Showing posts with label Delhi tourism. Show all posts
Showing posts with label Delhi tourism. Show all posts

Tuesday, 5 June 2018

Book on Indian BnBs: A perspective on Environmental feasibility in the Hospitality sector


Wishing you a very Happy World Environment day 2018! This blog is an attempt to bring to light the various issues that the Mother Earth is facing and how we can all focus on them from a Tourism and Hospitality perspective. In addition to this, I shall also throw light on my co-authored book, ‘Indian BnBs: An emerging disruptor in the Hospitality sector’ and present how Bed and Breakfast accommodations (BnBs) are environmentally friendly!

About World Environment Day 2018

World Environment Day is a UN Environment-led global event which takes place on June 5 each year. It is celebrated by thousands of communities worldwide. It marks a day when 7.6 billion (as on June 2018) people spread across the globe are expected to take ownership of their environment and to actively engage in the protection of our Earth.

World Environment Day 2018: Beat Plastic Pollution


The theme of this year’s World Environment Day 2018 is “Beat Plastic Pollution”. The objective is to urge all stakeholders ie. Every single person on the Earth to come together and explore sustainable alternatives to energy production and consumption.

As a Tourism and Hospitality expert and academician, I shall throw light on how you as a tourism stakeholder can reduce the stress on Mother Earth. Whenever we think of travel and tourism, the first thing that comes to the mind is the relaxation of mind and enjoying a few moments in luxury. However, do you know the Environmental cost attached with the term of ‘Luxury’?

Hotels vs BnBs: Environmental sustainability check

Hotels are the luxurious way of living with a waiter serving you like you were of royal lineage and everything available at the ring of a phone. Is such a luxurious treatment costing anything on the environment or is the environment is in full charity mode since decades?
My co-authored book, Indian BnBs: An Emerging disruptor in the Hospitality sector throws light on the environmental feasibility of hotels and how such an issue can be overcome through alternate accommodation option like Bed and Breakfast accommodations (BnBs).

Book "Indian BnBs: An emerging disruptor in the Hospitality sector"


In India, not only hotels are in shortage, there are other bigger problems to meet the demand for more hotels in Indian cities. It is mentioned in my book that availability of any additional room in 5 stars or 3 star or equivalent category costs INR 10 million and INR 3.5 million respectively. Thus, huge investment is required in this sector. High-cost impediment is clubbed with other rigmaroles like seeking 62 Licences/permissions right from building plan, firefighting, FSSAI certificates, bar license etc. Land is too scarce in cities and our latest land acquisition policies make it further difficult to think about new hotel to come up.

BnBs as an alternate mode of accommodation

Among the alternatives in the accommodation, sector are BnBs / homestays, which are carved out of existing rooms in the homes. At present, there are about 10,000 rooms all over India are registered to be used as  “ stays option for tourists”. India is always bubbling with activity be it a fair, religious event, conference, sports extravaganza like the IPL or for medical facilities etc. Such events and activities attract larger footfall. Naturally, organizers and stakeholders are in search of homes where incoming guests /spectators/participants would be accommodated. Such homes converted into BnBs/Homestays could be a very useful way of matching demand and supply of rooms. No authority or agency can create temporary hotels to meet the intermittent demand of rooms in the wake of such fair/festivals/tourist meets.

A homely Bed and Breakfast (BnB) in Delhi

So as tourism expert, I can foresee the future of homestays as a disruptor in accommodation aka hospitality industry. This demand is being met by international players like Airbnb which court controversy on and off. It is claimed by Airbnb that there are already 75000 rooms listing in Indian cities through hardly 5%  or so are registered or authentic. Can you stay in a home who is not accountable to the government? Thus, registration of BnBs is a necessary prerequisite.
Question is how BnBs will disrupt hotels? Sooner or later market share of BnBs is going to increase in India.

In next 3-4  years, tourism development authorities /corporations in states and UTs are expected to handhold BnBs’ registration process to provide convenience and develop confidence amongst aspiring home owners to convert some of their rooms into BnBs. Kerala, Himachal Pradesh and Karnataka are already taking leads while northeast states are also catching up with rest of India.
India has to go a long way to meet rooms requirement and further longer way to get existing vacant rooms to be converted into “ authentic BnBs”.

Here’s wishing luck to Indian Hospitality sector and to the BnB owners!



Saturday, 18 October 2014

Expanding horizon of Medical Tourism in India: An opportunity for Bed and Breakfast too!


While conducting a survey of various Bed and Breakfast units, it was found that most of the B&B units do not have viable business. The reasons for the same are not far to seek if we analyze the data available on the Incredible India website and Immigration reports.
Mainly 3 types of tourists arrive in India/Delhi:

1. Foreign tourist who visit India for recreational purposes
2. General category who come here for business/visiting friends or relatives etc.
3. Medical tourists

Medical Tourists Arrival in India
Medical Tourists 


Out of 6.6 million FTA (2012 figures of Incredible India),

22.5% come for Business purposes.
27% come to visit friends/relatives
27% come for leisure/holidays and recreation.

Breakup of Foreign Tourist Arrival (FTA) in India
Breakup of Foreign Tourist Arrival (FTA) in India


US leads the highest proportion of tourists visiting friends and relatives (46%) followed by Australasia (42%)
Interestingly, China (65%) and Japan (60%) top the list of tourist arrival for business purpose.

Medical Tourist Arrival in India

The citizens of countries that visit India for Medical purposes are mainly from Maldives (59% of 50,000 visitors), Nigeria (29% of 37000 visitors), Iraq (33% of 39000 visitors), Afghanistan (16% of 95000 visitors), Oman (11% of 50000 visitors), UAE (8% of 41000 visitors).

Tourists from various countries for medical purpose
Tourists from various countries for medical purpose


According to Hindustan Times article ‘India among World’s top 5 Medical tourism hotspots’ dated 26th July 2014, the Medical tourism industry is set to grow to $ 6 billion by 2018 due to skilled doctors, better infrastructure, facilities and low treatment cost.

“More tourists are coming to India because cost of treatment here is much less compared to the US and the European countries. We are also trying to integrate medical tourism with normal tourism,” said Parvez Dewan, Secretary, Ministry of Tourism, Government of India.

India among World’s top 5 Medical tourism hotspots- Hindustan Times
India among World’s top 5 Medical tourism hotspots- Hindustan Times

According to 2012 figures, Delhi boasts of specialty hospitals with strong clinical care and medical institute, which have state of the art technology and medical equipments.  The city receives approximately 25,200 numbers of foreign patients coming to the city.  The patients from Mauritius, Afghanistan, Nigeria, Iraq, Nepal, Pakistan, Uzbekistan, Myanmar are mostly seeking specialties in Cosmetic Surgery & Dental, Bariatric Surgery (Gastric Banding), Joint Replacements & Spine, Cardiology, Cancer, IVF, Multi-Organ Transplants visited the hospital for low cost surgeries.

Heart Surgery in US cost USD 60,000 where as in India its cost in $ 6,500. Bone Marrow Transplant in US costs 250,000 (US $) and in India it is $ 35,000, Liver Transplant in US costs 300,000 (US $) and in India it costs  $ 55,000, Joint Replacements in US cost 50,000 (US $) and in India it costs $ 8,000 and Cosmetic Surgery in US costs 20,000 (US $) and in India it costs $ 2,000.

Contrast of Medical treatment in India vis-a-vis USA
Contrast of Medical treatment in India vis-a-vis USA


In the past, the experts of Apollo hospitals have urged the government to conceptualize and launch a campaign on the lines of ‘Incredible India’, in order to Brand India as the top quality health care destination for medical tourists. At present, medical tourists from Bangladesh, Afghanistan, Tanzania face difficulty in obtaining visa and safe and secure accommodation in India.

ObamaCare

ObamaCare
ObamaCare


As per report published in “The Business Standard on 22.8.2013, the Indian Medical Tourism sector is also eyeing a large chunk of big outbound medical tourism likely to emanate out of America following the implementation of “Obamacare”. The official name for "ObamaCare" is the Patient Protection and Affordable Care Act (PPACA). It is also commonly referred to as Obama care, health care reform, or the Affordable Care Act (ACA).
Under USA medical insurance provisions, two million US citizens are now likely to go abroad for cheaper treatment as against only 85000 in last two years.  The share of incoming US medial tourists to India is only 3%.  This share is likely to increase due to the fact that US citizen will be driven mainly by cost factors of ten fold or more cost saving as per article uploaded on website by Harvard Law School.  If India is able to provide such treatment of high quality at affordable rates, the percentage of incoming medical tourists from USA is likely to be 5% i.e. an increase from 2550 (@3% of 85000) to 1 lakh (@ 5% of 2 million). 

As per report of the Business Standard on 22nd August 2013, SAARC countries account for 36%, Africa 26%, West Asia 26% the US & Europe contribute to 3 percent foreign patients respectively out of total one million incoming foreign medical tourists.

Opportunity for B&B Owners:

Delhi B&B owners, particularly those having homes near hospitals like Apollo, Medanta, Medicity, Global Health, Escorts, Fortis have excellent opportunity to grab this market for accommodation.  In fact good number of existing B&B units are already taking advantage of it. 

What the future of Medical Tourism holds for B&B industry:

The future of medical tourism will undoubtedly flourish under the B&B scheme, provided the owners publicize their properties on websites, take help of various on-line agencies and start on line accommodation reservation.

In absence of specific accessibility facilities available in most commercial accommodations or at present in Bed & Breakfast establishments, a large number of disabled persons and medical tourists are not able to enjoy stay in the city.  Since number of such disabled tourists coming to Delhi are certainly more than 2.5% i.e. 65000 of total foreign tourist arrivals in Delhi in a year, any extra facility extended and publicized either through word of mouth or through internet will make a good marketing and promotional tool for B&B owners to promote their business in more efficient manner.

Bed and Breakfast offers a relaxing environment
Bed and Breakfast offers a relaxing environment

Additionally, B&B accommodation is able to provide a favorable place near the hospital providing a cool and relaxing environment for rest and convalesce. The stay of these guests on a visit to the hospital for treatment requires longer stay for rest and convalesce, and for post-operative checkups, monitoring, healing etc. that takes several weeks and requires a comfortable stay suitably home away from home. These guests may prefer B&B accommodation because of above-mentioned reasons. If accommodation is `accessible’ and medical tourists friendly, it creates more market for B&B accommodation for such target people.

Bed and Breakfast as a cost effective option for specially-abled tourists
Bed and Breakfast is a cost effective option for specially-abled tourists

In nutshell, the B&B stay option for incoming disabled or medical tourist is cost effective by 30% than regular hotels.  Such niche tourists come with at least an attendant and do not come for a short stay in Delhi. As mentioned above, the Medical tourists in particular need longer stay for the accompanying relatives.  These relatives need personal care and emotional support, which can only be taken care of by owners’ family.  Since hotels have limitations in providing personal care and disabled friendly facility, the B&B owners desirous to attract more business through such niche market, can create these specialized facilities. 

Marketing strategy is essential for Bed and Breakfast owners
Marketing strategy is essential for Bed and Breakfast owners

However, proper marketing strategy is needed by owners to tap this market, which is beneficial to both stakeholders.

Caveats:

Government authorities should keep a watch that no untoward incident should happen due to unscrupulous service provider from amongst the medical tourism industry stakeholders due to which a negative sentiment arises. This might lead to an adverse change of perception of India as a medical tourism destination.
Thus, there is a need for medical tourism industry to practice self regulation.


Source:


PhD thesis, “Role of bed and breakfast scheme of Delhi in development of Tourism in Delhi” by Dr. G G Saxena

Gaur Sunil., Saxena Susheel, “Report on First International Summit on Health & Wellness Tourism”, 2013, Delhi Tourism & Transportation Development Corporation (DTTDC), Tourism Section, May 2nd