiate measures to ensure that the duration of stay is sustained, if not extended.
Purpose of Stay
To retain focus on Leisure Travellers.
To promote business related travel, including MICE market by promoting convention Centers of
international standards in major cities or at major tourist centers.
Expenditure
To 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 TOURISM
Table 2Q Seasonality – Graph 2R

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Visitation
To achieve a level of 760 million for domestic tourist visits by the year 2001 at an average annual
growth 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 all
areas.
2. 5. 3 OTHER GOALS
Accommodation Units
To increase approved quality accommodation units from the current level of about 100,000 rooms to
at 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 as
per 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 that
the full potential of the sector, as a major engine of economic growth, is realized, and the benefits of
associated development are also cherished. It is proposed that besides the development of world class
infrastructure and launching aggressive marketing campaigns, access and connectivity to India should be
improved and new forms of tourism must be taken up with renewed zeal and efforts. India should be made a
full year destination rather than an October-March destination by diminishing the seasonality factor and
promoting 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 tourist
safety 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 the
Government.
 Plan and implement a professionally managed integrated communications strategy to increase
awareness 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:

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 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 to
continuously receive, analyze and respond to information on pricing, security issues, health, safety
and 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 also
offer competitive packages.
2. 6 TREND FORECAST – A Summary7
2. 6. 1 Recent trends and developments in tourism in India
Domestic tourism driving the industry
With 390 million Indians on the move in 2005, it is little wonder that it is domestic travellers that
sustain the travel and tourism business. Domestic business travel and visiting family/friends, as well as
pilgrimages, contributed to the 13% growth in number of trips within the country that year.
Outbound gets interesting
The number of outbound travellers from India grew by 15% to 6.2 million in 2005. This was almost
twice the number of arrivals witnessed by the country. A booming economy, with GDP growth of more than
7%, 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 a
number of global tour operators to enter the Indian tourism market either directly or through strategic
alliances.
Arrivals and tourism earnings growth slow down
Growth in arrivals and incoming tourism earnings slowed down substantially in 2005, to 14% and
19%, respectively. The slowdown followed a particularly good performance in 2004, with global travel

27
recovering from various health and natural disaster scares in the previous two years. Returning Indians
constitute a significant proportion of incoming arrivals and as both the country and long haul travel became
more expensive, they chose other holiday destinations instead of returning to their home country.
Destinations with overseas Indians top list of arrivals
The UK and the US lead arrivals into the country. Combined, they accounted for 33% of total arrivals
in 2005. The Middle East, including Dubai, the UK and the US were the favourite destinations in terms of
departures. 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 these
favoured vacation spots.
US popularity diminishes
The US Patriot Act has led to a number of changes, as the American government becomes more
stringent about its visa rules. As a result, there were huge delays and backlogs for visa processing, with some
instances of visa call dates for tourist visas being given four months after the travel date. Hence the country‘s
popularity 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 industry8
Budget airlines - New kid on the block in air travel
At Rs1,103 billion in 2005, India‘s transportation industry is the largest sector of the travel and tourism
industry. The sector outperformed the review period CAGR (Compound Annual Growth Rate) performance in
2005, with 15% sales value growth. Investment in international quality roads, the launch of low cost carriers as
well 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, but
this was limited to short periods, as fuel price hikes and taxes made it difficult for companies to sustain these
fares. 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.

28
After low cost carriers it is budget hotels next
Travel accommodation in India accounts for only 12% of the travel and tourism industry in value
terms. The skewed nature of hotel accommodation in India is evident from the fact that it constituted 5% of the
accommodation 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 average
room rates (ARR‘s) to new highs during the review period. Hotels generally cater to foreign visitors, corporate
business clients and high-end Indian travellers, as hotel accommodation is out of the reach of the average
Indian. 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 Hotels
Company Ltd shifted its focus to budget hotels and rolled out the first indiOne hotel, its budget brand, in
Bangalore in South India. Interglobe Enterprises signed a joint venture with Accor, in March 2005, to develop
budget hotels in India under the brand name Ibis.
On-line travel retailer MakemyTrip.com shifts focus to India
The travel retail sector constituted 17% of the travel and tourism industry in 2005, and was the second
largest sector, valued at Rs274 billion. With 25% growth in 2005, it was responsible for driving much of the
value growth in the overall market. Sensing opportunities in this area, with Indian travellers becoming more
Internet savvy, dropping costs of broadband and a general increase in access to information, on-line travel
retail intermediary MakemyTrip.com shifted its focus from returning Indians primarily from the American
market to Indians within the country.
Low cost carriers and Indian railways popularize the Internet
E-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 through
the Internet. An estimated 7,000 tickets with an average price of Rs1,500 each are sold each day on the
Indian Railways website. However, in terms of value sales, Internet rail transportation constitutes a lower
proportion of the total than air transportation.
Consumers sought out Internet access through various means and made sure they did not get left out
of the benefits – usually price discounts. On-line hotel reservations in India have also picked up, but constitute
just 3% of the business. According to the Internet and Mobile Association of India, 16% of on-line shoppers
spent in the Rs10,000 plus range, including spending on computers, hotel rooms, jewellery, airline tickets and
home appliances.
Company-owned sites, as well as specialized travel portals, drew in travellers in thousands. Travel
agents 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.

29
REFERENCES:
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 Mott
Macdonald, 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.

30
3. Retail in India
3. 1 India Retail 20051
The Indian Retail market, rated as the second most attractive destination among emerging markets
globally, is in the midst of a gigantic transformation, thanks to a plethora of changes within and outside the
segment. With mounting international and domestic pressure to open up the economy, with Indian corporate
houses and investors taking active interest in retailing, and with the Government realizing the importance of
modernizing 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 the
necessary push to achieving higher production levels.
3. 1. 1 India – The 4th
Latest Economy in the World
India 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. Gross
Domestic Product (GDP) has averaged a growth of around 6% per annum in the last 10 years, and has picked
up further momentum in the past three years, achieving between 6 and 8.4% growth. In 2003, India became
the second fastest growing economy in the world with a growth rate of 8.2%. The outlook for the future is
equally buoyant.
One of the key developments during India‘s growth path has been a favourable shift towards the
services 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 the
Indian economy.
With a huge and growing consuming class, India is considered to be one of the preferred destinations
for investments in the world. According to UNCTAD‘s World Investment report 2004, Foreign Direct
Investment (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 Asian
nations.
3. 1. 2 Huge Private Consumption offers Attractive Opportunities in Most Categories
According to Images-KSA estimates, private final consumption expenditure in India was estimated at
INR 1,690,000 crore in 2003-04. Retail sales contribute of total consumption expenditure. Food and
beverages (including tobacco), accounted for a significant half share as well. Clothing and Footwear
constituted 5% and furniture a further 4%. The consumption of consumer durables has picked up over the
past few years with 8.6 million television sets being sold last year. The rates of mobile phone subscriptions
have also been instep with world standards.

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3. 1. 3 Organized Retail Still a Fraction of the overall potential, but Well on Track
Retailing in India is one of the significant contributors to the Indian economy and accounts for about
35% of the GDP. The sector is in a fragmented state with over 12 million outlets operating in the country and
only about 4% of them being larger than 500 square feet in size. This is in comparison with 0.9 million outlets
in USA, catering to more than 13 times of the total market size. Thus India has the highest number of outlets
per capita in the world with a widely spread retail network but with the lowest per capita retail space (@2
square 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% per
annum. In line with predictions made in 2002, organized retailing is well on its way to an INR 35,000 crore
market by 2005. The size of the organized retail market stands at INR 28,000 crore in 2004, thereby making
up only about 3% of the total retailing market. Moving forward, organized retail is expected to grow at the rate
of 25-30% per annum and is estimated to reach an astounding figure of INR 100,000 by 2010. Further, its
contribution 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 to
consider all fashion and lifestyle segments like Jewellery, Healthcare etc. into one common segment, then
fashion 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 being
controlled by branded and organized players. The next organized sector is that of Footwear (25%) followed by
clothing (13.6%). Titan Industries deserves the credit for having revolutionized and galvanized time-wear
retailing, while in the case of footwear the credit goes to Bata and to Liberty also off late.
Table 3A Table 3B

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3. 2 Key Retailing Formats in the Indian Apparel Sector2
Small Traditional Retailers: These are small shops selling low priced apparel with limited display systems
and limited ranges targeted at the middle and lower income segment.
Multi-branded Outlets (MBOs): These constitute the largest segment of apparel retailing. These outlets offer
a wide range of brands enabling comparison in terms of prices, fits and styles. MBOs enjoy wide distribution
and are present in all major cities and big towns. They have fewer walk-ins than departmental stores, but
more than specialty store or exclusive outlets.
Exclusive Stores: These outlets of leading brands can be company-owned or franchised. These outlets
showcase entire product range and help in creating brand awareness by offering a superior retailing
experience.
Department Stores: This format has emerged as a major retailing channel for both Indian and international
clothing brands targeted at the upper middle and higher income segments. Apparel is the most important
product group sold by these stores, accounting for two-thirds of their sales. Major players in this segment are
Shoppers‘ Stop, Lifestyle, Pantaloons and Westside. In terms of performance, department stores have
observed a 35-40% growth in turn over from the preceding year.
Studies reveal that traditional formats like unorganized retailing and multi-branded outlets continue to
dominate the apparel retailing sector though a defined modern shift has been witnessed over the past few
years.
Most international brands, such as Marks and Spencer, Benetton and Lacoste, have established their
retail presence in the country through the franchising route. In fact, a large number of Indian brands have also
adopted the franchising route for expansion due to the relatively lower level of investment involved. Further, a
lot of international brands have entered into shop-in-shop arrangements with the leading department stores of
the country.
New formats like hypermarkets with their value offerings and appeal to a larger section of the society
are further likely to increase the penetration of organized apparel retailing in the country. Already, apparel
makes 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 offer
larger spaces to fashion products. Most of the malls are trying to attract department stores as their anchor
tenants and are therefore offering attractive terms to these large format stores. The oversupply of malls in the
coming years will give departmental stores more bargaining power to negotiate favourable terms and
conditions 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 more
than 90% of its total turnover.

33
3. 3 Status Check3
Opportunities are abundant, across formats and categories, as the new Indian consumer has clearly
demonstrated a readiness for all organized ruling segments. Moreover, as has been the case in retail markets
across the globe, the influx of foreign brands into India shall transform the retail landscape as domestic
players 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 Revolution
The 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 Prospects4
The Retail business is expected to touch Rs. 1, 125, 000 crore by 2006, with further growth of
organized retail. Huge investments are likely in this sector in the next 4-5 years. Newer players will come in
while existing players will increase their penetration. There is already a trend in the favour of large retail
formats. Consumers are also looking for ambience and convenience in shopping. The following drastic
movements 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 and
would become popular. As consumers will be ready to pay a premium for service at odd hours, the
timings 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 and
agents.
 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 of
open, packed and rack merchandise.
 IT will play an important role in logistics and inventory related issues in the newer retail formats
emerging 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.
Opportunities
We 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 these
industries 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 Retail5
We 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 stripes
were seen in apparel the same time in India and Europe in the summer of 2005, with several fashion forward
consumers expecting to get the latest in international fashion here in India. The trends observed may be listed
as 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 of
the product, service, retail experience, brand image and emotional connect in relation to price.
3. 6 Luxury Retailing6
Where and when was luxury missing from India? It may have ebbed in between, but the high tide is
just about beginning. Pegged at about Rs. 2,500 crore, the premium fashion market has been growing
steadily at about 20% and is expected to move further ahead. In a market thirsty for innovation, and new
ideas, 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 the
unbashed material culture of the 21
st
century. The importance of essentially unnecessary objects of
consumption – that is what luxury retailing props itself upon for its survival and continued sustenance.

35
Currently Asia is where all the action in the luxury market is. Despite the fact that India‘s urban consumer is
living 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 brand
awareness, and in most cases, an aspirational positioning the brand gets to start with. ―New Delhi is
considered a good market by many brands for being flamboyant, having distinct seasons and being the
country‘s capital while Mumbai is considered, besides being the financial capital, being the center for diamond
trade and Bollywood,‖ says Pranay Sinha, CEO, Select Infrastructure Ltd. Prasanna Bhaskar, India country
manager 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 to
the entry of MNC‘s that led to bigger pay packets, the IT boom, nuclearization of families with both members
earning, and increasingly younger ‗aspiring‘ population, that has a bigger percentage of Indians equipped with
more purchasing power than they could have ever imagined. As of now there are five hotspots in the country
as far as luxury retailing goes – the Taj and the Grand Hyatt, Mumbai; Oberoi and Maurya Sheraton, New
Delhi and the Leela, Bangalore. Other places to reckon would be Vama and the Courtyard in Mumbai and the
Sasket Dome in the Taj, New Delhi.
One needs to bring in professional retailers into retailing of luxury. They must be comfortable with
luxury themselves. That is the reason one finds that most in the business of retailing have backgrounds like
international MBA‘s, wives of industrialists, industrialists themselves and such other known people.
3. 7 Malls in India7
On studying marketplace conditions, one gets a clear indication of why commerce is such an
important interwoven addition within humanity. From a design and architectural standpoint, historical
references hold true through the centuries to current day practices. Modern era shopping center development
in the west started around the 1950‘s and 60‘s, and this same evolution is happening in areas of Asia at
present. 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 operational
model. That is what will take it to the furthest and quickest, to its maximum potential. Realizing the
complexities and dynamics facing the sector at present, it is about alignment of interests – about a win-win
situation for retailers, developers, government agencies, investors, capital market people, and ultimately
consumers. And if it can draw the course through all the technical aspects of the business, the development of
the best practices, and all the fine-tuning in leasing, merchandising and marketing efforts, it will help sustain
the most profitable growth for the industry over the time it will take to build it up.

36
Unlike foreign counterparts, where ‗have enough‘ has saturated the market, Indian consumers are
now 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 five
years.
 The Indian economy is growing annually at a rate of 6.5%, while our population is keeping pace at
1.7% 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.

37
REFERENCES:
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

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4. RETAIL TOURISM
Over the past few years many countries have put the spotlight on tourism retailing with the aim of
building stronger ties between the tourism industry and the retail sector. The objectives are to build tourism
yield by promoting greater opportunities to position ‗shopping‘ within the destination experience, improve
visitor services and protect the nation‘s reputation as a welcoming host to visitors. Ultimately, the aim is to
encourage 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 the
country with empty pockets and as satisfied customers. Major retailers now recognise the potential
contribution tourism can make to their business. Governments are recognising the strong tie between
shopping and yield. The tourism industry has also come to understand that tourism retailing goes beyond the
traditional duty free stores and extends to mainstream retailing, tourism precincts, airports, neighbourhoods,
specialty stores and markets.
4. 1 DUBAI SHOPPING FESTIVAL – A Case Study1
Dubai - A city of merchants, cultural crossroads, second largest of the seven United Arab Emirates
and probably the most well known; a country where the dust of the desert is clearing to reveal the potential for
one of the most significant international cities of the 21st century. Under the guidance of Sheikh Mohammed
bin Rashid bin Maktoum, it has forged a reputation as one of the most important and vibrant cities in the
Middle East.
4. 1. 1 What to do in Dubai2
Dubai is one of the seven emirates in UAE. It has a great tourist infrastructure and it is easy to enjoy
the beaches, mountains, oases, camel racing, deserts, and any number of sports. Dubai provides its tourists
and residents lot of activities to do and keeps them busy all year through. There are innumerable things to do
for the whole family - plenty of sun, shopping and sports combined with Dubai history and culture. The
Emirate provides a blend of the exotic east and the sophisticated west together with its status as the sporting
capital of the Middle East, and award winning hotels and resort facilities to match. In just 20 years, Dubai has
transformed itself from desert backwater to modern nation by becoming one of the world's hottest tourist
destinations. 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 where
the sophistication of the 21st century walks hand in hand with the simplicity of a bygone era. There are a lot of
things 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 the
desert. Most desert safaris offer camel riding, dune driving, sand-skiing and spectacular sunsets. The emirate
has 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.

39
4. 1. 2 Attraction3
Dubai is a treasure trove of historical attractions and there is perhaps no better place to delve into the
land's past than at the Dubai Museum housed beneath the 180-year-old Al Fahidi Fort in Bur Dubai. The
Bastakiya district is a step back in time, with traditional courtyard houses and wind towers. Sheikh Saeed Al-
Maktoum's House is one of the oldest houses in the city, as well as one of the best examples of traditional
Middle Eastern architecture. Built entirely of stone along medieval Fatimid lines, the Jumeirah Mosque and its
two 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 Majil's Gallery.
Dubai is a futuristic metropolis boasting year-round sunshine that has become a playground for the
rich and famous. It has a multitude of superb outdoor attractions, from championship quality golf courses and
spas to water sports and desert adventures to be enjoyed. Spectators can enjoy a host of premier sporting
events such as the world's richest horserace, the Dubai World Cup at Nad Al-Sheba; the Dubai Desert Classic
Golf 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 the
Dubai Creek to the myriad shops at Deira's 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 in
all its forms - from vast malls to bustling markets - has long been one of Dubai's principal attractions. One
popular legend suggests that the name 'Dubai' may have derived from 'Daba,' meaning a prospering or
flourishing market. Dubai's famed markets are located on both sides of the creek, with the colourful Spice
Market enticing shoppers with its exotic aromas, and the enormous Gold Souk dazzling with every form and
standard of precious metals and glittering jewels. "Visitors can enjoy all the international pursuits - golf, water
sports, horse racing, polo and nightlife. Plus there's the attraction of the desert itself, with the opportunity to be
part of an Arabian adventure." Dubai is the exemplary home of sand, sun and shopping, all together. The
tourists 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 most
evidently 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 is
divided into two parts- on the northern side Deira and to the south Bur Dubai. A tunnel and two bridges
connect both of the districts. Both the cities are decorated with sites of tourists' interest, fine mosques, busy
souks, public buildings, shopping malls, office towers, hotels, apartments and villas. As you would cast your
first look at the city, you would feel the city to have a primarily modern face that represents an ever-changing
skyline of new developments. The city offers everything, from outstanding mirror and concrete skyscrapers to
affable 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 can
experience everything from rugged mountains and awe-inspiring sand dunes to sandy beaches and lush
green parks, from dusty villages to luxurious residential districts and from ancient houses with wind-towers to
ultra-modern shopping malls.
One of the city's 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,

40
and 'shopping tourists' are drawn from around the world to this paradise of malls, souks, boutiques and
modern department stores selling everything from Paris fashions to Japanese electronics. The annual
Shopping Festival attracts millions of tourists to the city for a shop-till-you-drop holiday.
Major Attractions of Dubai are as follows:
Burj Al Arab
Wild Wadi Water Park
Dubai Creek
Dubai World Trade Center
Wonderland Water Park
4. 1. 3 Shopping4
Dubai 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. Retail
prices are very reasonable because of its open port and low import duties and the variety of products
available. 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 for
amazing deals that are unmatchable anywhere else in the world. Even major brand name products, widely
available in the city, are often less expensive in Dubai than in their country of origin. The major shopping
areas of the city are Al Faheidi Road, Al Rigga Road, Al Karama, Al Satwa's Al Dhiyafah Road and Beniyas
Square. The modern shopping malls, located throughout the city, contrast with the sights, sounds and smells
of the traditional souks.
The Dubai Shopping Festival is known throughout the world for not only being an opportunity for
fantastic shopping and bargains, but also as one of the world's most entertaining festivals including grand
firework displays, great prizes to be won, and of course the excitement of being in Dubai itself. One of the
highlights of the festival is the Global Village, with thirty eight pavilions from as many countries all displaying
their 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 in
the residential areas do not open until 9.30 or 10.00am. Most supermarkets stay open all day, from Saturday
to Thursday. All shops close for prayers on Friday from 11.30am to 1.30pm. Shopping malls and most shops
are open on Friday evenings until late. Souks have been called "the heart of urban Arabia", and Dubai has
plenty. These range from the traditional, dusty, alleyways of the spice souk, a stone's throw from the Creek, to
the modern fish souk with the many varieties caught in Gulf waters and the fruit and vegetable souk with its
bustle and vivid colours. Dubai's most famous market of all is the gold souk. Here, prices are very reasonable
and largely determined by weight, rather than design and craftsmanship.
The Dubai Shopping Festival (DSF), known in Arabic as 'Layali Dubai', was first started in February
1996 by the Dubai government as purely a retail event aimed to promote trade in Dubai. Since then it has
become an annual shopping, entertainment, and cultural extravaganza that continues to promote tourism in
Dubai and draws people from around the world each year.

41
The festival shopping event lasts for one month and its slogan is 'One Family, One World, One
Festival', 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 a
year-round shoppers‘ paradise, during DSF the city becomes the most exciting shopping destination in the
world. Dubai has bustling textile and spice souks (traditional markets), the renowned Gold Souks with over
400 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 Dubai
Duty Free, DSF offers an array of entertainment for the whole family - children‘s events, international fashion
shows, visiting artists, street-side performances, nightly fireworks, musical shows, film festivals, numerous
cultural events reflecting the emirate‘s cosmopolitan character and record-busting feats. Dubai's beautiful
parks will be used for various entertainment activities such as Cable Car rides introduced to coincide with DSF
2000, 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,
Dubai's beautiful streets will be turned into colourful venues for a host of DSF activities, exuding the
excitement of the unique shopping festival. Street performers, clowns, magicians and fun-fairs will keep
visitors entertained throughout the festival.
SHOPPING MALLS
5
Most 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, located
throughout the city, contrast with the sights, sounds and smells of the traditional souks. Bargaining is the norm
in 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 Harvey
Nicholls, Aspreys and Debenhams, has 223,000 square meters of shops and an indoor ski area. 'Downton
Dubai' will cover 351,000 square meters when it is completed and Mall of Arabia, which will be located in
Dubailand, is destined to be the largest in Dubai. For years, shopping in Abu Dhabi was overshadowed by the
more sophisticated centers in Dubai. In recent years however, magnificent new shopping centers have been
built in Abu Dhabi. All the major High Street brands e. g. Oasis, Next, Laura Ashley as well as international
haute couture are well represented.
DUBAI SOUKS
6
Souks, or traditional street markets, have been called "the heart of urban Arabia", and Dubai has a
good selection of them. 'Souk' is the arabic word for market or place where any kind of goods are brought or
exchanged. Traditionally, dhows from the Far East, China, Ceylon, India would discharge their cargos and the
goods would be bargained over in the souks adjacent to the docks. Each Souk has merchants who specialize
in the same products and the traditional style of doing business by enthusiastic and sometimes melodramatic
haggling over endless cups of sweet tea or Turkish coffee is common. One rule prevails - if you do finally
agree a price with a merchant you are morally obliged to buy the item from him at your price. Just walking
away is considered bad manners. The Dubai Souks range from the traditional, dusty alleyways of the Spice
Souk, a stone's throw from the Creek, to the most famous market of all - the Gold Souk.

42
Dubai 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 are
shops 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 narrow
winding alleys on the Deira side of the creek. In the spice souk you will find perfumes, incense, and delicious
foods piled in sacks awaiting your haggling skills. Walk a bit further toward the gold souk and be dazzled by
the glittering displays in each shop window. Choose from gold necklaces, earrings, bracelets, and even
design 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 Cosmos
Lane in Bur Dubai or the streets of Satwa, where numerous shops sell a vast array of colorful fabrics. You can
also find excellent electronics on Al Fahidi Street in Bur Dubai. This area is lined with electrical and electronics
shops. Dubai is awash with local markets, and the Creekside souks are a remnant of its days as a thriving
port for smugglers and traders in the 19th century. While much has changed since then, the Deira and Bur
Dubai souks still have plenty of goods that are worth haggling over, from spices and silks to electronics and
gold.
4. 1. 4 The Dubai Shopping Festival7
The Dubai Shopping Festival (DSF), known in Arabic as 'Layali Dubai', was first started in February
1996 by the Dubai government as purely a retail event aimed to promote trade in Dubai. Since then it has
become an annual shopping, entertainment, and cultural extravaganza that continues to promote tourism in
Dubai and draws people from around the world each year. On February 15, 1996, the travel industry in the
Middle East heralded the beginning of a new dawn - the birth of the most impressive shopping cum
entertainment mega event. An entirely new concept, it succeeded brilliantly in showcasing what co-operation
between 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 was
to revitalize the retail trade in Dubai. It was later developed into a comprehensive tourism product in line with
Dubai's far-sighted stance to set global standards in every field. Dubai Shopping Festival is basically a
shopping paradise. Dubai is know around the world as such a paradise throughout the year, but they really lay
out the red carpet during shopping festival month, with over 2,300 retails outlets participating, that offer
everything imaginable from gold, perfume, haute couture, cars, electronics to handicrafts and textiles. Along
the lines of the stature that Dubai has achieved with its clarity of vision, innovation, initiative and drive, the
Festival was shaped under the committed leadership of His Highness Sheikh Mohammed Bin Rashid Al
Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. As months of preparations went into
creating Dubai Shopping Festival, the shopping festival matured into a major retailing cum entertainment
extravaganza.
Today, one of the biggest beneficiaries of the event is the tourism sector. Hotels, travel agents and
tour operators contribute to the selling of the event worldwide and it would be fair to assume, run at the peak

43
levels of operation during the event. Every year, Dubai Shopping Festival lives up to its promise of staging the
most exciting activities for the whole family inspired by the theme One World, One Family, One Festival. As
universal brotherhood, happiness, excitement, joy and adventure became the signature trademarks of Dubai
Shopping Festival, the Festival itself became a tribute to the inherent ambition and strength of the people of
the United Arab Emirates. Local and multinational brands acknowledged their faith in the event, and brands
like Visa, Pepsi and Emirates Airlines became partners to DSF's growth. Most hotels and apartments also get
involved 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 steps
further. They are scores of raffles that offer very attractive prices outlined below, and Emirates and most other
airlines flying out of Dubai offer discounted airfares and much needed excess baggage allowances during the
festival.
There are other events as well, including international fashion shows, children's events, streetside
performances, nightly fireworks, film festivals, and many other cultural events that reflect the emirate's
cosmopolitan character. Plus one of the biggest events of them all, the Dubai World Cup also takes place
during 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 in
attracting more visitors to the Emirate.
DSF Growth
8
The DSF has established itself as the leading special "shopping" event in the world, others have tried
with their own success, but no one has really been able to match the passion and success of this great
festival. In its first year in 1996, 1.5 million people attended and in 1999 this figure increased to a staggering
2.4 million which resulted in incremental sales of US$ 1.12 billion, and these figures have been growing ever
since. In 2005 there was an estimated 3.3 million!
Yearly Visitor's Information
Going 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 million
visitors 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 visitor's increases to be 2.2 in the same period, and in 1999, the event
attracted 2.4 million visitors in 28 days. The fifth cycle witnesses a high growth in its visitors, which end at 25
million visitors during 31-day only and 2.55 visitors in 2001. In 2002, the number increase to reach 2.68 in 31
festival days. Dubai shopping festival 2003, attracted the largest number of visitors, one could say, it was the
best among other cycle since it recorded the highest number: 2.92 million visitors in no more than 32 festival
days.

44
Cost Per Year
The average cost in the first festival cycle at 1996 was DHS 2.5 Billion and DHS 2.79 at 1997. At the
third cycle in 1998, the cost was DHS 3.81 Billion, and in 1999 the cost close at DHS 4.15 billion. While at
2000 the cost surge to DHS 4.31. At the last three years, the average cost ranges between 4.50 at 2001, 4.60
at 2002, 5.12 at 2003
4. 2 THE VISA STORY9
In 2004, 3.4 million international visitors arrived in India compared with 2.7 million in 2003. According
to the Ministry of Tourism data, visitors to India spent Rs. 222.5 billion during their stay in 2004; with an
average spend of Rs. 65,460 per person. International Visa cardholder spend in India was Rs. 41 billion in
2004, equivalent to 18% of total foreign exchange from tourism. In 2004, 15% of total spend by visiting
International Visa Cardholders in India was made by cardholders from other Asia Pacific countries. This was
lower 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 total
Visa 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 transaction
was about Rs. 7632. Cardholders from Japan, China and Switzerland recorded the highest average spend per
transaction.
Table 4BTable 4A

45
4. 2. 1 Overview of Inbound Traveller Activity in India
In 2004, 3.4 million international visitors arrived in India compared with 2.7 million in 2003. According
to the Ministry of Tourism data, visitors to India spent Rs. 222.5 billion during their stay in 2004; with an
average spend of Rs. 65,460 per person. This places India 11
th
in terms of visitor numbers and 7
th
in terms of
total visitor spend. During the last decade, both international visitor arrivals and foreign exchange earnings
through tourism in India have been experiencing moderate single digit growth or decline during periods of
global 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 Cardholders
International Visa cardholder spend in India was Rs. 41 billion in 2004. Spend was up 42% from 2003
and 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 Cards
One 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 tourist
expenditure 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 as
wider card usage, the number of merchants accepting cards in India has been growing rapidly. In 2004 there
were more than 160,000 merchants in India, concentrated not only in the main metropolitan areas, but
covering 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. Cards
are now not used only at traditional outlets such as hotels and entertainment outlets, but at diverse types of
merchants 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

46
around the country still remain cash-based. Further expansion of card acceptance infrastructure across the
country 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 average
for the Asia Pacific region as a whole (45% in 2003).
Cardholders from the US and UK are the biggest spenders
The 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 accounted
for 64% of the total Visa spend in India by international cardholders in 2004. The largest upward movers have
been the UAE and Australia, up from 10
th
and 6
th
positions respectively. The largest downward mover is
Japan, which has fallen in importance from the 4
th
to the 8
th
place.

47
4. 2. 5 Where are International Cardholders Spending in India?
In 2004, the top five locations which attracted the highest visa international inbound spend in India
were New Delhi (24%), Mumbai (20%), Bangalore (11%), Chennai (8%), and Jaipur (5%). The top 10 cities
accounted for 83% of total Visa spend, down from 85% in 2003. Among the top 10 spending destinations in
India, Pune experienced the fastest growth (83%) followed by Jaipur (69%) and Agra (59%). The fastest
growing 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 spends
During 2004, international Visa cardholders spent most on accommodation (Rs. 10.1 billion), Retail
Stores (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 phone
with direct marketing merchants, for goods such as computer network information services, online
subscriptions, shopping at e-malls or online portals.
Top retail spending
Among all other retail merchants in India, bedsides clothing and household goods which are classified
as 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)

48
4. 2. 7 Average Visa Spend Per Transaction
Average spend per transaction is recovering
The total number of transactions made by Visa cardholders in India has increased by 151% since
1999. Cardholders made a total of 5.4 million transactions compared with 2.1 million in 1999. In 2004, most
transactions 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 spend
per transaction by international Visa card holders in India was Rs. 7,632.
Cardholders from Japan and China have highest average Visa spend per transaction
Average spend per transaction by international Visa cardholders in India during 2004 was highest
among cardholders from Japan (Rs. 11,250), China (Rs. 10,518), and Switzerland (Rs. 10,501).

49
Accommodation generates highest Visa spend per transaction
Average transaction size sheds light on the categories of merchants that are generating larger ticket
sizes and the types of goods and services that can potentially bring higher value tourist spending. Average
transaction size of Visa cards was highest when used to pay for accommodation (Rs. 10,816), followed by
household 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 Method
Growing proportion of transaction via e-commerce and mail/phone order
While most of the Visa transactions made by international cardholders at Indian merchants take place
in person, the relative importance of mail and phone order and online payments is increasing. These are
mainly purchases at direct marketing merchants, for computer network information services, e-malls or online
portals.
4. 3 Retail Theme Vacations – The Asian Scene10
Hong Kong is in a battle for the hearts, minds and wallets of consumers, Asian shopping festivals are
upping the ante, with each one trying to outdo the other with ever more flamboyant marketing ploys. "The
shopping 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 year's Asian travel event calendar shows, there is no shortage of new or newly repositioned
shopping festivals. And for as long as they continue to bring in the travelers, tourism authorities in the region
will continue to market the idea of retail-theme vacations. Just ask Singapore and Hong Kong. According to
the Chan Tat Hon, assistant chief executive (leisure) of the Singapore Tourism Board, "This year's Great
Singapore Sale proved to be a roaring success with both retail sales and visitor arrivals hitting record highs."
In July, the closing month for the country's eight-week shopping fest, 877,000 visitors arrived in the country, a
figure that officials attribute to the festival. Combined with June, there were 1.9 million visitors, a 9 percent rise
over the same period in 2004. Singapore forecasts that the number of tourists will double to 17 million and
tourism receipts to triple to 30 billion Singapore dollars, or $18 billion, by 2015. Chan's research shows that,
on average, half of total visitor expenditure in Singapore went to shopping. "Shopping is key to overseas
visitors from the Asia-Pacific region," he says. Eight countries from the region ranked among the top 10
markets by shopping expenditure: Hong Kong, Indonesia, China, India, Japan, Malaysia, Australia and
Thailand. "Asians love to shop and eat and eat and shop. They are among the best retail consumers in the
world," says Noridah Kamarudin, Hong Kong office director of Tourism Malaysia. Kuala Lumpur's Mega Sale
Carnival runs for six weeks from the end of July to the start of September, a consolidation of the three
discount shopping periods a year that it used to tout.

50
Hong Kong, which only last year repackaged its summer end-of-season sale into the Hong Kong
Shopping Festival, attributes its increase in tourists this year to the festival. It "turned the slow summer period
into another peak travel season," said a spokesperson for the Hong Kong Tourism Board. Shopping and
dining spending was also up during this period by 24 percent. With such lucrative returns, festivals are
competing hard to win the favor of shoppers. Bangkok promotes its "Amazing Thailand Grand Sale" during
June and July with very aggressive marketing campaigns. In Malaysia, the government staged a street
carnival including fire-eaters in shopping districts. Singapore runs its shopping festival alongside arts and food
festivals. Last summer it offered tourists opportunities for free foot massages as part of its shopping
campaign.
During its festival, Hong Kong offered 2 million Hong Kong dollars, or $258,000, worth of Lucky Draw
prizes, 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 Festival11
The Great Singapore Sale was first held 12 years ago. Since then it has gained strength, support and
sponsors from year to year and today is an important landmark on the Singapore calendar. It has become an
annual Singapore shopping festival with sale all over the island in the month of June and July. Today the
Singapore Sale is akin to other retail festivals like the Singapore Fashion Festival, the Singapore Jewelfest
and Singapore Food Festival.
The Most Affordable Shopping Destination
Singapore emerged as the most affordable shopping destination in the Asia Pacific region, according
to an international survey. No wonder then that Singapore is South-East Asia‘s Shopping Capital. These
festivals are held to attract the top tourist dollar. Another interesting fact is that tourists spent 50% of their
holiday 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 and
festivals.
Now tourists who spend above $300 a day can partake of lucky dips where they can win foot
massages, to relieve their aching feet. Another interesting aspect of the Singapore Sale is the Singapore
Showcase where one can buy Uniquely Singapore souvenirs and gift items. The Singapore shopping festival
is never a standalone festival - at any given time there are numerous performances, events and attractions to
enthrall the mall rat. You can shop at malls which are also open for late night shopping. Top that up with a
fabulous dinner at any of Singapore‘s eating joints and you have a perfect day.
Shop with Peace of Mind
One area of shopping in Singapore is that you are assured of a decent quality of merchandise and
service. The country‘s stringent laws make it a customer‘s delight and there are adequate forums to seek

51
redressal for defective goods and services. With the biggest brands available in Singapore, there is no need
to 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 200612
Singapore, 14 February 2006 – One of Asia Pacific‘s most exciting fashion festivals for international and
local 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 a
stunning world-class festival that has established itself over the years as a major event in the calendars of
influential 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‘. FF06
boasts an enthralling and eclectic range of premium fashion events featuring the best trend-setting looks hot
off the world‘s top catwalks. Building on the previous year‘s success, more than 50 events are scheduled for
the 2006 Festival which will showcase a range of luxury designer brands, cult and ―underground‖ fashion
names, high-street fashion, emerging designers as well as eminent regional and Singapore labels. As the
most fashion forward event in the region, FF06 will even offer a rare glimpse of some Autumn/ Winter
collections 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, Fox
Kids, the new exclusive labels of Machka (Turkey), Trucco (Spain), Coast (UK), Part 2 (Denmark), Robert
Cary-Williams (UK), Jessica Noy (UK), Marks & Spencer, Coats, Martina Pink, Moonstone, Tamara B, Tangs
Studio (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 as
well 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 foremost
premium Fashion Festivals in Asia and a signature in Singapore‘s annual Calendar of Events. The first
regional consumer-focused fashion event where Spring/ Summer collections are made directly available from
the catwalk to consumers, the Festival plays a significant role in positioning the unique city as a key regional
fashion hub and a leading fashion shopping destination. In an official capacity, Lily Cole will be ‗The Face of
the Festival 2006‘, appearing in a number of high-profile collection shows that will be part of the Official
Schedule, as well as attending gala events. Tipped as one of the hottest and most in-demand international
catwalk 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. The
Singapore 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 directly
available from the catwalk to consumers. Since its inception in 2001, the Singapore Fashion Festival has
become one of Asia‘s key fashion events.

Colloquium Paper: Retail Tourism - An Indian Perspective

Colloquium Paper: Retail Tourism - An Indian Perspective

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