Tourism Finance Corporation of India Limited

TOURISM INVESTORS MEET (TIM)

FICCI, New Delhi

Tourism Finance Corporation of India Ltd.

PRESENTATION

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Background Incorporation- based on the

recommendations of the National Committee on Tourism (Yunus Committee) TFCI was incorporated as a Public limited company under the Companies Act. TFCI is a Public Financial Institution under section 4A of the Companies Act.

Regd. Office:- IFCI Tower, New Delhi. Branch Offices:- Mumbai Sponsors:- IFCI and other Financial/Investment

Institutions & Banks. Status/Objective:- All-India Financial

Institution for funding Tourism-related projects.

TFCI - Vision To make long term financing available for Hotels

/resorts/ Amusement Parks/ other tourism related projects.

Help India in exploring the potential of Tourism as an engine for economic growth including generation of employment opportunities.

Help India showcase Her tourism treasure to the world through creation of Tourism Infrastructure.

Make India a preferred destination for globe-trotters by expanding the horizon of Tourism.

To make long term resources available for creation/ development of Tourism Infrastructure.

TFCI - Mission To help tourism industry grow as one of the

main industries through innovative means of financial & advisory assistance and to attain and maintain the leadership role in financing tourism-related projects.

Catalyze & Channelise investments into various segments of the tourism industry and across various locations in a need based manner.

Take steps to promote the tourism industry within the overall framework of the Govt. of India policy.

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The tourism and hospitality industry contributes about 6.23% to the national GDP and 8.78% of the total employment in the country. • Travel and tourism is expected to grow

at 8.8% during the period of 2010-2019 and India is projected to become the world’s fifth largest business travel destination.

• Investment in travel and tourism in India is expected to reach US$ 109.3 billion by 2020.

Tourism Sector

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Tourism in India is among the largest in the services industry and industry guesstimates project this to increase to 1 in every 9.6 jobs by 2020.

Though the country is ranked 41st in terms of inbound tourist arrivals, it is 16th in total tourism receipts as per the UNWTO.

The foreign tourist arrivals were 7.70 million during 2014 as compared to 6.97 million during previous year, recording a growth of 10.5%.

The Foreign Exchange Earning(FEE) were Rs.120083cr as compared to Rs.107671 crore during 2013,registering a growth of 11.5%.

According to the United Nations World Tourism Organization (UNWTO) forecast, the travel and tourism industry in India is expected to grow by 8% per annum between 2008-2016; Foreign exchange earnings by 14% during the same period. 

Tourism industry

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Upcoming sectors such as cruise and golf tourism present a potential for development. Each year 150 ships pass India; this certainly spells well for opportunities such as cruises.

India's medical tourism sector is expected to experience an annual growth rate of 30%, estimated to grow to about $2 billion by this year.

Indian Territory covers 75 per cent of the total Himalayan range, 4000 square km of the Sundarbans, 0.2 million square km of deserts and 1000 caves. Yet India ranks at about 110th in adventure tourism at a global level.

India possesses internationally revered and must see heritage sites but ranks 65th in the world rankings for heritage tourism; with all this, the country’s potential to tap visitors is immense.

Tourism industry

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Committing safety and building on the ‘Swatch Bharat’ initiative; Rewriting tourism policies, Building Tourism circuits, Tourism enclaves and townships, showcasing new destinations and diversified tourism will certainly prove to boost the potential of the sector in India.

With the new government starting to drive reforms such as visa on arrival schemes, India is hoping to double the number of tourists visiting the country to 12 million over the next 2-3 years. This is expected to bring the country among the top 10 recipients of tourist earnings.

More than half of the Ministry of Tourism’s Plan budget is channelized for funding the development of destinations, circuits, mega projects as well as rural tourism infrastructure projects.

There is a renewed focus on skill development in the travel and tourism sector – 21 government-run hotel management and catering technology institutes and 14 food craft institutes have been established to impart specialized training in hoteliering and catering.

Initiatives by Government

TFCI - VALUES

Blend of Knowledge & Wisdom Self-sustaining capability Encourage creativity and

innovation Empathize with the client

India’s only Institution for Funding Tourism projects with more than two decades of existence.

Created 45910 hotel rooms by funding 758 projects.

Catalyzed investments to the tune of Rs.25657crore.

Created Direct employment to the tune of 86465 persons and indirect employment to many more.

TFCI – Highlights - 2014-15

Tourism Finance Corporation of India Ltd. (“TFCI”), is an All-India Financial Institution catering to the requirement of the tourism industry by providing financial assistance for hotels and non-conventional tourism projects like restaurants, health spas, entertainment centers, shopping malls, multiplexes etc. besides providing project/tourism–related advisory services to the industry.

To meet the growing demand of the industry, TFCI included tourism infrastructure sector and other services in its portfolio by extending financial assistance to sectors, such as services sector and related activities, facilities & services which are further expected to augment the growth of tourism in the Country.

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Tourism Sector

Tourism Infrastructu

re Sector

TFCI - Who We Are & What We Do ?

Financial assistance to following sectors:Tourism Sector Tourism Infrastructure

Sector Hotels, Resorts, Motels,

Wellness Spa, etc. Entertainment centres,

Amusement parks & Water parks

Multiplexes, Shopping Centres, Family Entertainment Centres, Clubs

Convention Centres Ropeways Travel & Transport

Conventional & Non-conventional power projects, Power distribution networks

Roads, Airports, Ports, Rail Infra related to tourism

Hospitals, School, Colleges, Stadium

Special economic zones, Industrial estates, Warehouses

Media, Entertainment & telecom

First Dedicated Institution to Cater to the needs of Tourism Industry

First Institution to Fund Innovative Tourism Projects such as Luxury Trains Theme parks Health SPAs Dolphinarium Spice Village, etc.

First Institution to study the Carrying Capacity of a National Park First Institution to carry out a Study on Hotel Accommodation

needs of India way back in 1990’s First Institution to organise a National Seminar on Hotel Project

Management First Institution to carry out a study of Safety benchmarks of

Hotel Industry Apart from many First’s every third room in the approved

category is Funded by TFCI

TFCI First of its kind to partner in the growth of tourism industry

FRONT RUNNER IN SUPPORTING INNOVATIVE PROJECTS

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Shareholding pattern – As on March 31, 2015

Rupee Loans

Corporate Loans

Subscription to

Equity

Working Capital

Finance

Guarantee of

Deferred

Payments

Takeover/

Promoter

Financing

Bridge Loans

Other Products viz Bill-discounting, Leasing Facility ,

Equipment Financing, L/C, Securitization of Debt etc.

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Types of financial assistance

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Tourism Sector• Accommodation units like Hotels, Motels, Resorts, Serviced

Apartments &Time Share• Conference and Convention Centres• Beach and Coastal Tourism• Water-ways / Cruises• Adventure / Wild-life Tourism• Health/ Spa Tourism• Medical Tourism• Pilgrimage Tourism• Rural Tourism• Recreational & Entertainment Centers• Restaurants/ Food Chains• Heritage and Cultural Tourism• Air & Surface-Transport Facilities • Hospitality Education

Avenues for investment

Geographical presence

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State –wise Number of projects assistedNumbers of Projects Assisted

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Sector-wise cumulative assistance sanctioned by TFCI upto 31.3.2015

Segments No. of Projects

Amount Sanctioned (Rs.

in Crore)

Percentage

A. TOURISM      (i)Hotels      5 Star Hotels 148 2453.38 32.87%4 Star Hotels 63 770.28 10.32%3 Star Hotels 336 2083.29 27.91%2 star, Heritage & Others 58 204.64 2.74%Sub-Total 605 5511.59 73.84%(ii)Amusement/Water Park/ Shopping Complex-cum-entertainment centre/ multiplex

41 330.50 4.43%

(iii)Restaurants/Food Court 25 99.23 1.33%(iv)Other Tourism Projects* 58 620.04 8.30%Total Tourism 729 6561.36 87.90%B. Infrastructure:      Infrastructure projects 7 174.70 2.34%C. Others:      Other Sectors 22 728.86 9.76%Grand Total 758 7464.92 100.00%

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Financial Highlights for past five years

    (Rs. in crore)    2010-11 2011-

12 2012-13 2013-14 2014-15

Sanctions 738.16 779.98 423.48 680.86 807.32Disbursements 378.75 563.24 343.11 354.63 508.02Net worth 335.65 374.01 414.76 436.42 482.01Profit Before Tax 68.8 63.08 72.43 84.06 81.86Profit After Tax 44.41 49.47 55.53 58.5 60.18Dividend 12% 12% 12% 12% 18%Equity Share Capital 80.72 80.72 80.72 80.72 80.72Reserves and surplus 254.93 296.63 339.29 355.75 401.29Capital Adequacy ratio 50.74 40.47 37.21 39.86 38.75Book Value(Rs.) 41.58 46.34 51.4 56.46 59.72

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Financial highlights(Rs. In cr)

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Financial highlights for five years(Rs.in cr)

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Year Inventory

Occupancy (%)

ARR REvPar

2011-12 84313 59.30 6032 35752012-13 94255 57.80 5773 33882013-14 103855 58.90 5531 32462014-15 122298 56.50 5858 3309

TRENDS IN HOTEL INDUSTRY

The revenue growth in the hotel industry is expected to strengthen to 9-11% in 2015-16.

India will be investing about Rs. 448 billion in hospitality industry in next five years.

Currently India has 163000 rooms in classified category and there is a need for additional 137ooo rooms out of which 90,000 rooms are required in mid-market/ budget segment in next 5 years.

THANK YOU

TOURISM FINANCE CORPORATION OF INDIA LTD.

REGD. OFFICE: 13TH FLOOR, IFCI TOWER-1, 61-NEHRU PLACE, NEW DELHI-110019.

www.tfciltd.comHelping Tourism Grow