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Country Profile: India 2017
1. Global Tourism Performance of India
The World Tourism Organisation (2016), projects international tourist arrivals worldwide to grow at a rate of 3% to 4% in 2017. Asia and the Pacific (+8%) led growth in international tourist arrivals in 2016. 24 million more international tourist arrivals were recorded in 2016 to total 303 million. Growth was strong across all four sub-regions, with Oceania receiving 10% more arrivals, South-Asia 9% more and North-East Asia and South-East Asia both 8% more.
The United Nations World Tourism Organisation predicts that India, as one of the world’s fastest growing outbound travel markets behind China, will have 50 million outbound travellers by 2020. According to Australian tourism, the industry’s Tourism 2020 strategy identifies that India has the potential worth between A$1.9 billion (US$1.42 billion) and A$2.3 billion (US$1.72 billion) annually in visitor spend by the end of the decade.
According to the World Travel & Tourism Council Report, India was rated 16th globally in terms of visitor exports, generating US$19.5 billion in tourism spending in 2016. The U.S. Department of Commerce projects tourism from India will increase by 47 per cent from 2014 to 2020, totalling 1,414,000 visitors in 2020.
1.1 Global Tourism Market Insights on India
Traveling Behaviours of the Indian Tourists
Firstly, Indian tourists prefer semi-free independent travel where most will pre-book/ package parts of their holidays before arriving to a destination. This includes booking flights, transfers, accommodation and some activities.
Group travel and tours are popular options for less experienced travellers as group travel is considered safer for a new destination so far away from home.
Safety and security, as well as value for money are the main reasons these consumers pre-book of their holidays and when they are selecting a holiday destination.
Media Consumption Habits
India represents the third largest Internet population in the
world after China and the USA. According to a report by
WeAreSocial, a social media marketing agency, Indians spend
an average of 8 hours on the internet daily. Of which, a quarter
of their time online is spent on social networking sites, making
these sites the primary driver of online activity in India.
EuropeAsia and
thePacific
Americas
Africa
2014 580,2 264,4 181,9 55,2
2015 607,5 279,3 192,7 53,8
2016 619,7 302,9 200,9 58,2
15/16 %
2,0%
8,4%
4,3%
8,1%
0,0%1,0%2,0%3,0%4,0%5,0%6,0%7,0%8,0%9,0%
0,0
100,0
200,0
300,0
400,0
500,0
600,0
700,0
15/16 % C
hangeNum
ber
of a
rriv
als
GROWTH IN INTERNATIONAL ARRIVALS BY REGION, 2016
2
The Profiles of Indian Travelers
There are different sets of Indian travellers where tour and activity providers can target. Specifically, these travellers include:
Affluent – they are amongst the wealthiest of India’s population, but income does vary across cities.
Men and women aged 35-54 years, who are highly educated with highly skilled professions and have the disposable income to travel.
Couples (including honeymooners) and families (often traveling with children).
How to influence their travel decision-making
There are many factors that can influence the Indian traveller’s decision-making. Most predominantly, recommendations from family and friends play the most influential role as they are seen as trusted information sources. Travel agents and tour operators are consulted for information on where to holiday and are important when planning and booking.
Other sources include: travel specific information on the Internet, online social networking sites such as Facebook, destinations featured on TV and films and marketing messages from news and media.
How the Indians research and book their holidays
For the average Indian traveller, there are many ways that they engage with when researching and booking a holiday. Usually, overseas holidays are planned with the immediate family, with ‘feeling comfortable and safe’ being the most important factor in their destination choice. Most of the planning starts two to six months prior to the holiday.
Business travel represented the strongest growth in travel from India, with an almost fivefold increase in travel expenditure for business reasons over the past five years.
Indian traveller abroad is divided into 3 segments business traveller, VFR (Visiting Friends relatives) and the essential tourist, apart from Indian students studying abroad. Apart from business travel, mostly Indians travel (especially VFR) around the holiday seasons.
.
3
FIT (Free Independent Traveller) 40% Package Traveller
60%
Just under half are first-time visitors and just over half repeat
visitors. First-time Indian outbound travellers are likely to take
package tours, but repeat and VFR visitors prefer
independently organized trips (FIT)
Indians are among the biggest spenders (6th in the world) on
accommodation for holidays and tend to place emphasis on
style and luxury when planning their trips.
Amongst key consideration factors, accommodation often
emerges as one of the deciding factors for the Indian tourists
when deciding on a travel plan. Good accommodation is
viewed as crucial to the entire experience, and women
especially were observed to influence their husbands into
booking the best hotels. Indians on package tours tend to opt
for 3- to 4-star hotels while FITs often choose 5 star hotels.
Indians look towards further and more exotic destinations.
Needs of the Indian Leisure Traveller
Top Travel Needs (20)
Sharing of
d iscovery and
sense of
achievement
Break from
routine and
stress; to
recharge
Spend
quality time
with loved
ones
4
2. National Tourism Performance of India in
South Africa
South Africa received the highest tourist’s arrivals from India in
2016 illustrating positive progress in tourist arrivals despite
declines in the previous years. The positive double digit growth
21.7% shows rise on Indian travellers to the country.
Indian tourists have one of the longest length of stays amongst
overseas markets to South Africa. They stay in the country
ranging from 2-4 weeks. The length of stay amongst Indian
tourists have also increased since 2013 to 2016.
The spend data for Indian tourists visiting South Africa illustrate
high average spend, higher than the Chinese tourists who are
seen as the highest spenders in Asia and Australasia.
The repeater rate of Indian tourists indicates that over 50% of
Indians tourists come to South Africa once and less than half
come back for second and third visitor.
Research has shown that Indian tourists predominantly travel
to the country for meetings, incentives, conferences and
exhibitions. Another favourable reason why Indian tourists
travel to the country is for visiting friends and family.
The Indian tourists prefer to stay with friends and family as their
main choice of accommodation, due to the fact that many
Indian tourists are very family orientated which has influence on
their choice of accommodation and VFR bin one of their main
purposes of visit further validates their main choice of
accommodation.
They also prefer to stay at hotels as second option as Indians
also enjoy luxury and have the disposable income to stay at 4
and 5 star hotels
1st time50%
2-3 times29%
4-5 times11%
6-9 times5%
10 or more times5%
REPEATER RATE OF TOURISTS FROM INDIA VISITNG SOUTH AFRICA, 2016
15,9 16,8
22,921,0
LENGTH OF STAY FOR TOURISTS FROM INDIA VISITING SOUTH AFRICA, 2013-2016
2013 2014 2015 2016
2013
2014
2015
2016
Tourist Arrivals 94 323 85 639 78 385 95 377
Growth -9,2% -8,5% 21,7%
-15,0%-10,0%-5,0%0,0%5,0%10,0%15,0%20,0%25,0%
0
20 000
40 000
60 000
80 000
100 000
Gro
wth
Tou
rist A
rriv
als
TOURIST ARRIVALS FOR INDIA INTO SOUTH AFRICA ,2013-2016
Holiday; 14,5%
Business; 16,7%
MICE; 42,8%
VFR ; 19,7%
Religion; 0,5%
MAIN PURPOSE OF VISIT FOR TOURISTS FROM INDIA VISITING SOUTH AFRICA, 2016
5
South Africa seems be hotspot for nightlife and shopping
amongst Indian tourists. They also enjoy our local cuisine and
gourmet restaurants as they also enjoy immersing themselves
in the culture of the destination they travel to.
The majority of Indian tourists to South Africa are your middle
aged group with high education and more disposable incomes,
which also explains the high average spend by Indian tourists.
.
AVERAGE SPEND IN SA R14 900 TOTAL TFDS R1202MN
TOTAL COST OF TRIP (INC AIRFARE) R32 600
TOTAL PREPAID EXPENSES R28 300
SPEND DATA OF TOURISTS FROM INDIA
VISITING SOUTH AFRICA,2016
84,9%80,3%
66,3%60,7%
36,2%
27,5%
Nighlife Shopping Eating out Business Social Visitingnatural
attractions
MAIN ACTIVITIES UNDERTAKEN BY TOURISTS FROM INDIA VISITING SOUTH AFRICA, 2016
18-24 YEARS
4.9%
25-34 YEARS
32.3%
35-44 YEARS
26.2%
45-55 YEARS
15.1%
55-64 YEARS
5.4%
65+YEARS
15.2%
Hotels; 411 000
Guest houses; 189 000
B&B; 15 000
Self Catering; 311 000
Game lodge; 17 000
Backpacker; 35 000
Friends & family;
463 000
MAIN ACCOMMODATION USED BY TOURISTS FROM INDIA VISITING SOUTH AFRICA, 2016
6
3. Provincial Tourism Performance of India in
the Western Cape.
The Western Cape received positive number of tourist’s arrivals
from India with double digit growth 22.9% since 2013. Tourist’s
arrivals in 2016 illustrate recovery in tourism from Indian market
to the province.
The Western Cape received a positive number of bednights
from the Indian market, which can be seen by choice of
accommodation where majority of Indian tourists prefer to stay
at hotels.
The average spend of Indian tourists has shown positive
growth since 2014. It increased by R600 in 2016 with total of
R7800 when compared to 2015.
Indian tourists stay approximately a week in the Western Cape,
slightly lower compared to the previous and the lowest length of
stay amongst all four years.
In 2016, the total foreign direct spend from the Indian market
for the province was highest TFDS since 2013, making positive
contribution to the economy of the Western Cape.
2013 2014 2015 2016
Tourist Arrivals 26 220 25 128 23 730 29 169
Growth -4,2% -5,6% 22,9%
-5 0000
5 00010 00015 00020 00025 00030 00035 000
Axi
s T
itle
To
uri
st A
rriv
als
TOURIST ARRIVALS FROM INDIA INTO THE WESTERN CAPE, 2013-2016
12,811,9
9,7 9,3
LENGTH OF STAY FOR TOURISTS FROM INDIA VISITING THE WESTERN CAPE, 2013-2016
2013 2014 2015 2016
291 998
256 107
203 656
238 000
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
2013 2014 2015 2016
BEDNIGHTS OF INDIAN TOURISTS IN THE WESTERN CAPE, 2013-2016
177 297 782
151 597 567 146 864 863
186 000 000
0
20 000 000
40 000 000
60 000 000
80 000 000
100 000 000
120 000 000
140 000 000
160 000 000
180 000 000
200 000 000
2 013 2 014 2 015 2 016
TF
DS
MIL
LIO
NS
TOTAL FOREIGN DIRECT SPEND OF INDIAN TOURISTS IN THE WESTERN CAPE, 2013-2016
7
Recommendations
Tourism spending amongst Indians is expected to grow at rapid rate in the next few years and Indian enjoy staying longer in the Western Cape when compared to other markets, therefore an excellent market to target by enticing them with activities and attractions where they can spend more and stay longer.
India has a high number of internet users, therefore marketers need to increase their online presence in order to attract and retain the Indian market.
The data shows that many Indians are coming to the country for business purposes and good way to target this market would be through MICE initiatives
Indians enjoy travelling to travel friends and relative so marketing initiatives should be family orientated.
Indian tourists enjoy shopping and nightlife and using these main activities in promotional and marketing campaigns to attract Indian market.
List of sources
United Nations World Tourism Organisation, 2017
World Travel Trends Report,2016/2017
An Analysis of the Target Customers: India Traveler Profiled: Rezdy,2016
Outbound tourism from India report by AZ Infotech,
Bangalore, 2016
World Travel & Tourism Council Report,2016
STB Market Insights India,2016
Shaping the future of Travel In India,2013
The High Nett Worth & Sophisticated FIT Indian Traveller,2017
Navigating the next phase of Asia Tourism,2016
South African Tourism, 2017