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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

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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

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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

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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

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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

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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