Jaipur International Tourist Survey

April 2011

Introduction

With its extraordinary history and culture, Rajasthan holds a prominent position within Indias tourism industry. In the region, Jaipur has always been a major tourist destination with its many prized cultural assets. However, the economic boom India is witnessing is dramatically reshaping the tourism landscape, from the arrival of international hotel chains to the development of new transport infrastructure, new challenges and opportunities are confronting the domestic tourism industry. This report displays the results of the Jaipur International Tourist Survey 2011. It is based on over 100 extensive face-to-face interviews Kanvic conducted with international tourists across the city. This report is intended to form a sound basis for all the stakeholders in Jaipurs tourism industry to improve service delivery and increase revenues through a better understanding of the expectations of international tourists.
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Understanding the behaviour and preferences of international tourists is important for the key stake-holders in Jaipurs tourism industry

Government

Tour agencies & operators

Hotels

Key stakeholders

Restaurants & Bars

Retailers

Contents

Overview of the tourism industry

2 3

Key findings

Survey results

4 5

Implications for key stakeholders

Methodology
4

Tourism is a significant contributor to the Indian economy

Breakdown of Indian GDP by industry sector

Annual international tourist arrivals in India and the foreign exchange earnings they contribute
64578

17%

8.6%
39025 44360

50730

54960

28.2%

46.2%

46

52

54

51

56

2006 Tourism Industry Other Services Agriculture

2007

2008

2009

2010

Number of International Tourist Arrivals (lakhs) Foreign Exchange Earnings from tourism (Rs. Crore)

The tourism industry is the largest service industry in India, contributing 8.6% to the national GDP.

In 2010, Indias tourism industry bounced back from the global economic crisis with around 56 lakhs of foreign tourists visiting the country.

Source: WTTC, Ministry of Tourism Rajasthan and Kanvic analysis

Rajasthan attracts approximately one quarter of all arrivals in India but as international tourists become increasingly aware of other regions it has faced tougher competition
International Tourists Arrivals (Lakhs)

Percent of international tourists in India visiting Rajasthan (%)

28

26

27

28

22

23

52 40 46

54 51

56

11 2005

12 2006

14 2007 Rajasthan

15 2008 India

11 2009

13 2010

Source: WTTC, Ministry of Tourism Rajasthan and Kanvic analysis

Jaipur remains one of the major tourist destinations in the region

International Tourists Arrivals (Lakhs)

% of international tourists in Rajasthan visiting Jaipur

27

33

36

27

27

31

14 11 12

15 11

13

3 2005

4 2006

5 2007 Jaipur

4 2008

3 2009

4 2010

As a city in the Golden Triangle, and with its extraordinary culture a n d h i s t o r y, J a i p u r holds a prominent position in Rajasthan, attracting more than one in three of the international tourists visiting the region.

Rajasthan

Source: WTTC, Ministry of Tourism Rajasthan and Kanvic analysis

Contents

Overview of the tourism industry

2 3

Key findings

Survey results

4 5

Implications for key stakeholders

Methodology
8

Almost 60% international tourists come from Europe and spend over $200 in Jaipur during an average stay of 2.8 days

Key findings of the survey - 1/2

1 2 3

Almost 60% of international tourists come from Europe. France and the United Kingdom are the major contributing countries.

The average stay of international tourists is 28.7 days in India and 2.8 days in Jaipur.

The average spend of an international tourist is US $2,118 in India and $207 in Jaipur.

Heritage pink city is the main tourist attraction in Jaipur.

Source: Jaipur International Tourist Survey 2011

Textiles, handicrafts and jewelry are the major shopping draws for international tourists in Jaipur

Key findings of the survey - 2/2

Textiles, handicraft and jewelry are the major shopping draws for international tourists.

The majority of international tourists stay in 3 star and guest house accommodation

Price is the most important criteria in choosing a hotel. It is followed by location and cleanliness.

Source: Jaipur International Tourist Survey 2011

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Contents

Overview of the tourism industry

2 3

Key findings

Survey results

4 5

Implications for key stakeholders

Methodology
11

The large majority of tourists visiting Jaipur arrive in Delhi

Entry point for international tourists coming to Jaipur, n=107

8% 1% 11% New Delhi airport Mumbai airport Other airport Not arrived by plane

80%

With its airport capturing 80% of the arrivals of international tourists visiting Jaipur, Delhi clearly constitutes a strategic advertisement area for stakeholders of the tourism industry. New Delhi airport, main railway stations, ISBT, Bikaner House bus station, and Delhi-Jaipur highways should be highly considered to promote the unique experience offered in Jaipur.
Source: Jaipur International Tourist Survey 2011 12

Guide books, internet, and friends and relatives are the main sources of information used by an international tourist when planning their trip to Jaipur

Sources for planning the trip, n=107

Guide books

70

Internet

47

A strong presence in guide books appears to be a prerequisite for success as more than two thirds of the international tourist surveyed declared using them when planning their trip.

Friends & relatives

42

Travel agencies & operators

24

Brochures

Magazines

Source: Jaipur International Tourist Survey 2011

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Foreign tourists tend to make an extended stay in India generating high revenues for the tourism industry

Time spent in India by International tourists, percent of respondents, n = 101

Expenditure ($) per day, percent of respondents, n = 66

18%

16%

12%

18%

15% 31% 20%

24% 31% 15%

< 2 weeks 3 to 4 weeks > 5 weeks

2 to 3 weeks 4 to 5 weeks

< 24 50 - 99 > = 200

25 - 49 100 - 199

Source: Jaipur International Tourist Survey 2011

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Tourists stay on average almost 3 days in Jaipur, and spend around $207 in the city

Time and money spent in India by International tourists

Location

Average stay (days)

Average spend ($)

India

28.7

2,118

Jaipur

2.8

207

With such a short average stay, stakeholders must make every effort to increase the visibility of their services if they are to tap into this market.

Source: Jaipur International Tourist Survey 2011

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Accommodation is the largest single expenditure for foreign tourists in Jaipur

Distribution of international tourists expenditure, n = 63

11% 13% 35%

On an average, accommodation represents one third of an international tourists total budget. Food and beverages, and transports represent each around 20% of their expenditures.

21% 19%

Accommodation Visit to cultural sites & entertainment

Food and beverages Shopping

Transport inside India

Source: Jaipur International Tourist Survey 2011

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The majority of international tourists stay in cheaper accommodation and make their booking independently, either with the hotel or via the internet

Accommodation by type, n = 107

Methods of booking accommodation, Number of respondents n = 107

11% 31% 11% 22%

4% 3% 26%

16% 31%

7%

38%

Heritage hotels 5 star and above 4 star 3 star Hotel/Guest House

Travel Agencies Tour Operators Directly with the hotel Internet At the station Other
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Source: Jaipur International Tourist Survey 2011

Price, location, and cleanliness are the top three factors influencing international tourists choice of hotel

Main factors influencing international tourists choice of hotel (%), n = 107

Price Location Cleanliness Comfort Brand 16 41 61 60

65

Whilst hotel brands do not feature prominently in the decision making of international tourists, the arrival of major chains like Marriott in Jaipur is likely to alter their preferences.

Source: Jaipur International Tourist Survey 2011

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Almost half of all transport bookings are made through travel agents and tour operators while internet bookings remain relatively low

Method of booking transport, n = 107

8% 12% 38% 8% 2%

Over one third of international tourists book their transport with the travel agent. 25% tourists even go directly to the station and book on the spot. There is a clear lack of internet booking facilities for local travel.

25%

7%

It is very difficult to book travel online for international tourists due to the lack of payment options.

Travel agent At the station Tour Operator Other

Through hotel Did not book yet Internet

Source: Jaipur International Tourist Survey 2011

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The citys cultural sites are the overwhelming attraction for foreign tourists while its shopping opportunities feature strongly

Major activities for international tourists (%), n = 107

Visit to cultural site Shopping Bars Theatre/Cinema Others Yoga/Mediation 14 11 5 4 62

97

There is an absence of evening entertainment that could increase tourist expenditure in the city and create a more diverse experience. Developing leisure and entertainment activities could be a way for Jaipur to differentiate from other cities in Rajasthan.

Source: Jaipur International Tourist Survey 2011

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Textiles are the favoured purchase of international tourists, with handicrafts and jewelry also being popular

Buying preferences for international tourists, n = 63

Textiles

44

Handicraft

22

Jewelry/Gems

21

Food/Spices

18

Despite Jaipurs reputation as a centre for the gem and jewelry trade, textiles are by far the most common purchase for international tourists reflecting their quality, price and ease of transporting on multi-city tours .

Carpets

Others

Source: Jaipur International Tourist Survey 2011

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While international tourists consider Jaipur safe and people friendly, they also find it crowded, noisy and dirty
International tourist perceptions of different aspects of their experience, n = 107

Goods restaurants are available Prices are expensive It has a pleasant weather People are friendly It is a safe place It is easy to move inside the city It is a polluted city It is too crowded It is a noisy city It is a dirty city 10 9

23 11 21 20 21 12 21 38 26 22 46

37 45 47 63 58 20 41 27 41 36

33 34 22 16 20 21 24 23 26 28 13 12

1 1

1 2 2 2 1 1 7

Totally Agree
Source: Jaipur International Tourist Survey 2011

Agree

Neutral

Disagree

Totally disagree
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7.67 is the average grade given to the overall visit to Jaipur

Jaipurs overall rating on a scale of 1 to 10, n = 107

5% 2% 15%

10%

The average grade international tourists gave to their experience visiting Jaipur is 7.67. 96% of foreigners interviewed would recommend to visit Jaipur.
32%

36%

5 8

6 9

7 10

Source: Jaipur International Tourist Survey 2011

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Contents

Overview of the tourism industry

2 3

Key findings

Survey results

4 5

Implications for key stakeholders

Methodology
24

We have highlighted the main implications from our survey for each of the major stakeholders in Jaipurs tourism industry

Government

Hotels

Restaurants & Bars

Retailers

Travel Agents & Tour Operators

25

Government plays a crucial role in providing infrastructure, enforcing standards and setting the citys tourism strategy

Government

With around 60% of international tourists perceiving Jaipur as dirty and polluted, measures to improve air quality and sanitize public spaces could reap dividends for the citys international appeal. With 74% of respondents describing Jaipur as noisy and 49% as crowded, strategies to improve mobility around the city and to reduce traffic near prime cultural sites would improve the experience of international tourists. With an average stay of only 2.8 days, reducing journey times between Jaipur and other cities in the region could increase the likelihood of a visit as well as extending time spent in the city. This would create increased opportunities for Jaipurs tourism industry to generate extra revenue. As more and more international tourists use the internet as their primary resource for planning and booking their holiday in India, providing online reservation and payment facilities for public transportation and cultural sites should be a priority. With international tourists regularly complaining of being hassled by vendors and touts and being subjected to attempted scams, better enforcement by public authorities could improve the visitor experience.

Hotels

Restaurants & Bars

Retailers

Travel Agents & Tour Operators

26

Hotels will need to adapt to the booking practices of independent travelers and provide a more diverse range of entertainment to attract more international tourists

Government

1 2

With 70% of those surveyed using guide books to plan their trip, having a presence in this go to resource for international tourists is paramount. As only one third of international tourists booking their accommodation via tour agents and operators, an online presence and the ability to book directly over the internet is increasingly important as more visitors plan their trip independently Cleanliness and price are the overriding priorities of international tourists when choosing their accommodation. A location close to the main cultural sites is important given the short length of stay of international tourists. With night time activities barely featuring in our survey, hotels could boost their revenues from international tourists by providing late night dining, drinking and entertainment. With Delhi Airport acting as a gateway for 80% of international tourists that come to Jaipur, the capitals transport hubs, cultural sites and hotels appear to be a strategic place for promoting a stay in Jaipur.

Hotels

Restaurants & Bars

3 4

Retailers

5
Travel Agents & Tour Operators

27

The citys bars and restaurants could attract more international tourists

Government

Because guide books are the primary source for planning a stay in Jaipur, a presence in this popular resource is the primary generator of international tourist business for bars and restaurants in the city. With cleanliness a major concern for international tourists, having high hygiene standards and effectively communicating these standards to foreign tourists would be a good way for restaurants to attract international clientele. While the majority of international tourists are content of restaurants in the city, bars and other evening feature in their stay. Increasing the range of evening targeted at the international tourist market could be hospitality sector. with the number activities barely leisure activities lucrative for the

Hotels

Restaurants & Bars

3
Retailers

Travel Agents & Tour Operators

28

Providing products that are suitable to the international traveler and raising the standard of business conduct could boost tourist spending in the city

Government

60% of international tourists list shopping as a major activity during their stay in Jaipur however, it represents only 11% of their average expenditure. It clearly demonstrates that there is room to generate increased revenues from this activity. With a short average stay, the proximity of retailers to prime cultural sites and hotels as well as their presence in guide books are an important factor in generating international tourist revenues. Furthermore, as Jaipur only features as a short part of a wider trip around the region and /or India, goods that are both durable and compact are more likely to capture the interest of international tourists. With some international tourists reporting being subject to attempted scams by retailers, an industry code of conduct with an identifiable logo for participants could attract international tourists to the majority of retailers who comply with ethical business practices.

Hotels

Restaurants & Bars

Retailers

Travel Agents & Tour Operators

29

Local travel agents and tour operators must adapt to withstand increasing competition from the entry of organized players

Government

Hotels

Restaurants & Bars

Retailers

With international tourists increasingly booking transport and accommodation through the internet, local tour operators and travel agents will need to increase their online presence. As local travel accounts for almost one third of an international tourists daily budget, travel agents and tour operators will need to ensure that pricing is competitive and communicated clearly. As organized players enter the sector, local travel agents and tour operators will face stiffer competition. Obtaining internationally recognized status such as IATA membership will increase the confidence of international tourists when booking with local agents.

Travel Agents & Tour Operators

30

Contents

Overview of the tourism industry

2 3

Key findings

Survey results

4 5

Implications for key stakeholders

Methodology
31

We interviewed 107 international tourists in Jaipur with a structured questionnaire

Jaipur

107
Number of tourists interviewed for survey Face to face interviews with International Tourists

Sample
A cross - section of countries all over the world

fdefds

7
Number of Tourists destination covered

Tools
Face to face interviews with International Tourists

32

Respondents had a diverse profile including men and women from various occupations and age groups

Under 20 Above 60

20-40 40-60

Male Female

Age distribution

10% 24% 66% 47% 53%

Gender

Respondents profile
15% 21%

Occupation

5% 12% 44%

Countries

36% 19% 6% 6% 6%6%

1% 7% 16%

Business Retired Student Other work

Government work Housewife Currently unemployed

UK USA Australia Others

France Netherlands Germany

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Acknowledgments
Kanvic would like to acknowledge those people who have designed, conducted and carried out the Jaipur International Tourist Survey, as well as written and refined the final report. Special thanks to...

Adele Fondeux

Antonin Benisti

Gehan Wanduragala

Maxime Assedo

Shiv Kumar Sharma

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About Kanvic Kanvic is a management consulting firm helping businesses develop winning strategies, drive profitable growth and achieve operational excellence to reap long lasting rewards in fast growing Indian economy. We work with Clevel executives to develop innovative solutions for business challenges of 21st century India by bringing in leading edge management thinking informed by in-depth research and sound analysis.

Contact Jaipur Deepak Sharma

M: +91 99283 77800

Bangalore Ravindra Beleyur

M: +91 94481 46963

London Bharat Vagadia

M: +44 7711 898089

E: deepak@kanvic.com

E: ravi@kanvic.com

E: bharat@kanvic.com

www.kanvic.com