Insight

Eco-wise economics

Kerala is exploring newer avenues in its pursuit to be the most sought after destination world over. It has initiated several projects that take the eco-friendly route. Express Hospitality assesses Kerala

Tourism is serious business in Kerala, now synonymously called 'God's Own Country' after its successful promotional campaign. It has not only generated employment in the state, but has also enhanced productivity and brought about overall development. This was possible mostly on account of the government's policy that encourages public-private partnership.

Little wonder then that Kerala was awarded the prestigious Galileo Express Travel & Tourism award for Best State Tourism Board and Pacific Asia Travel Association (PATA) Gold Award in 2005 for its excellence and innovation in promoting tourism.

K C Venugopal, minister for tourism says that after establishing the state on the home front, the tourism department is looking towards new markets like Russia and China to build brand awareness. "This was possible after we formulated the Tourism Vision 2025 document, which serves as a guiding force for developing tourism in the state. It not only lays down guidelines for marketing, but also for conservation and sustainable development of tourism. Vision 2025 has helped us grow tourism in a planned and sustainable manner without affecting the fragile ecosystem and cultural fabric of the state," he says.

Success stats

Kerala has reportedly shown encouraging results if numbers are anything to go by. Available statistics till 2004 show that a total of 3,45,546 international tourists visited Kerala in that year, registering a growth of 17.28 per cent over 2003. The arrival of domestic tourists also increased from 58,71,228 in 2003 to 59,72,182 in 2004, registering a growth of 1.72 per cent.

Venugopal attributes this increased rate of arrivals to the time-specific, market-specific campaigns undertaken by Kerala Tourism. The state is now targeting a 10 to 12 per cent growth in international tourist arrivals and around five per cent growth in domestic tourist arrivals. It is also looking at a higher growth rate of 12-15 per cent in tourism revenue. "We will have to bear in mind that forex earnings from tourism can be optimised only if we can attract more tourists, and the high-spending ones at that. It is imperative for developing countries to attract the well-heeled tourist so as to benefit from the economic and employment multiplier effects of tourism and to avoid choking of scarce resources," informs Venugopal.

According to Venugopal, a time-bound marketing plan that has a special focus on select markets works the best and that is what the department is focusing on. "Our government focuses on market development and brand building. For this, emerging markets for new products will have to be identified. We will also focus on brand communication," he adds.

Kerala has, therefore, been promoting itself in countries including UK, France, USA, Maldives, Germany, Italy, Australia, Switzerland, Netherlands and Japan through road shows and exhibitions. "We are promoting Kerala in all these countries, especially UK and Germany that form our core markets, by following different strategies according to the market," he says. Through these promotions, Venugopal says, the department tries to reach out to new trade members. "This is an ongoing process, just like marketing an FMCG product. It has to be followed up aggressively on a consistent basis in order to have total recall in the minds of travellers. As a rule, we try to put a new perspective into the brand without diluting its core value. The challenge is to attract more high-spending travellers," he says.

For this, Kerala Tourism is urging the private sector stakeholders to get more involved in promoting the state in the national as well as international markets. The department is offering subsidies of upto 10 per cent of capital cost including land, building, furniture, equipment, etc subject to a maximum of Rs 10 lakh. This will ensure their participation in various activities including its Kerala Travel Mart that will be held in Cochin in September, 2006. This event will be organised and planned by the Kerala Travel Mart Society that has been formed specifically for this purpose.

Venugopal adds, "The state has also introduced a branding and classification system for tourism products and services. Ayurveda centres, a key attraction for tourists, have been branded 'Green Leaf' or 'Olive Leaf' depending on the services they offer. Again, the houseboats have been branded 'Gold Star' or 'Silver Star'."

Road ahead

Looking to translate its gains into business and push revenues further, Kerala Tourism is planning stand-alone road shows in London and Germany, this year, to showcase and build on its USP by adding value. The state is also working on aggressively marketing its monsoon from the next season. "Our main target is to attract foreign tourists from countries such as China, Japan and Russia. Records have shown that lesser number of tourists visit Kerala from these countries. The main reason is lack of awareness. Therefore, it is important to exchange ideas with these countries and ensure that they visit Kerala for tourism," says Venugopal.

The state is trying to evolve more tourism products by exploring fresh new possibilities like spice tourism and tea plantations. Kerala is also looking at having a fourth international airport at Kannur, which would be the second trial to replicate the success of the country's first international airport implemented in Kochi with private-public participation six years ago.

"As far as Kerala tourism is concerned there are two major problem areas - air connectivity and insufficient rooms. Air India is not offering us great help but we are looking to strike up a good relationship with them. In addition, there are insufficient rooms in the five-star category. We are planning to add another 5,000 rooms in the next one year. Apart from this, there are few incomplete projects comprising tourism projects, pilgrimage projects, which we aim to complete soon," adds Venugopal. There are several new properties entering Kerala. The Taj group has already made its presence felt here. Major players such as Hilton, Marriott, and the Oberoi group are all planning to establish a firm footing in Kerala. The state is also focusing on high profile properties.

Eco-friendly

Currently, the state is focusing on eco-friendliness and community participation. This explains the latest eco-drive of the tourism department. Hotels, resorts and lodgings are newly classified on the basis of their eco-friendliness.

Investors in the tourism sector with eco-wise plans are given additional incentives. Also on are moves to recruit tribals as guides for bird-watchers and trekkers visiting the various wildlife sanctuaries in the state. The shift in tourist priorities during this year is a clear reflection of the changing times. While Kovalam registered at least a 20 per cent dip in tourists, Kumbalangi model village in Kochi has seen arrivals shoot up by over 35 per cent.

In the near future homestays run by the local communities will become more popular than five-star resorts, he forecasts. The state government is planning to soon issue an ordinance to regulate the functioning of Ayurveda parlours in Kerala. According to the ordinance, the Ayurveda parlours in the state would be classified into three categories based on the facilities offered. Licences would also be issued on this basis.

The tourism department is also trying to identify markets which generate tourism during the off-season. "In foreign markets, we are mostly focussing on the electronic media and are airing campaigns in channels like CNN, BBC, National Geographic and Discovery in their Europe, Middle East, Asia Pacific and South East Asia beams. We are also actively participating in all major international tourism events and fairs like WTM (World Travel Market) London, ITB (International Tourismus Borse) Berlin, FITUR (Feria Internacional de Turismo) Spain, CITM (China International Travel Mart) China, PATA (Pacific Asia Travel Association) Singapore," says Venugopal.

The department is also launching an Eco-tourism Certification Programme for tourism service providers, which gauges their level of adherence to eco-tourism practices. Several other projects are on the anvil, the major ones being amusement parks at Veli, Marina at Kochi for which the government of India has sanctioned Rs 4.23 crore, a golf course at Kochi, and a Dreamcity Project at Kozhikode.