Untapped potential

Despite its size, its diversity and its attractions, India still has some way to go to fulfil its potential for the CEI sector. If the mention of the country evokes images of the exotic and mysterious, why has the country so far failed to excite industry professionals? Some 57 per cent of our corporate buyer respondents admit that they are not even considering the subcontinent for events over the next three-year period. Among buyers, 22 per cent are considering the capital New Delhi for events and a slightly smaller number (19.25 per cent) are looking at Mumbai. Hyderabad and Bangalore (11.23 per cent) and Goa (just over nine per cent), are the only other destinations to register more than five per cent interest. Perhaps surprisingly, Rajasthan is being considered by only 2.14 per cent of buyers, despite the area's inclusion in the so-called 'Golden Triangle' of northern India, with the heritage cities of Delhi, Agra and Jaipur and their related sights and attractions. Optimistic outlook Yet there is cause for optimism. Political stability and economic growth should give rise to increased confidence in India's future as a meetings and incentive centre. Certainly the country has much to offer, one of the world's outstanding ranges of cuisines, a rich and varied history, exotic cultures and warm hospitality. Added to this is the widespread use of English, the international language of business. However, the country's central problem is that infrastructure remains dreadfully weak. India lacks a major world-class convention and exhibition centre of sufficient size to compete on a regional scale with the likes of Singapore, Hong Kong or even Kuala Lumpur. Inevitably part of the reason is that, unlike China over the past two decades, India has not had the same level of inward investment by major multinationals. However, there are signs that this situation is changing. India is establishing a world-class reputation in the fields of information technology (IT) and service-led business, such as call centres, that have been outsourced from English-speaking Western countries. The result is concentrated economic development in southern cities such as Bangalore and Hyderabad, and an expansion of multinationals' presence in traditional business and political centres of Mumbai and New Delhi. Strong economy Ananya Narayan, managing director Asia Pacific, Preferred Hotels group, believes the country is on the verge of a major upswing. "India's economy is strong and politically the country is stable. One of India's biggest problems now is the lack of hotel rooms." He also argues that the lack of familiarity with India should be turned into an advantage. "Many people have travelled to Thailand, Hong Kong, Singapore and Malaysia already. India is still a fresh destination for corporate groups." A new generation of hotel properties is coming on stream, looking at tapping into the growing business sector and with facilities that will encourage India's meetings and incentives industry to move forward. Shadow Wong, senior corporate public relations manager, Shangri-La Hotels & Resorts, is enthusiastic about the country's potential. "Within the next two to three years Shangri- La anticipates signing management contracts for several hotels in India in cities such as Mumbai, Hyderabad and Bangalore. This plan is well underway — Shangri-La hotel, New Delhi has recently opened," she says. "We foresee a strong demand for India as the preferred destination by event organisers and decision-makers in holding regional or international conferences and events." "In the meantime, we are reviewing our meeting processes and offers among the Shangri-La hotels and resorts to ensure our products and services meet the needs and wants of the event organisers and participants now and in the future." So it seems that while cautious optimism is the order of the day among industry suppliers, they will need to overcome a lingering scepticism among industry buyers. India's CEI sector faces the task of convincing corporate buyers that it has the facilities and infrastructure to match the undeniable cultural experience.