Forget about the sluggish economy and the concern over inflation and stock markets in Asia for a little while, because the news on the travel and tourism front is good, especially in India.
Indians tend to travel in family groups so operators must provide activities for a wide range of ages, says Madhavan Menon, managing director of Thomas Cook (India).
According to a UN World Tourism Organization report, the number of Indians travelling abroad is forecast to rise to 50 million by 2020. Over the past summer, there were almost no seats available on flights to Bangkok, Singapore or Dubai, the three most popular short-haul (3-4 hours) destinations for Indians.
Be it for leisure, sightseeing, entertainment, shopping or business, there are more Indians travelling overseas than the number of foreigners flying into the country.
“Outbound tourism from India is growing at about 20-25% per year. Part of this is due to higher disposable income among India’s evolving and burgeoning middle class,” said Madhavan Menon, managing director of Thomas Cook (India), the largest integrated travel services provider in the country.
“Our primary focus is to cater to the diversification of demands among Indian tourists. A combination of more than one country works well for our market environment,” he told Asia Focus on the sidelines of the World Travel & Tourism Council (WTTC) Asia Summit in Seoul.
Mr Menon said his company’s primary focus was on trips ranging from five to seven days, with the combination of two countries such as Thailand and Vietnam, Thailand and Myanmar, or Singapore and Malaysia for example.
It is important to remember that Indians tend to travel in family groups that could include members aged from 14 to more than 75 year old, he said. Therefore, creating a menu of activities that can entertain everybody is essential.
“Sightseeing around the region would be the most common demand for Indian tourists. It is all about the memories and places they visit, given they want to come back and tell their friends what they have seen,” he said.
“Unlike the Chinese who tend to do luxury shopping aboard, the average Indian tourist is more careful about spending money. Two out of every five Indian travellers are first-time travellers, so they want to start from somewhere that matches their budget.”
Southeast Asia will benefit substantially from the rising number of Indian outbound travellers as the region offers exactly the kinds of products Indians are looking for, he added.
“Without a doubt, Southeast Asia is always the priority choice for Indian tourists for a variety of reasons. One of those is the food; you can easily find Indian food or similar kinds throughout the region. Vegetarianism is also considered an accepted way of life here,” he said.
“Secondly, many Indians still feel insecure as they have just started to learn how to travel. Therefore, they want to see something familiar to their lives at home, which is what Southeast Asia has to offer.”
The similarity of cultures in Southeast Asia and India is one of the major factors that have made the region the preferred destination among Indian tourists, ahead of Japan, South Korea and China, Mr Menon emphasised. Historical connections that date back two millennia allow Indian tourists to find common and shared values.
“If you go to Thailand you still find Ramayana in the temples or palaces and many other things that can remind you of India,” he said. “You go to Singapore and there is ‘Little India’ there. Malaysia and Hong Kong also have a large Indian population. Plus, the English language is spoken adequately in these countries, so they find them more comfortable to visit.”
Moreover, having quite an accommodating price is another reason that makes Southeast Asia attractive in Indian eyes. In the early stages of travelling or exploring new cultures, Indians prefer products that offer fair value that would not break their budget limits.
Asked what countries should do to attract more Indian visitors, Mr Menon said the easing of visa regulations needs to be addressed.
“I am not saying don’t issue visas but it has to be made more accommodating,” he said. “The governments in Asia need to recognise that Indian tourists along with the Chinese will emerge and become a powerful bloc. They are evolving as the Chinese are; they are learning to behave in other markets. They will surely become spenders in due course.”