THE AGRA RETREATA REPORT

CONTENTSSECTION ONE: INTRODUCTION

Introduction ........................................................................................................................................…. 4

President’s Foreword ……………………………………………………….………………………............. 5

The WTTC India Initiative: Who Makes it Happen?…………………………………. 7

SECTION TWO: THE AGRA RETREAT

The Delegates ……………………………................…………………………………...............……………... 10-11

Conclusions and Recommendations ……………………………................……………….… 12-17

Glimpses .....………………………………………………………………………......................................……… 18-19

Points of View – The Delegates …………………………………..………………………………… 20-21

Points of View – The Press ……………………………………….....……………………………….… 22-23

The Group Photograph………………………………………….....…………………………….......…… 24-25

SECTION THREE: THE NEXT STEP

The Goa Retreat ……………………………………………………..……………………..………… …........ 27

CHAIRMAN:

Sir Ian ProsserChairmanSix Continents PLC

VICE CHAIRMEN:

Donald CartyChairman, President & CEOAmerican Airlines

Jean-Marc EspaliouxChairman of ManagementBoard & CEOAccor S.A.

André JordanChairmanLusotur S.A.

Jonathan S. LinenVice ChairmanAmerican Express Company

Vincent A. WolfingtonChairmanCarey International, Inc

EXECUTIVE COMMITTEE:

Peter ArmstrongPresident & CEORocky Mountaineer Railtours

Philippe BourguignonChairman and CEOClub Méditerranée

Stephen BollenbachPresident & CEOHilton Hotels Corporation

Sebastián EscarrerVice ChairmanSol Meliá

Edouard EttedguiManaging DirectorMandarin Oriental Hotel Group

Maurice FlanaganGroup Managing DirectorEmirates

Bernard D. FrelatPresident & CEORail Europe Group, Inc

Michael FrenzelChairmanTUI A.G

David HouseGroup President, Global Networkand Establishment ServicesAmerican Express Company

Richard R. KelleyChairmanOutrigger Enterprises, Inc

Geoffrey J.W. KentChairman & CEOAbercrombie & Kent

J. W. Marriott, Jr.Chairman & CEOMarriott International, Inc

David MichelsChief ExecutiveHilton Group

P.R.S. OberoiChief ExecutiveThe Oberoi Group

Henry SilvermanChairman & CEOCendant Corporation

Jonathan TischChairman & CEOLoews Hotels

Brett TollmanVice ChairmanThe Travel Corporation

GLOBAL MEMBERS:

Akbar Al BakerCEOQatar Airways

Giovanni AngeliniCEO & Managing DirectorShangri-La Hotels & Resorts

David BabaiChairmanGullivers Travel Associates

Phil BakesChairman & CEOFAR&WIDE Travel Corporation

Ted BalestreriChairman & CEOCannery Row Company

Henrik BartlHead of Specialized PropertyFinanceAareal Bank AG

Gordon BethuneChairman of the Board & CEOContinental Airlines

Paul BlackneyPresident & CEOWorldspan

Richard BrownChairman & CEOEurostar

Regis BulotPresidentRelais & Chateaux

Marilyn Carlson NelsonChairman & CEOCarlson Companies, Inc

Alun CathcartDeputy ChairmanAvis Europe Plc

U. Gary CharlwoodFounder, Chairman & CEOUniglobe Travel (International) Inc

Cheong Choong KongDeputy Chairman & CEOSingapore Airlines

Jennie ChuaPresident & COORaffles International Ltd

Dinesh DhamijaChairman & CEOebookers plc

Lloyd DorfmanChairman & Chief ExecutiveTravelex plc

Rod EddingtonChief ExecutiveBritish Airways plc

William H. FriesellChairmanDiners Club International

Sam GaleotosPresident & CEOGalileo International

Laurence GellerChairman & CEOStrategic Hotel Capital

Maurice H. GreenbergChairman & CEOAmerican International Group Inc

Philip HaanExecutive VP InternationalSales & Information ServicesNorthwest Airlines

Anthony HarrisChief ExecutiveHilton International

Richard HelferChairman & CEORaffles International Ltd

James HensleyPresidentAllied Europe

Stephen HolmesChairman & CEO, HospitalityDivisionCendant Corporation

Raimund HoschPresident & CEOMesse Berlin GmbH

Dieter HuckesteinPresident, Hotel OperationsOwned & ManagedHilton Hotels Corporation

Xabier de IralaChairman & CEOIberia

Clive JacobsChairman & CEOHoliday Autos Group

Nuno Trigoso JordãoPresident & CEO Sonae Turismo Gestao Servicos

Sol KerznerChairmanKerzner International Ltd

Nigel KnowlesManaging PartnerDLA

Craig KochPresident & CEOThe Hertz Corporation

Krishna KumarManaging DirectorThe Taj Group of Hotels

Hans LerchPresident & CEOKuoni Travel Holding Ltd

Fabio MantegazzaChairmanAVRO Plc

Paolo MantegazzaPresident & CEOGlobus & Cosmos Inc

Manuel MartinPartnerCyberDodo Productions Ltd

Isao MatsuhashiChairman of the BoardJTB Corp

Paul McManusPresident & CEOThe Leading Hotels of the World

David MongeauVice PresidentCIBC World Markets

Alan MulallyPresident & CEOBoeing Commercial Airplanes

John M NoelPresident & CEOTravel Guard International

Tom NutleyManaging DirectorReed Travel Exhibitions

Alan ParkerManaging DirectorWhitbread Hotel Company

Jean Gabriel PérèsPresident & CEOMovenpick Hotels & Resorts

Dionísio PestanaChairmanGroup Pestana

Stefan PichlerChairman & CEOThomas Cook AG

Fernando PintoChief Executive OfficerTAP - Air Portugal

David RadcliffeChief ExecutiveHogg Robinson

Jay RasuloChairman & CEOEuroDisney S.C.A.

Kurt RitterPresident & CEORezidor SAS Hospitality

Carl RudermanChairmanUniversal Media

Teresa SantosManaging DirectorGroup Espirito Santo

Robert SelanderPresident & CEOMasterCard International

Bruno SchöpferCEOMövenpick Group

Per SetterbergCEOGlobal Refund Holdings A.B.

Mr Eric SpeckExecutive Vice PresidentGroup President, Travel Marketing& DistributionSabre Holdings Corporation

Barry SternlichtChairman & CEOStarwood Hotels & ResortsWorldwide, Inc

Ron StringfellowExecutive ChairmanSouthern Sun Group

Sultan Ahmed Bin SulayemExecutive ChairmanThe Palm Project

Lalit SuriChairman & Managing DirectorBharat Hotels Ltd

Ian SwainChairman & CEOSwain Travel Services Inc

Kathleen TaylorPresident,Worldwide Business OperationsFour Seasons Hotels and Resorts

José Antonio TazónPresident & CEOAmadeus Global TravelDistribution

Jeffrey TofflerChairmanCoventry Partners

Mustafa TürkmenCEO & Managing DirectorEnternasyonal Tourism Investments, IncYapi Kredi Bank of Turkey

Patrice VinetPartnerAccenture

Trevor de VriesDeputy Managing DirectorMondial Assistance S.A.

Jurgen WeberChairmanLufthansa German Airlines

HONORARY MEMBERS:

Lord Marshall of KnightsbridgeChairmanBritish Airways plc

Sir Frank Moore, AOChairmanTaylor Byrne Tourism Group

Frank OlsonChairman of the BoardThe Hertz Corporation

Gérard PélissonCo-Chairman, Supervisory BoardAccor S.A.

Tommaso ZanzottoPresidentTZ Associates Ltd

CHAIRMAN EMERITUS:

James D. Robinson IIIGeneral PartnerRRE Ventures

IMMEDIATE PASTCHAIRMEN:

Harvey GolubRetired Chairman & CEOAmerican Express CoWTTC Chairman (1996 – 2001)

Robert H. BurnsChairmanRobert H Burns Holdings LimitedWTTC Chairman (1994 – 1996)

PRESIDENT:

Jean-Claude Baumgarten

As at November 2002

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1Introduction

IN FEBRUARY 2000 THE WORLD TRAVEL & TOURISMCOUNCIL (WTTC) LAUNCHED THE INDIA INITIATIVE.THE PURPOSE OF THIS INITIATIVE IS TO RAISEAWARENESS OF THE CRUCIAL ROLE THAT TRAVEL &TOURISM PLAYS IN THE INDIAN ECONOMY – IN TERMSOF ITS ECONOMIC IMPACT, ITS POTENTIAL FOR JOBSAND ITS RESPONSIBILITY TO THE ENVIRONMENT.

With the support and experience of our Members, all of whom arekey players from the industry, and with the leadership and commitmentof our Secretary General, we have been able to form an experiencedand influential team. The strength of this team lies in the fact that itunites every sector of the Travel & Tourism industry and allows us tospeak with a unified voice, rising above our everyday personal businessagendas and pulling together for one cause.

President’s Foreword

JEAN-CLAUDE BAUMGARTEN

President

World Travel & Tourism Council

5

Over the first two years of the Programme weidentified and pursued our priorities, the details ofwhich can be found in our Manifesto which wasreleased in February 2000. For a thorough analysisof Travel & Tourism in India, please refer to ourreports – India: The Tourism Imperative andIndia: The Impact of Travel & Tourism on Jobs and theEconomy – 2002, which are available through theWTTC Website - www.wttc.org.

Having identified our goals, we set aboutspreading our message to the Government of In-dia, the State Governments and the media. Now,in the third year of the Initiative, and with theintention of getting down to the fundamentals,we have entered a new phase and launched a se-ries of high-level ‘Retreats’ involving all the majorstakeholders in India’s Travel & Tourism industry.

This report details the findings of the firstRetreat - held in Agra from 23rd-25th August 2002.

This event attracted 90 influential delegates andprovided an opportunity to interact with thepeople who make and influence policy. Withsenior Members of India’s Parliament andGovernment, leaders from the Indian tourismindustry, international experts on crisismanagement and key media from the region, thepurpose of this unique public-private sector eventwas to identify the key weaknesses in India’stourism product and to find workable solutionsto address these issues.

I hope that this report will demonstrate ourcommitment to Travel & Tourism. India has anamazing and diverse tourism product. Developedin the right way, the Travel & Tourism industrycan provide an important tool for tackling someof the economic, social and environmental

challenges facing India today.

THE WORLD TRAVEL & TOURISM COUNCIL (WTTC)IS THE FORUM FOR GLOBAL BUSINESS LEADERS INTRAVEL & TOURISM COMPRISING THE PRESIDENTS,CHAIRMEN AND CHIEF EXECUTIVES OF 100 OFTHE WORLD’S FOREMOST COMPANIES. IT IS THEONLY BODY REPRESENTING THE PRIVATE SECTOR INALL PARTS OF THE TRAVEL & TOURISM INDUSTRYWORLDWIDE.

WTTC was set-up in 1990 when a small group of chief executives,under the leadership of Jim Robinson III of American Express, createda global body to represent the broad-ranging interests of theTravel & Tourism industry.

Introduction

4

SIR IAN PROSSER

Chairman Chairman

Six Continents PLC World Travel & Tourism Council

Travel & Tourism is one of the world’s mostimportant and fastest growing economic sectors,generating quality jobs and substantial wealth foreconomies around the globe. WTTC’s missionis to work with the private sector to makegovernments aware of the full potential of ourindustry.

In 1998, noting that the council had alreadyproven its ability at the global level, WTTC’sExecutive Committee conceived the idea ofRegional Initiatives. These initiatives focus oncountries that have huge potential for tourismdevelopment, but that lack the framework orresources needed to achieve this. By focusing ona few, carefully selected destinations, a businesscase can be aimed at convincing governments tomake Travel & Tourism a key priority.

The decision to launch a Regional Initiativefor India was taken in response to arecommendation from one of our Executive

Committee Members, Mr P.R.S. Oberoi, whobelieved that there was an opportunity for WTTCto help India develop a new approach to tourism,thereby boosting earnings and employment.

According to WTTC research India’s Travel& Tourism Industry currently generatesemployment for 23.7 million people, or around5.6 per cent of total employment. As an illustrationof the potential for jobs, if India were capable ofgenerating the same level of Travel & Tourismemployment as the European Union average, afurther 25 million jobs would be created.

The global dynamic performance of Travel& Tourism shows a clear opportunity for growthin India during the next decade. The objectiveof the India Initiative is to work with the privateand public sectors to maximize this potential. Ihope that this report will give a clear idea of thebarriers that we seek to overcome in order toachieve this objective.

Travel & Tourism: Everybody’s Future The WTTC India Initiative:Who Makes It Happen?

Mr. Vikram MadhokManaging DirectorAbercrombie & Kent India

Mr. K. Roy Paul, IASChairmanAir India Ltd

Mr. Ankur BhatiaManaging DirectorAmadeus India

Mr. Harsh NeotiaManaging DirectorAmbuja Cement Eastern Ltd

Mr. K.L. MuralidharaCountry ManagerAmerican Express

Ms. Priya PaulPresidentThe Apeejay Surrendra Group

Mr. Shiv Kumar JatiaManaging DirectorAsian Hotels Ltd

Mr. Alun Cathcart*Non-Executive ChairmanAvis Europe

Mr. Lalit Suri*Chairman & Managing DirectorBharat Hotels Ltd

Mr. Peter KerkarManaging DirectorCox & Kings India Ltd

Mr. Maurice Flanagan, CBE*Group Managing Director Emirates

Maharana Arvind Singh MewarChairmanHistoric Resort Hotels Ltd

Mr. Sunil AroraChairman & Managing DirectorIndian Airlines

Mr. S.S.H. RehmanManaging DirectorITC Hotels Ltd

Mr. Naresh GoyalChairman & Managing DirectorJet Airways

Mr. Vivek NairVice Chairman & Managing DirectorHotel Leelaventure Ltd

Maharaja Gaj Singh of JodhpurChairmanMaharaja Heritage Resorts

Mr. P.R.S. Oberoi*ChairmanThe Oberoi Group

Mr. Hugh Hamilton AndrewsAdvisorPGF Nomura

Mr. Arjun SharmaManaging DirectorSelect Holidays Resorts

Mr. Himmat AnandChief Operating Officer(Inbound) Sita World Travel

Mr. Daniel DesbailletsChief Executive OfficerSix Continents Hotels

Mr. R.K. Krishna Kumar*Managing DirectorThe Taj Group of Hotels

Mr. Ashwini KakkarCEO & Managing DirectorThomas Cook India Ltd

Mr. Adi J. KatgaraDirectorTravel Corporation (I) Ltd

Capt. Uttam BoseChief Executive OfficerSahara Airlines Ltd

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* Also Global Members

WTTC is a non-profit making organization committed to making Travel & Tourism work foreverybody. Our task would not be possible without the backing of our Members, all of whomhave made a commitment to work with us to overcome the barriers to tourism growth. TheWTTC India Initiative is backed by twenty-six of India’s key players from some of the world’smost influential Travel & Tourism Companies.

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2The Agra Retreat

MEMBERS OF PARLIAMENT

Mr. Ashwani Kumar

Mrs. Margaret Alva

Mr. Amar Singh

Mr. Mani Shankar Aiyar

Mr. Dineshbhai Trivedi

Mr. Prithviraj Chavan

Mr. B. Panda

Dr. Nitish Sengupta

MEDIA

Mr. M.J. AkbarEditor-in-Chief &Managing DirectorAsian Age

Mr. Satish JacobDeputy ChiefBBC

Mr. T.N. NinanEditor in ChiefBusiness Standard

Mr. Rohit BansalResident EditorFinancial Express

Mr. Shekhar GuptaEditor-in-ChiefIndian Express

Mr. Karan ThaparPresidentInfotainment Television Pvt

Mr. Vinod MehtaEditorOutlook Magazine

Mr. Chandan MitraEditor-in-ChiefThe Pioneer

Mr. Rabindra SethFreelance Journalist

Mr. Dilip CherianConsulting PartnerPerfect Relations

Mr. Vikram ChandraSenior EditorNDTV

Mrs. Naazneen KarmaliEditorBusiness India

Mrs. Bachi KarkariaGroup Editorial DirectorMid-Day Multimedia

OPINION MAKER

Mr. S.K. MisraVice ChairmanIntach

GOVERNMENT OF INDIA

Mr. JagmohanUnion Minister forTourism & Culture

Mr. Vinod KhannaMinister of State forTourism & Culture

Mr. Shripad Y. NaikMinister of State for Civil Aviation

Mr. Ajay SinghMinister of Tourism & CultureMadhya Pradesh

Mr. N.K. SinghMember Planning Commission

Mr. Kanwal SibalForeign SecretaryMinistry of External Affairs

Ms. Rati Vinay JhaSecretary Tourism

Mr. V.K. DuggalDirector General of Tourism

Mr. Amitabh KantJoint Secretary Tourism

Mr. K. Roy PaulSecretaryMinistry of Civil Aviation

Mr. Joy BandekarOfficer on Special Duty with theMinister for State for Civil Aviation

INTERNATIONALSPEAKERS & SPECIALGUESTS

Mr. Renton de AlwisSecretary General & CEOCeylon Chamber of Commerce

Mr. Feisol HashimChairmanInternational Relations &Marketing Indonesia TourismCouncil & Indonesia TourismPromotion Board

Mr. Alwin ZechaExecutive ChairmanPacific Leisure

Mr. Peter de JongPresident & CEOPacific Asia Travel Association

Mr. Bernard D. FrelatPresident & CEORail Europe Group Inc

Mr. Mark OrwollManaging EditorTravel & Leisure

H.E. Dr. Taleb RifaiMinister of Tourism & AntiquitiesGovernment of Jordan

Mr. Habeeb HabashAssistant Secretary GeneralTourism AffairsMinistry of Tourism, Jordan

Mr. Hesham Al-AbbadiDirector of the Minister’s OfficeMinistry of Tourism, Jordan

Mr. Gunnar BrandbergVice President, Sales & MarketingHilton Hotels Corporation

Mr. Leonard MenezesHilton Hotels (India)

WTTC INDIA -- MEMBERS

Mr. Vikram MadhokManaging DirectorAbercrombie & Kent

Mr. V.K. VermaCommercial DirectorAir India

Mr. P.K. SinhaResident DirectorAir India

Mr. Ankur BhatiaManaging DirectorAmadeus India

Mrs. Radha BhatiaDirectorAmadeus India

Mr. Harsh NeotiaManaging DirectorAmbuja Cement Eastern Ltd

Mr. Runeep SanghaBusiness ManagerTravel Related ServicesAmerican Express

Ms. Priya PaulPresidentApeejay Surrendra Hotels

Mr. Shiv Kumar JatiaManaging DirectorAsian Hotels Ltd

Mr. Lalit SuriChairman & Managing DirectorBharat Hotels Ltd

Mr. L.P. SinghChief Operating Officer (Leisure)Cox & Kings India Ltd

Mr. Anil GoyalCommercial DirectorIndian Airlines

Mr. Tony TayehHead of PlanningInternational & Industrial AffairsEmirates

Maharaja Gaj Singh of JodhpurChairmanMaharaja Heritage Resorts

Maharana Arvind Singh MewarChairmanHistoric Resorts Hotels

Mr. Satish ShenoyCEOIL & FS

Mr. S.S.H. RehmanManaging DirectorITC Hotels

Mr. Nakul AnandExecutive Director Hotel OperationsITC Hotels

Mr. Saroj. K. DattaExecutive DirectorJet Airways

Ms. Nandini VermaVice President Corporate Affairs &Public RelationsJet Airways

Mr. P.R.S. OberoiChairmanThe Oberoi Group

Mrs. Ragini ChopraVice PresidentBusiness Development &Corporate CommunicationsThe Oberoi Group

Mr. Sanjay RaiVice President CorporateSales & MarketingThe Oberoi Group

Mr. R.K. Krishna KumarManaging DirectorThe Taj Group of Hotels

Mr. Ajoy MisraSenior Vice President Sales &MarketingThe Taj Group of Hotels

Mr. D.K. BeriVice President Business &Corporate AffairsThe Taj Group of Hotels

Mr. Adi J. KatgaraDirectorTravel Corporation (I) Pvt

Mr. Arjun SharmaManaging DirectorSelect Holiday Resorts

Mr. Inder SharmaChairmanSelect Holiday Resorts

Mr. Himmat AnandCEOSita World Travel

Mr. Ashwini KakkarCEO & Managing DirectorThomas Cook India Ltd

Capt. Uttam BoseChief Executive OfficerSahara Airlines Ltd

Mr. Alok SharmaVice PresidentSahara Airlines Ltd

WTTC TEAM

Mr. Jean-Claude BaumgartenPresident

Mr. Yogesh ChandraSecretary GeneralWTTC India

Ms. Marianne Thompson-HillDirector

Ms. Joanne Fox-MillsExecutive AssistantWTTC

Ms. Ritu ChatrathExecutive AssistantWTTC India

CONSULTANT

Mr. Suhel SethCEOEquus Advertising Company

The Delegates

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Creating PressureGroups to Highlight Tourism

The Impact of Aviationon Tourism

! Unrestricted access toforeign airlines where Indiancarriers have the samefacility.

! An independent immigra-tion cadre should be createdand staffed by persons whowould be more tourism andpassenger friendly.

Recommendations

! The Ministry of Civil Aviationneeds to concentrate on theinfrastructure in aviation,leaving Air India and IndiaAirlines to function in a moreautonomous manner.

! Privatization of the NationalCarrier should be expedited.

! Privatization of airports,particularly in the four metros,should be accelerated on atime bound programme.

! India's bilateral aviationpolicies need to be positiveand forward looking.

! Private Airlines should beallowed to fly on internationalroutes.

The Working Group

Maharana Arvind Singh MewarMs. Margaret Alva, MPMr. Satish JacobMs. Bacchi KarkariaMr. Dineshbhai Trivedi, MPMr. Mani Shankar Aiyar, MP

Rapporteur

Ms. Priya Paul

Recommendations

! Government should establishan apex body at the nationallevel called the NationalTourism Board to implementevery aspect of tourism, par-ticularly its development, pro-motion and marketing.

! The proposed National Tour-ism Board should be a broad-based organization with rep-resentation from all segmentsand classes of industry.

! In order to generate awarenessof the importance of Travel &Tourism there should beregular interface between theIndustry and Parliament,Government and the Media.Such interface, which shouldbe facilitated by timely flow ofinformation, would help

The Working Group

Mr. P.R.S. OberoiMr. Tony TayehMr. Anil GoyalMr. V.K. VermaMr. P.K. SinhaMs. Radha BhatiaMr. Shekhar GuptaMr. P. ChavanCapt. Uttam BoseMr. Alok SinhaMr. Himmat Anand

Rapporteur

Ms. Nandini Verma

Conclusions and Recommendations

project the issues relating totourism at the appropriatenational level.

! The Foreign Correspon-dents Club should be acti-vated to correct the negativeimage of India and giveprominence to India's wealthin Tourism.

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The Working Group

Ms. Rati Vinay JhaMr. Amar Singh, MPMr. Adi KatgaraMr. Dilip CherianMs. Nazneen Karmali

Rapporteurs

Ms. Ragini ChopraMr. Nakul Anand

Creatinga Brand Image for India

Recommendations

! Over and beyond advertisingon tourism related campaigns,there is a need to establish abrand image for India.

! A Destination India Inc.Group should be established,led by the industry andsupported by the government,media and other stake holders.

! Such a group could bemodelled on the establishedExperience India Society,creating a consistent andcredible brand image forIndia, which is necessary toencourage investment andtourism.”

! A Cabinet Committee onTourism should be set-upunder the chairmanship of thePrime Minister to look at allaspects of policy formulationand implementation in theTravel & Tourism sector.

Task

Approach IndustryChambers to establish:

! A strategy.

! A methodology for funding.

! A master plan for research,marketing, communicationsand PR.

The Working Group

Mr. N. K. SinghDr. Nitish Sengupta, MPMr. Karan ThaparMr. Lenny MenezesMr. Vivek NairMr. Rohit Bansal

Rapporteurs

Mr. Ajoy MisraMr. Arjun Sharma

Recommendations

! Elements of the tourismindustry including hotels,airlines and other appropriatetourism related activitiesshould be included in thedefinition of infrastructure inthe Income Tax Act 1961.

! Airport infrastructure urgentlyneeds attention and the onlypossible solution would be toprivatize the airports, in par-ticular the gateway airports.

! Key tourism destinations mustreceive highest priority forintegrated development andshould be considered asspecial economic zones forfiscal and infrastructuresupport.

! Private sector participationshould be progressivelyintroduced into tourismrelated railway projects.

! There should be anintegrated development planto exploit the 6,000 km ofIndia's coast line throughCruise Tourism.

! All existing hill stationsshould be covered byintensive urban / townplanning to check overcrowding and despoliation.

! Six more hill stations shouldbe created to promotedomestic tourism.

The InfrastructureImperative

Conclusions and Recommendations

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Tourism--Intelligent Taxation

The Working Group

Mr. Lalit SuriMr. Shiv Kumar JatiaMr. Vikram ChandraMr. V. K. DuggalMr. B. Panda

Rapporteur

Mr. Sanjay Rai

Recommendations

! Hotel and transport tax inIndia is extremely high,especially when comparingIndia to other tourismdestinations around theworld. Consequently India– for both the domestic andthe international tourist – hasbecome a high costdestination. This is reflectedin the annual figures thatshow 3.8 million Indiansholidaying abroad while only2.6 million tourists visit India.

! The Government needs torecognize that the lowering oftaxes does not necessarilymean a lowering of revenue.Examples that support thisargument can be found inNew York, Goa, Maharashtraand Karnataka.

! Intelligent taxation wouldspur growth leading tomultiplayer effects.

! Luxury tax should be reducedto 6 per cent on actual roomrate throughout the country.

! Hotel Expenditure Taxshould be abolished so thatthe burden of taxation of hotelservices are kept to theminimum.

! Sales tax on food, beveragesand liquor should be fixed at8% throughout the country.

! Service tax on hotels shouldbe abolished.

The Working Group

Mr. Kanwal SibalMr. R. Dev BurmanMr. Inder SharmaMr. Vinod MehtaMr. Rabindra SethMr. Amitabh Kant

Rapporteurs

Mr. Ashwini KakkarMr. D.K.Beri

! Abolish expenditure tax onroom revenue and insteadtax on actual tariff.

! Prevent states from imposinghigh incidents of sales tax onAviation Turbine Fuel.

Action Plan

! Finance Minister should calla meeting of all state FinanceMinisters to discuss Travel &Tourism taxation forachieving rationalization,simplicity and uniformity.

! Members of Parliamentshould take up issues of hightaxation on Travel &Tourism in their StandingCommittee and StateGovernments.

! The Ministry of Tourismshould be asked to preparea paper of taxation ontourism and the comparativeposition in neighbouringcountries as an exercise toexplore to what extent tax ismaking India an expensivetourism destination.

! Aviation Turbine fuel shouldbe declared exempt fromState Taxation by labeling ita declared good.

Recommendations

! Visas on arrival for 16consensus countries to beimplemented by December2002.

! Additional countries to bereviewed in consultationwith Ministries of Home /External Affairs by March2003.

! 72 hrs visa dispensations tobe exercised by airportofficials consistently in allcases as per laid downcriteria.

! Establish a high speedcheckout system for Indiansreturning home as thiswould help to decongest theimmigration queues.

! Embassies / Consulatesabroad to ensure issuance ofvisas within one workingday. Staff strength in keysource markets to bereviewed / enhanced.

! There must be tourismfriendly cadres manning theimmigration counters.

Tourism andThe Visa Regime

Conclusions and Recommendations

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Glimpses

18 19

R. K. Krishna KumarManaging DirectorThe Taj Group of Hotels

The prime objective of theWTTC is to generateawareness of the importanceof Tourism in creating wealth,employment and businessopportunities. We have towork on policy and opinionmakers at the Centre and inthe States to adopt tourismfriendly regimes. The Retreatwas a step in this direction andmany more are needed to drivethe message home.

N. K. SinghMember PlanningCommission

...I myself found theinteraction at the Retreatcandid and constructive.

Without candour, theprovocation to brush problemsunder the carpet would becompelling and henceunproductive.

Thank you very much forgiving me the opportunity toparticipate at the Retreat andfor an interaction which Ifound rewarding.The WorldTravel and Tourism Council isusing the space available forchange with imagination andinnovation.

Ashwini KakkarCEO & MDThomas Cook

...The coming together ofleading luminaries from thepolitical arena, civil service,infrastructure owners,operators, opinion leaders andthe Press augurs well for thefuture of travel and tourism inIndia.

V. K. DuggalDirector General ofTourismMinistry of Tourism

...Reiterate that we are allworking for the commonobjective of growth in globaltourism as a vehicle for worldpeace and understanding,economic progress andpoverty alleviation. Our

support to the initiatives ofWTTC in this regard wouldtherefore always be there infull measure.

Rohit BansalIndian Express

...Without doubt one of thebest organized, productive,and graciously hosted meetingson the national scene. TheWTTC India Initiative hasbrought out the tour ismimperative in a significant way.

S. K. MisraVice ChairmanIntach

...The WTTC is to becomplimented for organizingthe Retreat at Agra.

The initiative taken to projectthe issues and problems beingfaced by the tourism sectorbefore a group of eminentParliamentarians and Mediapersonalities is a step in theright direction.

Adi J. KatgaraDirector, TravelCorporation of India

The efforts of WTTC to bringthe Government, Members ofParliament, Tourism Ministry,Press, TV and the Tourismindustry together fordiscussions was rewarding. Ibelieve that this is the firsttime that such an event hastaken place and this is thanksto WTTC.

Nandini VermaVice President - CorporateAffairs & Public RelationsJet Airways

...The end result was superand thankfully we met ourobjective.

...It is always a pleasure tocontribute to the efforts of theWTTC India Initiative

Tony M. TayehHead of Planning,International & IndustryAffairs, Emirates

...I enjoyed the Retreatimmensely and found it verystimulating and thoughtprovoking.

All to the credit of theWTTC-India Initiative'sSecretary General and his smallbut extremely dedicated team.With the WTTC-IndiaInitiative around, I am moreoptimistic about the future ofaviation and tourism in India.

Mani Shankar AiyarMember of Parliament

We must work towardssynergizing domestic andforeign tour ism andpr iortizing investment ininfrastructure and otherfacilities, keeping in mind thedomestic/foreign ratio interms of both numbers andeconomic spin-off.

Dr. Nitish SenguptaMember of Parliament

... I must commend the quietefficiency with which it wasorganized, the manner inwhich you managed to get across section ofparliamentarians, high officialsof the government andtourism professionals and themeticulous manner in whichthe programme was plannedenabling fruitful discussion onoutstanding issues.

Satish JacobBBC

...It was great to be with somany senior officials, CEO'sMP's and fellow journalists fora weekend.

I am sorry to have remained asilent listener most of the time,but I got to know a great dealabout the problems facingIndian tourism.

Vikram MadhokManaging DirectorAbercrombie & Kent

The Retreat gave theparticipants a platform todeliberate and bring to thefore contentious issues relatedto the development of Travel& Tourism within India.

Overall, the objective as laidout, was accomplished at Agraand we look forward to afollow-up Retreat to carry themessage forward.

Rathi Vinay JhaSecretaryMinistry of Tourism

The World Travel andTourism Council hadorganized an "INDIAINITIATIVE RETREAT" atAmarvilas, Agra. The eventbrought together participantsfrom the industry,Government, Members ofParliament and Travel mediafrom India as well as abroad.The interaction was lively andconstructive.

Above all the Retreat broughtout an opportunity for veryfrank and open discussion onissues relating to tourism andits future in India.

It would be worthwhilemaking this an annual exerciseto introspect and plan for thefuture.

Mark OrwollManaging EditorTravel and Leisure

Before one can suggestsolutions, one must identifythe problems. The WTTCAgra Retreat clearly

succeeded in that regard. Itprovided a forum in which thechallenges faced by Indiantourism were forcefullyoutlined by a diverse group ofexperts. And yes, potentialsolutions were also given anairing.

S.S.H. RehmanManaging DirectorITC

The Agra Retreat was a goodbeginning for spreading greaterawareness of tourism'spotential in the country'ssocio-economic developmentamong such sections ofsociety as Parliamentarians andEditors.

Rabindra SethFreelance Journalist

The call for a cabinetcommittee on tourism headedby the Prime Minister and theenthusiastic support fromParliamentarians brings intofocus the imperative of puttingthe sector on the nationalagenda. If implemented, thiswill certainly smooth mattersat the Union level. WTTC atthe second Retreat early nextyear, should suggest amechanism for federal-statecooperation and coordination.Association of MPs andEditors with the cause oftourism is worthy ofemulation by the sector’svarious associations.

Lalit SuriChairman & ManagingDirector - Bharat Hotels &President - HotelAssociation of India &Global Member - WTTCWorldwide

To dr ive India’s tour ismproduct dynamically forward,it is imperative that all sectorsassociated with the industry,understand each other’s pointof view. The Agra Retreat byWTTC, was a pioneeringeffort in this regard...

...I compliment WTTC on thisinitiative and look forward tothe next Retreat, planned forearly 2003.

K. Roy PaulSecretary, Government ofIndia, Ministry of Aviation

I regret that I could not spendmore time at the Retreatbecause of othercommitments and thereforecould not avail of theopportunity to clarify some ofthese issues. Nevertheless I didconsider my limited exposurea rewarding experience and Ihope WTTC will repeat thisexercise next year also.

Alwin ZechaExecutive ChairmanPacific Leisure

Kudos to WTTC for havingconceived and convened sucha high calibre and timelyretreat.

Exposing national policymakers to the truths of Travel& Tourism is an imperative thepr ivate sector in manycountries has neglected far toolong! I would like to suggest asimilar WTTC event forIndonesia as soon as possible.

Vinod KhannaMinister of State forTourism and CultureGovernment of India

The India Initiative of WorldTravel & Tourism Council is asignificant step towardstackling the barriers thatimpede the growth of tourismin India, which can providemass employment and facilitatesocio-economic development,and welcomes the efforts ofthe India Initiative to bringdiverse interest groups on acommon platform.

I earnestly hope that the IndiaInitiative of World Travel andTourism Council will answerthe need of all stakeholders inthe Tourism Sector.

P.R.S. OberoiThe Oberoi GroupPatron, The WTTC IndiaInitiative and GlobalMember -WTTC Worldwide

Our most importantachievement was to have mademany allies through theRetreat. The WTTC is nowseen as a symbol of unity topromote Travel & Tourism...

...The next Retreat shouldhave persistent focus on twoor three priority areas.

Inder SharmaChairmanSelect Holidays

...Professionally excellent,efficient organizationand documentation. …Theforeign speakers and theirpresentations were mostmeaningful... Mr N. K. Singhmade up for the lack of otherministerial response.

Radha BhatiaDirectorIndian Subcontinent(Amadeus India)

...The event was indeed a bigsuccess. ...There could be noother forum than WTTC,which could identify theproblems and suggest measuresto make India as a preferreddestination for all tourists.

Points of View -- The Delegates

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Points of View -- The Press

The Financial Express (28 August 2002)

Business Line (27 August 2002)

Travel Talk (28 August 2002)

The Financial Express (28 August 2002)

Travel Trend Today (30 August 2002)

The Hindustan Times (1 September 2002)

Rajasthan Patrika (27 August 2002)

The Pioneer (27 August 2002)

Dainik Jagaran (27 August 2002)

Economic Times (28 August 2002)

The Financial Express (27 August 2002)

The Economic Times (22 August 2002)

2322

The Group Photograph

Sitting : Margaret Alva MP, P.R.S. Oberoi, Lalit Suri, Shripad Y. Naik, Jean Claude-Baumgarten, Vinod Khanna,Amar Singh MP, Rati Vinay Jha, Prithviraj Chavan MP, B. Panda MP, Bachi Karkaria, Naazneen Karmali

2nd Row : Radha Bhatia, N.K. Singh, Vivek Nair, Mani Shankar Aiyar MP, Suhel Seth, Kanwal Sibal, Nitish Sengupta MP,Rabindra Seth, Dineshbhai Trivedi MP, Dilip Cherian, S.K. Misra, Amitabh Kant, Capt. Uttam Bose, Mark Orwoll,Rahul Dev Burman, Ajoy Misra, Ragini Chopra, Marianne Thompson-Hill, Yogesh Chandra

3rd Row : Anil Goyal, P.K. Misra, Alok Sharma, Maharana Arvind Singh Mewar, V.K. Duggal, Satish Jacob, Ashwani Kakkar,Sekhar Gupta

4th Row : V.K. Verma, Adi J. Katgara, Ritu Chatrath, Tony Tayeh, Joanne Fox-Mills, Sanjay Rai, Vikram Madhok,Dr. Taleb Rifai, Runeep Sangha, Ankur Bhatia, Himmat Anand, Rohit Bansal, Vikram Chandra, Niranjan Alva

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SEC

TIO

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3The Next Step

The Goa Retreat

THE AGRA RETREAT WAS THE FIRST TIME IN INDIATHAT A TWO-DAY PERIOD HAS BEEN DEDICATEDTO INTERACTION BETWEEN THE PRIVATE SECTORAND THE PEOPLE WHO MAKE AND INFLUENCEPOLICY. THE WTTC INDIA INITIATIVE WOULD LIKETO THANK EVERYBODY INVOLVED FOR DEVOTINGTHEIR TIME TO DISCUSSING WITH US THE FUTUREOF TRAVEL & TOURISM IN INDIA.

We are particularly grateful to Mr. P.R.S. Oberoi for his hospitalityat the spectacular Amarvilas in Agra.

The purpose of this report is to provide a

comprehensive record of the Conclusions and

Recommendations that were made in Agra. Travel

& Tourism plays a crucial role in India’s economy

and yet it is clear that the industry’s potential is

still a long way from being fully tapped.

Our suggestions are intended to develop

positive measures to help unlock the country’s

Travel & Tourism potential. We believe that there

is a need to create a public-private sector Advisory

Board to the Prime Minister’s Cabinet and we

sincerely hope that they will agree to this

recommendation.

The second Retreat will be held in Goa and

on that occasion we hope to take our discussions

one step further. Goa has been chosen as the

venue for our next meeting because, like Agra, it

is a compelling “must-see” for anyone who wishes

to visit India. The Retreat will be hosted by Mr

R.K. Krishna Kumar from 14th-16th February at the

Taj Exotica Hotel.

As was the case in Agra, we would expect

this Retreat to be joined by some of India’s finest

minds. Together we will work on the

recommendations that were made in Agra, the

follow-up since then and our objectives for the

future. We hope that we can count on your

support.

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© 2002 WORLD TRAVEL & TOURISM COUNCIL

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Yogesh ChandraSecretary General

Venaz SinghExecutive Assistant

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