China Vs India in travel industry

"India is like a tortoise that is getting closer to the rabbit, while China is still the rabbit," he told FE when asked to compare the two countries in the area of travel and tourism.

Even as both the countries show an annual growth potential of 8.8% and 8.7%, respectively over the next 10 years, there’s a difference in the way the two countries are "committed" towards tourism, said Mr Baumgarten. He’s here for the fifth WTTC summit from April 8 to 10.

In China, the government accords top priority to tourism, according to the WTTC president.

As a result, "in 2004, there were more Chinese going overseas than Japanese going overseas". In China, the tourism demand is for inbound, outbound as well as domestic travel. "That kind of input has to come for India too," he said.

But, gradually the government approach is changing in India too, Mr Baumgarten admitted.

"India has started adjusting to a competitive global environment," he said, citing the significant promotional budget for tourism and the ‘Incredible India’ campaign.

The fact that Prime Minister Manmohan Singh made an announcement recently that tourism would be a priority area, would go a long way for the sector, he felt. From 3 million inbound tourists now, India is expected to witness up to 15 million overseas visitors in the next five years, he said.

Although there are more flights to and from India now, India’s weak points are its infrastructure and investment scenario, according to the WTTC president.

"India needs to get its act together in infrastructure — airport, road and even telecom." Mr Baumgarten added, "there isn’t much talk of incentives for domestic and international investors in India.

And that’s a hurdle." Besides, India needs a huge hotel development programme -- a full spectrum of hotels starting from five star to budget hotels, the WTTC president pointed out.

As for global figures, in 2005, the world demand for tourism is likely to be increased by 5.6%. Over the next 10 years, it could increase 4.6% per year.

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