Issue of September 2003  
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‘Main Deterrent To Tourism Is High Airfares’

Susan George - Chennai

While the Le Meridien group continues to look at expanding into India's secondary cities, the main roadblock to tourism is the exorbitant rates for flight tickets, says Sami Zoghbi, managing director, Le Meridien (Africa, Middle East, West Asia). Flight tickets between destinations within the country are more expensive than airfares to countries like Singapore, or Dubai – a situation that Zoghbi described as “absurd”.

“It is unfortunate that tourism is not in the high priority list of the government. It is simply not getting its fair share of exposure,” said Zoghbi. He added that national carriers should focus on generating increased tourist inflow, rather than boosting revenue. “Even national airlines have to be competitive,” said Zoghbi. “The goal of the national carriers should be to boost traffic into the country.”

Zoghbi suggests that a National Council for Tourism should be created. He recommends that the Council should comprise members from various government departments like finance, water, electricity, transportation and so on, and should be chaired by the prime minister of India. “The key driver would be the prime minister and the Council could become a strategic instrument for promoting tourism,” said Zoghbi. He believed that India is a product that has everything going for it. “Tourism can be a real income generator,” he said. While the Le Meridien group plans to foray into India’s secondary cities, much of the growth in occupancy will depend on airlines bringing their rates down, said Zoghbi. The group has charted out a dual focus for it immediate expansion plans in India - resorts and hotels in secondary cities. With about 12 per cent of the group’s properties located in India, Le Meridien is intent on building a stronger base in the region.

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