WEBINAR: COVID-19 - Outlook on tourism industry in India 19.01.2021 - Business Finland
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WEBINAR: COVID-19 –
Outlook on tourism industry in India
19.01.2021
1
Tarja Koivisto
Account Manager,Global Sales
Promotion
Visit Finland
2
Agenda
Agenda
• Visit Finland Travel Insights -India| Tarja Koivisto, Account Manager, Global Sales
Promotion, Visit Finland
• Statistical Outlook and India Market Update |Sara Sodhi , Country Manager, Visit
Finland, India
• India guest speaker | Loveleen Arun Multani, Director, Panache World, India
• Q&A
3
India
Travel insights
4
Finland’s image as a
travel destination in India
Indian Market Segment: High Spending FITs. Opportunities and Challenges for Nordic Destinations 2020
5
TOP LEVEL ASSOCIATIONS,
NORDICS
(region, rather than individual countries)
• Northern Lights
• Snow and ice
• Snow related activities
• Closeness to nature
• Connection with history
• Unique and ‘wow’ factor experiences
• Pushes you outside your comfort zone
• Sustainability
6
Source: Indian Market Segment: High Spending FITs – Opportunities and Challenges for Nordic Destinations, April 2020
REASONS
TO GO TO THE NORDICS: WINTRY DELIGHTS
• Winter related activities Where there are deeper end benefits
• The Northern Lights
• Fjords
• Closeness to nature Calm Deep Quiet Freshness
• Famed locations or things to do
• A connection with the past
• Wellbeing
7
Source: Indian Market Segment: High Spending FITs – Opportunities and Challenges for Nordic Destinations, April 2020
SUMMER AN UNTAPPED
SEASON
• Not widely associated with non
winter seasons
• Yet a particular opportunity vs.
the increasingly hot Southern /
Central European destinations
8
Source: Indian Market Segment: High Spending FITs – Opportunities and Challenges for Nordic Destinations, April 2020
Travel related searches
Digital Demand 2019
9
Top countries and topics in Finland’s touristic
internet searches globally
0 200 000 400 000 600 000
• 5,1 million travel-related internet searches in 2019
Tourism
• +23% growth in searches from previous year Northern Lights +49
Travel
Saunas +43%
Places to Visit
Igloos Ice Hotels +34%
Cities
Santa Claus +21% Top 3 topics by
Holiday Packages
volume and
Hotels
Lakes
growth
-8%
Camping +42%
Visit
Vacation Packages
Things to Do
Tours
India #10 Jungles and…+26%
Skiing +28%
Towns
Tourism… Source: D2 Digital DemandMost popular Visit Finland website content
during summer 2020
11Popular Visit Finland articles summer and autumn seasons 2020
(06-11) - India
Popular Articles on visitfinland.com during summer 2020:
Practical Information for Travelers to Finland during Corona Pandemic
21 Reasons to love Finland
Land of the Midnight Sun
Doze off under the Northern Lights
Land of a Thousand lakes
On a Virtual Tour Around Finland
On the Hunt for the Northern Lights
10 Best Things to do in Finland
17 Reasons to Visit Finland in 2017
What are the Finns like?
Additionally during the Autumn 2020:
Meet Santa Claus
Autumn and Spring – the Best Northern Lights Seasons
During the summer months Indian site visitors were mostly interested in Midnight
Sun, Lakes, Northern Lights and general information on Finland, reasons to visit
and what to do in Finland.
During this autumn the interest has otherwise stayed very similar but autumn
themed article on Northern Lights and Santa Claus increased in popularity.
12
Source:Visit FinlandIndia Market Update
Sara Sodhi
Country Manager- India
Visit Finland
13Indian overnights in
the Nordic countries & in Finland
Statistics Service Rudolf, Statistics Finland
Statistics Sweden, Norway, Denmark and Iceland
14India: Yearly overnights in the Nordic countries
Development of Indian overnights 2009-2019
0.6M
overnights in total
250 000
200 000 Sweden
Denmark
Finland
150 000 Norway
Iceland
100 000 102 400
50 000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Statistics for Norway available since 2018,
and for Denmark and Iceland since 2013
Sources: Visit Finland Statistics Service Rudolf, Statistics Finland,
15 Iceland
Statistics Denmark, Statistics Norway, Statistics Sweden and StatisticsIndian overnights in Finland 2000-2019
120 000
27 % Year 2019
100 000 17th
in country rankings
with a 1% share of foreign overnights
44 % 3 % Average change 2000-2019: +14%
80 000
Change 2019 compared to 2000: +434%
29 %
13 %
60 000
-19 % -9 % 18 % 4 % 0 %
26 %
-20 %4 % Share of overnights by regions 2019
45 %
40 000
43 %
57 % 2 % 35 %
20 000 -27 %-1 %
0
65% 14% 8% 13%
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
Sources: Visit Finland Statistics Service Rudolf, Statistics Finland
16INDIAN OVERNIGHTS IN FINLAND BY SEASON
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
35 000
Growth especially in
30 000 • Helsinki and Vantaa
• Rovaniemi and Inari-Saariselkä
25 000
20 000
15 000
10 000
5 000
0
Winter (12-02) Spring (03-05) Summer (06-08) Autumn (09-11)
17Consumer sentiment and trends in India
18steadily, reaching levels last seen in mid-April.
Indian consumers’ optimism in the economic recovery has improved
19
McKinsey & Company: Indian consumer sentiment during the coronavirus
crisis. COVID-10 consumer pulse survey, November 2020.McKinsey & Company: Indian consumer sentiment during the coronavirus crisis. COVID-10 consumer pulse survey, November
20 2020.21 McKinsey & Company: Indian consumer sentiment during the coronavirus crisis. COVID-10 consumer pulse survey, November 2020.
INDIAN TRAVEL HABITS
& THE INDIAN HSFIT MARKET
• Status display - conformism to individualism
• Moving away from the destination ‘tick-list’ and
interest in the previously unknown
• A market more daring
• Captured through social media
• Smaller group sizes
• High opportunity market, in its nascency
Source: Indian Market Segment: High Spending FITs – Opportunities
and Challenges for Nordic Destinations, April 2020 22Global Outlook
Entering the “next normal”
Ø Interest towards the Nordic countries was on the rise already pre-covid, and the
image of spaciousness / room to roam and pure, beautiful nature are most likely to
increase the interest even further
Ø After lockdowns and restrictions, consumers are looking for new authentic
experiences, wellbeing through nature as well as tailor-made services
Ø Nature traveller segments seem to grow
Great new opportunities also for Finland!
23India’s vaccine drive -kicked off on January 16
• India plans to inoculate 300 million of its 1.3 billion people free of
charge in the first six to eight months of 2021.
• Co-WIN vaccine delivery management system (digital platform) will
provide real-time information of vaccine stocks, their storage
temperature and individualised tracking of beneficiaries of the Covid-
19 vaccine. The App will also generate a digital certificate upon
successful completion of the vaccine schedule.
• More than 7.9 million beneficiaries have been already registered on
the platform.
• India is developing digital health ID’s that will be used to ensure
immunisation for all.
• 1.91 lakh people got Vaccine shots on day 1
24
Source: https://www.hindustantimes.com/india-news/indias-vaccine-drive-to-kick-off-on-jan-16-101610224333258.htmlLatest Updates on COVID -19
Source: https://transformingindia.mygov.in/covid-19/?sector=positive-stories&type=en#scrolltothis
25India – 2021 Economic Outlook
• In 2021, India is projected to grow faster than most major economies, including European nations, developed
markets, and emerging markets.
• Fitch Ratings stated that the outlook for India is brighter, owing to an expected rollout of various vaccines in
2021. It added that the distribution should allow a faster-than-expected easing of social-distancing restrictions
and boost sentiment.
• India has pre-ordered 160 crore doses including 50 crore doses of the Oxford/AstraZeneca vaccine.
• India to grow at 1.9% in FY21, recover to 7.4% path in 2021-22. The country will still be the fastest growing large
economy this financial year - The International Monetary Fund (IMF).
• As per a latest report by Dun & Bradstreet, Indian consumer confidence will improve significantly in January
2021 and will peak by July and continue till September ahead of next year’s festive season.
• The improvement will be across parameters such as income, employment and spending, including both essential
and non-essential.
Source: https://www.business-standard.com/article/economy-policy/at-9-9-gdp-growth-india-could-be-fastest-growing-asian-economy-in-2021-120120900305_1.html
https://www.business-standard.com/article/economy-policy/india-to-grow-at-1-9-in-fy21-recover-to-7-4-path-in-2021-22-imf-120041401051_1.html
https://www.financialexpress.com/economy/india-may-regain-fastest-growing-economy-tag-in-2021-base-effect-modi-govt-policies-to-help/2146453/
https://retail.economictimes.indiatimes.com/news/industry/indian-consumer-confidence-to-improve-next-year-report/79546856 26India’s Latest Guidelines on International Travel
• International flights are suspended till January 31, 2021
• Ongoing discussions for the resumption of international flights in the 2021 once vaccination Countries in the EU and
programs begin. the Schengen area, South America and Africa by
hopping on an air bubble flight to France,
Germany or the Netherlands.
• India has travel bubble arrangements with 24 Countries including the US,UK, Germany,
France, Netherlands the UAE, Maldives, Canada, Japan, Bahrain, Afghanistan, Nigeria, Qatar, South America and Africa through bubble flights
Iraq, Oman, Kuwait, Bhutan, Kenya, Rwanda, Tanzania, Ukraine, Bangladesh, Ethiopia,, Nepal to Qatar or the UAE.
and Ukraine. Countries in Africa on bubble flights to Ethiopia,
Kenya, Rwanda and Tanzania.
• India to allow international flyers to take connecting flights to some countries under air
Armenia, Azerbaijan, Belarus, Kazakhstan,
bubble routes. Through an alliance between transport bubbles, the Vande Bharat Mission, Kyrgyzstan, Moldova, Tajikistan,
and onward connecting flights, travellers can now access more than a hundred countries, Uzbekistan through bubble flights to Ukraine.
bearing in mind their health and safety guidelines.
• With an eye on restarting international tourism in 2021, the government is all set to rollout
insurance policies for foreign tourists visiting India- Covers that will include treatment for
Covid-19 .
27
Source: https://www.india-briefing.com/news/india-international-travel-latest-rules-20683.html/Top travel trends in 2021 for Indian travellers
• Micro-segments with hybrids emerge within traditional travel segments like “Bleisure” segment (hybrid of Business +
Leisure)
• Resorts and Vacation Rentals witness strong demand - As travelers explore options for staycations or a change of scenery in
a safe and sanitized manner, they are seeking larger spaces that are better equipped for longer leisure stays and social
isolation.
• Hotels & airports may witness 4x increase in questions related to property restrictions and safety procedures as we trend
upwards on the recovery side.
• Digital experience emerges key gamechanger for hospitality segment- Before the pandemic, travelers or guests interacted
with a hotel brand primarily through the physical experience (e.g., how comfortable was the bed) and the service experience
(e.g., how easy was the check-in process?). Now, there is the digital experience which ensures that all guest needs are met
virtually – before, during as well as after their stay.
28Luxury Staycations
Pod Travel
(Safaris, High end beach resorts,
Remote Working mountain retreats, countryside (with loved ones in small and intimate
farmhouses,unique accomodations, groups )
wellness getaways)
Travel to closer cities Regenerative travel
(Selfdrive, domestic getaways, nearby
International destinations) (with focus on sustainability)
2930 Source: Thomas Cook India & SOTC Joint Survey Second Holiday Readiness Report( Dec 2020)
31 Source: Thomas Cook India & SOTC Joint Survey Second Holiday Readiness Report( Dec 2020)
Indians are currently travelling to ….
• Leisure travel from India has started to
Dubai and Maldives—
• Bollywood Maldives Takeover
• The Indian high commission in Maldives
recently tweeted that India was the
“top source market for Maldives
tourism in 2020”.
32Guest Speaker-
Trade Overview
Loveleen Multani Arun
Director
Panache World
33THE POST-COVID SCENARIO
34Quick Input on the present scenario
• The Economy of India is not doing as well as
before.
• Really top-end HNW Families not that
affected
Many CXO type corporate heads working
on reduced compensations
IT sector has remained quite un-affected
• The Covid-cases are on the decline curve
(touch-wood)
• Vaccinations have started as of this
weekend
35September-November 2020
• The high-end hotels in India did very well. Some
hotels did better occupancies than they ever did
in this quarter.
• International borders for leisure travel opened
for – Maldives & Dubai
• Several Charter flights were booked for Maldives.
(average of 4-5 per week, typical cost per small
aircraft is Eu 46,000)
• High-end hotels in Maldives did very well.
(Soneva, Cheval Blanc, One & Only & surprisingly
very high end boutique hotels were discovered –
Nautilus, Kudadhoo island)
• Duration of stays got longer
36November – January 2021
• Some other countries have opened borders –
South Africa, Kenya, Tanzania – but not many
takers as yet!
• Small family groups / celebrations/ weddings
have started being booked.
• Demand for high-end
wellness/health/healing hotels has increased
• There is more demand in the mid-segment
than in the really high end segment
• People are depending much more on their
travel designers
37Looking Ahead
• Reliable Flight connections need to come back
• Clarity & stability of travel regulations (regular
covid-cases updates to the industry)
• Confidence building through PR campaigns
• Re-training of travel designers
• Emphasis on experiences focusing on open
spaces
• More private travel than group travel
• Flexible cancellations & shorter lead times for
bookings
• Insurance!!
38Loveleen Multani Arun
Director
Panache World, Bangalore
loveleen@panacheworld.com
39Q&A
40Kiitos
Thank You
4142
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