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Tourism & Leisure Sector Reviews

Synopsis

Definition and scale of sector

Why the sector was chosen in the West Midlands

Tourism & Leisure Sector Review from UKTI

Leisure is currently one of the most exciting sectors in India. Though developing fast, the industry is still at an early stage of development. But with the increasing entry of some of the more established Indian entrepreneurs and corporate houses, the industry could be worth Rs 50,000 million (735 million) per annum within the next 2 - 3 years. The sector is already worth Rs 10,000 million (147 million) per annum.

Industry experts agree that the sector has great potential. Leisure consultants are experiencing a boom in demand for their services.

Cultural attitudes within India are changing. The increasing incidence of Cable TV is exposing the population to a wider range of leisure pursuits. And the idea of an annual family holiday/ pilgrimage to the home village is being overtaken by more frequent weekend visits to leisure facilities within and around the cities.

The current size of the consumer market for the leisure and amusement sector is estimated at 25 - 30 million. This reflects a middle upper class with a monthly disposable income in excess of Rs 5,000 (75). But with a population of 1 billion, 30% of which is under 20, and economic growth set to continue at 6% per annum, the number of consumers can only increase.

The sector is developing throughout India but the major projects are planned in the metropolitan cities, their suburbs and other major cities in Western and Northern India. The major cities in Southern states like Hyderabad, Bangalore, Mysore, Cochin, Thiruvananthapuram are also showing increased activity. However, projects in Eastern India are limited to Calcutta in West Bengal and Bhubaneshwar in the state of Orissa.

Interest in the leisure business is not limited to entrepreneurs. Consultants are beginning to focus on business prospects in the leisure industry.

Investment

Tourism & Leisure Sector Opportunities Review from UKTI

Opportunities

The Leisure and Tourism sector has huge potential but is under-developed and under-exploited. The sector is likely to grow by 300% per year over next 2-3 years, to be worth aproximately 735 million.

A 9 member scoping mission of cultural heritage and tourism industry experts from the UK visited Delhi, Bhopal, Kolkata and Mumbai in January 2003. The purpose of this mission was to identify potential opportunities for UK cultural heritage & tourism industry to work in India, demonstrate expertise available from UK and recommend future support for the UK. Opportunities exist in the following areas:

  1. Management Consultancy for the design and operation of resorts, theme parks, FECs, heritage hotels and museums.
  2. Education & Training in the hospitality sector.
  3. Export of small rides, video games, attractions both new and second-hand and critical components & parts for the manufacture of attractions in India.
  4. Technology transfer and joint ventures for manufacture of rides and attractions equipment.
  5. Design, architecture, furniture, fittings, software and hardware for multiplexes.
  6. Consultancy for the preservation of heritage properties/ sites, restoration, re-use and management of built heritage properties, sites and monuments.
  7. Consultancy/investment in the development of tourism infrastructure projects.

Development business opportunities span nearly every market in the world (only OECD member states, bar Mexico, Cuba and Korea, are excepted) and cover most sectors.

Aid-funded Business was launched in September 1998 in order to raise greater awareness of UK firms to the substantial opportunities that exist in aid-funded business. It also aims to help firms tap into such business, which emanates from the World Bank, the European Commission, the UN agencies and some bilateral development programmes.

Source: UK Trade and Investment

Sports and Leisure Infrastructure Sector review from UKTI

The Commonwealth Games are one of the major sporting events in the world. India has been awarded the right to host the 2010 Games. In addition to this, India is also planning to bid for the Summer Olympics 2016.

Delhi, the venue for Commonwealth Games is India's sports metropolis. The Government of India is planning towards a successful organisation of the games. The city boasts 10 venues that will be upgraded and renovated under a programme that centres around peak athlete performances and maximising spectator participation.

The Government will underwrite the upgrading of the existing facilities making them state-of-the art. Two new sports venues, which will host 3 sports events, have been planned. These will be 1 state-of-the-art Indoor stadium, and 1 Outdoor Stadium. The government has underwritten the construction of these two facilities.

UK has been a host for many such international sporting events and has much to offer, from the earliest planning stages through design and fit-out to event delivery and after-use, which India can benefit from. Most recently from the successful staging of the Commonwealth Games in 2002 in Manchester.

A scoping mission from UK Trade & Investment's Sports Infrastructure Advisory Group visited Delhi in January 2004 to highlight the range of British expertise in mounting a major sporting event. The visit fostered co-operation between the UK and Delhi by demonstrating at the highest level possible, the UK's capability in Sports and Leisure Infrastructure projects and how knowledge gained from Manchester Games in 2002 and elsewhere can assist Delhi.

Sports and Leisure Infrastructure Opportunities Review

Opportunities

  1. Consultancy for design/upgradation of stadias and various sports facilities in the country.
  2. Training of Indian coaches and sportsmen in sports such as Boxing, Yachting, Throws - middle and long, Boxing, Badminton, Baseball, Squash, Rugby, etc.
  3. Export of sports goods such as yachts, ammunitions for shooting, archery sets, synthetic tracks for athletic fields, fitness equipment, dope laboratory equipment, etc.
  4. Consultancy and training of Indian coaches in sports psychology and sports science, etc.

Development business opportunities span nearly every market in the world (only OECD member states, bar Mexico, Cuba and Korea, are excepted) and cover most sectors.

Aid-funded Business was launched in September 1998 in order to raise greater awareness of UK firms to the substantial opportunities that exist in aid-funded business. It also aims to help firms tap into such business, which emanates from the World Bank, the European Commission, the UN agencies and some bilateral development programmes

.

For further details of these opportunities please see the Aid Funded Business web pages.

Source UK trade and investment

Leisure and Tourism Market in India from IBPN

India Overview
Britain Overview
Theme parks & attractions
Sports goods & Services

India Overview

India received 3.37 million tourists in 2004 and the tourism industry in India generated revenue of $4.8 billion. UK was the second largest source of tourist arrivals in India with 459,206 tourists during the year accounting for 13.6% of the tourist traffic. The number of Indians traveling abroad also grew by 14.8% reaching a figure of 6.2million. The Domestic tourism in India saw a record 367.6 million domestic tourists up 19% over the previous year. World Travel and Tourism Council estimates total capital investment in travel and tourism in India in 2004 to be 2004 to be $10.2 billion or 7.2% of the total investment in 2004. It is expected to increase to $21.4 billion or 7.8 of the total investment in 2014.

The economic reforms introduced by the Government of India are integrating India into the global economy and making Indian industry internationally competitive. Foreign direct investment and technical collaborations form a major platform of the economic reforms. With a view to attraction investment in this sector the Hotel and Tourism related industry has been declared as a 'high priority industry' for foreign investment. 100% FDI is permissible in the sector.

The term hotels include restaurants, beach resorts, and other tourist complexes providing accommodation and/or catering and food facilities to tourists. Tourism related industry includes travel agencies, tour operating agencies and tourist transport operating agencies, units providing facilities for cultural, adventure and wild life experience to tourists, surface, air and water transport facilities to tourists, leisure, entertainment, amusement, sports, and health units for tourists and Convention/Seminar units and organisation. Automatic route is also available up to 51% subject to the following parameters. For foreign technology agreements, automatic approval is granted if;

The above norms are applicable provided the collaboration is proposed with companies running/managing hotel(s) with at least 500 rooms. No permission is now required for hiring foreign technicians

Infrastructure Market in India from IBPN

Sector Overview (India)
Government Initiatives
Projects
Opportunities
Sector Overview (Britain)
Construction
Ports & Logistics
Railways
Airports

Sector Overview (India)

The infrastructure sector in India has seen impressive transformation in the last few years - more significant in some sectors (such as telecom, roads and highways) than in others such as ports, airports, railways etc. The most important development in the sector has been the steady progress in privatization, though not without bottlenecks and policy debates over the extent and content of the same.

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