• India Invests for Growth (2010)

 

India’s buoyant economy and its boom in business and leisure travel are driving strong growth in tourism. This has been helped by lower airfares and an emerging middle class, keen to travel for the first time. The number of domestic tourists in India is expected to reach 750 million in 2010 from 368 million in 2004.

 

As international tourist arrivals in India is also rising rapidly – upto 5.1 million by 2010 – we predict the country will need between 400,000 and 900,000 more branded hotel rooms in the next five years if it is to follow the UK or US model.

 

The emphasis will be on the lower end of the market, including economy hotels and service apartments.

 

Like China, investment in India’s travel and tourism industry is expected to increase, growing by 7.8% ( Annualised Real Growth) by 2016, but starting from a base 8 times lower. To get things moving India’s government set up a Viability Gap Funding Scheme last year to support large tourism infrastructure projects. It has also launched the Assistance for Large Revenue Generating Projects to increase public – private partnerships / investments in tourism initiatives, including tourist trains, cruise terminals, convention centres and golf courses.

 

With this amount of growth underway the regions airlines have taken prompt action. At last years Paris air show, Indian Airlines reportedly placed orders for around 190 aircraft, and this is set to rise to around 500 by 2010.

 

• Spas on the rise as offer is increased

Spa sales are rocketing by nearly 30% year on year as their offerings become increasingly complex, according to a new survey.

The latest market snapshot comes from The UK and Ireland Spa Survey Report 2006, which shows that gross annual sales went up by 26% in 2003 and 28% in 2004, driven by increases in spa and beauty treatment revenue. 

The report also found that females constitute 70% of customers.  Massages and facials are the most popular treatments and also turn in the biggest profit margins, followed by body treatments, manicures, pedicures and hair removal.

Todd Le Page, spa manager at London's Renaissance Chancery court hotel, said: "This survey confirms the trends we've been seeing at grass-roots level.  The growth is largely from the opening of new spas, although I've seen at least 20% growth year on year.

"Spas are becoming part of people's lifestyles, and we're consistently breaking down gender barriers.  The hotel industry now has around 40-45% male guests, with massages by far the most popular."

The survey also revealed that spas were evolving to offer more varied and interesting experiences, with hot rooms, water, relaxation and dry treatments, and spa cuisine supplementing the traditional sauna, steam room and hydrotherapy pools.

The survey also found that although day spa packages and retail sales were seen as a key offering, they accounted for a relatively low percentage of overall sales.
 

Courtesy  :  Caterer and Hotelkeeper