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Budget 2024: Restaurants, hotels optimistic on govt support to push growth in hospitality sector

As India looks to attract more tourists and build tourism as another area to push economic growth, the hospitality industry, which is a key to boosting tourism, has lots of hopes for measures to be pushed in the upcoming interim budget. K.B. Kachru, Chairman Emeritus and Principal Advisor, Radisson Hotel Group, South Asia, pointed out that the tourism and hospital industry continues to be a key contributor to India’s Gross Domestic Product (GDP). To encourage greater local investments and bolster the global competitiveness of Indian hotels, a fully-developed infrastructure status should be approved for the hotel sector, along with further rationalisation of the Goods and Services Tax (GST). Kachru said, “Streamlining the complex web of approvals, licenses, and classification-related processes for hotel projects is necessary to ease off the burden from the industry and infuse efficiencies. As a capital-intensive and people-centric industry, investing in skill development is crucial for delivering high-quality services and experiences to visitors while generating direct and indirect employment opportunities.” Moreover, to attract inbound tourist traffic, the government should hold a discussion about simplifying the visa process or approving visa-free arrival, suggested Kachru. The government should also focus on allocating funds to promote eco-friendly accommodations and tourist sites, in addition to introducing incentives for industry players aligned with the United Nations Sustainable Development Goals to foster sustainability in tourism. Infrastructure investments that bolster accessibility to tourist destinations, enhance the industry's overall appeal, streamline regulatory processes, facilitate ease of doing business, and foster entrepreneurship are some of the tasks that the industry is eyeing ahead of the interim budget. Pranav Rungta, Co-Founder and Director of Nksha restaurant and Vice President of NRAI Mumbai, emphasised the need for policy and budgetary support in the interim budget to propel the sector towards accelerated growth. Highlighting the key measures, Rungta said, “The key areas of focus include the restoration of the GST Input Tax Credit, reinstating the Service Export from India Scheme, establishing a dedicated Food Services Ministry according to industry status, reducing GST on eco-friendly materials, addressing GST on commercial rentals, rationalising licences and NOCs, ensuring equitable e-commerce policies, extending operating hours, implementing targeted subsidy schemes for SMEs, and introducing an employee welfare plan.” According to Rungta, these measures will not only boost the overall size of the industry but also generate significant employment opportunities, contributing to the country’s economic growth. Rungta pointed out that the restaurant industry has generated more than 7.20 million direct jobs and has registered an annual turnover of about ₹4.23 lakh crores. To ease the burden on businesses in the hospitality industry, the government should reform taxes, continue providing support for infrastructure development, and streamline regulations as the industry vouches for robust financial support amid the global instability, said Saurabh Gahoi, Vice President, India, Ramee Group of Hotels. “A reformative budget, targeting training and skill development, ensures a resilient and competitive landscape. As the nation redefines its economic roadmap, the hospitality industry eagerly awaits policies that foster innovation, sustainability, and a flourishing tourism ecosystem,” said Gahoi.

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Japan sees record 2.73 mln visitors in December in COVID recovery year

TOKYO, Jan 17 (Reuters) - Japan welcomed a record number of visitors in December, official data showed on Wednesday, closing out a year of rapid recovery from the COVID-19 pandemic. The number of foreign visitors for business and leisure rose to 2.73 million last month from 2.44 million in November, data from the Japan National Tourism Organization (JNTO) showed. It was the highest-ever number of tourists for the month of December and about 8% higher than the pre-pandemic level seen in 2019. For the full-year 2023, a little more than 25 million visitors arrived in Japan, the agency said. Tourism to Japan all but halted for more than two years during the pandemic as the country put up some of the world's strictest border controls. But arrivals bounced back quickly after the government resumed visa-free travel for many countries in October 2022. Arrivals exceeded 2 million every month since June last year, boosted by a weakening in the yen that makes Japan cheaper compared to other destinations. Visitors this year are likely to break 2019's record of 31.9 million, but tourist spending last year may have already reached the government's goal of 5 trillion yen ($33.81 billion), said Teppei Kawanishi, general manager at travel industry consultancy mov Honichi Lab. Average spending per visitor is about 30% higher than before the pandemic, driven in part by repeat travellers from Taiwan, Hong Kong, and other parts of Asia, Kawanishi said. "Spending levels are very high nowadays," he added. December saw record arrivals for any single month among people from Hong Kong, Singapore, and Australia, the JNTO said. That is helping to compensate for a slow recovery in visitors from mainland China, who made up nearly a third of all visitors and 40% of all tourist spending in Japan in 2019. The number of Chinese travellers in December was still 56% below pre-pandemic levels. Inbound tourism has become a key part of Japan's economic recovery, but a severe shortage of workers is hobbling the sector's ability to keep up with demand. "The industry cannot cope," said Wanping Aw, managing director of boutique travel agency TokudAw that specialises in private car tours of Japan. "Experienced personnel are burnt out and overworked and have no time to train staff." ($1 = 147.8700 yen)

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What is Airport-to-Airport Visa Change in UAE?

In a recent development impacting the travel and tourism sector, experts are speculating a potential 20% increase in fares for airport-to-airport visa changes in the United Arab Emirates (UAE). International media has reported on the latest alterations in fees that could significantly affect visitors to the country. The surge in demand for visitors opting to extend their stay during the winter months has triggered a sudden hike in fees, with airline fares for leaving and re-entering the country already witnessing a spike of 125 dirhams. Understanding Airport-to-Airport Visa Change: This process enables applicants to swiftly obtain a tourist visa, allowing them to visit a neighboring country instead of returning to their home country. The visa permits a return to the UAE on the same day or after spending a night in the neighboring country. The expedited process, which takes up to four hours, includes flying to the neighboring country, waiting at the airport, and returning on the next available flight. Changes in Visa Durations and Costs: Tourism companies report that the authorities have discontinued the 90-day long visa by the last quarter of 2023, leading to a surge in demand for the 60-day long visa. The cost for the 60-day visa, previously available for 1,300 dirhams, now starts at 1,500 dirhams. Fares vary based on booking timing, offering lower rates if booked at least a month in advance. In December 2022, the UAE ceased the option for visit visa holders to extend their visa without leaving the country, requiring them to exit before returning on a new visa. Although this policy was temporarily altered during the pandemic for humanitarian reasons, fares for changing the 30-day visa have seen an increase, starting from 1,300 dirhams, up from 1,200 dirhams. The industry observes a growing demand for extended visas, especially the 60-day variant, often facing difficulties in seat availability due to quickly depleting quotas. Experts suggest that older individuals, averse to frequent travel, often opt for long-term visas. Additionally, the influx of expatriates bringing their parents to the UAE to enjoy the pleasant weather has further fueled the demand for airport-to-airport visa changes.

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REVEALED: Indian Railways' top 5 most famous tourist circuits of 2023

On January 17, the Indian Railways announced the preferred tourist circuits for 2023. According to the railways, these circuits are part of the Railways' Bharat Gaurav trains, and a total of 172 'Bharat Gaurav' train trips were conducted in 2023. Throughout the 172 trips of 'Bharat Gaurav' trains, 96,491 tourists explored various destinations across 24 states and Union territories! They enjoyed comprehensive tour packages that included off-board travel, bus excursions, hotel accommodation, guided tours, meals, travel insurance, and a comfortable train journey with onboard services, as highlighted in the official statement. Let's find out the top 5 most famous tourist circuits of 2023. Shri Ram-Janaki Yatra: Shri Ram-Janaki Yatra is a spiritually enriching circuit that takes travellers through sacred sites associated with Lord Ram and Goddess Sita. Pilgrims visiting places like Ayodhya, Panchavati, and Janakpur experience deep-rooted mythology and cultural significance. Shri Jagannath Yatra: Embark on a vibrant and colorful journey as this circuit unfolds the sacred pilgrimage to Puri, Odisha. Here, devotees witness the grand Rath Yatra of Lord Jagannath, Balabhadra, and Subhadra. The festivities and processions create an immersive cultural experience, attracting millions of devotees and tourists alike. 'Garvi Gujarat' Tour: Immerse yourself in a diverse exploration of Gujarat's rich heritage with this tour. It encompasses architectural marvels, historical sites, and vibrant cultural landscapes. From the magnificent Rann of Kutch to intricately carved temples of Somnath and the bustling city of Ahmedabad, tourists embark on a captivating journey through the pride and glory of Gujarat. Ambedkar Circuit: Explore the footsteps of Dr. B.R. Ambedkar, the chief architect of the Indian Constitution, with this circuit. It visits significant landmarks associated with his life and work, educating visitors about the social reformer's legacy. The circuit includes places like Mumbai, Nagpur, and Delhi. North-East Tour: Unfold the mesmerizing landscapes and cultural diversity of India's northeastern states with this tour. Captivate yourself with lush greenery, picturesque hills, and vibrant indigenous traditions. Encompassing destinations like Assam, Meghalaya, and Arunachal Pradesh, it provides a unique blend of natural beauty and cultural richness, appealing to tourists seeking offbeat and immersive experiences.

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Tourists head to lesser-known Sinthan Top to enjoy snow in Kashmir

This year, famous tourist spots in Kashmir are experiencing a dry spell when it comes to snowfall. Therefore tourists and snow enthusiasts are flocking to Sinthan Top, which is a lesser-known and an offbeat destination in Kashmir. As of now, the place is the only snow-covered spot in the valley while other places are going through a dry phase. Those who are hearing this place name for the first time, Sinthan Top is a snow-covered mountain peak set at an elevation of 12,500 ft. The peak connects Anantnag in South Kashmir to Kishtwar in the Jammu region through Kokernag. As per officials, snow has melted in all the famous regions in Kashmir which remain covered under snow during this time of the year. But Sinthan Top is the only place experiencing snow. Officials have informed that tourists in large numbers have left Kashmir valley with a heavy heart all disheartened, as there was not much snow in the experience. But several visitors were seen making their way to Sinthan Top to experience the snowfall. In the midst of what locals describe as one of Kashmir's most challenging dry spells, Sinthan Top in the higher reaches of the valley, is adorned with a pristine white carpet of snow. For tourists seeking an authentic snow experience, Sinthan Top has become a haven. The allure of untouched snow-covered landscapes, against the backdrop of the majestic Himalayas, makes it a compelling destination for those looking to explore the untouched wonders of Kashmir. Tourists who visited Sinthan Top have been mesmerised by its charm. However, the dry spell has left many other parts of Kashmir devoid of the snow experiences that visitors often seek. The disappointment of tourists, who arrived around the New Year's Eve with hopes of indulging in skiing and other snow-related activities, was evident.

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Temple fever grips Indians, lifts travel demand and hotel bookings

Online travel portals are flooded with flight and train bookings, hotels teeming with requests for accommodation, and spiritual merchandise on e-commerce platforms is selling like hotcakes. As the consecration ceremony of Ram Mandir in Ayodhya on January 22 draws near, Indians across the country are putting their travelling boots on as the temple frenzy catches on. India’s largest travel technology (traveltech) platform MakeMyTrip (MMT) has witnessed a substantial four-fold increase in bookings for Ayodhya compared to the previous year. "Given the comparatively small visitor base for Ayodhya previously, we see a 5X upside in searches (year-on-year) and are already recording 4X more bookings as compared to the last year. Expectedly, the duration of January 10-22 is seeing a sharp increase in bookings,” said Rajesh Magow, co-founder and Group CEO, MakeMyTrip. Room night bookings in Ayodhya are currently almost 10 per cent of the top pilgrimage sites in the country, according to MMT data. Online travel portal Ixigo has seen a similar uptick in on-platform searches. “We are seeing more than a 100 per cent increase in domestic flight searches week-on-week for Ayodhya since the launch of the new airport, and more than a 60 per cent week-on-week increase in train travel searches,” said Aloke Bajpai, co-founder and Group CEO, Ixigo. Leading up to the inauguration, occupancy rates in Ayodhya’s hotels have risen from 80 per cent to 100 per cent, resulting in substantial price hikes reaching up to ~70,000 per night in select hotels, according to data from travel aggregator platform EaseMyTrip. “The event is expecting an initial attendance of nearly 7,000 guests, projecting a daily footfall between three to five lakh visitors post-inauguration,” said Nishant Pitti, CEO, EaseMyTrip. To cater to this increased traffic, Ayodhya has, of late, seen a dramatic rise in the number of hotels available in the city. “There are a host of new hotels and homestays coming up and getting listed in the area, and the supply is ramping up expeditiously. Ayodhya is poised to become one of the major spiritual destinations of the country," Magow added. Hospitality major OYO is ramping up its footprint in Ayodhya. The Softbank-backed firm has seen a tremendous 350 per cent increase in searches for the city on its platform over the past year. In the lead-up to the consecration ceremony, the company has opened 65 homestays and hotels in partnership with the Ayodhya Development Authority and the Uttar Pradesh State Tourism Development Corporation to support the anticipated surge in tourism. According to OYO, Ayodhya has consistently held the top position in searches on its app over the past year. On New Year's Eve, the city witnessed a 70 per cent surge in searches, surpassing popular leisure destinations such as Goa at 50 per cent and Nainital at 60 per cent. "Spiritual tourism in India is on the precipice of a monumental surge, poised to be one of the biggest growth drivers of our industry in the coming five years. The opening of the Ram Mandir in Ayodhya stands as a testament to this, and witnessing the excitement firsthand as I join in the grand ceremony will be truly humbling,” said Ritesh Agarwal, Founder and Group CEO, OYO. The event has also given a fillip to e-commerce sales, with companies like Meesho witnessing an uptick in sales for products related to the cultural significance of the event. In the past one and a half months, the company has observed a three-fold increase in demand for such items. “There has been an increase in demand for Ram Mandir models and T-shirts. Nearly 70 per cent of these orders came from Tier-2 and beyond cities such as Gorakhpur, Raipur and Vijaywada among others," said a Meesho spokesperson. The fervour around spiritual journeys extends beyond Ayodhya. Over the last year, traveltech firms and hotel aggregators alike have witnessed a substantial uptick in demand for spiritual tourism. "Spiritual tourism as a category has grown by 35 per cent in just over a year in the country, with a majority of this being fed by spiritual centres like Varanasi, Amritsar, Katra, Puri, Shirdi, Haridwar and Tirupati,” said Magow. This segment, while furnished by only four per cent of the total cities listed on MMT’s platform, contributes to over 12 per cent of the company’s overall transactions. Considering the surge in popularity of spiritual destinations, OYO recently announced expansion plans in major spiritual hotspots across the country. The company is gearing up to launch 400 properties in popular destinations like Ayodhya, Puri, Shirdi, Varanasi, Amritsar, Tirupati, Haridwar, Katra-Vaishno Devi, and the Char Dham route by the end of this year. Likewise, EaseMyTrip recently introduced EasyDarshan – a platform specialising in pilgrimage packages in India – which has recorded a 45 per cent surge in travel bookings to spiritual destinations like Puri, Amritsar, Varanasi, Haridwar, and Kochi. Concurrently, airfare prices to these locations have witnessed a 10-20 per cent increase. Hotel reservations to these destinations have surged by 50 per cent.

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