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India As a Global Conventions Destination Prospects & Strategies

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India As a Global Conventions Destination Prospects & Strategies IIMB-ICPB Study for Ministry of Tourism, Government of India India as a Global Conventions Destination Prospects & Strategies Study to Quantify the Size, Scope and Economic Impact of India’s Convention Industry Indian Institute of Management Bangalore ACKNOWLEGEMENTS We acknowledge the support received from officials of the Ministry of Tourism and members of the India Convention Promotion Bureau (ICPB) who helped us throughout this study. Our sincere gratitude is extended to M/s. Kaushal Joshi, Ajay Gupta, Rajeev Kohli, Shyam Nagpal, R.M. Puri, Chander Mansharamani, Capt. Swadesh Kumar, Ms. Nidhi Berry and Ms. Vanita Saxena. We also wish to thank distinguished members from professional communities in the conventions industry including PCOs, tour operators, and managers in the hospitality & travel industry, for sharing their experiences and expertise with us. Participants in our surveys provided us valuable insights and we appreciate their help. Members from various Industry associations and organisations, viz. NASSCOM, CII, FIEO, IDFC, and International Convention and Visitors’ Bureaus have shared their valuable inputs. Several individuals helped us develop case studies through extensive discussions over phone, email and in-person. We appreciate their commitment and support. (1) Table of Contents 1 INTRODUCTION ....................................................................... 10 1.1.1 Objective....................................................................................................................................... 10 1.1.2 Definitions applicable for the Study........................................................................................... 11 1.1.3 Key Segments .............................................................................................................................. 12 1.1.4 Methodology................................................................................................................................. 12 2 THE WORLD CONVENTION MARKET ....................................... 18 2.1.1 Market Overview......................................................................................................................... 18 2.1.2 Emerging Trends......................................................................................................................... 20 2.1.3 Inviting Convention Business- the Process ............................................................................... 22 3 PROMINENT DESTINATIONS IN ASIA ........................................ 24 3.1.1 Singapore, Republic of Singapore............................................................................................... 24 3.1.2 Shanghai, Peoples’ Republic of China........................................................................................ 26 3.1.3 Kuala Lumpur, Republic of Malaysia ........................................................................................ 28 3.1.4 Bangkok, Kingdom of Thailand.................................................................................................. 30 3.1.5 Hong Kong (S.A.R.)...................................................................................................................... 33 3.1.6 Seoul, Republic of Korea ............................................................................................................. 34 3.1.7 Jakarta, Republic of Indonesia................................................................................................... 37 3.1.8 Highlights from Asian Destinations........................................................................................... 38 (2) 4 PROMINENT NON -ASIAN DESTINATIONS ................................. 40 4.1.1 Vienna, Republic of Austria........................................................................................................ 40 4.1.2 Frankfurt, Federal Republic of Germany .................................................................................. 42 4.1.3 Paris, Republic of France ............................................................................................................ 44 4.1.4 Barcelona, Kingdom of Spain ..................................................................................................... 46 4.1.5 Geneva, Swiss Confederation ..................................................................................................... 48 4.1.6 Stockholm, Kingdom of Sweden ................................................................................................. 50 4.1.7 Other World Destinations........................................................................................................... 53 4.1.8 Highlights from Non-Asian Destinations .................................................................................. 53 5 THE INDIAN CONVENTIONS INDUSTRY .................................... 55 5.1.1 Market Overview......................................................................................................................... 55 5.1.2 Emerging Trends in the Country ............................................................................................... 55 5.1.3 Economic Impact of Conventions - The “Multiplier Effect” ...................................................... 58 5.1.4 Indian Cities and Market Potential ........................................................................................... 68 5.1.5 Key Convention Destinations in the Country............................................................................ 76 5.1.6 Case Studies from India.............................................................................................................. 88 5.1.7 Summary highlights from Case Studies and Interviews.......................................................... 96 5.1.8 Identifying Gaps- Infrastructure + Institutional + Regulations .............................................. 97 6 ICPB- FUTURE DIRECTIONS .................................................... 99 (3) 6.1.1 Review of Market......................................................................................................................... 99 6.1.2 Developing Convention Infrastructure .................................................................................... 101 6.1.3 Marketing Process and Organisation Structure- Action Plans.............................................. 108 6.1.4 Recommendations...................................................................................................................... 115 6.1.5 Conclusion.................................................................................................................................. 116 7 APPENDIX ............................................................................. 117 7.1.1 Average Conference Size (no of delegates)- market share of segments ................................. 117 7.1.2 List of Hong Kong Hotels- Conference Venues and Space availability ................................. 117 7.1.3 Case Study: Business Tourism in UK ...................................................................................... 120 7.1.4 Hotels and Convention Facilities (10 key destinations) ......................................................... 121 7.1.5 Questionnaires Used During the Study................................................................................... 124 7.1.6 Calculation of Domestic Market Size ....................................................................................... 134 7.1.7 Schedule of Luxury Taxes in the leading Destinations .......................................................... 134 7.1.8 Visa Fees and schedules............................................................................................................ 135 7.1.9 Air traffic across Indian Cities (top 10 Convention destinations).......................................... 136 7.1.10 Convention Facilities in Prominent World Destinations...................................................... 136 8 LIST OF TABLES .................................................................... 139 9 LIST OF FIGURES .................................................................. 140 10 REFERENCES ....................................................................... 141 (4) 11 END NOTE LIST ................................................................... 143 (5) EXECUTIVE SUMMARY The Ministry of Tourism (MOT) commissioned this research to the Indian Institute of Management Bangalore to understand the current scenario in the global and Indian conventions industry, to assess where India is currently placed within the global context, and to identify the opportunities as well as domestic constraints for the Indian conventions market. The study makes use of quantitative and qualitative analysis of both primary and secondary sources of information to highlight the key strengths and weaknesses of the Indian conventions industry, the current and potential impact of this industry on the economy, and to identify short and medium term measures that can strengthen this sector to improve India’s position in the global context and yield larger socio-economic benefits to the country. The study recommends a range of initiatives, involving financial, Infrastructural, organizational, administrative, and human resource aspects, which can be undertaken by government and relevant private stakeholders to develop India as a global conventions destination. Chapter 1 sets the background for the study by listing
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