Tourists pack global power base (The Economic Times, India)

NEW DELHI -- Prepare yourself for the Great Indian Summer. If it's nearly time for your yearly vacation, be sure there will be quite a few international tour operators training their eyes on you.

They are wooing the Indian tourist like never before with flexible tour options and personalised services.

So why is the outbound Indian such hot property this summer? Out-bound tourism in India registered a 15-20 percent growth this year compared to 8-10 percent last year, and the preferred destinations seem to be Egypt, Europe, Australia, New Zealand, the US, and South East Asia.

Says Nikhil Kumar, head (outbound tourism), Abercrombie & Kent India: "The operators' sudden interest in India has been attributed to India's growing economy and a rise in the country's per capita income. The economy is really doing well and people now have money to spend on travelling abroad.

" Agrees G Naqshband, chairman, Le Passage To India: "Indians are big spenders and tour operators are trying to cash in on that. Around 4.8 million Indian tourists travelled abroad last year and that figure will surely show an increase of 15-20 percent in the coming year."

The other thing that has changed is the spending power of Indian tourists. Prices of these tours start from the $250-300 range per person and goes up to $6,000-8,000 per person for a three-week package.

The target customers of the tour operators seem to be corporate houses, film stars, industrialists and others in the high income group in metros such as Delhi and Mumbai.

The tour operators sure realise the importance of the Indian market.

"They are aiming at sourcing 15 percent of their business from India in the next three years," says Rajeev Kohli, director, Creative Travel Ltd. "Though things are looking up for the out-bound tourism industry in India, tour operators still have a couple of grievances.

The frequency of flights has certainly improved, but there still aren't enough flights to Africa. We also hope that the visa-procuring procedure for Indians will be eased."

The high service tax is also a huge dampner. Travel and tour operators hope the government will ensure that tour prices do not skyrocket as a result of VAT.

Rabindra Seth, ITDC panel member feels: "The taxes on ATF in India are one of the highest in the world. The government should do something in this regard."

Source: By Raja Awasthi, The Economic Times, IndiaKnight Ridder/Tribune Business News