India is now among the top 10 inbound travel markets for the US. Faced with an economic slowdown, the US is going all out to tap the India growth story. Joe D’Alessandro, president and chief executive officer, San Francisco Travel Association, in an interview with Ruchika Chitravanshi, talks about the way Indians travel, the latest tourism trends and visa and security concerns. Edited excerpts:
Given the economic slowdown in the US, how important is the Indian market to you?
For the US, and particularly for San Francisco, the Indian market has been very strong. In 2010, the US saw 650,000 visitors from India, half of whom came to San Francisco. So, it is significant for us. India is a market that is continuing to grow, even during an economic downturn. The US Travel Association estimates the Indian market would double, and we hope to make the most of it.
What are the changes in the profiles of the Indian traveller and the way Indians travel to the US over the past few years?
The numbers have been significant. It is a mix of leisure travel and meetings and conventions. The convention business is very strong for us. Also, the whole corporate and business travel is significant. An interesting feature we noticed about India was the length of the stay. The average length of the stay is 20 nights, one of the highest among any of our international markets. We are also seeing an increase in the number of people coming and staying in hotels. They come many times to visit friends and family, since we have a very large Indian population in the bay area. People may visit friends and family, but they choose to stay in hotels and for longer durations.
What are the other changes?
We are seeing a lot of repeat visitors. Of the total number of Indian visitors, 34 per cent were first-timers, while the rest were repeat visitors looking for experimental travel.
Are you taking any steps to address visa concerns that Indians face?
Our priority for growth of tourism in the US is to fix visa challenges in three primary markets---India, China and Brazil, since the situation is very similar in all these places. The process of applying for visas, having to personally appear for the visa interview, the time it takes to wait for an appointment— all these factors are hindering tourism. We are actively lobbying with Congress and the Obama administration, which have realised this is an issue which needs to be addressed. We read a lot about the budget deficit and this would require a lot of federal government resource. But the case we are making is that we need economic growth. International tourism is one of the fastest ways to get that growth.
The (US) President had recently gone to Brazil and indicated this. If the President is talking about it, then one can expect some action on it. We have seen improvement in the ability to secure a visa in the last two years. We hope we would see significant improvement in the next couple of years, especially in India.
Do you have any engagement with the Indian government to address any travel and tourism issues?
The Indian government's tourism sector here is interested in inbound travel to India, and vice-versa for us. If travel can take place both ways, and if better processes are put in place, it would benefit both the countries.
Are you entering into any tie-ups to promote San Francisco as a destination here?
We want to have direct connectivity to San Francisco and we would meet Indian airlines to make a business case on why it would be profitable for the carriers. We were the first US city to have a representation office in India four years ago. We are establishing relationships with wholesalers and tour operators to gain exposure in the Indian market and give San Francisco a top-of-the-mind recall.
Which are your top inbound tourism markets and how has that mix changed with the slowdown?
We have not been impacted negatively by the economic slowdown. Hopefully, this year would beat 2010 by almost 10 per cent. Yes, inbound markets have changed. Japan was our number one overseas market. It has fallen out of that place now. China and India have come to figure in our top-10 list, showing significant growth. The top ten markets include the UK, Japan, Australia, China, South Korea, Germany, France, India, Taiwan and Italy, in that order. Around 10 years ago, China, India and South Korea were not in the list of top-10 inbound-markets for the US. Between 2009 and 2010, India, as an inbound market for the US, grew 17 per cent.
How do security concerns hit the travel business?
After the 9/11 attacks a decade ago few days ago, the world had gone into a shock. People were afraid to travel, to fly. But the urge to travel overcame the fear over time. Although people became more cautious, worldwide travel is now at a historic high. Security has also changed and we have adapted to those issues.
How have macro-economic issues hit the costs of travel packages?
In 2008, the cost went down. But as the economy bounced back and yields on airlines increased, prices rose. Airlines have stopped unprofitable routes. Airlines can no longer fly empty aircraft, they have been quick to react. They discontinued services, brought in smaller planes. Our occupancy rate is 80 per cent, which is very close to our historic high.
