Skift Take
India’s emergence as an international travel powerhouse raises the question of whether the Maldives can afford to ignore this market for long.
Peden Doma Bhutia
Amid rising diplomatic tensions, India has dropped to fifth place in terms of tourist numbers to the Maldives in January with just over 13,000, according to the latest data from the Maldives Tourism Ministry. Russia took the top spot in terms of tourist numbers to the Maldives in January, followed by Italy, China and the United Kingdom.
Just under 11,000 Indian tourists visited the Maldives between January 9 and 29, a drop that has been blamed on the #BoycottMaldives movement in India, which has been fuelled by the diplomatic dispute.
The movement was triggered by Indian accusations that Maldivian politicians had made derogatory remarks against Prime Minister Narendra Modi. The controversy began following a social media debate following Modi’s visit to Lakshadweep Island and sharing pictures of his beauty on social media platform X.
At the start of 2024, India will be the third-largest source market for the Maldives, accounting for a market share of 7.6%. By 2023, India will be the largest tourist source market for the island nation, accounting for more than 11% of the total tourist arrivals of 1.8 million.
Last year, the Maldives hosted 209,198 Indian tourists, narrowly beating Russia’s 209,146.
In the aftermath of the conflict, online travel agency EaseMyTrip declared it was suspending all flight bookings to the Maldives, a move that its co-founder and CEO Prashant Pittie described as an act of “solidarity with the nation.”
According to reports on social media, more than 8,000 hotel bookings and 2,500 airline tickets made by Indians to the Maldives have been cancelled.
South Korea aims to attract 200,000 Indian tourists in 2024
South Korea aims to attract 200,000 Indian tourists this year, and the Korea Tourism Organization (KTO) said it has planned a number of exchange activities this year and will exhibit at a travel trade fair in India.
According to the KTO, South Korea plans to receive 120,000 Indian tourists in 2023. The number of Indian tourists visiting South Korea peaked at 195,000 in 2016.
“With a record number of foreign visitors expected to reach 20 million in 2024, India holds a special place in Korea’s strategic outreach. Building on the phenomenal success of 120,000 Indian visitors last year, we have set an ambitious target of welcoming 200,000 travellers from India this year,” said Yoon Myoung-kil, director for India and South Asia at the Korea Tourism Organization.
Realising the immense potential of outbound travellers from India, KTO will undertake marketing promotions, familiarisation trips, digital marketing campaigns, multi-city roadshows and active participation in prominent industry events, he said.
As part of its 2023 marketing plan, South Korea was offering travel agents a $30 reward per passenger and easy, hassle-free tourist visa assistance from June to December 2023.
US company to build 100-room resort in Ayodhya
American real estate firm Anjali Investments has signed a deal to build a 100-room resort in Ayodhya. Spearheaded by entrepreneur Ramesh Nangulnoori, the venture aims to provide high-end amenities to tourists and guests and contribute to the growth of tourism in the region.
A proposed $10 billion redevelopment of Ayodhya, including building a new airport, upgrading the railway station, building towns and improving road connectivity, could attract more than 50 million tourists a year, according to a report by brokerage Jefferies.
The city’s booming tourism industry is expected to generate new employment opportunities for locals. Nangurunouri highlighted the strategic importance of investment in Ayodhya’s hospitality sector and pointed to the huge tourism potential following the consecration of the Ram Temple.
According to a press release from the Chief Minister’s Office, land has already been identified and a memorandum of understanding has been signed with the Uttar Pradesh Tourism Department, and construction work is expected to begin soon.
Minister of State for Tourism and Culture, Jaiveer Singh highlighted the rapid development of the tourism sector in Uttar Pradesh. Currently a leader in domestic tourism, the state is actively working to attract more foreign tourists through concerted efforts.
Ayodhya currently has 17 hotels with 590 rooms each, with a further 73 hotels in various stages of development, of which 40 are already under construction. Hotel companies such as Indian Hotels Company, Marriott, Wyndham and ITC are actively investing in the region.
In a recent move, Oyo announced it would open 65 hotels and residences in Ayodhya as it expects an increase in tourism.
SpiceJet capital infusion
Indian low-cost carrier SpiceJet secured more than 9 billion rupees ($108 million) in funding this month as it prepares for a strategic focus on aircraft modernization and cost-cutting measures.
An internal memo to senior staff this week revealed that the airline has a bank balance of more than 9 billion Indian rupees, including a 1.6 billion Indian rupee ($20 million) instalment it received through the government’s Emergency Credit Guarantee Scheme (ECLGS).
The company has been struggling for a long time but has received around 10 billion Indian rupees ($120 million) under ECLGS, with the latest instalment coming after Chairman and Managing Director Ajay Singh pumped money into the company. Of the 5 billion Indian rupees ($60 million) infusion announced last year, Singh contributed 2 billion Indian rupees.
Over the past three months, SpiceJet has accumulated a total of over INR 11 billion ($130 million) in capital. In a recent announcement, it said it had received the first tranche of INR 7.5 billion ($90 million) out of a total of INR 22.5 billion ($270 million) to be raised through a preferred share issue.
The airline’s priorities include upgrading its fleet, improving on-time performance and implementing cost-cutting measures to streamline operations. SpiceJet, which currently operates around 40 aircraft, is looking to raise more capital to strengthen its financial position.
The airline has also expressed interest in acquiring bankrupt GoFirst. In 2023, SpiceJet is expected to carry around 8.4 million passengers and have a domestic market share of 5.5%.
But the airline faces challenges, including legal issues: Earlier this month, civil aviation watchdog India’s Directorate General of Civil Aviation (DGCA) fined SpiceJet 3 million Indian rupees ($36,000) for failing to roster pilots during flights in poor visibility.
Hilton Hotels Highlights Budget Expectations
Hilton Hotels expects the Union Budget, due on February 1, to be packed with policies that can significantly boost the growth of the hospitality sector. According to Zubin Saxena, senior vice president and country head, India, Hilton, one of the key features will be tax reforms, specifically a significant reduction in the Goods and Services Tax (GST) rate on hotels.
Saxena emphasised that such tax changes will not only bring Indian hotels in line with global standards but also put them in a competitive position vis-à-vis countries like Thailand and Singapore.
There are also high hopes for the hospitality sector to receive industry-wide infrastructure status, which Saxena said will bring tangible benefits such as lower utility costs, reduced property taxes, improved access to finance and a more favourable business environment.
Hilton Hotels also looks forward to measures to promote ease of doing business and provision of financial incentives and subsidies to support the growth of the sector. He said that as one of the largest job creators, the sector plays a vital role in driving sustainable economic growth across the country. “Clear and decisive policy announcements from the government are essential to consolidate these steps and ensure consistent and dynamic growth of the industry,” he said.
Pride Hotels opens second hotel in Gangtok
Pride Hotel Group is expanding its presence in the Himalayan capital of Gangtok with the announcement of the opening of its second venture, Biznotel by Pride Gangtok. The hotel, scheduled to open in March 2024, has been designed to cater to both business and leisure travellers, the group said.
The 60-room property will be equipped with state-of-the-art technology to facilitate business meetings and events, the group said in a statement.
“Having already set the benchmark in leisure hospitality with the opening of our first hotel in the city, we now aim to provide a holistic experience to both leisure and business travellers with BIznotel by Pride Gangtok,” said Atul Upadhyay, Executive Vice President, Pride Hotels Group.
Currently, Pride Hotels Group has around 56 locations across the country with upcoming expansion in many destinations including Daman, Bhavnagar, Surendranagar, Agra, Jabalpur, Bharuch, Nainital, Jim Corbett, Chandigarh, Dehradun, Lucknow, Varanasi, Rajkot, Kanpur, Neemrana, Mysore, Gurugram, Aurangabad, Halol, Yavatmal, Greater Noida, Motera (Ahmedabad), Lonavala, Velavaru, Amritsar and many more.
Photo courtesy of The Ritz-Carlton Maldives Fari Islands.
