cnk presentation may2011
TRANSCRIPT
www.coxandkings.com
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www.coxandkings.com
Disclaimer
This presentation has been prepared by Cox & Kings Limited (the “Company”) solely for your information and for
your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other
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confidentiality regarding the information disclosed in these materials.
The information contained in this presentation does not constitute or form any part of any offer, invitation or
recommendation to purchase or subscribe for any securities in any jurisdiction, and neither the issue of the
information nor anything contained herein shall form the basis of, or be relied upon in connection with, any
contract or commitment on the part of any person to proceed with any transaction. The information contained in
these materials has not been independently verified. No representation or warranty, express or implied, is made
and no reliance should be placed on the accuracy, fairness or completeness of the information presented or
contained in these materials. Any forward-looking statements in this presentation are subject to risks and
uncertainties that could cause actual results to differ materially from those that may be inferred to being
expressed in, or implied by, such statements. Such forward-looking statements are not indicative or guarantees
of future performance. Any forward-looking statements, projections and industry data made by third parties
included in this presentation are not adopted by the Company and the Company is not responsible for such third
party statements and projections. This presentation may not be all inclusive and may not contain all of the
information that you may consider material. The information presented or contained in these materials is subject
to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates,
advisers or representatives accepts liability whatsoever for any loss howsoever arising from any information
presented or contained in these materials.
THIS PRESENTATION IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR
ELSEWHERE.
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Contents
Company Overview
Competitive Strengths
Achievements
Business Strategy
Financials
Industry Fundamentals
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Company History
Business Profile
Shareholding Details
Key Global Subsidiaries
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Richard Cox served
as a regimental agent
to the Majesty’s
Armed Forces
Company established
by Richard Cox
provided services to
majority of the British
regiments
Merged with Henry
King & Co, to form
Cox’s & King’s; Henry
S. King & Co had
strong links with India
Business was sold to
Lloyd’s Bank; which
became a separate
company running tours
around the world
1758
2010-11
19th Cent.
18th Cent.
1970
1923
1970-99
1999-2006
2006-09
Cox & Kings agency
was bought by
Grindlays Bank in a
deal with the Indian
Govt.
Largely operated as a
ticketing agent; non
leisure business
accounted for over 50%
of the revenues in 1999
Leading Player in the Indian Market
C&K Brand has evolved over 250 years
# 1 Among Top Brands in India(1)
Company History
Note: 1.Based on survey conducted in 2008 by TNS and co-funded by Media magazine across 10 countries in Asia Pacific region
Expanded product
portfolio to become a
full service Indian
tour operator
Acquired and
consolidated
businesses with focus
on leisure travel; listed
on the Indian stock
exchange
Cox & Kings is a global
tour and travel
company. The
Company is a ‘one stop
shop’ for travel
solutions
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Business Profile
Offerings
Markets
Portfolio
Sample
Corporate Travel Leisure Travel Innovative Products
• Outbound Travel
• Inbound Travel (Destination
management)
• Domestic Travel
• Meeting, Incentives,
Conferences and Exhibitions
(MICE)
• Trade Fairs
• Outsourced business
solution provider to
diplomatic missions
• Licensed retail foreign
exchange dealer in
India
• Customized business
travel solutions
• Retail clients in India, UK,
Australia, New Zealand,
Japan, USA and UAE
• Visa for India from
Germany, UAE, Hong
kong, Greece and
Singapore
• Visa‟s for Malaysia
and Singapore from
India and French Visa
from UK
• Fx operations in India
• 200+ companies
located in India
• Offerings that
differentiate Cox and
Kings from
competitors
• Create brand value
for the company
• Strategic partnership
• In all operational
markets
Visa Processing &
Foreign Exchange
Kumbh Mela, India
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Shareholding Details
CMP on 31st March 2011
BSE : INR 419.2 NSE : INR 413.6
3- Month High /Low
(Feb 2011 – Apr 2011)
High INR 464.8
Low INR 358.7
Market Cap. on 31st March 2011
INR 2,861.28 cr
Equity Capital as on 31st March
2011
6,82,63,945
Shareholding Pattern
Source: BSE
Promoter 58.7%
Banks, Mutual Funds & FI
8.6%
FII,NRIs and Foreign
Corporate Bodies 24.0%
GDR 3.4%
Other Corporate Bodies and
Public 5.3%
As on 31st March 2011
Price Details
16,000
18,000
20,000
22,000
-
100
200
300
400
500
600
Dec '10 Jan '11 Feb '11 Mar '11
Cox & Kings Sensex
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Key Global Subsidiaries
Note: 1. Cox & Kings Ltd. has a 100% commercial interest in all its subsidiaries
• Premium long-haul outbound tour operator
– Target segments – Wealth retirees
– Key destinations – India, Latin America etc.
Cox & Kings (UK) Ltd., UK
Operational Highlights Subsidiary
• Provides destination management services in Europe
– Mid market to premium positioning
– Services to group companies as well as other tour operators
Cox & Kings Destination Management Services
(Formerly ETN Services Ltd.) UK
• Outbound wholesaler selling white label packages to other tour operators
– Caters for business delegations and leisure travel
• Provides destination management services for travellers from Japan
Cox & Kings Japan Ltd.
• Outbound – Mass market oriented travel packages
• Synergies with ETN Services and C&K Dubai as key tourist destinations are Europe and Middle East
• Uniquely positioned as one of the few large independent tour operators
Tempo Holidays Pty Ltd, Australia;
Tempo Holidays NZ Ltd, New Zealand
• Inbound – Service provider to a large number of tourists from Cox & Kings India
• Outbound – Initially tapped expat Indian population; subsequently tour operator for local population Cox & Kings Tours LLC, UAE
MyPlanet Australia Pty Ltd, Australia;
Bentours International Pty Ltd., Australia
• Specialist outbound travel
– Tourists from Australia and New Zealand
– Leading outbound tour and travel operator to Scandinavia
• Engaged in the business of providing visa processing services Quoprro Global Services Pte. Ltd., Singapore;
Quoprro Global Services Pvt. Ltd., Hongkong;
Cox & Kings Gmbh, Germany;
Cox & Kings Hellas, Greece
Cox & Kings Global Services Pvt. Ltd., India
• Premium outbound luxury packages for celebrity clientele
• Outbound tours to Africa, Latin America, Asia and Middle East East India Travel Company Inc., USA
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Vast Geographical Presence
Multiple Sales Channels
Brand Image
Technological Prowess
Experienced Management Team
Corporate Social Responsibility
SWOT Analysis
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Vast Geographical Presence
Subsidiaries International Branch Offices Representative Offices
Russia
Australia
Brazil
United
Kingdom
Italy
South
Africa
Taiwan
Spain
Germany
United States
of America
India
Greece
Japan
South
East Asia
New
Zealand
UAE
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Mumbai Pune
Ahmedabad
Jaipur
Delhi
Goa
Kolkata
Kochin
Hyderabad
Chennai
Bangalore
13 Branch Offices
Multiple Sales Channels
India Distribution Network Online Distribution Network
Over 150 Franchisee Sales Shops
177 Preferred Agents
Cox & Kings Japan Portal
Cox & Kings India Portal Cox & Kings UK Portal
Radius Inc.
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Brand Image
LEISURE TRAVEL CORPORATE TRAVEL
VISA PROCESSING FOREIGN EXCHANGE
Cox & Kings offers products that are either pre-packaged
through brochures or tailor-made as per requirements of a
group and an individual traveller.
Leisure Travel can be Outbound, Inbound or Domestic.
It contributes more than 90% of the consolidated
revenues in each of the three most recent financial years.
Cox & Kings offers customized business travel
solutions to our corporate clients in India through a team
of dedicated corporate relationship managers.
We provide corporate travel services in India to more
than 200 companies, both domestic and international.
Cox & Kings provide visa processing services as an
outsourced business solution to diplomatic missions in
various countries, where we are the providers of visa
processing services for inbound travellers in India.
Visa services are provided in the categories of Tourist
visa, Transit visa, Business visa, Student visa,
Conference visa and Entry and Employment visa.
Cox & Kings provides foreign exchange services to our
customers in India as a licensed Category II Authorised
Dealer .
We provide foreign exchange services either as part of
our Leisure Travel and Corporate Travel packages or on
a standalone basis.
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Maharajas’ Express – The Luxury Train
Joint venture with IRCTC; successfully launched the train in March 2010, the Maharajas' Express is the last word in luxury train travel and the ultimate way to see India in style.
The train has a capacity of 86 passengers in 23 coaches with two bars and two restaurants.
There are four different itineraries (7-8 days each)
Total of 28 journeys a year; scheduled between September and April .
Royal India Princely India Classical India
Maharajas’ Express Journey
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Technological Prowess
• Web enabled reservation engine
• Centralized dynamic packaging
system
• Covers all travel related services
such as reservations, insurance,
visa and package tours
Technology Platforms
• B2B as well as a B2C solution,
providing a backbone to the Global
Distribution Systems (GDS)
• Online payment gateways integrated
to existing technology platform
• Fully integrated computer
reservation systems (CRS) with our
mid and back office operations
Services
• Latest data-management
software, including ERP
• Proprietary software for our Visa
Processing business with
technical support from a leading
technology company globally
Top End Software
• Servers are secured with firewalls
• Robust security systems including
biometrics identifiers, fingerprints
and photographs for visa
application
• Strong disaster management,
including recovery solutions and
scheduled backups
Security
Improve efficiencies and reduces Turn Around Time: Dynamic designing of packages; increasing business handled per employee
Seamless integration of operations of acquired entities
Ability to introduce white label/ co-branded offerings for clients such as Jet Escapes
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Experienced Management Team
Corporate Leadership
A.B.M Good
• Promoter & Executive Chairman
• In 1971 appointed on the Board of Cox
& Kings (UK) and in 1975 was
appointed Chairman of the Group
• Previously acted as a consultant to the
parent company of British Caledonian
Airways
• Associated with C&K for several
decades, he has been a constant
guiding force to the Company
• Promoter & Executive Director
• Joined Cox & Kings Travel Ltd. in
1986 as a General Manager
• On the board of C&K since 1993
• Responsible for overall leadership,
strategy, global centralized buying
and international growth
• Founder member & director of
World Tourism Council for the
Indian Subcontinent
Peter Kerkar
• Promoter & Executive Director
• Responsible for day-to-day
management at C&K India,
marketing & design initiatives at
the Group
• Prior to her current role, she was
running a graphic design and
production house
Urrshila Kerkar
Independent Directors
S C Bhargava
• Independent Director
• Retired from Life Insurance Corporation
of India as Executive Director
(Investment)
M Narayanan
• Independent Director
• Ex-CMD of Tourism Finance
Corporation of India Ltd
• Held senior management positions
in IFCI and Bank of Baroda
Pesi Patel
• Independent Director
• Three decades of experience in
the industry
• Key member in determining
future strategies for the Cox &
Kings Group
As of March 31, 2011, total of 1,680 employees across the Asia Pacific region, Europe, the Middle East and North
America
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Corporate Social Responsibility
C&K, an official travel partner of „Make-A-Wish Foundation (MAWF)
of India’, assists MAWF in granting wishes of children with life
threatening diseases.
C & K contributes towards the activities of „Magic Bus Foundation’
which works for the development of underprivileged children
C&K employees participated in the Standard Chartered Mumbai
Marathon 2011 with „Om Creations Trust ‘as our Charity.
C&K Mumbai & Delhi employees took part in an initiative conducted by
„Cankids-Kidscan’ , an organization which works with children
suffering from cancer .
C&K has had a long standing relationship with the „Cancer Patients
Aid Association’.
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SWOT Analysis
• Strong Brand Value
• International Market Presence
• Strong segmental performance
• Wide Distribution Network
• Asset-light model
• Relationship with key suppliers
• Delivering high quality customer service
• Trained Professional Staff Strength
• Franchisee network to penetrate smaller cities
with untapped propensity to travel
• Wider reach through net enabled sales
• Acquisitions within the industry to provide
significant synergies and economies of scale.
• Tourist flow is highly sensitive to adverse
Political, natural, economic events.
• Increase in tax incidence on industry
• Existing Regulatory framework and changes
regarding registrations, disclosures and state
funds affect C&K as well their suppliers
including CRS companies.
• Substantial investment needed to compete
with International firms entering Indian market
through tie-ups or buy-out of local firms
• Premium products brand image would affect
adversely in competition with cheaper
operators or charters.
• Industry move towards more direct
distribution and reduced commissions
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
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Global Acquisitions
Commencement of New Operations - 2011
Awards and Recognitions
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FY2006
FY2008
FY2009
FY2010
Global Acquisitions
Cox & Kings Destination Management Services
(Formerly known as Clearmine Ltd. – ETN services Ltd.)
• Destination management service
Cox & Kings (UK) Ltd. (Formerly Cox & Kings Ltd. ) • Outbound travel operations catering to the up-market leisure travel business
Cox & Kings Japan Ltd. • Travel wholesaler • Revenues principally from packages consultancy and services for major wholesalers and societies
Quoprro Global Services Pvt Ltd • Visa processing services
Tempo Holidays PTY, Australia; Tempo Holidays NZ Ltd., New Zealand
• Specialized outbound tours
East India Travel Company Inc
• Up-market outbound tour and travel packages
My Planet Australia, BenTours International Pty Ltd. • Specialized outbound tours
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Commencement of New Operations - 2011
Cox & Kings Global Services (CKGS) , a 100 % subsidiary of Cox & Kings Ltd.; provides comprehensive
processing services to diplomatic missions across the world.
CKGS has tied up with DNATA to form C&K Marhaba Dubai Visa(CNKMDV) to provide visa processing
services to Dubai/UAE and to promote/ sell Marhaba Services in India for passengers arriving and
departing at Dubai International Airport.
CNKMDV has set up offices in 11 cities across India with its headquarter based in Mumbai. The centre's
include Delhi, Amritsar, Jaipur, Kolkata, Mumbai, Pune, Ahmedabad, Chennai, Kochi, Hyderabad and
Bengaluru
In February 2011, C&K commenced its operations by opening up a branch in Taiwan
The branch would be handling outbound operations mainly tapping the European market which would help in creating revenue synergies .
Taiwan is an emerging market in the T & T industry and is likely to get sizeable business for C & K
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Awards and Recognitions
2010-11
2009-10
“India's Leading Destination Management Company” awarded by the World Travel Awards 2010.
CNBC Awaaz Travel Award 2010 for “Taking India Global”.
“Best Outbound Tour Operator” awarded by Hospitality India and Explore the World Annual International Awards 2010.
“First Runner Up” in the Best Large Tour Operator category awarded by the Telegraph Ultra Travel luxury survey UK 2010.
“First Runner Up” in the Favourite Tour Operator category awarded by Condé Nast Traveller Readers’ Choice Awards (2010).
"Most admired tour operator 2010" awarded by SATTE (2010)
Most Innovative Travel Company -Today’s Traveller Travel Awards, 2009
The Economic Times Survey: Cox and Kings voted as the Top Rated Tour Operator 2009 –Outbound
Best Domestic Tour Operator – TAFI award by TravelBiz Monitor Travel Awards, 2009
Best Inbound Tour Operator – TAFI award by TravelBiz Monitor Travel Awards, 2009
Most Innovative Product Launch TAFI Award – TravelBiz Monitor Travel Awards, 2009
Ministry of Tourism, Govt. of India ‘BEST DOMESTIC TOUR OPERATOR’ 2003 -04, 2004-05 2005-06
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Strategic Outlook
Consolidated Buying Group Strategy
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Strategic Outlook
Domestic Strategy
• Foray into Tier II and Tier III cities
• Expansion of outbound leisure travel sub-segment
Strategic initiatives for profitable growth
• Constant upgradation of product and service offerings
• Increasing online presence through a global technology platform
• Consolidated Buying Group Strategy leading to profitable business
• Creating strong shareholder value
International Strategy
• Inorganic growth through selective acquisitions
• Increasing the global distribution network
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Consolidated Buying Group Strategy
Increase in business and business volumes due to organic as well as inorganic growth has led to an
increase in the Operating Income by 32% (FY09-11)
Since 2008, products sourced through global consolidated efforts has led to
• better bargaining power with suppliers
• ability to offer competitive packages to customers leading to higher revenue and better margins
Inorganic Growth
Expansion in Business Volumes
Organic Growth
Bargaining Power
+ 42%
47% 47%
22%
26% 24%
0%
10%
20%
30%
40%
50%
2009 2010 2011
EBITDA Margin(1) PAT Margin(2) Note: (1) EBITDA margin calculated after excluding other income
(2) PAT margin calculated considering Adjusted PAT before exceptional Items
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Key Balance Sheet figures
Key Ratios
Consolidated Financials Q4 FY 11
Revenue Contribution
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Key Balance Sheet Figures
Particulars FY 11 FY10 Y-o-Y
Change
Current Assets 17,666.2 9,565.4 85%
Total Assets 31,191.5 15,250.4 105%
Current Liabilities 2,681.3 1,769.5 52%
Total Liabilities 11,474.6 7,156.44 60%
Stockholders Equity 12,078.5 8,101.1 49%
Debt 8,443.3 5,043.3 67%
Cash and Cash Equivalents 11,294.6 5,885.0 157%
Net debt (2851.3) (841.7)
(INR in MM)
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Key Ratios
EBITDA & PAT Margin(1)
(%)
42% 47% 47%
22%
26%
24%
0%
10%
20%
30%
40%
50%
FY09 FY10 FY11
EBITDA Margin PAT Margin
Operating Income PAT
(INR MM)
2,869
3,992
4,967
0
1,000
2,000
3,000
4,000
5,000
6,000
FY09 FY10 FY11
(INR MM)
634
1,055 1,188
0
300
600
900
1,200
1,500
FY09 FY10 FY11
Key Components of Operating Expenditure
as a Percentage of Operating Income
(%)
28% 25% 26%
12%
9% 9%
0%
5%
10%
15%
20%
25%
30%
FY09 FY10 FY11
Personnel Expenditure Advertising
27 Note: (1) EBITDA margin calculated after excluding other income
(2) PAT and PAT margin calculated considering Adjusted PAT before exceptional Items
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Consolidated Financials Q4FY11
• Q4FY11 Operating Income for the Group stood at INR 1,587.5 Mn i.e. an increase of 16% over the same period last year
Cox & Kings Ltd. Consolidated Q4 Results (INR Mn)
• EBITDA increased to INR 825.6 Mn i.e. an increase of 15% over EBITDA for Q4 FY10
Particulars Q4 FY 11 Q4 FY 10
Q-o-Q
Change
Year Ended
FY 11
Year Ended
FY 10
Y-o-Y
Change
Income from Operations 1,587.5 1,369.2 16% 4,967.4 3,991.5 24%
Employee Cost 337.4 288.5 1,295.7 994.1
Advertisement Cost 98.4 81.4 423.4 357.0
Depreciation 51.6 50.3 185.5 150.7
Other Expenditure 326.1 279.5 947.7 776.1
Total Expenditure 813.5 699.8 16% 2,852.3 2,277.9 25%
Profit from operations before Other Income,
Interest & Exceptional Items 773.9 669.4 16% 2,115.1 1,713.6 23%
Other Income 72.4 67.1 257.0 137.3
Profit before Interest & Exceptional Items 846.3 736.5 15% 2,372.1 1,850.9 28%
Interest & Finance Charges (Net) 121.3 87.4 543.9 269.7
Profit before Exceptional Items 725.0 649.1 12% 1,828.1 1,581.2 16%
Exceptional Items Gain / (Loss) 0.7 26.2 102.9 283.8
Profit from Ordinary Activities before tax 725.7 675.4 7% 1,931.0 1,865.0 4%
Tax Expense 258.2 223.2 625.2 516.9
Net Profit from Ordinary Activities after tax 467.5 452.2 1,305.9 1,348.1
Share in the Profit/(Loss) of Assoicates (6.2) (2.3) (15.0) (9.6)
Extra-ordinary items - -
Net profit for the period 461.3 449.9 3% 1,290.9 1,338.5 -4%
Note: There Is a foreign exchange gain of Rs.10.29 crores on account of foreign currency loan revaluation in FY2011 as against Rs.28.38
crores in FY2010 .Hence, the PAT is marginally lower for the year ended 2011 as compared to the previous year. 28
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Revenue Contribution
UK Travel 18%
ETN 3%
CNK Japan 8%
East India 5%
Dubai 4%
Australia 12%
Others 2%
India 48%
FY 2011
UK Travel 21%
ETN 5%
CNK Japan 9%
East India 5% Dubai
3%
Australia 13%
India 44%
FY 2010
India’s Revenue Contribution has increased significantly from 44% in 2010 to 48% in 2011
UK Travel 21%
ETN 1%
CNK Japan 10%
East India 7%
Dubai 2%
Australia 15%
Others 3%
India 41%
Q4 FY 2011
Revenue from Dubai Subsidiary shows a 72% increase in 2011 over 2010; which is 4% of the Total Consolidated Revenue
Revenue from East India and Australia has increased by 18% and 17% respectively in 2011 over 2010
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Indian T & T market
India Tourism - Inbound
India Tourism - Outbound
India Tourism - Domestic
International Tourism - Growth & Forecasts
Core Markets
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Indian T & T market
Direct contribution of Travel &Tourism to GDP is expected to be INR 1,570.5 bn (1.9% of total GDP) in 2011, rising
by 8.1% pa to INR 3,414.8 bn (2.0%) in 2021
India is expected to attract 6,179,000 international tourist arrivals in 2011 which is expected to rise to 11,149,000
in 2021 i.e. an increase of 6.1% pa
$14.7
$9.9
$4.3 $4.0 $3.0
$2.2
$0.0
$4.0
$8.0
$12.0
$16.0
UnitedStates
China Japan India Germany UnitedKingdom
2010 - GDP (at Purchasing Power Parity)
Year 2010 (USD
bn)
2020 (USD
bn)
CAGR (%)
China 113 501 16.1
India 42 111 10.2
USA 511 917 6.0
United Kingdom 89 148 5.2
Australia 50 80 4.8
T & T markets by Size
T & T industry in India will grow at a CAGR of 10.2 % over 2010-2020; thus a fast growing T & T market
Indian economy is the 4th largest economy globally
(US$ trillion)
Source: CIA World Factbook Source: WTTC, 2010
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India Tourism - Inbound
Receipts & Arrivals
5722 6012
6356 6755
7221 7768
619 631
647
666
689
717
560
600
640
680
720
760
0
2000
4000
6000
8000
10000
2010
2011E
2012E
2013E
2014E
2015E
Arrivals (in '000 trips) Receipts ( in INR bn)
Composition - 2010
Business 35%
Leisure 61%
MICE 4%
Over the past years, US and the UK remained the top two largest source countries for India and are expected to continue till 2015
Over 2010-2015, inbound tourism is expected to increase by CAGR of 6%, whereas tourism receipts are expected to increase by
a constant value CAGR of 3%.
An increased inflow of tourists was seen from South Africa , Malaysia and Brazil, and thus the fastest growth in spending was
seen by these countries.
Source: Euromonitor International, India April 2011
(in '000 trips) (INR bn)
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India Tourism - Outbound
Expenditure & Departures
12,497 13,842
15,414
17,253
19,392
21,902
452 475
500 530
565 604
0
100
200
300
400
500
600
700
-
5,000
10,000
15,000
20,000
25,000
2010
2011E
2012E
2013E
2014E
2015E
Departures (in '000 trips) Expenditure ( in INR bn)
Composition - 2010
Business 28%
Leisure 68%
MICE 4%
The recovering economy, improved consumer confidence and attractive deals has led to 13% growth in the number of departures from
India in 2010 and is expected to increase at a CAGR of 12% by 2015.
US and Singapore continued to be the top two destinations in terms of outgoing tourist expenditure in 2010, accounting for a combined
share of nearly 20% of total outbound expenditure.
In 2010 the most outbound tourists visited Singapore, Malaysia , the United Arab Emirates and Thailand. Apart from these destinations,
Egypt, Indonesia and Italy are the emerging outbound destinations.
Source: Euromonitor International, India April 2011
(in '000 trips) (INR bn)
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India Tourism - Domestic
The number of trips has increased by 14% in 2010 and is expected to increase by a CAGR of 14% in 2015.
In 2010 Andhra Pradesh received the largest share of domestic tourists, followed by Uttar Pradesh and Tamil Nadu.
Year Value % Value Growth
2010 2,056 -
2011E 2,199 7.0
2012E 2,364 7.5
2013E 2,553 8.0
2014E 2,771 8.5
2015E 3,020 9.0
(in INR billion)
Domestic Tourist Expenditure
168 189 214 243 277 318
573 645
730
829
946
1,082
-
200
400
600
800
1,000
1,200
2010 2011E 2012E 2013E 2014E 2015E
Business Leisure
Business v/s Leisure
Karnataka was the fastest growing domestic destination in 2010, followed by Tamil Nadu and Bihar.
In 2010, domestic tourist expenditure increased by 15% and is expected to continue at a CAGR of 8%
Source: Euromonitor International, India April 2011
(mm trips)
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International Tourism - Growth & Forecasts
Source: World Tourism Organization (UNWTO)
Average annual
growth rate
2010 2020 1995-2020
(%)
Africa 47 77 5.5
America 190 282 3.8
East Asia & the Pacific 195 397 6.5
Europe 527 717 3.1
Middle East 36 69 6.7
South Asia 11 19 6.2
World 1,006 1,561 4.1
(million)
Forecasts
International arrivals are expected to reach nearly 1.6 billion by the year 2020.
By 2020 the top three receiving regions will be Europe , East Asia & Pacific and the Americas
East Asia & the Pacific, Asia, the Middle East and Africa are forecasted to record growth at rates of over 5% year, compared to
the world average of 4.1%.
International Tourists Arrivals - 2020 Forecasts
Asia and the Pacific,
22%
America 16%
Africa 5%
Middle East 7%
Europe 50%
World Inbound International Tourists Arrival,2010
35
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T & T industry direct contribution is expected to be AUD 47.6 bn in 2011, rising by 2.7% pa to AUD
62.4 bn in 2021
Inbound visitor arrivals are forecast to increase by 3.1% to reach 6.1 million in 2011 and 8.4 million
by 2020
Australian resident outbound departures are forecasted to be 7.8 million in 2011 and will reach 10.3
million in 2020 at an annual average growth of 3.7%
Australia
United Kingdom
T & T industry is expected to contribute GBP 36.8 bn (2.4% of total GDP) in 2011
Estimated number of visits abroad by UK residents in the three months to March 2011 increased 4 %
to 13.5 million compared with the previous three months.
During the 12 months ending March 2011,overseas earnings increased 4 per cent to GBP 16.9 bn
T & T industry direct contribution to GDP is expected to be US$ 404.0 bn in 2011, and reach US$
570.3 bn in 2021
With 61 million outbound trips in 2009 , the USA remained the second-largest source market after
Germany
International Visitor Spending has increased by 9% from USD 32.3 bn in the period Jan-Mar 2010
to USD 35.1 bn in the period Jan-Mar 2011
United States of America
Source: WTTC 2011; Office of Travel and Tourism Industries (U.S);World Travel Trends Report 2010-11; Office for National Statistics UK; Tourism Forecasting 2011 (Australia)
Core Markets
6.1 6.9
7.7 8.4
7.8 8.8
9.6 10.3
-
2.0
4.0
6.0
8.0
10.0
12.0
Inbound visitor arrivals Outbound Departures
Forecasted Arrivals & Departures ( in million)
16.3
16.9
16.0
16.2
16.4
16.6
16.8
17.0
Apr'10 - Mar '10 Apr'09 - Mar '11
Overseas earnings(GBP bn)
International Visitor Spending(USD bn)
32.3
35.1
30.0
32.0
34.0
36.0
Jan-Mar 2010 Jan-Mar 2011 36
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For further details, please contact:
Cox & Kings Ltd, Turner Morrison Building, 16 Bank Street, Fort, Mumbai - 400 001
Website: www.coxandkings.com
Email: [email protected]
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