Tuesday, September 2, 2008

Airborne : Rising tourist arrivals from India to US


There has been a rapid growth in Indian tourists visiting the U.S. over the past five years. With the arrival of the cosmopolitan Indian, the number of tourists from India rose 39 percent between 2006 and 2007, when nearly 570,000 Indian tourists came to the US. They spending $3.6 billion in 2007 in the country, according to U.S. Commerce Department statistics, a whopping 40 percent more than in 2006.

Niagara Falls, on the east coast bordering Canada is the most popular tourist destination for Indians. "There is a deep love affair that India has with Niagara Falls," said Brad Billard, director of marketing and promotions of Whirlpool Jet Tours.

Research says that as more Indians travel with families to the US, even as they do sightseeing, they also tend to spend on shopping, hotels, spas and luxury. That makes them favoured tourists.

The new factors encouraging Indians travelling abroad include the open sky policy. Tourist traffic has also increased because of cheaper fares being offered by airlines as aviation increasingly becomes a competitive industry. Weakening of the US dollar against the Indian rupee has also made foreign vacations undeniably more affordable for Indians.

Recently, the Niagara Tourism & Convention Corporation created a pact with international consulting firms to encourage visitors from India to North America, making it one of the first agencies to create the India-specific international bond.

President & CEO of Niagara Tourism and Convention Corp, John Percy, replied a few questions about the growth of US- India tourism :


"Indian tourists are big spenders"

Extracts from the interview John Percy, President & CEO of Niagara Tourism and Convention Corp, gave to SATimes.

What are the challenges lately faced by the US travel and tourism industry?

Most recently, it's the gas crisis on a domestic level and the downturn in the domestic economies. The impact is not so severe in the short term, however it will be in the long term if the trend continues. On international level, we have to contend with restrictions placed on travel by the Dept. of Homeland Security and US Immigration. With it being a massive global marketplace it is so much easier for international travelers to choose another location versus the USA. If Visa restrictions are not loosened or changed, we will eventually witness a decrease in inbound business while these travelers choose a friendlier destination.

How has the influx of Indian tourists in US changed in the last 5 years?

The business has grown significantly! Niagara Falls has witnessed and experienced a large influx of Indian visitors and that's why we have chosen India as our first country to contract for international representation. And the traveler from India has changed as well. They are large spenders and more adventurous than from other markets. In fact, in 2007 Indian travellers ranked as the sixth highest spenders for inbound international markets and this is a dramatic change from the past five to 10 years. We look forward to establishing Niagara Falls in India as a foundation before other destinations realize the potential and the market becomes over-saturated!

Any policies that you would want changed to benefit the US tourism industry?

Visa restrictions – they need to become easier for people to obtain and in a shorter time period as well. People will make a decision to go elsewhere than the US if there wait time is long and the process complicated. I also think our entry points need to become friendlier and more welcoming.

Any views on improving US - India ties in general and in tourism sector in particular?

I think India has always been a good ally of the US and I think it will only improve under a new administration after November 2008. Our government needs to realize the potential with India and build better ties and relationships with not only the public sector but also private commerce as well. I think too much attention has been paid to China and their growth, more needs to be paid to India. I think the growth potential is stronger in India than China, especially with tourism!


From luxury vacations to back packing, Indian tourists enjoy amusement parks, festivals, architectural and scenic beauty, landmarks, family weddings, hotels, museums, galleries, restaurant cuisines, sport events, learn languages, indulge in gambling and almost anything and everything about the local culture in U.S. New York, Chicago, Washington DC, San Francisco and all major U.S. cities attract inquisitive Indian crowds every year.

A study by Dresdner Bank shows that expected international tourists expenditure in 2008 in the U.S. is $74.2 billion, which makes it the second largest, preceded by Germany bwhich is the largest.

Tourism especially from India to U.S. is being encouraged and there is a lot more to look out for in the near future.

by Nikki Rattan

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