Infrastructure or Marketing? What First?

Budget 2025 has earmarked a meagre Rs 3 crores for marketing and Rs 2541 crores for infrastructure building

Incredible India, how Incredible can she be? Well, it would seem, wonders will only add on, not get any less. The latest Incredible fact around India, is that we have an annual marketing budget of just Rs. 3 crores! Yes, that’s true. You may choose to put a few exclamation marks after the figure, hoping it will add up to something more substantial. But the figure for the present rests, at this handsome figure of a meagre 3 crores.

It looks it is meant to be a token figure, meaning it cannot be zero. You have to mention a figure. For sure, the number 3 does look better than a zero. There is however, an understanding, one must mention, that the Ministry of Tourism can always ask for more money, on a case-to-case basis, depending upon their specific marketing needs, which are the usual activities like participation in a trade fair, or some such activity. Effectively, it means the MoT is not tasked to spend money on its own. It needs to get approvals, submit full proposals and get consent.

Effectively again, our marketing effort over recent years has come down from being a hero to zero, even though we may have 3 crores, which is not zero. Just about 25 years ago, when India got rebranded as a tourism product, it had then become the talk of the global industry – with its Incredible India campaigns. It cornered many an international award, year on year, it became an international yardstick for measuring branding and its success. Of course, that was a different era, when the global tourism industry had been impacted with 9/11 attacks, when the world did not know if they would ever travel again, such was the scare at that time.

What comes first? Infrastructure or Marketing?

Even then, around that time, there was a debate within the corridors of the Ministry, as to what should come first? Marketing or enhancing the product. The then minister for tourism, the late Jagmohan, was of the opinion that product enhancement was an essential precursor to any relevant and meaningful marketing. Some of the officers in the ministry thought differently. They said, we must market what we have, honestly, and truthfully. All of a sudden came the tragedy around 9/11 and the requirements changed overnight. The rest is history, as we made substantial gains, all through a concerted marketing effort.

Or, should marketing and building upon infrastructure go hand in hand, keep selling as we build, transparently? Are we losing out in current times, as being absent from global markets, losing out on tourists who may be willing to visit us, if only given a reminder. We have traditional source markets, where post covid many changes have taken place in the travel trade. There are new people out there, who need to be called upon, briefed on Destination India. It is also pointed out, increasing global competition is making the final choice of destination difficult. It is simply not that we will get them, at the drop of a hat, the world is not waiting to come to India – global tourists have been spoilt with choices. We will need to solicit their business.

New markets are on the horizon, especially with new capacity deployed by Indian carriers. There are a number of new airlines connecting India, offering new connectivity like never before. Should these be given traffic rights to newer ports of call in India, to open lesser exposed parts of India with direct connections? Therefore, are we losing precious time? We are not house full, exactly, even now. There is ample capacity to market and sell, especially to higher paying clients.

Government goes full throttle on infrastructure building

Presently, this could be one definite perspective on India’s tourism narrative. That we need to focus on Destination India providing a first class, globally competitive, international experience. Which we indeed are well on way to achieving. Infrastructure First, is a big imperative for Indian tourism to play the catch-up game. To this end, this budget and the government’s efforts in the last ten years, have been directed towards infrastructure upgrading, comprehensively and most compellingly. Whether it be airports, focus on strengthening Indian airlines, easing of visas, roads, wellness tourism, and not to forget, revamping convention facilities, like in Delhi, with two most ambitious projects – total turn around of Pragati Maidan into Bharat Mandapam and the new greenfield project at Dwarka. Between the two, the capital can host a large international gathering of 25,000 plus delegates, or even more. We only need to market the MICE proposition; we have done wonders on this front already.

Our bold plans for UDAAN 2.0 with opening of more airports will provide an amazing opportunity for tourism, not to forget ease in travel for business and commerce. We have created more connectivity in the last ten years than we did in the fifty years before then. That is an ‘Incredible’ achievement, that cannot be overlooked. So is our achievement in roads – so, innumerable last mile connectivity has been provided, new 4/6/8 lane highways that provide effortless rides on tolled highways. Not only travel time has been reduced, journeys have become holidays in themselves.

As a country, we have shied in creation of new tourism products. For our size and diversity, we should be adding a new 50 every year, big or small, and market them to the domestic and international markets. But what the government has envisaged is 50 new destinations, not just products, of international standards, in tandem with state governments, with hotels getting infra status that would enable them to claim substantial sops as they invest in the infrastructure needed for these 50. If we have a time line for these, closely monitored, with most active private industry participation, we can easily have a winner here. The problem here is that of implementation. Many a pious intention to create circuits and destinations have produced castles on paper. One can recall, 12 model destinations as a project by the then central government, when the late Madhav Rao Scindia was the tourism minister. The devil is often in the detail, in this case, in effective implementation in a time bound manner. And, more importantly, the final choice of these destinations must not be left to be decided within government – these must not be politically expedient, but tourism friendly holding promise as being global destinations, built around Incredible landmarks, of which India has in plenty.

What is noteworthy is that the budget has earmarked an impressive Rs. 2940 crore for infrastructure support with a provision of an additional 6000 crores. Combined with private sector investments, this would become a formidable figure, considering that land should be free, as the state government contribution!

Are we action ready? What will we market and how?

But coming back to the present needs for marketing, where are we positioned today? How ready are we, assuming we did have the funds to market. Some years ago, we closed down all our marketing offices overseas. At that time the logic was that these were ineffective, not manned by efficient people, did not produce adequate results, were a waste of national resources. We closed them down, saying we will find alternate routes, like appointing representations that would cost less and perhaps yield more. There was also talk of appointing tourism sales officers in Indian embassies – there was inadequate clarity, one gathers, as to who would appoint them, who will pay for them? But by all accounts, none of this has seen any significant movement on the ground.

What will we sell? Do we have a campaign ready to release? Do we have creative agencies ready to build a new set of narratives that are more contemporary? If one can recall right, the last set of creatives were made in 2017 – that’s a long time ago, for sure. India has moved on, in all terms, both in terms of its image, its infrastructure, its offerings to the global traveller, so much so, we will need a new vision and perspective to sell the destination. Overall, do we have agencies empanelled? On what basis will we move forward, given the strict checks and balances we now have in government.

Domestic is King and more!

In the major and notable developments since Indians started travelling after Covid, domestic has become king. Like it should have been. One has always looked at the US as our market to look at, emulate and learn from. Given the size, the diversity, the complexities, it is the domestic that should be the base of the tourism ‘plant’. In India, for years, it was the opposite, it was the foreigner, and for good historical reason. That is a deeper and quite another subject, but the fact is that domestic is more reliable, it is the customer next door, does not need much cajoling, no visas, no marketing. India has now achieved that critical mass to say the domestic has arrived, we can fall back upon our own tourists. So much has been the excess demand, that the supply side of hotel rooms has become limited. Happily, in most tourist cities, domestic is not just king, it is adequate, both in numbers as well as in spending power. Ironically, in many cases, the Indian is paying more than an average inbound tourist group! But as said earlier, there is room for more, even at present. Year-round hotel occupancies are still less than 70%, which means we can accommodate more business.

The Marketing Exercise? The Modalities?

Now, then, what about the marketing effort? There, too, there are whispers that the ‘real’ powers that be, may have reasons to believe that not all has been above board while MoT has been looking at advertising opportunities. Very often, bona fide of chosen agencies was found to have undesirable links; others saw it as a cash cow and their efforts were nipped in the bud; at other times, the role of media advisors was questioned, as not being professional. In the process, rumours around past practices may have alerted the powers that be, to what was possible and what was not acceptable. If this be true, the decision was taken that only case by case permissions should be sought and permissions will be given. The net effect is that we do not have any campaign on hand, but one gathers efforts are on, to start a meaningful beginning.

In the early days, when ITDC was the sole agency to do business on behalf of the Ministry of Tourism, when the business of printing and advertising was opened to the private sector, there was initally a panel of handful of advertising agencies, just six to start with. It then ballooned to some 25 to 30, with inclusion of some of the biggest names in the business, and also a few who had favourites in government to get them included. At one stage, the entire panel was disbanded as being considered unmanageable. Presently, one gathers, we have a select panel of the professional biggies.

Which brings us to another question. What will we sell? What should India market to the world? Has Incredible India as a slogan outlived its shelf life, or will it garner that familiar zing about the destination. Or, Incredible India 2.0 or 3.0, whichever you want to call it, brings new elements, take off from where it last left, add new age propositions beyond the traditional? While Ayurveda and Yoga are most worthy propositions, there is the lure of weddings, for instance, sports events and such like.

How much should the private sector be involved? How much partnership can be achieved between industry and those planning this activity in the government?

These are questions that need to be debated and finalised. In the past, we have seen some degree of cooperation between the industry and government, through an agency like the Experience India Society. The creatives were prepared by Experience India Society, handed over to the Ministry which released them at government cost. Not very successful but it did make a start. In the past, too, we had an annual marketing conference between industry and overseas tourist offices that decided upon annual budgets to different markets. Our current times call for newer strategies, especially with the rise of social media marketing, as opposed to print which was then the dominant medium.

In fact, many of the industry players have made significant progress in social media outreach, primary among them being the online travel agencies. Both Indian and global online platforms give an unprecedented outreach, alongside real booking options. Rates are available online, transparently, giving an assurance of best rate guarantee. This has created a new level of confidence among the tourists, creating a new high in transparency while transacting business in India.

So, where does this lead us? GST rationalisation is a big expectation. This alone can bring a quantum jump in the business. So, while expectations remain high, so is the confidence within the industry. These are happy times, with hopes of still happier times!

Time for Big Bang Marketing Spree!

Is it time for a big bang marketing splurge, like a more contemporary version of a visit India year? Like a year-round promotion of All Things Indians? Interestingly, all our efforts in this direction in the past came to nought. Not one of the celebrations came to pass. Whatever be the history, it is time to work upon a celebration of the type only this government can. Like we did the G20 celebration, this would be a bigger effort where the centre and the states, all the ministries involved in the overall tourism product, the private sector and all enabling agencies that bring ease in travel, come together. A nation-wide effort that promotes both domestic and inbound tourism. It can celebrate the power and growing heft of the Indian traveller. Many of the events are already in place, like the annual IPL or the JLF, but these need to be wrapped within one single cohesive effort, bringing all them together under one single engagement. Not Visit, not Experience, not Immerse, but all of it, rolled into One.