IVIS Country Analysis – India

INDIA

272,161Arrivals in the United States

Gain of 14,890 over 2002, 5.8%

17.2% of all Indian Long-Haul Travel

-0.9% over 2002

SUMMARY

Total outbound travel from India was flat in 2003 (0.3%). Still, Indian outbound travel generated a record 2.7 million arrivals to destinations worldwide. Long-haul from India increased by 6.7 percent in 2003 over 2002. Indian arrivals to the United States also increased 5.8 percent over 2002. Because Indian arrivals to the U.S. at a slower rate than total long-haul travel from India, the U.S. market share (MSI) declined slightly (0.9%) to 17.2 percent of all Indian long-haul travel. After growing throughout the 90s, this was the fifth consecutive year that the MSI has declined, indicating that long-haul travel from India is growing faster than travel to the U.S. Still, travel to the U.S. from India has more than doubled in the past decade, from 102,339 arrivals in 1993 to 272,161 in 2003.

In 2003, India's real GDP expanded robustly at a rate of 7.0 percent over 2002, fueled by domestic demand. Real private consumption increased 7.7 percent year-over-year. Consumer prices rose by four percent in 2003, slightly slower than in 2002. India's commitment to a high-tech service economy is helping to drive its economic growth. Much of the world now out sources high-tech computer servicing to India's large and educated workforce.

The Indian rupee, which had been steadily losing value against the dollar and against other world currencies for more than a decade, reversed course in 2003 appreciating 4.3 percent against the U.S. dollar and six percent against other world currencies. Although total outbound travel was negatively impacted by SARS in the Asian region, travel to the U.S. benefited by the expanding Indian economy and currency in 2003.

With a market share of 20.6 percent in 2003, Dubai is the most popular country destination for long-haul travel from India. Kenya is second with 18.1 percent of the long-haul market, followed by the United States in third position with 17.2 percent of the long-haul Indian travel market. The next most popular long-haul country destination was Kuwait (15.8%), followed by the United Kingdom (12.7%), and Egypt (2.3%). Dubai, Kenya and Egypt all gained market share in 2003, while the other countries lost share.

Source: Global Insight

Undoubtedly benefiting from its close proximity to India, the Middle East was the most popular regional destination for Indian long-haul travel in 2003, garnering 38.4 percent of the market. Africa was the second most popular regional destination for this market (24.5%), followed by Europe with 19.5 percent. The United States, as a region, came in fourth with 17.2 percent. Among these regions, only Africa gained market share of Indian long-haul travel in 2003.

Source: Global Insight