2. INDIA

3. INDIA… ON THE MOVE  Population 1.28 billion, the world’s 2 nd most populous country  India is set to become the youngest country by 2020 with 64% of its population in the working age group  India ranked 5 th in the number of billionaires (US$) (This is of declared income only; unaccounted money is separate)  India’s urban population will soar from nearly 340 million in 2008 to 590 million in 2030 (Source : National Council for Applied Economic Research, McKinsey, Economic Times, The Hindu, Live Mint, Census of India)

4. INDIA… ON THE MOVE India’s GDP in the global context Note: (million $) USA - 14,991,300 China - 11,290,911 India - 4,531,655 Source: World Bank India’s Economy ranks 3 rd largest in the world 2011 GDP PPP (USD mn)

5. Growth in Outbound Travel from India 2005 7.2 million + 15.6% 2006 8.3 million + 16.1% 2007 9.7 million + 17.3% 2008 10.8 million + 11.1% 2009 11.7 million + 1.8% 201012.99 million+ 17.4% 201113.99 million+ 7.7% 201214.92 million+ 6.7% Source : Bureau of Immigration, India Source UNWTO About 50 million Indians are expected to travel overseas by 2020 2013 17.16million +15% (provisional)

6. Indians Travel from… Port-wise Indian Nationals’ Departures 2012 Source: tourism.gov.in (2012)

7. OUTBOUND MARKET PROFILE Outbound Trip by Purpose of Travel VFR -: 40 % Leisure -: 40% Business -: 20% Source – BOI Length of Stay15-25 days average International Travel Expenditure US $ 2,000 per trip Source – UNWTO report by Nielson along with PATA Breakdown of Spending Accommodation 30% Local transport 18% Shopping 20% Entertainment 9% Food & drink 16% Others 7%

8. OUTBOUND MARKET PROFILE Nature of TravelersA larger proportion being males (65%) than females (35%). They are well educated and belong to the upper socio-economic strata of society. Source: PATA Report Age distribution of Travelers Leisure Traveler 22-35 yrs. Family Traveler 35-50 yrs. MICE Traveler 40-50 yrs. According to the travel trade, international leisure travellers belong to the 20-45 years age group

9. OUTBOUND MARKET PROFILE Travel Companions Family - extended family members Honeymoon – the families pay for this Friends Companions on tour groups & MICE groups Types of ToursOrganized tour groups FITs Specialized Tours: Vegetarian, Jain, Gujarati’s Payment MethodsCash 88.5% Credit Card 11.5%

10. OUTBOUND MARKET PROFILE Information Sources Travel agents Print (Ads, brochures, flyers) Word of mouth Internet Movies Travel BookingsTravel agent – Don’t trust Internet / Cash payments Internet – Only if they have been before

11. Advance Planning for Overseas Holidays  About 3 million book in less than 2 weeks  Indians do not book in advance  Over 7 months7%= 10,000  3 to 6 months28%= 4, 200,000  1 to 2 months32%= 4, 800,000  Less than 1 month14%= 2,100,000  Less than 2 weeks19%= 2, 850,000 Source: (Visa & PATA Survey)

12. Market Realities  To avoid taxation people deal mostly in cash  The biggest industry in India - Agriculture is NOT taxed (only 3% of the population pays income tax)  This cash is also used for tourism and hence customers depend more on travel agents than on internet

13. Market Realities  Tourist boards are gearing up to meet the growing number of Indians who are travelling abroad and splurging  Today India has over 40 NTOs  Starting direct flights is the first step  43% of leisure travellers from India or VFR Source: Amadeus-Frost & Sullivan Report  Extended Weekends Abroad is the new mantra  The frequency of Indians travelling abroad now is 12 months vis-à-vis 18 months earlier  New Niches, Customised offerings is very important

14.  Perfect MICE Destination (how many know what all to find – entertainment, nightlife, gala-evening ideas, shopping vouchers, incentives – welcome banners,police escorts, discounts vouchers, sim card … )  LUXURY  Perception is every thing (how many know us as a truly international destination) (Starbuck/McDonalds/KFC/Pizza Hut… )  Up-market young traveler (age bracket 30-45 years – bars/pubs/lounges) Positioning

16. Will spend an average percentage on –  Entertainment and amusement  Food & Beverage  Apparel  Housing & Utilities  Health Care & Cosmetics Buying Habits of Indians

17. Indians’ Activities Abroad  Shopping  Beaches / Coast line  Entertainment & Night life  Sports & adventures  Wellness & Spa  Monuments /Heritage Sites  Wild life

18. Our Ability to win in the Market  Visa free destination for Indians with AJACSSUK Visas  Vibrant nightlife & Exotic beaches  A shopper’s paradise  Friendly people  Widely spoken English Language  Indian Restaurants

20. SWOT Analysis

21. Changing Market Conditions  VISA Free Entry  English speaking nation  World Class Hotels  Casinos  Beaches  Exciting Nightlife  Shopping

22. Changing Market Conditions  Very Expensive Airfare  No Direct Flights  Not marketed as a standalone destination (add on with other countries)  Domestic travel is expensive

23. Changing Market Conditions  High street and local shopping  MICE - Upcoming destination  A new attractive destination for Indian weddings  Exciting nightlife  New opulent hotels

24. Changing Market Conditions  Pricing vis-à-vis other destinations  New attractions offered by Singapore, Thailand and Dubai every year  New emerging destinations in East Europe also targeting the Indian market  Destinations like Australia and South Africa spending millions of dollars in India  Exceptionally low fares to other destinations like Dubai/Thailand

26. 1.Safety and security at the destination - IMPERATIVE 2.People like bragging about their holiday; hence the overall image of the destination is important. 3.Also, perception of the destination being Luxury 4.Ease of obtaining visa and the time required 5.Good Infrastructure in terms of hotels, transport, food – take longer routes but show them the GOOD parts of the city 6.Family destination 7.Shopping options 8.Things - to See & Do - a range of experiences/activities/culture important criteria for choosing a holiday destination

28. Comparative Packages

29. Philippines Packages

30. Market Findings Indicative pricing of destination package DestinationNightsUS$ Thailand6600 Sri Lanka6900 Mauritius6954 Malaysia61054 Singapore & Malaysia61100 China61254 Jordan61327 Singapore & Cruise61390 Hong Kong Macau &Disney 6 1527 Spain & Portugal61393 Philippines61670

31.  Philippines Specialist Program - PSP (All agents have to complete it – its mandatory Deal with them only if they are Specialists)  Internet – landing page (Reaching out to consumers Credibility of Agents, Itinerary, Correct position)  Social Media (Great to create branding / awareness Need HELP – great stock of Photos)  Radio Advertising (Rush hours – morning and evening) Activities in India