Demographics

Indian Literacy 74%

Population 1.21 billion

GDP Growth 6.9% (2012)

GDP trillion US $ 1.25

Per Capita Income US $ 1033

Inflation Rate 9.5 % (March’12)

Foreign Reserves 300 billion

Land Mass 3.29 million sqm

Sates / UT 35

Languages 22

Major Religions 7

2005 7.2 million + 15.6%

2006 8.3 million + 16.1%

2007 9.7 million + 17.3%

2008 10.8 million + 11.1%

2009 11.7 million + 1.8%

2010 12.9 million + 17.4%

2011 14.2 million + 10% provisional

Source: India Tourism Statistics 2010

Growth in Outbound Travel from India

Mumbai is the leading source of India’s outbound travelers with a market

Share of around 33%, followed by Delhi (26%)

Outbound Travel Market

Rank Country Outbound Travelers

% of Outbound Market

1 Singapore 869,000 6.20

2 Thailand 917,832 6.55

3 Malaysia 693,056 4.95

4 Hong Kong 702,192 5.01

5 Macau 170,000 1.21

6 Dubai 498,063 3.55

Top 5 Destinations Visited in 2011

Outbound Travel from India

Calculation based on 2011 provisional outbound data

India continued providing visa on arrival

facility for the following countries:

Outbound Tourism from India

1. Cambodia

2. Finland

3. Indonesia

4. Japan

5. Luxemburg

6. Myanmar

7. New Zealand

8. Philippines

9. Singapore

10. Vietnam

11. Laos

12. France

13. Germany

14. Russia

Indian Travelers to The Philippines

•January to August 2012

Source of Data: Arrival / Departure Cards and Sea Manifests

MONTH

V

O

L

U

M

E 2011

2010

Source of Data: Arrival /Departure Cards and Sea Manifests

8

2012

Seasonality of Indian Arrivals

Indian Travelers to The Philippines

Gender

Male 77%

Female 23%

Average Age 36 years

Travel Arrangements

Package 85%

Independent 15%

Type of Accommodations

Hotel 80.00%

Home of Relatives / Friends 14.70%

Pension / inn / Lodge 5.30%

Main Source of Information

Friends / Relatives / Bus. Associates 15.00%

Internet 5.00%

Travel Agents 80.00%

Indian Travelers to The Philippines

Indian Travel Agents do NOT need a license to operate

There are NO statistics available and the latest figures which have just

come out are for 2010

Hence, a lot of decisions are taken by studying market indicators and

gut feel!

Despite the above the industry is growing and is driven by :

The growing Indian middle class

The double income no Kids

Indian Tourism Industry

Indians do not book in advance

About 3 million book in less than 2 weeks

Less than 2 weeks 19% = 2, 850,000

Less than 1 month 14% = 2,100,000 (4,950,000)

1 to 2 months 32% = 4, 800,000 (9,750,000) 9.7 million

3 to 6 months 28% = 4, 200.000

Over 7 months 7% = 10,000

Out of 12.9 million in 2010, 10 million book holidays 1or 2

months before departure

Source: (Visa & PATA Survey)

Advance Planning for Overseas Holidays

Market Realities

Indian Tourism Industry

Passports

A total number of 5.8 million passports were

issued in 2011

It is estimated by UNWTO that there will be about

50 million outbound travellers by 2020

Market Realities

The Indian Rupee is under great stress

The Rupee depreciated to a record low of 55 against the

US Dollar

Last year it was 45 i.e. a gain of 22%

The package costs have increased substantially

Market Realities

US$ Fluctuation

45.08

55.00

22%

Market Findings

Airfare - Comparison

2010 2011 2012 % change

Philippines 35,000 34,000 29,000 17

Dubai 14,000 16,000 20,000 25

Singapore 15,000 18,000 22,000 22

Thailand 15,000 17,000 20,000 18

Malaysia 20,000 22,000 25,000 14

Air Capacity

Number of Direct Carriers 2011 2012

Dubai 196 195

Singapore 130 133

Thailand 125 102

Malaysia 86 74

Hong Kong 67 56

Philippines 3 3

2011 vs 2012

Comparison

Philippines vs. Others

Market Findings

Market Findings

Market Findings

Market Findings

Market Findings

Market Findings

Market Findings

Market Findings

Market Findings

Market Findings

Destination Nights Price(US$) Agencies Philippines 05 1,182 Carnation Holidays

Austria 06 1,731 Carnation Holidays

Europe (Paris & French Rivera) 06 1,252 Travel Oytser

Europe (Swiss Golden Peaks) 06 1,444 Travel Oytser

Spain 05 1,538 Flexi Tours

Thailand 06 692 D. Paul’s

Malaysia 05 712 D. Paul’s

Singapore & Malaysia 08 962 Spring Travel’s

(Days)

China 06 1,288 Carnation Holidays

Dubai 04 615 D. Paul’s

The Year Ahead…

Changing Market Conditions

STRENGTHS:

No visa required for Indians with AJACSSUK visa

Safe Destination

Opulent and majestic destination

World class gaming

Exciting night life

Seamless travel with direct flights (?)

Changing Market Conditions

STRENGTHS:

Family destination

Bargain Shopping

English widely spoken

Amazing show(s)

Affordable with same currency value

Changing Market Conditions

WEAKNESSES:

Not considered a repeat destination

Rising air fare

Competition packages at lower cost

Expensive domestic travel

Lack of support from Philippine embassy

Changing Market Conditions

THREAT:

Pricing vis-à-vis other destinations

Gaming in other destinations

Bigger promotions and budgets for spend in Indian market

by other NTO’s.

New emerging reasonable destinations in CIS countries

gaining popularity

Special offers by Middle East and their opulent hotels

Exceptionally low air fare to Middle East and onward

connections

Increasing fare to Philippines by other airlines

Strengthening of the dollar against the rupee

Changing Market Conditions

OPPORTUNITIES:

Shoppers delight

Wedding destination

Upcoming MICE destination

Filming destination

Changing Market Conditions

Unique Selling Point (USP):

Visa free destination for AJACSSUK visa

Safe destination

Incredible hotels / resorts

World class casinos

Vibrant nightlife

Changing Market Conditions

Unique Selling Point (USP):

Exotic Beaches

Shoppers paradise

Family destination

Filming destination

MICE destination

Easily available Indian food

Sales & Marketing Strategy

Market Recap

Increase in package cost

Increase in airfare

Competitive pricing to other destinations

Reduction in air capacity

The Year Ahead…..

Given the above changing market conditions what clearly

emerges is:

Challenges in the market are increasing

Concentration needs to shift from just two cities

in India

We need to have more visibility in the market for brand recall

More support to travel agents to encourage them

Passports issued in 2011

5.8 million passports were issued in 2011

Year 2011

Hyderabad 520,829

Bangalore 449,294

Delhi 383,324

Mumbai 347,770

Chennai 344,107

Ahmedabad 325,653

Kochi 295,272

Kolkata 268,615

Chandigarh 267,256

Trivandrum 180,480

26.8

20

12.4

5.9 5.1 52.9

1.70

6.9

23.34

20.18

11.17

5.79 5.7 5.113.17 2.28

8.4

0

5

10

15

20

25

30 2007 2010

Indian’s Travel from…

Percentage

Source: India Tourism Statistics 2010

Airport Departure

The International airports which are becoming popular are

as follows:

Year 2009 Year 2010 Growth %

Chennai 1,312,197 1,450,521 10.54

Bangalore 577,191 664,083 15.05

Hyderabad 543,719 740,350 36.16

Kolkata 307,479 411,210 33.73

Ahmedabad 262,734 296,778 12.95

The Year Ahead…..

Positioning:

Up market dream destination

Perfect for MICE, Leisure – GIT & FIT

As a wedding destination

The Year Ahead…..

Target:

Age Group

DINKS

Sex

Agents

Cities

25 year and above

Double Income no Kids

Male & Female

• Other Metros

• Tier II cities

• Ahmedabad

• Bangalore

• Chennai

• Chandigarh

• Hyderabad

• Kolkatta

We will continue dealing through travel agents

We will shift concentration to newer growth areas

Phase 1:

• Chennai, Bangalore, Hyderabad, Ahmedabad,

Chandigarh,

Phase 2:

• Kolkata, Lucknow, Jaipur, Indore, Nagpur, Pune,

Kochi, Trivandrum, Guwahati

Encourage Business Tourism

The Year Ahead…..

We are hopeful that by shifting our concentration from the

main cities we would be able to generate big

interests/movements into Philippines

To achieve the above we would like to concentrate on:

Melas / Exhibitions

Multi-city Workshop

Coop Marketing in Vernacular languages*

The Year Ahead…..

*India has 16 official languages excluding English

Short Term: (October to December, 2012)

Co-op marketing with agents

Trade FAM – Chennai & Bangalore

Movie Screening

Joint FAM with Singapore Airline

Bus Branding - Mumbai

The Year Ahead…

Long Term: (January to December, 2013)

Co-op marketing with agents

6 city “Mega Mart”

Participation in TAFI Convention

Host OTOAI convention in Philippines

Participate in Marts in Tier II cities

Workshop in Tier II cities

Philippines “Food Festival”

Next Year …

Long Term: (January to December, 2013)

Co-op marketing with agents in tier II cities

Branding of International Airport

Sales Blitz in Tier II cities

Promotion at Cinema halls

Mall Promotion

Bus Branding – Delhi & Mumbai

Philippine Sponsored Race – Turf Club

Besides the above we will continue with regular FAM trips,

advertising etc

Next Year …

Special Projects

Philippines Food Festival

Good food is major indulgence of Indians

They love to experience new cuisines

The taste and appeal of Philippino food would be highly

appreciated by the food lovers

The festival will help us generate more awareness of the

destination and create further interest

Five star venues in both cities will give us a great platform

and environment to reach directly to our target audience

The festival will cater directly to the discerning Indian traveller

who is also a frequent visitor to hotels and has substantial

disposable income to spend on vacation

Mumbai airport is one of the busiest airports in India.

As per a recent report a total of 3,47,770 new passports

were issued in Mumbai alone in 2011

The airport sees host of Bollywood stars on a daily basis

We propose to brand the pillars at the departure Terminal 2

These are a set of 51 pillar spread across the departure

terminal

The display provides high impact – targeting all passengers

checking in and moving towards immigration

The area caters to passengers connecting to S.E.A, Middle

East, Europe and Africa

Branding of Mumbai International Airport

Since our concentration is on rest of India

We would like to participate in OTM in the following cities:

Ahmedabad

Bangalore

Chennai

Hyderabad

Kolkata

Pune

Surat

In the first year we would look at a stall size of 9 sqm in each city

OTM in Tier II cities

We wish to sponsor a race at the Mumbai Turf club

Sponsorship of a race at the premier racing club in Mumbai. It’s

the same turf where the much acclaimed derby is held where,

prize money is worth US$ 7 million

A high profile up market event with an expected audience of

about 30,000+ people

The members are mainly rich businessmen and members of the

turf club where, the waiting for membership is 25-30 years

The average annual income of these people is

US$ 500,000++

Philippine Sponsored Race – Turf Club

We propose to sponsor one race on a Saturday / Sunday

afternoon

We would invite 300-400 trade partners apart from media

The race will be called the “The Philippine Race”

The cup shall be called the “The Philippine Trophy”

The race is also telecast live all over India

Philippine Sponsored Race – Turf Club

The venue will be branded with Philippine collateral – cube,

standeez & backdrops

A booth will also be setup for distribution of Philippine

brochures, maps etc

We also wish to announce four prizes from a

lucky draw which will include all paid trip to Philippines for a

family

High Tea would be served

Openness in the city of Mumbai can only be found at the Turf

Club. This helps a lot. The industry comes to enjoy and stay

back much after the race is over

Philippine Sponsored Race – Turf Club