TUI Taps India Through JV Partnership With Le Passage To India

Jyoti Koul - New Delhi

Michael Frenzel	Arjun Sharma
India, China and Russia are highly interesting markets for the tourism industry

Realising that India offers tremendous business opportunities, European travel giant, TUI AG recently forayed into the Indian market through a joint venture partnership with Le Passage to India. "This is the perfect time to enter India, which has a growing customer base and with the growing economy, aimed at double-digit growth, there will be a growing demand for our services," said Michael Frenzel, chairman-executive board, TUI AG.

An agreement for the joint venture was signed by Frenzel, and Arjun Sharma, chairman and managing director, Le Passage to India. The contract gives TUI 50 per cent share, (though the price was not disclosed) backdated to April 1, in Le Passage.

According to Frenzel, "India, China and Russia are highly interesting markets for the tourism industry and we have taken this step to grow our network in Asian markets.

India offers a lot of growth oriented opportunities in tourism market and we wish to play a leading role here." For Le Passage the venture would mean that it would consolidate its incoming business. While commenting on the partnership Sharma said, "This joint venture provides a huge impetus for promotion of tourism to India as a source market."

Interestingly, the TUI-Le Passage deal also brought forth the 'official association' of Arjun Sharma with the company - Le Passage to India. About three years back 'speculation' was doing the rounds in industry corridors stating that Le Passage was floated by Sharma himself. But it is only after the JV that Sharma claims to have taken a major share in the company. Therefore, it was his first 'public claim' of the company.