Friday, March 26, 2010

Tourism opportunities and Commonwealth Games 2010

Tourism opportunities and Commonwealth Games 2010


One of the major sport event of the world after Olympic is here with lot of scope for sports, tourism and hospitality and its sister branches along with an opportunity to launch and introduce India to global visitor and sport community. Multiplier effect of this mega event will be visible on many other business activities, neighbouring states.
Other cities that have hosted the CWG have recorded major spurt in tourism since their chance at this excellent reason for global travelers to come together in a spirit of competition, learning and life experiences while also giving the countries a chance to present a newer, vibrant youth-appeal to their land. The examples for this kind of cultural showcasing and effective business scope for sectors of interest like tourism-be it adventure, spa or spirituality- can be seen from the earlier hosts of world sporting events: Beijing, China and Barcelona, Spain benefited from hosting the Olympics while Manchester, UK and Melbourne, Australia received greater tourist inflow during and after playing host to CWG 2002 and 2006, respectively.



City getting ready to welcome international guest, State-of-art technology deployments with world-class management of Delhi city will leave a sure, culturally strong imprint as valuable legacy of classy Indian hospitality on visitors to the CWG Delhi, 2010 while major economic boost from the CWG will raise tourism opportunities for our country.

After the recession and terror stricken effect on tourism activities, the CWG Delhi, 2010 can well prove to be a catalyst for major investment in the country's sporting, social and environmental fabric since it will effect the tourism sector directly as well as indirectly.

India poise to host many other sports events in future, the tourism industry will look for organized services in various segment of travel, tourism and hospitality as well as multiplier effects will be seen in many ways

Use of sport as touristic endevour
Multiplier effect
To Launch and Introduce India to Global Community
CWG will raise Tourism Opportunities for the country
City will leave a sure culturally strong imprint
CWG can well prove to be a catalyst for major investment
National & International Friendship and understanding
Assisting in cultural diversity appreciation & respect
Increased Potential for Domestic tourism

Sports Tourism and its impact
Sports tourism activities have generated enormous economic impacts – not considering the socio-cultural and intellectual benefits of tourism. A study of North American Convention Tourism Bureaux showed that sports accounted for 25 percent of the tourism receipts (WTTC, 1994: 5–23). In a 1994 study, analysis of 22 ‘Tourism Event Schedules’ from seven world geographical regions indicated that sports tourism
activities represented 34 percent of the events (Research Unit, Sports Tourism
International Council, 1995: 21–33).
This same study also showed that 42 percent of the scheduled days were sports
tourism related. Accordingly, the Sports Tourism Index (STIX) calculated that the
direct contribution of sports tourism activities to overall tourism equated to 32
percent. And, based on growing domestic and international travel, the forecast for
the year 2005 shows that the gross output of tourism world-wide will reach 7.9
trillion dollars (WTTC, 1994: 5–23).

Who will be the tourist

People going on holiday close to the event,
Travelling by Fans
People going on package tours
The period leading up to the games
Evidently the aviation sector is also expected to witness a rise.

Types of expected visitors

Visiting friends and relatives (VFR)
Games enthusiasts
Leisure
Corporate/Sponsor
Backpacker
Games family
Employment during the Games period
Participants or onlookers

SPORT TOURISM – A PHENOMENON
Introduction
‘Man has traveled in search of new places, new lands, new cultures and
new experiences’ (Heath & Wall, 1992: 3).
‘Successive changes in transportation, technology, including the steamboat, railway,
automobile and airplane, coupled with a myriad of socio-economic transformations,
have enabled growing numbers of people to travel’ (Baker, 1988: 31).
Throughout history, men and women have been impelled to travel because of sport
– the motive, the drive or the concern. In effect, in the last decade or so, there has
been an increasing participation in a wide variety of sporting activities. Visitors, be
they participants or onlookers, travel to place, indulge and satiate in a sporting
environment.

Sports Tourism – a Partnership

Today, sport is regarded as the world’s largest social phenomenon (Schwartz, 1973:
36–43). And, tourism is predicted to become the world’s biggest industry early in the
next century. As such, the points of contact between sport and tourism have
increased dramatically – the mutual benefits for both are quite perceptible and the
relationships very compatible. In fact, the term ‘sports tourism’ has been coined to
better understand the use of sport as a touristic endeavour.
3. There exist important affiliations between sport and tourism in promoting domestic,
national and international friendship and understanding amongst individuals,
groups and communities (Research Unit, Sports Tourism International
Council, 1995: 12–19).

On the whole, these sports tourism attempts and efforts affect sports participation and non-participation in varying degrees enriching lives, promoting universal understanding and assisting in cultural diversity appreciation and respect.

Commonwealth Games
The period leading up to the games is going to have an even bigger impact on the country but over a wider period of time. Evidently the aviation sector is also expected to witness a rise as they cater for the extra passenger numbers. It is thought that most of the tourists are going to come from Australia, the UK, Canada, Mauritius, Sri Lanka and South Africa as representations from these countries are likely to emerge as winners from the event.

Hotel rooms required
At present, there are only about 11,000 rooms in the star category hotels in the NCR. "The Commonwealth Games in 2010 is expected to attract 50,000 foreign visitors to Delhi.
Approximately 30,000 rooms will be required to accommodate these visitors, (Global hotel investment service firm Jones Lang LaSalle Hotels (JLLH).
The review of the hotel projects coming up for the Commonwealth Games in the national capital has indicated that 7,307 rooms have been completed, which is 70 percent of the overall 10,540 Definite rooms.
Delhi & NCR- 11000 additional ROOMS
DDA-5500 ROOMS
Guest houses in Delhi 11000 ROOMS
Bed & Breakfast/ Homestay Scheme 3000 ROOMS

In 2009, 16 New Hotels opened and they are doing well.
5 year tax holiday to 2,3 and 4 star hotels coming up in Delhi and NCR region before 31st March 2010,
The Delhi Development Authority (DDA)/Ministry of Urban Development has announced the increase in Floor Area Ratio (FAR) from 150 to 225 for hotels to provide additional rooms in existing and new hotels.
“Games Travel Office”
“Games Family Hotel”, venue for main official functions & dignitaries would be staying.
The Ministry of Tourism is co-ordinating with hotel industry associations like Hotel Association of India (HAI), Federation of Hotel & Restaurant Associations of India (FHRAI) for the room requirements and with the travel & transport industry associations in respect of the requirements of vehicles of Organizing Committee, CWG-2010 etc.
In order to meet the shortfall of accommodation the Ministry of Tourism has been in regular touch with the ‘Land Owning Agencies’ in the National Capital Region of Delhi for creation of the additional hotel rooms. In order to encourage the growth of new hotels, on the request of the Ministry of Tourism, the Ministry of Finance has given a five-year tax holiday under Section 80-ID to 2, 3 and 4-star category hotels and convention centers which will be functional between 1st April, 2007 and 31st March, 2010 in National Capital Territory Region of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar (NOIDA) and Ghaziabad.
The Delhi Development Authority (DDA)/Ministry of Urban Development has announced the increase in Floor Area Ratio (FAR) from 150 to 225 for hotels in Delhi excluding the hotels falling in the Lutyens Bungalow Zone etc. to provide additional rooms in existing and new hotels. Further, the Ministry of Tourism has advised all existing hotels to upgrade and be ready for the Games.
The Organizing Committee, Commonwealth Games, have indicated a requirement of 6,000 rooms in the three, four & five star category hotels for the Games family, technical delegates, officials, media, observers, sponsors and CWG-2010 representatives etc. The Organizing Committee, CWG-2010 would be setting up a “Games Travel Office” for its travel requirements. It would also be designating a “Games Family Hotel”, which would be the venue for main official functions related to the Games and also the place where dignitaries would be staying. The Ministry of Tourism is co-ordinating with hotel industry associations like Hotel Association of India (HAI), Federation of Hotel & Restaurant Associations of India (FHRAI) for the room requirements and with the travel & transport industry associations in respect of the requirements of vehicles of Organizing Committee, CWG-2010 etc. As regards the requirements of the sports teams, officials etc, the same would be housed in the Commonwealth Games Village.


Bed & Breakfast Scheme
The Ministry of Tourism has launched the “Incredible India Bed and Breakfast/ Homestay” scheme all over the country. Around 3,000 “Incredible India Bed and Breakfast/Homestay” units are estimated to be ready and available for the Games. This scheme would provide the guests a unique and authentic Indian homestay experience. With a view to encourage the growth of such establishments and also to smoothen the procedure of approvals, the Ministry of Tourism has recently reviewed the scheme and has simplified the guidelines by amending certain norms. This scheme is also given publicity through our website.
Manpower

Not only are the Commonwealth Games going to benefit tourism, they are going to create extra jobs within the local community.
Airlines, airports, hotels, and
Tour operators
The process of modernising and revamping airports around the country.
Tourist regions as Agra & Jaipur, several developments are to be implemented within a very short while.

Initiatives have been taken to provide the required skilled manpower in the sector. This includes skill training in food production and food and beverage sector.

Commonwealth Games Volunteer Programme
Accommodation providers and
Transport and tourism options for consumers and Games stakeholders.
MICE
The Ministry of Tourism has introduced “Earn While You Learn”, a short training scheme, with the objective to sensitize manpower

Commonwealth Games Volunteer Programme

Catering
With India emerging as a host for big sporting event , the organized sports catering will see paradigm shift in certain trends. One of such shifts will be observed in the organized sports catering segment. Around 3.5-4 millions meals will be served.
Medical Tourism
With emergence of specialty hospitals, like Apollo, Fortis, Artemis and Wockhardt, Medanta, medical tourism is expected to get a boost, further strengthening the demand for hotel rooms.
Despite the economic slowdown, medical tourism in India is the fastest growing segment of tourism industry, according to the market research report “Booming Medical Tourism in India”. The report adds that India offers a great potential in the medical tourism industry. Factors such as low cost, scale and range of treatments provided in the country add to its attractiveness as a medical tourism destination.
In addition to the existence of modern medicine, indigenous medical practitioners are providing their services across the country with more than 3,000 hospitals and 726,000 registered practitioners catering to the needs of traditional Indian healthcare. A number of Indian hotels will tie up with professional organizations in a range of wellness fields to enter the wellness services market.
According to a report by RNCOS, medical tourism will grow at a CAGR of over 27 per cent for the period 2009–12 to generate revenues worth US$ 2.4 billion by 2012. The number of medical tourists is anticipated to grow at a CAGR of over 19 per cent to reach 1.1 million by 2012. The report adds that India’s share in the global medical tourism industry will climb to around 2.4 per cent by the end of 2012.
With emergence of specialty hospitals, like Apollo, Fortis, Artemis and Wockhardt, Medanta, medical tourism is expected to get a boost, further strengthening the demand for hotel rooms.
McKinsey & Co., the international consulting firm, estimates outsourced medical care could bring India USD 2.2 billion a year by 2012.
(TOURISM EMPLOYMENT -An Analysis of Foreign Tourism in India-Jesim Pais- working paper)

Accommodation and travel packages
The Games Travel Office is also co-ordinating accommodation providers and transport and tourism options for consumers and Games stakeholders. Melbourne is an events city, with adequate accommodation to cope with major event demand. Although certain levels of accommodation are filling fast, the Games Travel Office is continuing to co-ordinate room supply. Visit the Games Travel Office Website to find out more.

Media and broadcast program
One of the significant legacies of the Games will be the global exposure generated by the broadcast and general media coverage of the Games. Millions of dollars of coverage for Melbourne and Australia has already been generated in the lead up to the Games.

Media liaison
Australia has an abundance of unique stories and personalities that underpin the extensive Games media coverage. In consultation with Tourism Australia and Tourism Victoria a range of media services are being provided to the print and electronic media.
The following dedicated tourism services have been developed:
Broadcast material and editorial advice on Victorian and Australian storylines
Location advice, familiarisations and assistance with production of destination stories
Pre- and post-Games travel and touring options
Tourism services and advice about what to see and do while you're in Australia.
Dedicated tourism information displays will be located in the International Broadcast Centre and Main Press Centre during Games time, and dedicated tourism information will be made available to the media.

Media and broadcast program
Global exposure generated by the broadcast and general media coverage of the Games.

Media liaison
Broadcast material and editorial advice ,
Location advice, familiarisations and assistance with production of destination stories
Pre- and post-Games travel and touring options
Tourism services and advice about what to see and do while you're in Country.
Dedicated tourism information displays.

Economic upsurge
Not only are the Commonwealth Games going to benefit tourism, they are going to create extra jobs within the local community. Sectors such as airlines, airports, hotels, and tour operators are going to require extra staff as is the process of modernising and revamping airports around the country. With a focus on highly in demand tourist regions as Agra & Jaipur, several developments are to be implemented within a very short while.
The tourism sector in India contributes US $ 67 billion to the economy, of which the contribution of FTA is 16.9 billion. Foreign Tourist Arrival (FTA) during 2009 was 5.37 Millions and they brought approx $11.4 billions. Year 2007 was a very good year for Indian Tourism. The demand was far higher than the availability of rooms available. 2008 was not a good period due to terrorism and Global Meltdown. According to experts travel Industry in India is being driven by the business traveller.
India can generate 14 million additional travel and tourism jobs. A presentation by the world Travel and Tourism Council India Initiative points out that if the travel and tourism in India had been developed to the world average levels, 14 million additional jobs would have existed today. In fact India could generate an additional US $ 30 billion in GDP and 14 million jobs with Government investments of about US$ 2billion per annum. ( Source:Travel Talk, vol IXXII No.3;Feb1st issue,2010).
Eco-tourism and total wellness packages including ancient exercise and relaxation, toning, breathing and strengthening routines are likely choices that guarantee global tourist interest and are bound to be crowd-pullers during CWG. While earlier host nations of CWG directed their tourism budget towards raising standards of basic and luxury amenities, including novelty factor for tourists and sportspersons, other areas of redevelopment covered bridge and road links to and from the host city to neighboring regions and specialty tourism spots. These can be developed as mini-villages offering bountiful shopping, eating, local customs, drama and theatre, music, dance and associated learning and living experiences that are essentially Indian, therefore attractive to outsiders. Planting of trees, arranging meetings with trained-up volunteers assisting local community/youth/social service and cultural awareness groups and events and such like are likely to generate almost 13,600 full time equivalent jobs created from the Games.
Rising standards of basic and luxury amenities,
Bridge, Metro and road links to neighboring regions and specialty tourism spots.
Shopping, eating, local customs, drama and theatre, music, dance and associated learning and living experiences that are essentially Indian, therefore attractive to outsiders.
Events and such like are likely to generate almost 13,600 full time equivalent jobs created from the Games.

Government initiative
Though the guidelines are yet to be finalised, the introduction of the visa on arrival scheme for five countries - Singapore, New Zealand, Finland, Luxemburg and Japan - on a pilot basis is expected to increase tourist arrival in the country.

The year also saw commercials showing Incredible India campaigns bagging prestigious international awards including a Grand Prix in Vienna.

The Atithi Deva Bhavo campaign featuring Bollywood superstar Aamir Khan was re-launched this year to sensitise people's behaviour towards tourists.

Steps were also initiated for focused development of caravan, adventure and heliport tourism.

The ministry has also decided to provide financial assistance to the country's states and Union Territories for construction of heliports in hilly and remote areas.

Central financial assistance is being given to state governments for the development and promotion of adventure and caravan tourism.

Launching an aggressive promotional campaign, the ministry held a series of road shows abroad including in Australia, New Zealand and Middle East countries.

As part of the celebration of the 'Year of India in Russia', promotional events featuring Indian culture and cuisine were organised in Moscow and St. Petersburg.

'India Calling', a major tourism event was organised in Los Angeles in collaboration with National Geographic Society to woo US tourists.

The Tourism Ministry of the country has identified 29 mega destinations so far on the basis of footfalls and future potential.

In order to encourage maintenance and upkeep of parks and tourist sites, the Indian ministry has introduced a new category of award for civic bodies for best maintained city or town.

The ministry also decided to promote rural tourism through 139 sites across the country. The objective of the rural tourism project is to strengthen village livelihoods through community participation.
Government Initiative

In addition, the government has extended a five-year tax refund to the sightseeing and tourism industry to generate jobs and increase development.
The campaign ‘Visit India Year 2009’ was launched at the International Tourism Exchange in Berlin, aimed to project India as an attractive destination for holidaymakers. The government joined hands with leading airlines, hoteliers, holiday resorts and tour operators, offering them a wide range of incentives and bonuses during the period between April and December, 2009.
The airlines participating in the campaign, Air India, Jet Airways and Kingfisher Airlines are offering a “companion free ticket” for every ticket purchased for international and domestic flights. Connecting flights to the departing airports are included in the final travel costs. The Indian Travel Agents’ Association (IATO) is offering holiday-makers a free sightseeing tour in a city of their choice.
Euromonitor International's Travel And Tourism in India report states that the Government of India increased spend on advertising campaigns (including for the campaigns ‘Incredible India’ and ‘Ahithi Devo Bhava’ - Visitors are like God) to reinforce the rich variety of tourism in India. The Ministry promoted India as a safe tourist destination and has undertaken various measures, such as stepping up vigilance in key cities and at historically important tourist sites. It also deployed increased manpower and resources for improving security checks at key airports and railway stations.
The Ministry of Tourism proposes to promote the CWG-2010 overseas for which Branding and Publicity Campaigns would be held in Commonwealth markets like UK, Canada, Australia, New Zealand, South Africa, Singapore and Malaysia in the form of Fam Tours for media and important players from trade etc.

Recommendations
Maximise visit and Games attendance
Enhance quality of experience
Reinforcing the destination brands
Establish a blueprint for future events.
Starting publicizing forthcoming event
More emphasis to security concern particularly from terror threats
Strategies to formulate Yield Maximization in all areas of T&T Trade
Increase length of stay and expenditure
Potential Rates

Types of expected visitors
Visiting friends and relatives (VFR)
Games enthusiasts
Leisure
Corporate/Sponsor
Backpacker
Games family
Employment during the Games period

Environmental issues
Prescribed carrying capacity and development of integrated complexes and zones with defined boundaries as per city master plan.
Clean and regulated environment
Sustenance after the Games
How can we develop the post-Olympic Games tourism products?
Increased Potential for Domestic tourism
Road shows and various other efforts to promote domestic tourism by MOT will be helpful to utilize resources of CWG after the games are over.
Prescribed carrying capacity
Development of integrated complexes and zones with defined boundaries as per city master plan.
Clean and regulated environment
How can we develop the post-Olympic Games tourism products?
Utilizing resources of CWG after the games
New category of award for civic bodies for upkeep of parks and tourist sites and best maintained city or town is encouraging step

MICE
Sustenance after the Games

CWG Resources can be utilized for organized MICE in future.
After the end of the Olympic Games, the halls will become the new scenic points keenly visited by the foreign and domestic tourists.
It is known that Qingdao City strives to develop itself into an internationally renowned seaside holiday city by taking the tourist opportunity emerging after Games. The tourist market will become the new light point after Games.
As known by the journalists, the price of traffic, tourist and hotel service will fall back after the Games, so it will undoubtedly attract the tourist. Every travel agency highly expects the good tourist market appearing after the Games.
CWG Resources can be utilized for organized MICE in future.
New scenic points keenly visited by the foreign and domestic tourists.
Strategies for Tariff and occupancy sustainability
Maintaining the quality & standard of city environment & services
Employment

3 comments:

Shakesh Singh said...

The post is informative and the best thing is the facts & figure that makes it different from others. Thankyou and please keep us updated....

Jessie said...

Hotels may also charge a mandatory fee in addition to the standard room and board charge to provide access to additional facilities.

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Anonymous said...

nice article: the post is informative .so i like to visit your blog again and again. SBLT

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