CHAIRMANS
Friends,
It gives me great pleasure to share your companys performance, in the year under
review, with you. While the rest of this report will share the micro perspectives, such as
the Companys growth in terms of numbers, footprints, internal efficiencies and
consolidation, I am more excited about the macro canvas. Let me tell you why:
Today, tourism is the most exciting tertiary sector and has a strong hold on the
economy. The sector contributes 6.23 per cent to the national gross domestic product (GDP)
and 8.78 per cent of the total employment in India.
India stands 42nd in the world ranking in terms of foreign tourist arrivals (FTAs) in
the country, according to a report titled 'Competitiveness of Tourism Sector in India with
Selected Other Countries of the World' by the Ministry of Tourism, India. The World Travel
and Tourism Council (WTTC) named India as one of the fastest growing tourism industries
for the next 10 to 15 years.
India has also developed as one of the world's most cost-efficient medical tourism
destinations and is anticipated that the Indian medical tourism market will register a
compound annual growth rate (CAGR) of 27 per cent during 2011-15, as per a RNCOS report
titled 'Booming Medical Tourism in India'.
The amount of foreign direct investments (FDI) inflow into the hotel and tourism sector
during April 2000 to January 2013 was worth US$ 6,561.78 million, as per data provided by
the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce.
FTAs have shown a growth of 2.8 per cent in March 2013 over March 2012 while the growth
rate in Foreign Exchange Earnings (FEEs) from tourism stood at 21 per cent over the same
period in rupee terms. FTA during March 2013 was recorded at 640,000 as compared to
623,000 during the month of March 2012.
The Visa on Arrival (VoA) Scheme of the Government of India has registered a growth of
54.6 per cent in February 2013. A total number of 1,947 VoAs were issued last month as
compared to 1,259 VoAs issued in February 2012.
Positive government intervention
All these achievements, enlisted above, would not have been possible without positive
government intervention in the country. The Ministry of Tourism, Government of India, has
consistently been working on improving India as a prime destination for tourists. It
further aims at promoting various Indian tourism products vis--vis competition faced
from various destinations and to increase India's share of the global tourism market.
The Government of India allows 100 per cent foreign direct investment (FDI) in the
hotel sector on an automated basis.
The allocation for Ministry of Tourism in the Union Budget 2013-14 has been increased
by Rs 87.66 crore (US$ 16.03 million) to Rs 1,297.66 crore (US$ 237.23 million).
Moreover, the Indian companies in the hotel sector, with a total project cost of Rs 250
crore (US$ 45.70 million) or more, irrespective of their geographical location, have been
allowed to tap the external commercial borrowing (ECB) route. The maximum ECB by an
individual company or group, as a whole, has been restricted to US$ 3 billion.
Foreseeable future
I have my reasons as to why the industry in which your company operates is poised for a
gigantic leap. The tourism sector can be considered as the backbone for allied sectors,
like hospitality, civil aviation, and transport. Domestic tourism is very huge in the
country, promoted by various intents. Pilgrim and leisure tourism are two very important
sectors.
The Ministry of Tourism has also played an important role in the development of the
industry, initiating advertising campaigns such as the 'Incredible India' campaign, which
promoted India's culture and tourist attractions in a fresh and memorable way. The
industry has been witnessing an upswing for the last few years partially due to an
excellent 'Incredible India' campaign and is expected to increase up to US$ 431.7 billion
by the end of 2020.
On the other front, India has the potential to develop the rural tourism industry. This
can benefit the local community economically and socially, and enable interaction between
tourists and locals for a mutually enriching experience.
In this exciting scenario and at the cusp of unprecedented growth is Country Club.
Having undertaken intensive consolidation activities internally, its basket of hospitality
offerings has also been consolidated to make it a one-stop solution provider of organized
leisure and entertainment. Efforts are conscientiously on to increase our operational
efficiency, minimize overheads, strengthen services, expand footprints and generally
increase returns to our stakeholders.
As I say to all our members, "Why go anywhere else?"
Y Rajeev Reddy