THE GOA RETREATA REPORT

CONTENTSSECTION ONE -- INTRODUCTION

Introduction ........................................................................................................................................…. 2

President’s Foreword ……………………………………………………….………………………............. 3

The WTTC India Initiative: Members ……………………………….................................... 5

SECTION TWO -- THE GOA RETREAT

The Delegates ……………………………................…………………………………...............…...………….. 8-9

Conclusions and Recommendations ...……………………………................………………... 10-17

Points of View – The Delegates …………………………………..……………………………….. 18

Glimpses …..........................………………………………..…………………….................…….................….. 19

The Group Photograph …………………………………….....…………………………….......……...... 20-21

SECTION THREE -- WTTC: THE PROGRESS ACHIEVED

Concluding RemarksMr N.K. Singh …..........................………………………………..…………………………….................….. 24

The Union Budget 2003/04Extracts from the speech of Mr Jaswant Singh in Parliament …..….......…....…..... 25

SECTION FOUR -- THE NEXT STEP

The Srinagar Retreat ……………………………………………………..……………………..…....…….. 27

CHAIRMAN:Sir Ian ProsserChairmanSix Continents PLC

VICE CHAIRMEN:Donald CartyChairman, President & CEOAmerican Airlines

Jean-Marc EspaliouxChairman of ManagementBoard & CEOAccor S.A.

André JordanChairmanLusotur S.A.

Jonathan S. LinenVice ChairmanAmerican Express Company

Vincent A. WolfingtonChairmanCarey International, Inc

EXECUTIVE COMMITTEE:

Peter ArmstrongPresident & CEORocky Mountaineer Railtours

Stephen BollenbachPresident & CEOHilton Hotels Corporation

Club Méditerranée

Sebastián EscarrerVice ChairmanSol Meliá

Edouard EttedguiManaging DirectorMandarin Oriental Hotel Group

Maurice FlanaganGroup Managing DirectorEmirates

Bernard D. FrelatPresident & CEORail Europe Group, Inc

Michael FrenzelChairmanTUI A.G

David HouseGroup President, Global Networkand Establishment ServicesAmerican Express Company

Richard R. KelleyChairmanOutrigger Enterprises, Inc

Geoffrey J.W. KentChairman & CEOAbercrombie & Kent

J. W. Marriott, Jr.Chairman & CEOMarriott International, Inc

David MichelsChief ExecutiveHilton Group

Curtis NelsonPresident & CEOCarlson Consumer Group

P.R.S. OberoiChief ExecutiveThe Oberoi Group

Henry SilvermanChairman & CEOCendant Corporation

Jonathan TischChairman & CEOLoews Hotels

Brett TollmanVice ChairmanThe Travel Corporation

GLOBAL MEMBERS:

Akbar Al BakerCEOQatar Airways

Giovanni AngeliniCEO & Managing DirectorShangri-La Hotels & Resorts

David BabaiChairmanGullivers Travel Associates

Phil BakesChairman & CEOFAR&WIDE Travel Corporation

Ted BalestreriChairman & CEOCannery Row Company

Henrik BartlHead of Specialized Property FinanceAareal Bank AG

Gordon BethuneChairman of the Board & CEOContinental Airlines

Paul BlackneyPresident & CEOWorldspan

Richard BrownChairman & CEOEurostar

Regis BulotPresidentRelais & Chateaux

Marilyn Carlson NelsonChairman & CEOCarlson Companies, Inc

Alun CathcartDeputy ChairmanAvis Europe Plc

U. Gary CharlwoodFounder, Chairman & CEOUniglobe Travel (International) Inc

Jennie ChuaPresident & COORaffles International Ltd

David CliftonManaging DirectorEurope & AsiaInterval International

Glen DavidsonSenior Vice PresidentWorldwide Travel Insurance &Related ServicesAmerican International Group Inc

Dinesh DhamijaChairman & CEOebookers plc

Lloyd DorfmanChairman & Chief ExecutiveTravelex plc

Rod EddingtonChief ExecutiveBritish Airways plc

Manuel Fernando Espírito SantoPresidentGroup Espírito Santo

Sam GaleotosPresident & CEOGalileo International

Laurence GellerChairman & CEOStrategic Hotel Capital

Maurice H. GreenbergChairman & CEOAmerican International Group Inc

Philip HaanExecutive VP InternationalSales & Information ServicesNorthwest Airlines

Anthony HarrisChief ExecutiveHilton International

Richard HelferChairman & CEORaffles International Ltd

James HensleyPresidentAllied Europe

James HoganPresident & Chief ExecutiveGulf Air

Stephen HolmesChairman & CEO, HospitalityDivisionCendant Corporation

Raimund HoschPresident & CEOMesse Berlin GmbH

Dieter HuckesteinPresident, Hotel OperationsOwned & ManagedHilton Hotels Corporation

Xabier de IralaChairman & CEOIberia

Clive JacobsChairman & CEOHoliday Autos Group

Nuno Tr igoso JordãoPresident & CEO Sonae Turismo Gestao Servicos

Sol KerznerChairmanKerzner International Ltd

Nigel KnowlesManaging PartnerDLA

Craig KochPresident & CEOThe Hertz Corporation

Krishna KumarManaging DirectorThe Taj Group of Hotels

Hans LerchPresident & CEOKuoni Travel Holding Ltd

Paolo MantegazzaPresident & CEOGlobus & Cosmos Inc

Manuel MartinPartnerCyberDodo Productions Ltd

Isao MatsuhashiChairman of the BoardJTB Corp

Paul McManusPresident & CEOThe Leading Hotels of the World

David MongeauVice PresidentCIBC World Markets

Alan MulallyPresident & CEOBoeing Commercial Airplanes

John M NoelPresident & CEOTravel Guard International

Tom NutleyManaging DirectorReed Travel Exhibitions

Alan ParkerManaging DirectorWhitbread Hotel Company

Jean Gabriel PérèsPresident & CEOMovenpick Hotels & Resorts

Dionísio PestanaChairmanGroup Pestana

Stefan PichlerChairman & CEOThomas Cook AG

Fernando PintoChief Executive OfficerTAP - Air Portugal

David RadcliffeChief ExecutiveHogg Robinson

Jay RasuloChairman & CEOEuroDisney S.C.A.

Bonnie ReitzSenior VP, Marketing & SalesContinental Airlines

Kurt RitterPresident & CEORezidor SAS Hospitality

Peter RogersPresident & CEODiners Club International

Carl RudermanChairmanUniversal Media

Robert SelanderPresident & CEOMasterCard International

Bruno SchöpferCEOMövenpick Group

Per SetterbergCEOGlobal Refund Holdings A.B.

Eric SpeckExecutive Vice PresidentGroup PresidentTravel Marketing & DistributionSabre Holdings Corporation

Barry SternlichtChairman & CEOStarwood Hotels & ResortsWorldwide, Inc

Ron StringfellowExecutive ChairmanSouthern Sun Group

Lalit SuriChairman & Managing DirectorBharat Hotels Ltd

Ian SwainChairman & CEOSwain Travel Services Inc

Kathleen TaylorPresident,Worldwide Business OperationsFour Seasons Hotels and Resorts

José Antonio TazónPresident & CEOAmadeus Global Travel Distribution

Jeffrey TofflerChairmanCoventry Partners

Mustafa TürkmenCEO & Managing DirectorEnternasyonal Tourism Investments, IncYapi Kredi Bank of Turkey

Patrice VinetPartnerAccenture

Trevor de VriesDeputy Managing DirectorMondial Assistance S.A.

Jurgen WeberChairmanLufthansa German Airlines

Peter YesawichManaging PartnerYesawich, PepperdineBrown & Russel

HONORARY MEMBERS:

Lord Marshall of KnightsbridgeChairmanBritish Airways plc

Sir Frank Moore, AOChairmanTaylor Byrne Tourism Group

Frank OlsonChairman of the BoardThe Hertz Corporation

Gérard PélissonCo-Chairman, Supervisory BoardAccor S.A.

Tommaso ZanzottoPresidentTZ Associates Ltd

CHAIRMAN EMERITUS:

James D. Robinson IIIGeneral PartnerRRE Ventures

IMMEDIATE PAST CHAIRMEN:

Harvey GolubRetired Chairman & CEO AmericanExpress CoWTTC Chairman (1996 – 2001)

Robert H. BurnsChairmanRobert H Burns Holdings LimitedWTTC Chairman (1994 – 1996)

PRESIDENT:

Jean-Claude Baumgarten

As a t March 200 3

Introduction President’s Foreword

JEAN-CLAUDE BAUMGARTEN

President

World Travel & Tourism Council

SECTION

THE WTTC INDIA INITIATIVE WAS LAUNCHED INFEBRUARY 2000 AS A MEANS FOR RAISING AWARENESSOF THE CRUCIAL ROLE THAT TRAVEL & TOURISMPLAYS IN THE INDIAN ECONOMY.

Now in its fourth year, we are delighted and encouraged that therehas been a marked improvement in the Government of India’s approachto Tourism. This was particularly evident in the Prime Minister’s2001 Independence Day Speech and in the recently announced2003/04 National Budget for India.

It is apparent that for the first time theGovernment of India has recognisedtourism as a generator of income andemployment and we are proud to havecontributed to this shift in thinking. It isonly through the interaction of the publicand pr ivate sectors and a sharedcommitment that we can bring aboutpositive changes. The fastest and mostefficient way to eliminate barriers is throughworking together and relying on eachother’s knowledge and expertise.

It was for this purpose that the WTTC‘Retreat’ was conceived as a strategy forbringing together senior Members of India’sParliament and Government, leaders fromthe Indian tourism industry and key mediafrom the region. The objective was tocollectively identify the key weaknesses inIndia’s tourism product and to find workablesolutions to address these issues.

This Report details the findings of thesecond Retreat held in Goa from February14 to 16, 2003. Five specific barriers togrowth were identified and a large part ofthe Retreat was dedicated to discussingthese issues. Recommendations forovercoming these barriers can be found onpages 10-17 of this report.

I would like to take this opportunity tothank everybody who participated in theGoa Retreat for their commitment to Travel& Tourism and for taking the time out oftheir busy schedules to work with us.

This report demonstrates our dedicationto Travel & Tourism. India has an amazingand diverse tourism product. Developedin the right way, the Travel & Tourismindustry can provide an important tool fortackling some of the economic, social andenvironmental challenges facing Indiatoday.

3

The WTTC India Initiative: MembersTravel & Tourism: Everybody’s Future

Mr Vikram Madhok*Managing DirectorAbercrombie & Kent India

Mr Sunder G. AdvaniChairman & Managing DirectorAdvani Hotels & Resorts (I) Ltd

Mr K. Roy Paul, IASChairmanAir India Ltd

Mr Ankur BhatiaManaging DirectorAmadeus India

Mr Harsh NeotiaManaging DirectorAmbuja Cement Eastern Ltd

Mr Runeep SanghaBusiness Manager, India &South Asia Travel Network &Suppliers RelationsAmerican ExpressTravel Related Services

Ms Priya PaulPresidentApeejay Surrendra Hotel

Mr Shiv Kumar JatiaManaging DirectorAsian Hotels Ltd

Mr Alun Cathcart*Non-Executive ChairmanAvis Europe

Mr Lalit Suri MP*Chairman & Managing DirectorBharat Hotels Ltd

Mr Peter KerkarManaging DirectorCox & Kings India Ltd

Mr Maurice Flanagan, CBE*Group Managing DirectorEmirates

Maharana Arvind Singh MewarChairmanHistoric Resort Hotels Ltd

Mr Sunil AroraChairman & Managing DirectorIndian Airlines

Mr S.S.H. RehmanManaging DirectorITC Hotels Ltd

Mr Naresh GoyalChairman & Managing DirectorJet Airways

Mr Vivek NairVice Chairman & Managing DirectorHotel Leelaventure Ltd

Maharaja Gaj Singh of JodhpurChairmanMaharaja Heritage Resorts

Mr P.R.S. Oberoi*ChairmanThe Oberoi Group

Mr Hugh Hamilton AndrewsAdvisorPGF Nomura

Mr Uttam K. BoseChief Executive OfficerSahara Airlines Ltd

Mr Arjun SharmaManaging DirectorSelect Holidays Resorts

Mr Himmat AnandChief Operating Officer(Inbound) Sita World Travel

Mr Chandan Kashikar*Regional Director OperationsSix Continents Hotels

Mr R.K. Krishna Kumar*Managing DirectorThe Taj Group of Hotels

Mr Ashwini Kakkar*CEO & Managing DirectorThomas Cook India Ltd

Mr Adi J. KatgaraDirectorTravel Corporation (I) Ltd

5

* Also Global Members

WTTC is a non-profit making organization committed to making Travel & Tourism work foreverybody. Our task would not be possible without the backing of our Members, all of whomhave made a commitment to work with us to overcome the barriers to tourism growth. TheWTTC India Initiative is backed by twenty-six of India’s key players from some of the world’smost influential Travel & Tourism Companies.

4

The Goa Retreat

SECTION

The Delegates

98

MEMBERS OF PARLIAMENT

Mr and Mrs Margaret Alva

Mr and Mrs Prithviraj Chavan

Mr and Mrs Ashwani Kumar

Mr and Mrs B.J. Panda

MEDIA

Dr Sanjay BaruChief EditorThe Financial Express

Mr and Mrs Harish GuptaEditorDainik Bhaskar

Mr and Mrs Satish JacobDeputy ChiefBBC

Ms Bachi KarkariaEditor-in-ChiefMid-Day Multimedia

Mr and Mrs Chandan MitraEditor-in-ChiefThe Pioneer

Mr and Mrs Vikram ChandraSenior EditorNDTV

Mr Vir SanghviEditorHindustan Times

Mr Rabindra SethFreelance Journalist

Ms Seema GoswamiFeature EditorThe Telegraph

OPINION MAKERS

Mr and Mrs Shobha De

GOVERNMENT OF INDIA

Mr and Mrs N.K. SinghMember, Planning Commission

Mr and Mrs K. Roy PaulSecretaryMinistry of Civil Aviation

Mr and Mrs V. SubramanianAdditional SecretaryMinistry of Civil Aviation

Mr and Mrs Rathi Vinay JhaSecretary Tourism

Mr and Mrs Amitabh KantJoint Secretary Tourism

Mr and Mrs Ajay PrasadOSD to Deputy Prime MinisterMinistry of Home Affairs

Dr Nasim Ahmad ZaidiJoint SecretaryMinistry of Civil Aviation

INTERNATIONALSPEAKER

Mr Stefan PichlerChairman and CEOThomas Cook A.G.

WTTC INDIA – MEMBERS

Mr Vikram MadhokManaging DirectorAbercrombie and Kent

Mr Ankur BhatiaManaging Director

Amadeus IndiaMrs Radha BhatiaDirectorAmadeus India

Mr Harsh NeotiaManaging DirectorAmbuja Cement Eastern Ltd

Mr Runeep SanghaBusiness Manager, India &South Asia Travel Network &Suppliers RelationsAmerican ExpressTravel Related Services

Mr Lalit Suri MPChairman and Managing DirectorBharat Hotels Ltd

Mr Sunil AroraChairman and Managing DirectorIndian Airlines

Mr T.S. ChandrasekarDeputy Managing DirectorIndian Airlines

Maharana Arvind Singh MewarChairmanHistoric Resort Hotels

Mr Nakul AnandExecutive DirectorHotel OperationsITC Hotels Ltd

Ms Nandini VermaVice PresidentCorporate Affairs andPublic RelationsJet Airways

Mr Vivek NairVice Chairman andManaging DirectorHotel Leelaventure Ltd

Mr P.R.S. OberoiChairmanThe Oberoi Group

Mrs Ragini ChopraVice PresidentBusiness Development andCorporate CommunicationsThe Oberoi Group

Mr Uttam K. BoseChief Executive OfficerSahara Airlines Ltd

Mr Alok SharmaVice PresidentCorporate Strategy andCommercialSahara Airlines Ltd

Mr Arjun SharmaManaging DirectorSelect Holiday Resorts

Mr Himmat AnandCEOSita World Travel

Mr Ajoy MisraSenior Vice PresidentSales and MarketingThe Taj Group of Hotels

Ms Beate HK MauderVice President – MarketingThe Taj Group of Hotels

Mr Ashwini KakkarCEO and Managing DirectorThomas Cook India LtdMr Sunder G. Advani

Chairman and Managing DirectorAdvani Hotels and Resorts India

Mr J.N. KatgaraCo-DirectorTravel Corporation (India) Ltd

WTTC TEAM

Mr Jean-Claude BaumgartenPresident

Mr and Mrs Yogesh ChandraSecretary General, WTTC India

Ms Marianne Thompson-HillDirector

Ms Joanne Fox-MillsExecutive Assistant

Ms Ritu ChatrathWTTC India

CONSULTANT

Mr Suhel SethCEOEquus Advertising Ltd

The Civil Aviation Policy

The Working Group

Mr K Roy PaulDr Nasim Ahmad ZaidiMr Alok SharmaMs Nandini VermaMr Prithviraj Chavan MPMr Vir SanghviMs T S Chandrasekar

Rapporteur

Mr V Subramanian

Conclusions and Recommendations

1110

Mr Yogesh ChandraSecretary GeneralWTTC India Initiative

The privatization of airports hadbeen identified at the Agra Retreatas an essential step to tourismgrowth. Mr Chandra requestedthat this item should be carriedforward at Goa.

OBSERVATIONS BY:

Mr V SubramanianAdditional SecretaryMinistry of Civil Aviation

The WTTC could provideinformation on the followingthree issues:

! A report comparing air faresand taxes in India with those ofcompetitive markets.

! An analysis of the liberalizationof aviation policies and howthese effect tourist arrivals.

! A study of the pattern of huband spoke operations in largecountries with significanttourism activities.

RECOMMENDATIONS

! In order to enable airlines toplan schedules for the peakseasonal foreign tourism traffic(November – February) theliberalized policy for grantingcapacity should continue.

! In order to achieve a targetgrowth of between 5% and 9%of tourist traffic, an apex bodyshould be set-up to representevery area of the industry. Aswell as representatives from theprivate sector, this body shouldinclude the Ministries of CivilAviation, Tourism, Finance,Commerce and Petroleum.

! Transport facilities should becreated at every airport tofacilitate the transfer ofpassengers between domesticand international terminals.

Mrs Rathi Vinay JhaSecretaryMinistry of Tourism

!!!!! A queue management systemshould be put in place. Thiscould involve separating queuesinto domestic and foreignpassport holders.

! New Uniforms had beendesigned for immigrationcounter personnel. The Minis-try of Home Affairs shouldensure that these were worn.

! The observations/recommen-dations made by the workinggroup should be taken up withthe Ministry of Home Affairs.

! The state imposed sales tax onAviation Turbine Fuel (ATF)should be rationalized. It shouldbe re-categorised as ‘declaredgoods’ and subjected to acapped limit of 4% rather thanswinging between 25% and 39%as is the present situation.

! Domestic travel tax (15% -introduced in 1992 during theGulf War) should be abolishedin an attempt to bring down thecost of travel.

! Airfields that are located closeto important centres of tourismshould be activated.

The Working Group

Mr PRS OberoiMrs Radha BhatiaMr BJ Panda MPMs Shobha DeMr Vivek NairMr Ajay PrasadMr Amitabh Kant

Rapporteurs

Mr Runeep SanghaMr Nakul Anand

RECOMMENDATIONS

! Identify tourism source marketsto be included for visa uponarrival. The list should include,amongst others, all EECcountries, USA and Canada,Switzerland, Norway, Japan,Singapore and China.

! The existing immigration staffshould comprise qualitypersonnel who provide acourteous service and awelcome orientation to arrivingpassengers and tourists.

! The immigration inspection fordeparting passengers should beabolished.

! In order to decongest thearrival hall, there should be afast-track-clearance system forreturning Indian Residents andFirst and Business Classpassengers.

! An electronic advance visaprocessing system should beintroduced to avoid the need toprocure a visa prior todeparture for India. This wouldresult in faster clearance byimmigration authorities onarrival of tourists in India.

Conclusions and Recommendations

12

Liberalizing The Visa Regime

The present system limits tourismpotential and creates hasslefor visitors.

Competing destinations offerfree visas.

AGRARECOMMENDATIONSThe following targets were setat the Agra Retreat:

! Visa on arrival -16countries (December 2002)-Additional countries(March 2003).

! 72 hour visa as per laiddown criteria

! High speed immigrationcheck out for returningresidents to decongestarrival halls.

! Faster issuance of visaabroad – within oneworking day/improve staffstrength.

! Deploy Tourism friendlyImmigration Cadres.

At the Goa Retreat it wasnoted that no significantprogress had been made in anyof the above areas since theAgra Retreat.

13

Mr K Roy PaulSecretaryMinistry Civil Aviation

! The Home Ministry shouldsend study teams to visitselected countries to researchways of improving facilities inIndia. The Deputy PrimeMinister has personallyasked the Home Ministry toexpedite this.

! A number of measures tofacilitate the visa system havealready been introduced.However, they are slow, partlydue to the fact that the localpolice handle this. Cadresunder Home Ministry shouldnow handle the whole process.

! The immigration personnelshould be equipped with thelatest developments ininformation technology.

! Smart cards should beintroduced for regular/frequentpassengers to avoid them beingsubjected to the officialprocedure every time theytravel.

OBSERVATIONS BY:

Mrs Rathi Vinay JhaSecretaryMinistry of Tourism

! Separate counters/queuesshould be introduced at allinternational airports for foreignvisitors and returning residents.

! The immigration personnelneed to have a smart andtourism-friendly image.

1514

Conclusions and Recommendations

The Working Group

Mr N K SinghMr Ashwani Kumar MPMrs Margaret Alva MPMaharana Arvind Singh MewarMr Vikram Madhok

Rapporteurs

Mr Himmat AnandMr Ajoy Misra

RECOMMENDATIONS

! Prioritize six or seven importanttourist areas for intensiveinfrastructure development.Government/private sectorinvestment should be concen-trated in these areas untilinfrastructure reaches interna-tional standards.

! A systematic ‘Clean India’campaign should be launchedwith political and media back-ing. It should be a grass rootsmovement designed to fulfill aprimary Municipal function.

! A percentage of the nationalearnings from tourism shouldbe set aside for infrastructureimprovement.

! India has embarked on anambitious programme for thedevelopment of its highways.Tourist support facilities shouldbe provided along these routes.

OBSERVATION BY:

Ms Bachi KarkariaEditor-in-ChiefMid-Day Multi Media

! Each Council Member shouldtake responsibility for thedevelopment of the infrastruc-ture in a specific area. Forexample, Thomas Cook couldlook after Mumbai Airport.

Creating Better Infrastructurefor Overseas and DomesticTourists

Mrs Rathi Vinay JhaSecretaryMinistry of Tourism

! International signage isinsufficient at places of tourisminterest. This is particularly trueof airports, national highwaysand monuments.

! In an attempt to start their owntourist trains, the States ofMaharashtra and Karnataka arejoining forces with existingrailway companies, like thePalace on Wheels in Rajasthan.Other similar ventures shouldbe encouraged as they providea means for developing andpromoting rail travel in India.

Mr Amitabh KantJoint SecretaryMinistry of Tourism

The Indian Railways shouldmodify their policies to enable thefollowing:

! An increase in tourists trains.The possibility of allowing theprivate sector to operate oncertain routes should bediscussed.

! Improved infrastructure ontrains, such as catering,ayurvedic treatment, massageand entertainment.

! Tour operators/travel agentsshould be able to access theRailway reservations system andsell railway tickets.

Mr V SubramanianAdditional SecretaryMinistry of Civil Aviation

Entry fees to national monumentsshould be increased to cater fortheir maintenance and for thedevelopment of the infrastructurearound them.

1716

Conclusions and Recommendations

The Working Group

Mrs Rathi Vinay JhaMr Satish JacobMr Amitabh KantMr Lalit Suri MPMs Seema GoswamiMr Jehangir N KatgaraMs Bachi KarkariaMs Shobha DeMr Sunder G. AdvaniMr Zom Hranga

Rapporteurs

Mr Vikram MadhokMs Ragini ChopraMs Beate HK Mauder

RECOMMENDATIONS

! The Ministry of Tourism hasalready embarked uponpromotion of ‘Brand India’ inthe electronic, print andinternet media. The industryshould be encouraged to matchgovernment spending on thepromotion of Brand Indiaabroad with a minimum of atleast 20% of the budget.National as well as privatecarriers should contribute tothis fund.

! We need to showcase BrandIndia through InternationalFestivals. This proved a verysuccessful system in promotingthe image of India twentyyears ago.

The Marketing of Brand Indiawith Specific Target Segmentsand Destination Marketing

! A Task Force should be set upto identify unconventionalmeans to promote Brand India.

! It is recommended that anadvisory board be set up to giveoverall direction and to act as anInternational BrandAmbassador.

! The Secretary of Tourism, whowas part of this Working Group,will constitute a Task Force thatwill focus on theimplementation of theserecommendations.The Task Force will alsoidentify unconventional meansto promote Brand India.

The Working Group

Mr Chandan MitraMr Amitabh KantMr Rabindra SethMrs Rathi Vinay JhaMr Ajay PrasadMr Jean-Claude Baumgarten

Rapporteur

Mr Harish Gupta

RECOMMENDATIONS

! The Crisis Management Group(CMG) should meet at leastonce a quarter so that they areequipped to anticipate, as wellas to actually handle, any givencrisis.

! Past experience has shown thattraffic from America, Europeand Japan tends to be dramati-cally affected by any crisis.India has to aggressively explorenew markets in South East Asia,SAARC, China, East Asia,Middle East, South Africa andAustralia.

! India is a large country, whichmeans that tourist traffic can bediverted to alternative places inthe country in the event of acrisis in any one part or region.

! In addition to the Buddhistcircuit, other places ofpilgrimage should also bedeveloped.

! Aggressive marketing should beused to attract business tourism,for which the infrastructurealready exists.

! A special cadre of tourist policeshould be created. Some Stateshave already done this and allothers need to follow suit.

! Developed countries should bemade aware that traveladvisories affect the return tonormality after a crisis situation.In order to address thisproblem, the Government ofIndia should approach high-level officials within thecountries concerned andrequest them to be realistic andto avoid issuing unnecessarilynegative messages.

! International organizations, suchas WTTC, PATA, ASTA andWTO should devise a system ofcountering the negativeadvisories.

! The media in India should alsobe prevailed upon not toexaggerate local crises and blowthem out of proportion.

Crisis/OpportunityManagement in Tourism

Mr Ajay PrasadOfficer on special duty to theDeputy Prime Minister of India

I would like to congratulate the WTTCIndia Initiative for organizing this event atGoa. I found it a very rewarding experienceas it gave us an opportunity to interact withthe professionals in the industry,media and the Government. Therecommendations that emerged provide avery useful roadmap for all of us to follow. Iwish the initiative every success.

Mrs Rathi Vinay JhaSecretaryMinistry of Tourism

I thought this second Retreat was acontinuing dialogue between partnersinterested in taking tourism forward.

In comparison to the last Retreat, I felt thatthere was more openness and a betterunderstanding of issues, as well as a strongercommitment to follow up.

Mr Satish JacobForeign EditorWorld Report

The discussions at the Retreat are a clearindication that the Captains of the industryand the officials of the Indian Governmentare not just aware of the problems, but thatthey have also clearly indicated that thingsare moving forward. Such meetings willeventually enhance the efforts to make thetourism industry one of India’s major moneyspinners.

Dr Sanjay BaruChief EditorThe Financial Express

This event was unique in the sense that Ihave, for the first time, experienced ameeting that brings together Government,business, politicians and the media for twodays to mix business and pleasure - both ofwhich were taken seriously. It has been aninteresting experiment.

Mr Himmat AnandChief Operating Officer (Inbound)Sita World Travel

I am extremely satisfied with the progressmade by the WTTC and encouraged thatthe Travel & Tourism industry in India isworking together to bring about positivechanges.

Mr Ajoy MisraSenior Vice PresidentSales & MarketingThe Taj Group of Hotels

The Retreat was very focused with a highlevel of participation. The consistent effortsof the WTTC India Initiative wereeffectively and positively summed up byMr N. K. Singh, Member, PlanningCommission.

Mr Nakul AnandExecutive DirectorHotel OperationsITC Hotels Limited

WTTC is the only forum that representevery sector of the industry. It also benefitsfrom its perception as a non-commercial andneutral body without any stake for personalgain.

Mr Runeep SanghaBusiness ManagerIndia & South Asia TravelNetwork & Suppliers RelationsAmerican Express Travel RelatedServices

At this second Retreat there was a markedimprovement in the reaction and interactionfrom the Government and Members ofParliament, which I consider to be a verypositive sign.

Mrs Radha BhatiaDirectorAmadeus India Private Limited

The Retreat was an improvement on Agraand was more positive and focused.

Mr Alok SharmaVice PresidentCorporate Strategy andCommercialSahara Airlines Limited

Represented by Members from every sectorof the industry, WTTC has certainly provedto be the right forum to move tourismforward. However, in future we should aimto strengthen our arguments on CivilAviation.

Maharana Arvind Singh MewarChairmanHistoric Resort Hotels

I believe that the Retreat was animprovement on Agra and that this waslargely due to consistent meetings to followup the Retreat objectives.

Mr Lalit Suri MPChairman & Managing DirectorBharat Hotels Limited

The Retreat has certainly helped to advancethe WTTC objectives of promoting Travel& Tourism. It was obvious from discussionsthat important policy makers were nowbecoming aware of the role of Travel &Tourism in changing national perspectives.

Points of View -- The Delegates

1918

Glimpses

The Group Photograph

Sitting: Seema Goswami, Maharana Arvind Singh Mewar, N.K. Singh, P.R.S. Oberoi, Shobha De, Stefan PichlerJean-Claude Baumgarten, Margaret Alva MP, Lalit Suri MP, Bachi Karkaria, K.Roy Paul, Rathi Vinay JhaPrithviraj Chavan MP, Radha Bhatia, Marianne Thompson-Hill, Vandana Chandra

2nd Row: Yogesh Chandra, Ragini Chopra, Nandini Verma, Runeep Sangha, Amitabh Kant, Chandan MitraRabindra Seth, Satish Jacob, Ajay Prasad, Harish Gupta, Syed Nasim Ahmad Zaidi, Ankur Bhatia, Beate HK MauderV. Subramanian, Ashwini Kakkar, Vivek Nair, Suhel Seth, Nakul Anand

3rd Row: Sunder Advani, Vikram Chandra, Himmat Anand, Zom Hranga, Ashwani Kumar MP, Vikram MadhokJ.N. Katgara, Ajoy Misra, T.S. Chandrasekar, Vir Sanghvi, Alok Sharma, Joanne Fox-Mills, Ritu Chatrath

20

WTTC: TheProgress Achieved

SECTION

24 25

Concluding Remarks The Union Budget 2003/04

TOURISM, IN ADDITION TO GENERATING INCOME,IS ONE OF THE MOST EFFECTIVE EMPLOYMENTCREATING SECTORS. TO PROVIDE A SET OFINCENTIVES TO THE INDUSTRY, THE FOLLOWINGPROPOSALS WILL BE IMPLEMENTED:

I AM HONOURED TO HAVE BEEN INVITED TO GIVETHE CONCLUDING REMARKS AT THIS PRESTIGIOUSRETREAT. I WAS DELIGHTED TO PARTICIPATE IN THEWTTC AGRA RETREAT AND I AM ENCOURAGED TOSEE THAT, LIKE ME, SO MANY OF YOU HAVERETURNED FOR THIS SECOND EVENT.

Those of you from the private sector must be wondering whetherthere has been any progress between the Retreat at Agra and nowat Goa. In other words, are we getting any closer to putting Travel& Tourism on the Economic Agenda of the Nation?

Let me tell you clearly that your time andefforts have not been wasted. The Travel& Tour ism industry has benefitedenormously from these events. Bringingtogether select people from Parliament,the media, the Government and theindustry for such intensive brainstormingmeetings has served to convince policymakers of the economic importance oftour ism as a creator of wealth andemployment opportunities. It has raisedawareness within the Government of theimmense possibilities inherent in the sector

and of the need to change a number ofpolicies in order to address the compellingissues that have been outlined duringthese meetings.

We must await the Budget which willbe announced in twelve days, on February28th to determine whether the highexpectations, which have been raised inindustry and elsewhere, can be fulfilled.

You will then be in a position to determinefor yourself whether you have hadadequate vindication of your efforts.

1. Withdraw expenditure tax;

2. Extend the benefit of Section 10(23G)to financial institutions that advancelong-term capital to hotels inthree-star and above categories;

3. The benefit of set-off of unabsorbedloss and depreciation on amalgamationwill henceforth be available to hotelsunder Section 72A of the IncomeTax Act;

4. Continue the exemption for the hotelindustry from the levy of service tax;

5. Reduce basic customs duty onimported equipment for ropewayprojects to 5 per cent without paymentof CVD and SAD.

It is our hope and expectation that theStates, on their part, will now give acommensurate boost to the tourismsector by abolishing the luxury tax thatthey charge.

AIRPORTS

In addition to the existing initiatives forthe leasing of major airports, as well as thesetting up of two private airports inBangalore and Hyderabad, it has now beendecided to take up the Delhi and Mumbai

airports, as the principal hubs of interna-tional travel to India, for modernizationto international standards. Two separatecompanies will be formed with initialequal equity participation from theAirports Authority. These two compa-nies could also take joint venture partners.On completion, the management will beleased out.

CONVENTION CENTERS

To redress the lack of convention centresof international standards in the country,the Government will enable the establish-ment of two such centres throughpublic-private sector partnership; with theGovernment covering the viabilityfunding gaps only.

PROMOTING INDIA:INDIA DEVELOPMENTINITIATIVE

An initiative to promote India as both aproduction centre and an investmentdestination, called ‘India DevelopmentInitiative’, shall be established in theMinistry of Finance, with an allocation ofRs. 200 crore for 2003-04. This initiativewill also leverage and promote ourstrategic economic interests abroad.

MR N. K. SINGHMemberPlanning Commission of India

Extracts from the Speech ofMr Jaswant SinghFinance Minister of India

The Srinagar RetreatThe Next Step

27

SECTION

THE RETREAT AT GOA WAS YET ANOTHER MILESTONEIN THE EFFORTS OF THE WTTC INDIA INITIATIVE. IT WASCLEAR FROM THIS EVENT THAT THESE MEETINGS HAVEBECOME A SUCCESSFUL MEANS OF RAISINGAWARENESS OF THE CRUCIAL ROLE THAT TRAVEL &TOURISM PLAYS IN THE INDIAN ECONOMY –PARTICULARLY IN TERMS OF ITS ECONOMIC IMPACTAND ITS POTENTIAL FOR JOBS.

As aptly summed up by Mr N. K. Singh, (Member, Planning Commissionof India) these meetings are now recognized as important forums forpromoting the cause of Travel & Tourism. The WTTC India Initiativewould like to thank everybody involved for devoting their time todiscussing with us the future of Travel & Tourism in India.

WTTC is delighted and encouraged tohave been associated with the positiveannouncements made during the 2003/04 Budget. We would like to take thisopportunity to congratulate the FinanceMinister of India, Mr Jaswant Singh, for hisprogressive outlook.

Our mission is to raise awareness of theeconomic and social contribution of Travel& Tourism and to work with governmentson policies that unlock the industry’spotential to create jobs and generateprosperity. The WTTC ‘Retreat’ hasproved to be an excellent forum for debateand this report provides a comprehensive

record of the Conclusions andRecommendations made in Goa. Thesesuggestions are intended to help removebarriers to the sustainable development ofthe industry for the benefit of everyone.

The next WTTC India Retreat will beheld in Srinagar from 6 – 7 September2003. We hope that this will give us theopportunity to further spread our messageand to tackle some of the outstandingissues that continue to stand in the way oftourism development. We are delightedto announce that the Srinagar Retreat willbe hosted by Mr Lalit Suri at the HotelGrand Palace.

YOGESH CHANDRA

Secretary General

World Travel & Tourism Council India Initiative

© 2002 WORLD TRAVEL & TOURISM COUNCIL

1-2 Queen Victoria TerraceSovereign Court, London E1W 3HAUnited KingdomTel: +44 (0) 870 727 9882 or +44 (0) 207 481 8007Fax: +44 (0) 870 728 9882 or +44 (0) 207 488 1008Email: enquiries@wttc.orgWeb: www.wttc.org

Yogesh ChandraSecretary General

Ritu ChatrathExecutive Assistant

D-56 Malcha MargChanakyapuriNew Delhi-110 021, IndiaTel: +91 11 2410 9745Fax: +91 11 2410 8464Email: rchatrath.wttc@starith.net

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