Monday, September 15, 2008

Promoting tourism in South Asia

South Asian tourism has operated at sub-optimal levels for a long period of time. With the exception of the Maldives and more recently India, all other countries need to work harder towards achieving more conducive operating environments for the tourism industry. Accounting for only 1.1% of the global visitor arrivals, South Asia's recent growth levels indicate promise of the region's ability to move forward, harnessing the vast potential that exists.

Home to marvels such as Taj Mahal, Ajantha, Sigiriya, Timpu and Takshila, the heritage and cultures of the region dates back thousands of years and is talked about everywhere. It has been a hot spot for several of the seafaring nations looking for spices and riches for several centuries in the past. It then became the play ground of several colonial powers. It is now home to almost all of the world's religions.
Yet with some 400 million people remaining below the poverty line and 71 million people affected by violence or its threat, most of South Asia remains a conflict-ridden region in the world. Poverty, health, child and gender related issues are still pulling the region's image positioning down. While the resource-base for tourism is available in abundance, the constraints have been the uncertain political climates, infrastructure and access limitations.

Two significant breakthrough initiatives that has helped tourism growth in the region in the recent past is the relative liberalisation of the Indian aviation industry and the visa on arrival travel initiatives implemented by Nepal, Sri Lanka and the Maldives for SAARC visitors. The phenomenon of economic prosperity for the region vis-à-vis 'Chindia' is another motivator creating hope for the future.

In order to fast forward the movement of tourist visitors to and within the SAARC region the following initiatives are recommended for implementation:

  • Further liberalise air access between countries of SAARC, facilitating any SAARC airline to operate to other SAARC countries without restriction
  • Facilitate ocean and other water based, road and highway and railway transportation of people of the SAARC (to serve tourism as well) through the liberal operation of fast ferry services, shipping services and cruising operations and exploring road and rail transport options
  • Undertake joint programmes at both regional and bi-lateral levels to jointly develop infrastructure and institutions needed for setting in place tourism operations and investments driven in the main by the private sector or as public/private partnership ventures
  • Commence joint initiatives at both governmental and private sector operator levels to enhance the current Buddhist circuit, the Ramayana Trail and other regional and bilateral thematic tour circuits
  • Undertake the publication of an annual South Asian Tourism Events Directory (to be published an year in advance to enable tour sales for the events)
  • Commence a twinning of cities programme within the SAARC region Establish a SARRC joint Climate Change Response using Sri Lanka's pioneering 'Tourism Earth Lung' initiative as the platform.

In 2007, the South Asian region had only less than 1.1% (9.7 million) of the total visitors from around the world of 898 million, coming over to the region. In comparison, Europe had 53.5% of the global arrivals, with the Asian region including East and Southeast Asia having 19.3%. Volume of arrivals to the Asia-Pacific region also more than doubled from 2000 to 2007 from 85 million to 198 million. Within this growth scenario regrettably, most of South Asia only saw marginal growth with the exceptions of some significant growth from India and the Maldives.

We have for several decades now, promoted regional tourism. As far back as the early 1980's the World Tourism Organisation (now UN WTO) set up a secretariat for South Asian Tourism Promotion based in Colombo and attempted to promote the region. This initiative failed as there was inadequate support and interest from the individual nation's state tourism organisations for its sustenance.

In the 1990's The SAARC Chambers of Commerce and Industry (FCCI) began a Nepal based initiative to promote tourism to the region. A special Tourism Committee was formed and several rounds of meetings were held. A promotional tagline of 'Magic that is South Asia' was coined and talk of a regional tourism year was initiated. It was thought that the ice would melt if private sector business and tourism stakeholders took the lead in taking regional tourism initiatives forward. Several South Asian Tourism business and trade marts have been held since then.

On the formal inter-governmental sphere, tourism occupies an important position and in the official website of the SAARC Secretariat. The First Meeting of the Working Group on Tourism was held in Colombo on 16 to 17 August 2004. In addition to the SAARC Member States and representatives of the Secretariat, representatives of the SCCI Tourism Council and the ASEAN Secretariat also attended the Meeting.

Besides reviewing the implementation of programme of activities relevant to its mandate, the Working Group made a number of recommendations for promotion of tourism in the SAARC region e.g. printing of a SAARC Travel Guide, production of a documentary movie on tourism in SAARC, promotion of sustainable development of Eco-Tourism, Cultural Tourism and Nature Tourism, collaboration in HRD in tourism sector by having programmes for exchange of teachers, students, teaching modules and materials, Promoting Cooperation in the field of tourism with other relevant regional and international tourism organizations. It also proposed a number of activities to celebrate the South Asia Tourism Year – 2005 in a befitting manner".

If one were to compare, the progress made on the ground and by other regional tourism initiatives that began its thrusts much later than the SAARC region, such as the Association of South East Asian Nations (ASEAN), Pacific Tourism Commission, European Union (EU) Tourism and most recently The Mekong Tourism Initiative, progress made must be classified at best as wanting.

Within the backdrop of the frustration of the SAARC region's under performance, in 1997, a separate initiative was undertaken led by several governments of the South Asian region titled the South Asian Growth Quadrangle (SAGQ) consisting of Bangladesh, Bhutan, 13 of the North, East and Northeast States of India and Nepal. The Asian. Development Bank (ADB) supported the initiative under the programme 'South Asian Sub-regional Economic Cooperation (SASEC), where a tourism component exists. This is an ongoing programme within the South Asian development framework of the Bank.

The dichotomy that is South Asia
South Asia can indeed be described as a dichotomy. While it has not lived up to expectations as a regional grouping, at the individual country level, tourism development in the SAARC region presents several unique models, containing some successful best practices.

Bhutan, has presented to the world a model of tourism development where its operations are based on the model of a kinked demand curve in creating premium value for the destination. Upon limiting access to tourists to Bhutan to a few tens of thousands, a premium charge is made for the visit, placing the per capita yield from a tourist at a high level. A business model aimed at conserving Bhutan's heritage, cultural and natural resources, it is also in keeping with the unique development indicator of 'Gross National Happiness' this 'Thunder Dragon' nation has presented to the world, as against the key conventional development measurement of 'Gross National Product'.

Maldives, known today as one of the most successful island destinations in the world, works on a business model of establishing strong partnerships with foreign investors and tour operators. Beginning with investments from Sri Lankan conglomerates in the early 1980's (still accounting for about 20% of all hotel rooms), Maldives Tourism, offering the 'sunny side of life' as its positioning platform, is driven in the main by some of the best international and regional brand names in the island tourism business.

Nepal, on the other hand is an example of pioneering a brand of unique community based tourism initiative. With its early model of the Annapurna Tourism Development Project and the Bhakthipur Conservation Project of the 1980's, Nepal introduced a good tourism operational model to the world with its unique nature and heritage conservation, community benefit and sustainable funding features. Sri Lanka, in addressing the challenge of global warming and climate change faced by all nations of the world, has ventured to extend its conventional positioning as a tourist destination of a treasured island with a warm people and a nature, culture, adventure offering to taking advantage of its extensive green cover to strive to be a 'Tourism Earth Lung' working towards being a carbon neutral destination by year 2018.

In my mind, South Asian Tourism could not take off in the past, as a result of three problems. They are:

1. Lack of a pragmatic approach of our political and bureaucratic leadership towards identifying and exploiting socio-political and economic opportunities and the prevalence of an environment of mistrust between India and Pakistan in the past,

2. Self-imposed limitation of access to and within the region as a result of an introvert attitude and

3. Resultant political instability, absence of rapid economic growth and ways of distributing even the growth achieved to minimise poverty.

Outlook for the future
India presents the region's largest economy as well as the largest tourism operation. India has also been the principal trendsetter in determining the region's future, whether it was to be negative or positive. With her economy growing at 9.2% in 2007 and 9.6% in 2006, it is cited as one of the most promising prospects of the world for the future. Growth is supported by market reforms, huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market. India reduced her poverty levels by 10% and achieved a growth in the service sector of more than 11% and the sector forms about 53% of the economy.

The concept of 'Chindia', where the growth dynamics of both China and India will complement as Asia's newest prospects for economic super power status, augers well in positioning India away from the mindset of a poverty stricken country to that of a modern growth economy with a proud heritage and culture.

As a result, India's tourism industry is experiencing a strong period of growth, driven by the burgeoning Indian middle class (for domestic and outbound travel) and growth in high spending foreign tourists. The tourism industry in India is substantial and vibrant, and the country is fast becoming a major global destination and an outbound visitor generating market. India's travel and tourism industry is one of the most profitable industries in the country, and also credited with contributing a substantial amount of foreign exchange. This is illustrated by the fact that during 2006, four million tourists visited India and spent US $8.9 billion.

Several reasons are cited for the growth and prosperity of India's travel and tourism industry. Economic growth has added millions annually to the ranks of India's middle class, a group that is driving domestic tourism growth. Disposable income in India has grown by 10.11% annually from 2001-2006, and much of that is being spent on travel.

Thanks in part to its vibrant IT and outsourcing industry a growing number of business trips are made by foreigners to India, who will often add a weekend break or longer holiday to their trip. Foreign tourists spend more in India than almost any other country worldwide. Tourist arrivals are projected to increase by over 22% per year through till 2010, with a 33% increase in foreign exchange earnings recorded in 2004.
The tourism authorities at the centre and at state levels have also played an important role in the development of the industry, with promotional campaigns such as the "Incredible India" campaign, which promoted India's culture and tourist attractions in a fresh and memorable way. The campaign helped create a never before positioned image of India in the minds of consumers all over the world, and has directly led to an increase in the interest among tourists.

The tourism industry has also helped growth in other sectors as diverse as horticulture, handicrafts, agriculture, construction and even poultry. Recent increased growth in tourism in India has created jobs in a variety of related sectors. The numbers tell the story: almost 20 million people are now working in India's tourism industry.

Recent trends of terrorism, food security, poverty still at undesirable levels, increasing fuel costs and the still looming security issues will continue to pose challenges to unleashing the full potential of India as well as the region. The silver-lining for tourism though is an evident breakthrough in thinking and a strong desire to breakthrough the shackles of the past of protectionism and introvert attitudes of individual nations and the collective psyche of the leadership of the region.

Removing barriers for entry
While it is critical that air, sea and road access is expanded and enhanced if regional tourism development is to take off, it is equally critical to ensure that most artificial barriers in terms of visa facilitation is made as easy as possible for visitors to the region and for each of the countries in the SAARC alliance.

Currently, except for the Maldives, Sri Lanka and Nepal for the rest of the countries of SAARC, visa formalities are cumbersome. If one is to analyse the measurers taken in the ASEAN region almost all countries within the region allow visa free or visa upon entry facilitation for intra-regional travel. The ASEAN grouping goes one step further to offer an ASEAN Air Pass, where travelling to one ASEAN country qualifies a traveller to visit other countries at a concessionary airfare.

There is also in effect an ASEAN Hotel Pass (Hip-Hop Pass) with similar incentives. In the EU most countries of the union may be visited with a common EU Visa, obtained from one of the member countries. ASEAN is aiming to have a common ASEAN visa by year 2009. The South Asian region is far from achieving such levels of freeing formalities between countries of SAARC and for visitors to the region.

Promoting South Asian Tourism is not about promotion
It must also be stated that intra-regional tourism promotion to be a precursor to promoting the region for international visitors, as taking that route, will strengthen the capacity within the region to develop better structures and institutions to correct some of the problems that are endemic in the body polity of the region.

Following are a series of process-based actions that are proposed to achieve the objective stated above:

  • Further liberalise air access between countries of SAARC, facilitating any SAARC airline to operate to other SAARC countries without restriction
  • Facilitate ocean and other water based, road and highway and railway transportation of people of the SAARC (to serve tourism as well) through the liberal operation of fast ferry services, shipping services and cruising operations and exploring road and rail transport options
  • Undertake joint programmes at both regional and bi-lateral levels to jointly develop infrastructure and institutions needed for setting in place tourism operations and investments driven in the main by the private sector or as public/private partnership ventures
  • Commence joint initiatives at both governmental and private sector operator levels to enhance the current Buddhist circuit, the Ramayana Trail and other regional and bilateral thematic tour circuits
  • Undertake the publication of an annual South Asian Tourism Events Directory (to be published an year in advance to enable tour sales for the events)
  • Commence a twinning of cities programme within the SAARC region Establish a SARRC joint Climate Change Response using Sri Lanka's pioneering 'Tourism Earth Lung' initiative as the platform
    Conclusion

Tourism promotion is compared to the likes of dream selling. To sell dreams of people, the dreams sold must be beautiful and believable. In promoting and branding South Asia as a tourist destination area, the challenge faced by the marketer is to ensure hat the three key characteristics of brand identity are assured. They are quality, consistency and integrity. To assure that these characteristics are maintained, an intense and continuous effort need be made both at the destination and at the regional levels.
(Excerpts from a presentation made at the recent South Asia Economic Summit in Colombo.)

Source: www.sundaytimes.lk

1 comment:

Anonymous said...

beautiful.... it helped me a lot...thanks....