PRESENTATION

ON
Tourism Finance Corporation of India
Limited

TOURISM INVESTORS MEET (TIM)

FICCI, New Delhi

Tourism Finance Corporation of India Ltd.

 Background

 Incorporation- based on the recommendations of the

National Committee on Tourism (Yunus Committee) TFCI
was incorporated as a Public limited company under the
Companies Act. TFCI is a Public Financial Institution
under section 4A of the Companies Act.
 Regd. Office:- IFCI Tower, New Delhi.
 Branch Offices:- Mumbai
 Sponsors:- IFCI and other Financial/Investment
Institutions & Banks.
 Status/Objective:- All-India Financial Institution for
funding Tourism-related projects.
 TFCI - Vision
 To make long term financing available for Hotels /resorts/
Amusement Parks/ other tourism related projects.
 Help India in exploring the potential of Tourism as an
engine for economic growth including generation of
employment opportunities.
 Help India showcase Her tourism treasure to the world
through creation of Tourism Infrastructure.
 Make India a preferred destination for globe-trotters by
expanding the horizon of Tourism.
 To make long term resources available for creation/
development of Tourism Infrastructure.
3
 TFCI - Mission

 To help tourism industry grow as one of the main

industries through innovative means of financial &
advisory assistance and to attain and maintain the
leadership role in financing tourism-related projects.
 Catalyze & Channelise investments into various
segments of the tourism industry and across various
locations in a need based manner.
 Take steps to promote the tourism industry within
the overall framework of the Govt. of India policy.

4
 Tourism Sector

The tourism and hospitality industry contributes

about 6.23% to the national GDP and 8.78% of
the total employment in the country.
•Travel and tourism is expected to grow at 8.8%
during the period of 2010-2019 and India is
projected to become the world’s fifth largest
business travel destination.
•Investment in travel and tourism in India is
expected to reach US$ 109.3 billion by 2020.

5
 Tourism industry
 Tourism in India is among the largest in the services industry and
industry guesstimates project this to increase to 1 in every 9.6 jobs by
2020.
 Though the country is ranked 41st in terms of inbound tourist arrivals,
it is 16th in total tourism receipts as per the UNWTO.
 The foreign tourist arrivals were 7.70 million during 2014 as compared
to 6.97 million during previous year, recording a growth of 10.5%.
 The Foreign Exchange Earning(FEE) were Rs.120083cr as compared
to Rs.107671 crore during 2013,registering a growth of 11.5%.
 According to the United Nations World Tourism Organization
(UNWTO) forecast, the travel and tourism industry in India is
expected to grow by 8% per annum between 2008-2016; Foreign
exchange earnings by 14% during the same period.

6
 Tourism industry
 Upcoming sectors such as cruise and golf tourism present a
potential for development. Each year 150 ships pass India; this
certainly spells well for opportunities such as cruises.
 India's medical tourism sector is expected to experience an
annual growth rate of 30%, estimated to grow to about $2 billion
by this year.
 Indian Territory covers 75 per cent of the total Himalayan range,
4000 square km of the Sundarbans, 0.2 million square km of
deserts and 1000 caves. Yet India ranks at about 110th in
adventure tourism at a global level.
 India possesses internationally revered and must see heritage
sites but ranks 65th in the world rankings for heritage tourism;
with all this, the country’s potential to tap visitors is immense.
‹#› 7
 Initiatives by Government
Committing safety and building on the ‘Swatch Bharat’ initiative;
Rewriting tourism policies, Building Tourism circuits, Tourism enclaves
and townships, showcasing new destinations and diversified tourism
will certainly prove to boost the potential of the sector in India.
With the new government starting to drive reforms such as visa on
arrival schemes, India is hoping to double the number of tourists
visiting the country to 12 million over the next 2-3 years. This is
expected to bring the country among the top 10 recipients of tourist
earnings.
More than half of the Ministry of Tourism’s Plan budget is channelized
for funding the development of destinations, circuits, mega projects
as well as rural tourism infrastructure projects.
There is a renewed focus on skill development in the travel and
tourism sector – 21 government-run hotel management and catering
technology institutes and 14 food craft institutes have been
established to impart specialized training in hoteliering and catering.
8
 TFCI - VALUES

 Blend of Knowledge & Wisdom

 Self-sustaining capability
 Encourage creativity and innovation
 Empathize with the client

9
 TFCI – Highlights - 2014-15

 India’s only Institution for Funding

Tourism projects with more than two
decades of existence.
 Created 45910 hotel rooms by
funding 758 projects.
 Catalyzed investments to the tune of
Rs.25657crore.
 Created Direct employment to the
tune of 86465 persons and indirect
employment to many more.
 TFCI - Who We Are & What We Do ?
Tourism Finance Corporation of India Ltd.
(“TFCI”), is an All-India Financial Institution
catering to the requirement of the tourism
industry by providing financial assistance for
hotels and non-conventional tourism projects
like restaurants, health spas, entertainment Tourism Sector
centers, shopping malls, multiplexes etc.
besides providing project/tourism–related
advisory services to the industry.

To meet the growing demand of the industry, Tourism

TFCI included tourism infrastructure sector Infrastructure
and other services in its portfolio by extending
financial assistance to sectors, such as services Sector
sector and related activities, facilities &
services which are further expected to
augment the growth of tourism in the
Country.

‹11›
Financial assistance to following sectors:
Tourism Sector Tourism Infrastructure Sector
 Hotels, Resorts, Motels,  Conventional & Non-conventional
Wellness Spa, etc. power projects, Power distribution
networks
 Entertainment centres,
Amusement parks & Water  Roads, Airports, Ports, Rail Infra
parks related to tourism
 Multiplexes, Shopping Centres,  Hospitals, School, Colleges,
Family Entertainment Centres, Stadium
Clubs
 Special economic zones, Industrial
 Convention Centres estates, Warehouses
 Ropeways  Media, Entertainment & telecom
 Travel & Transport
 TFCI First of its kind to partner in the growth
of tourism industry
 First Dedicated Institution to Cater to the needs of Tourism Industry
 First Institution to Fund Innovative Tourism Projects such as
 Luxury Trains
 Theme parks
 Health SPAs
 Dolphinarium
 Spice Village, etc.
 First Institution to study the Carrying Capacity of a National Park
 First Institution to carry out a Study on Hotel Accommodation needs of India
way back in 1990’s
 First Institution to organise a National Seminar on Hotel Project Management
 First Institution to carry out a study of Safety benchmarks of Hotel Industry
 Apart from many First’s every third room in the approved category is Funded
by TFCI

FRONT RUNNER IN SUPPORTING INNOVATIVE PROJECTS

 Shareholding pattern –
As on March 31, 2015

‹#› 14
 Types of financial assistance

Corporate Rupee
Loans Loans

Working
Bridge Subscription Capital
Loans to Equity Finance

Guarantee
Takeover/
of
Promoter
Deferred
Financing
Payments

Other Products viz Bill-discounting, Leasing

Facility , Equipment Financing, L/C,
Securitization of Debt etc.
‹15›
 Avenues for investment
Tourism Sector
 Accommodation units like Hotels, Motels, Resorts, Serviced Apartments
&Time Share
 Conference and Convention Centres
 Beach and Coastal Tourism
 Water-ways / Cruises
 Adventure / Wild-life Tourism
 Health/ Spa Tourism
 Medical Tourism
 Pilgrimage Tourism
 Rural Tourism
 Recreational & Entertainment Centers
 Restaurants/ Food Chains
 Heritage and Cultural Tourism
 Air & Surface-Transport Facilities
16
 Hospitality Education
Geographical presence

17
 State –wise Number of projects assisted

‹#› 18
 Sector-wise cumulative assistance
sanctioned by TFCI upto 31.3.2015
Segments No. of Amount Sanctioned Percentage
Projects (Rs. in Crore)
A. TOURISM
(i)Hotels
5 Star Hotels 148 2453.38 32.87%
4 Star Hotels 63 770.28 10.32%
3 Star Hotels 336 2083.29 27.91%
2 star, Heritage & Others 58 204.64 2.74%
Sub-Total 605 5511.59 73.84%
(ii)Amusement/Water Park/ 41 330.50 4.43%
Shopping Complex-cum-
entertainment centre/ multiplex
(iii)Restaurants/Food Court 25 99.23 1.33%
(iv)Other Tourism Projects* 58 620.04 8.30%
Total Tourism 729 6561.36 87.90%
B. Infrastructure:
Infrastructure projects 7 174.70 2.34%
C. Others:
Other Sectors 22 728.86 9.76%
Grand Total 758 7464.92 100.00%
‹#› 19
 Financial Highlights for past five years
(Rs. in crore)
2010-11 2011-12 2012-13 2013-14 2014-15
Sanctions 738.16 779.98 423.48 680.86 807.32
Disbursements 378.75 563.24 343.11 354.63 508.02
Net worth 335.65 374.01 414.76 436.42 482.01
Profit Before Tax 68.8 63.08 72.43 84.06 81.86
Profit After Tax 44.41 49.47 55.53 58.5 60.18
Dividend 12% 12% 12% 12% 18%
Equity Share Capital 80.72 80.72 80.72 80.72 80.72

Reserves and surplus 254.93 296.63 339.29 355.75 401.29

Capital Adequacy
50.74 40.47 37.21 39.86 38.75
ratio
Book Value(Rs.) 41.58 46.34 51.4 56.46 59.72
20
 Financial highlights(Rs. In cr)

‹#› 21
 Financial highlights for five years(Rs.in cr)

‹#› 22
 TRENDS IN HOTEL INDUSTRY
Year Inventory Occupancy (%) ARR REvPar

2011-12 84313 59.30 6032 3575

2012-13 94255 57.80 5773 3388

2013-14 103855 58.90 5531 3246

2014-15 122298 56.50 5858 3309

 The revenue growth in the hotel industry is expected to strengthen to 9-11% in

2015-16.
 India will be investing about Rs. 448 billion in hospitality industry in next five
years.
 Currently India has 163000 rooms in classified category and there is a need for
additional 137ooo rooms out of which 90,000 rooms are required in mid-
market/ budget segment in next 5 years.
23
 THANK YOU

TOURISM FINANCE CORPORATION OF INDIA LTD.

REGD. OFFICE: 13TH FLOOR, IFCI TOWER-1, 61-NEHRU
PLACE, NEW DELHI-110019.
www.tfciltd.com
Helping Tourism Grow