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MICE IN INDIA

CHAPTER 1BUSINESS TOURISM

Destination Ludhiana

ABHISHEK VIJWLP XIII Batch

Business Tourism is a sector of wider tourism industry and includes Meetings, Incentives, Conferences / Conventions, and Exhibitions / Events (MICE). Despite the term business not being reflected in MICE, when individuals from government or non-profit organisations engage in similar activities, it is categorised as a business travel, and hence, construed as a sub-segment of business tourism. Business Tourism is a significant part of tourism because of the greater per capita expenditures compared to leisure tourism. In addition, the

importance of the MICE industry lies in the fact that it converts the annual business meetings and conferences into a glamorous and enjoyable event for the delegates and attendants.

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BUSINESS TOURISM

INTRODUCTION

The MICE industry - a service industry combining trade, transportation, finance, and travel - has been active in Europe and America for over a century. Till the early nineties, North America and Europe had dominated the conventions and conference markets. The US still holds the top spot for the highest number of meetings as a single country destination. Europe accounted for the maximum share with 52% of all international meetings in 2010. However, since then, the market has moved towards newer destinations in Asia and Oceania.

MICE industry is characterized by the “Three Highs—high growth potential, high added-values, and highly beneficial innovations”; the “Three Larges—large output, large opportunities for employment, and large industry associations”; and the “Three Advantages—advantage over other industries in human resources, technological know-how, and the efficient utilization of assets.” 

Meetings and conventions offer high value added, in terms of delegate expenditure and also serve the dual purpose of promoting international relations. It is a highly profitable form of tourism as most delegates are subsidised and tend to use costly accommodation and often travel before and after the event. In addition, by organising during the off-seasonal months, one can remove the seasonality effects of leisure tourism. Thus undesirable social effects of seasonal tourism such as migration, temporary employment, and job instability can be avoided. These events can also be termed as “knowledge tourism” as they promote the exchange of ideas, technology and commercial knowledge that contribute to an intangible but important source of value add to the economy of the host country.

Convention or Meetings Tourism accounts for approximately 20% of all international arrivals. Overall, planners expect the worldwide number of meetings to grow at 7% in the present decade and expect to see annual growth of 10% over the next decade. Accordingly, business tourism is increasingly being accorded a greater significance, since it is often of high value; and also helps increase local government and private sector investments.

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FEATURES OF MICE

Most large international conventions are allotted to different destinations by rotation on the basis of competitive bidding. The entire process predates the actual event by 5-8 years and in some extraordinary cases by 10-12 years. The selection process can take close to a year and individual organisers need to put an impressive presentation and upstage the competition in every way.

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INVITING CONVENTION BUSINESS- THE PROCESS

The Bidding Process for Conventions

It is at the high quality, high yield end of the tourism spectrum.

It is resilient, sustainable and complements the leisure resilient, sustainable and complements the leisure tourism sec tourism sector.

Business Tourism stimulates future inward investment as business people see the attractions of a destination while travelling on business or to attend a conference, exhibitions or incentive, and then return to establish business operations there.

Investments in Business tourism facilities lead to the regeneration of urban and inner city areas.

Research suggests that approximately 40% of business travellers will return with their families or colleagues as leisure visitors they have enjoyed visiting on business.

Business tourism, the fastest growing in the global tourism industry, caters to business travelers, mostly corporates. It encapsulates business meetings, international conferences and conventions, events and exhibitions. Singapore, Hong Kong, Malaysia and Dubai are the top destinations in this category. India is also present in this segment. The analysis of prominent convention destinations in Asia helps us to identify key factors, listed below:

Destinations like Singapore and Hong Kong are currently at the top of the world market, as they have managed to merge the best of both worlds - the meticulous planning of the western world, with the courtesy and hospitality of the eastern world.

Most Asian destinations were primary tourist destinations, which later developed into large economic centres and the convention business was developed around this economic development.

Convention & Visitor Bureaus from cities like Seoul, Hong Kong and Singapore are extremely proactive, and they work closely with various government agencies to provide a delightful experience to its visitors.

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FOCUS OF BUSINESS TOURISM

ASIAN DESTINATIONS

The Indian Convention Industry is currently at a nascent stage, contributing only a small proportion of the world conventions business. India can be competitive with other business tourism destinations owing to its natural beauty, rich heritage and geographical diversity. In terms of number of meetings, India has a share of 1% and in terms of delegate arrivals/ participation, 0.7% of the world figures. In India, the entire tourism sector contributes to approximately 5% to the GDP and business tourism in turn contributes 9% of the tourism revenues. Although the figure of 9% is at par with other convention destinations, in volume terms, however, based on an analysis of secondary information, it is considered small given the potential of India. Further, on the basis of extensive interviews with professionals, it has become apparent that India is at an ‘inflection point’ as far as the conventions and conferences business is concerned.

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THE INDIAN CONVENTIONS INDUSTRY

MARKET

With the emergence of India as a key economic hotspot along with China, and with an increase in inbound travel from several international destinations for leisure, business and medical tourism, business tourism has enormous possibilities. India’s growing strength in the Information Technology arena, as well the booming civilian Airlines industry has prompted prominent international bodies to host trade shows and conventions in the country and similar prominence in the bio-technology area and manufacturing sector is also expected to bring convention revenues to the country in the coming years. Ten leading source markets for visitor arrivals to India are depicted below: -

The country now has several good venues, with all facilities to hold such events, which include some of the hotel chains like ITC Hotels, the Taj Group, the Oberoi’s, Meridien Hotels, Marriott Hotels also provide excellent conference facilities. Apart from Hyderabad - emerging as India’s Convention Capital - major cities that hosted the events in 2014 were Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Goa, Chandigarh, Jaipur, and Cochin.

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EMERGING TRENDS

A Consumer survey was conducted to gauge consumers’ perceptions about India as a destination and information on expenditure patterns for different product / service heads. The survey was to collect information on the following aspects:

Profile of Conference Visitor, his preference for India as a convention destination on the basis of various parameters - decided on the basis of secondary research on business and conventions travel.

Expenditure habits, duration of stay and views on the facilities provided at the conference venue and improvisations required to position India as a global conventions destination.

While the consumer survey revealed consumers’ perceptions about India as a destination, it also provided details about potential opportunities for business tourism, along with the conventional market. The result of the consumer survey that was conducted among 75 international delegates, across several conferences in Bangalore, New Delhi and Thiruvananthapuram is as follows: -

Business and professional tourists are part of a lucrative segment and tend to spend more than the average tourists. At an average each business visitor spends about 1362 USD, which is about 10% more than ‘Others’.

Conference and Tradeshows are the two most important categories of events that happen in India. The Medical and Pharmaceutical industries constitute the most important segment; accounting for 38% of all conferences.

Business tourism contributes to at least 2.2% of India’s GDP. The share of business tourism is only set to grow with the development of India as a major hub of economic activity in Asia and the world. The revised estimates of the Asian Development Bank indicate strong growth in the Asian economies, to the tune of about 7%, with the larger economies of India and China growing even more rapidly, around 8-10%. This economic upsurge in India, envisages following implications for the sector: -

Based on the present trends 13 lakh jobs will be directly added annually

on account of business tourism without any intervention from the government.

India is a large country and the impact on local economies is bound to be much higher. States like Punjab, Goa and Rajasthan, which attract a large

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number of foreign tourists will benefit immensely from Business Tourism, as the recreational tourist circuit is better developed there.

The hospitality industry is impacted by business tourism to a large extent. India’s culinary traditions and cultural heritage provide an immense competitive advantage that cannot be easily replicated by competing countries in Asia and elsewhere. Additionally, this industry being highly labour intensive, contributes to creation of jobs.

Business visitors tend to spend more on account of the company accounts that they travel on. Hence, attracting those, gives more return for money spent on developing tourism. They are well educated and well networked and hence, tapping them creates word of mouth publicity that is a good way of marketing Indian destinations.

Promoting Business Tourism and conventions during the off-seasons i.e. between September and January, requires support from the government, and also the hospitality industry.

Private investments in building tourism infrastructure including convention centres should be encouraged. State governments like Goa and Rajasthan have slashed state taxes by half during the “off-season” to attract more visitors. Similarly, the hotels have also lowered tariffs during these months. Such initiatives can be replicated in other popular destinations to promote the lean months

The development of any economy is related heavily to the transfer of knowledge, ideas and skills from other parts of the globe that have access to advanced technologies. Meetings and conventions are held with the explicit intention of facilitating such knowledge transfers and hence, their role in the development of any economy is invaluable and is beyond the contribution that they directly make to the GDP. Promoting this sector is a driver to the development of strong Indian companies and upgrading the skills of India’s coveted and publicised human capital.

The tourism sector is a composite industry and hence, its development helps decrease inequalities and promotes social welfare, as people with different skill sets are involved in the entire value chain.

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10

LUDHIANA – THE INDUSTRIAL CITY

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LUDHIANA – THE INDUSTRIAL CITY

CHAPTER 2

Ludhiana the first metropolitan centre of the state of Punjab, located on National Highway 100 km north west of Chandigarh, 310 Kms from New Delhi and 150 km from Amritsar, has emerged as the most vibrant and important business centre of Punjab. Positioned at 300 56' N and 750 52' E, Ludhiana, became the first metropolitan town in Northwest region of India and has a long history spanning over 525 years. It was founded in 1481 AD during the reign of Sikander Lodhi and village Mir Hota on the bank of River Satluj was first established as a military base by Lodhi Army. With the passage of time, the base grew up in size and came to be known as "Lodhi-ana" meaning the town of Lodhis", which subsequently came to be popularly known as Ludhiana. During his ascendancy (AD 1799-1838), the city was taken over by Maharaja Ranjit Singh in 1805, during which it attained the political importance.

In 1816, city was expanded westwards when Afghan ruler-in-exile asked for refuge and it expanded southwards, city when Afghan Royal family settled there permanently in 1842. In 1843, Ludhiana became a revenue district of the British. Local civil administration started during 1853-54 with establishment of Civil Lines. Immediately after this, Grand Trunk Road was aligned to the city’s present site and thereafter connected by rail in the year 1870. Subsequent to demolition of buildings around the fort during Indian uprising of 1857, natives scattered and formed first slum in Ludhiana. The city of Ludhiana started taking its present shape under the British rule.

Ludhiana city, the district headquarters of Ludhiana district, is the largest city in Punjab, both in terms of area and population. Although the district is spread over an area of 3,577 sq. Kms with a population of 3,498,739 (2011 Census), the city occupies 159.37 sq. kms and accommodates 1,618,879 people (2011 Census).

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The city is located in the district of Ludhiana, which is the most centrally located district amongst the 20 districts of Punjab State. It falls within the Malwa region of the State of Punjab. Positioned at 300 56' N and 750 52' E, Ludhiana is located about 8 km south of Satluj river - one of the five major rivers of Punjab. Geographically the city lies between north latitude 300 34' and 310 01' and east longitude 750 18' and 760 20'. The city is located on Amritsar-Delhi Grand Trunk (GT) Road (NH-1) and the Amritsar-Ambala railway line, which are considered the back bone of not only the state but also the country.

12

BACKGROUN

LOCATION

During last quarter of the 19th century, the machine knitting was started and city developed into a big trade and commerce centre. First water connection was released on 13 th Jul 1907 and city was electrified in 1932. The underground sewerage system in Ludhiana was laid in 1961. The railway network was a milestone development and a catalyst for industrial growth of the city, which led to the development of sub- urban areas around Ludhiana city.

Ludhiana being the hub of Indian small scale industry especially the hosiery, is popularly known as 'Manchester of India'. It is also known as “Small Scale Industrial Capital of India”. For the academia, it is home to the most prestigious institutions. Apart from the famous Punjab Agricultural University modelled on the "Land Grant of America", there are two Medical Colleges and an Engineering College, in addition to numerous colleges imparting education up to postgraduate level. The city has its own individuality and character which is the result of its historical growth, physical, economic and social structure, it has acquired during the period of its existence and functional service to the people of the city, state and country.

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INDUSTRIAL DEVELOPMENT

RAPID URBAN GROWTH

Punjab is urbanising rapidly and its future seems to be urban. With urbanisation standing at 33.95%, Punjab is ranked fifth major urbanised state of India after Tamil Nadu (43.86%), Maharashtra (42.40%), Gujarat (37.35%) and Karnataka (33.98%) and most urbanised states in the northwest region of the country. The percentage of urban population in Punjab has been on the rise continuously.

Industries have been found to be the prime movers of the physical and economic growth of the urban areas. Rapid growth & development of Ludhiana Metropolis in the post-independence period is attributed to the momentum generated by the various Industrial segments in the city. The post- independence period witnessed enormous growth in small and medium scale industries. With more than 80,000 small, medium and large industrial units (including household industries) mushrooming, city emerged as the industrial hub of the State and capital for the small scale industry. Labelled as the ‘Manchester of India’, the city pioneers in the area of Hosiery & knitwear, garments, cycle, hand tools, sewing machines, auto components etc. In addition, Ludhiana is also known for high volume of industrial exports. It is also known as “Small Scale Industrial Capital of India”.

There are sizeable numbers of large, medium and small scale industries in Ludhiana, particularly in the Hosiery, Engineering, Garments, Cycles, Metal segments. The growth has been of higher order in the small scale sector as compared to large scale industries. Large scale industrial units constitute only 0.35% of the total industrial units existing in the city, whereas share of small scale industries have been to be of the order of 99.65%. In absolute terms, the number of small scale units has grown from 34,730 to 36,823. During the period unlike large scale industries, no negative growth in the number of small scale industrial units has been recorded. Accordingly Ludhiana continues to be known as capital of the small scale industries. While the average growth rate of the small scale industries has been pegged at 3 % in the last decade, the growth of large industrial units in the same period has been found to be varying between 0.31% to 1.23% on an annual basis.

The city has not only graduated in the area of industrial production but has also made a mark in the export of goods. In order to facilitate quick movement of goods meant for export, Container Corporation of India has set up a Container Yard at Dhandari Kalan.

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INDUSTRIAL GROWTH

INDUSTRIAL

CONNECTIVITY AS A MICE DESTINATION

The city is well connected with other areas of the state and country through Air, Road and Rail links. NH1-Grand Trunk road passes through the city and the major road network connecting the city with other parts of the state/ country is Ludhiana-Ambala, Ludhiana-Amritsar, Ludhiana-Chandigarh, Ludhiana-Ferozepur, Ludhiana-Malerkotla and Ludhiana-Bhatinda. Similarly, Ludhiana lies on the main broad gauge line and is identified as a junction. The main railway lines passing through the city are Amritsar-Delhi Railway Line, Delhi-Jammu, Ludhiana- Ferozepur and Ludhiana-Dhuri railway line.

With a view to facilitate the industrial growth and to locate the industries in appropriate locations, State Government has launched a policy of developing industrial Focal Points in different cities having potential for industrialisation. The Focal Points are being developed, based on a well defined strategy, state of the art planning, supported by basic & essential infrastructure and services in order to provide appropriate environment for industrial growth & development, besides increasing their productivity.

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STRATEGY

CHAPTER 3

DESTINATION PLANNING

ANDDEVELOPMENT

16

LUDHIANA AS A MICE DESTINATION

Ludhiana has seen a lot of ups and downs during the years of freedom struggle and has developed to be one of the strongest states in India with respect to the economical conditions.

Ludhiana has a per capita income of Rs 30,000, almost 30 times more than the per capita income of the state of Bihar, which is about Rs 1,067. In addition to the woollen hosiery being the pride of Ludhiana"s pride and its icon and it also dominates the machine tools industry. To top its industrial might, Ludhiana has fertile terrain and is one of the most fertile regions of the world with an average yield of 4,192 kg of wheat and 3,231 kg of rice per hectares (ha).

Among the highest per capita income cities in India.

Led the country in the Green Revolution and in the adoption of improved agricultural practices.

Extensive development of agricultural markets and networks and success in new kinds of contract farming.

Has one of the highest road density and railway network for the geographic area.

Consumption of electric power (per capita) in Ludhiana is the highest amongst the major cities of India.

Hard working and innovative workforce that has been able to build a a positive reputation both within the country and in several parts of the world. There exists a large pool of potential entrepreneurial talent that has pushed the industrialisation of Ludhiana.

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STRENGTHS

TRADITION OF TRADE, BUSINESS AND INDUSTRY

ECONOMIC AND INFRASTRUCTURE

Ludhiana is a major centre for the manufacture of bicycles, around which there is a large community of component manufacturers. The state accounts for over three quarters of the bicycle component manufacture in the country.

The Ludhiana knitwear cluster is an unorganised cluster of over 12,000 units in the value chain. The total turnover of the cluster is estimated at Rs. 5000 crores, of which exports account for around Rs. 1000 crores. Ludhiana has 90 per cent share of the domestic woollen market and is a also a significant player in the cotton segment.

The hand tools industry in India is mainly export oriented and is concentrated largely in the small scale sector at Jalandhar and Ludhiana in Punjab. Jalandhar and Ludhiana export 80 to 90 per cent of their production, specialising in spanners, hammers, vices, etc.

Cotton mills, grain processing, sugar manufacture and the processing of agricultural materials such as oilseeds, as also metal working and leather products, have had a long history in Ludhiana.

Different auto parts companies in Ludhiana, manufacture parts for world renowned vehicle companies like BMW, Mercedes Benz, Audi, etc.

The threats stems from the geopolitics, the inertia which typically comes from economic comfort and environmental sustainability of growth. These are enumerated in the succeeding paragraphs.

Ludhiana is a relatively rich city with one of the highest per capita

incomes among the cities of India. This comes in part from the relatively advanced farm sector and a small business and trading community, as

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THREATS

COMFORT AND SELF SATISFACTION

also the larger number of prosperous Punjabis who are resident in other parts of the country and also overseas. This has resulted in an excessive focus on real estate opportunities which appear to be enormous.

There is also a simultaneous sense of complacency and cynicism.

There is widespread scepticism about the possibility of the materialisation of any significant improvement in the outlook for industry based on expectation of little change in official policy and bureaucratic attitude.

Ludhiana’s dependence on air transport, railways and road network is much greater than many other cities, given the landlocked nature of the state. In other words, “good transport infrastructure” for other cities is not “good enough” for Ludhiana given its locational challenge.

Considering that the economic scenario is dominated by the small and medium sector, it is extremely important to provide common industrial infrastructure facilities, e.g., common effluent treatment plants for leather tanneries or common processing and finishing facilities for textiles.

Though existence of sufficiently developed infrastructure can be seen, but not developing it with a foresight could pose hurdles in future. The issues below outline the envisaged nature of the infrastructure challenges:

Historically Punjab has had a strong road network with a total of over 51,000 kilometres of State and National Highways because of good development efforts in previous decades.

The pursuit of better and smoother road connectivity should lead to exploring a model of public-private partnership (PPP). The Government of India is experimenting with a number of models of capital subsidy, e.g., the viability gap funding, which has created a national market for PPP projects. Punjab must endeavour to market its projects actively so that they are executed at the earliest.

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CHALLENGES OF

TRANSPORT

Roads

Punjab has 3,726 kilometres of railway track connecting most parts of the state, of which, 93 per cent is broad gauge. There has been little extension of the track network in recent years. Thus, only 200 kilometres of broad gauge were added between 1980 and 1999.8 A major positive development with respect to railway transport in Punjab has been the decision of the Government of India to extend the planned dedicated rail freight corridor from Delhi to Ludhiana.

Over the past several years, India has seen an explosive growth in air passenger traffic – both domestic and international. For many multi-location businesses, access to air connectivity has become crucial. Also, for freight requirements of high value products and perishables, air transport availability plays a very important role in determining competitiveness for a landlocked state such as Punjab. At present, Punjab has only one functional international airport at Amritsar and a domestic airport operating from Chandigarh.

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Punjab has the highest per capita consumption of electricity amongst the major states of India (1799 kwh per annum compared with the national average of 884 kwh), a reflection of the fact that rural household electrification in the state is virtually universal. But, Punjab’s electricity situation has deteriorated in recent years with increasing shortages.

20

POWER

Rail Network

Airports

Punjab’s net power shortfall at 9.8 per cent was lower than many states in the neighbourhood in recent years, but this is not a source of comfort. However, if industrial development in Punjab was to expand, the demand for grid power would rise significantly and such future demand expansion would place the state in a position that is inferior to what is suggested by the relative standing.

As of Mar 2012, the own generation capacity of the Punjab State Electricity Board (PSEB) was 5238.8 MW, which accounted for only half of the total capacity, the Bhakra Hydro Electric station provided another 20 per cent, and the gap was covered from Punjab’s share of the central sources. Punjab suffers from a shortfall in capacity of 27 per cent of the peak load requirement. Rationing is the principal instrument used in Punjab for matching the market demand with the available supply of power. What makes it worse is that the cuts are not announced in advance and tend to be erratic.

State governments are typically involved in developing industrial areas and industrial estates within these areas to facilitate the establishment of industrial units, 83 particularly in the small and medium sector. The provision of concentrated infrastructure in selected locations and attracting private units to locate in these areas also serves as a very effective means of industrial dispersal. The state can also play an important role in developing industry specific areas attending to the specific infrastructure needs of specific industries, e.g., effluent treatment plants for leather tanneries and exhibition centres for textiles.

The existing small knitwear companies in residential areas lack necessary physical and social infrastructure and constrain the ability of the industry to achieve cost competitiveness and meet the compliances for export and regulatory purposes. The provision of infrastructure facilities to the industry, at cluster level, assumes critical importance in this context. A few attempts at developing infrastructure through public private partnership model have not been successful because of the ineffectiveness of the PPP models, inability of the

21

INDUSTRIAL INFRASTRUCTURE

industry to raise finance, and issues relating to the procurement of land. For example, Ludhiana Dyers and Processors Pvt. Ltd., an SPV promoted by Shawl Club has been unable to achieve financial closure.

As for hand tools, the technology currently in use is hot forging, while high quality hand tools require special purpose machines using cold and warm forging techniques. Given the scarcity of power, the hand tools industry has not been able to upgrade from oil-fired furnaces to more efficient induction furnaces. Most of the smaller units are located in and around residential areas and lack specialised physical infrastructure, e.g. captive power plants, effluent treatment plants, and manpower training facilities

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Creating high quality employment as part of industrial resurgence is fundamental to meeting the social challenges facing Ludhiana. The youth of Ludhiana, whose fathers had led the Green Revolution and reaped the dividends from the rural prosperity in the state are typically unwilling to be satisfied by manual unskilled work on the farm, which is now carried out by migrant labourers. They are looking for skilled jobs in industry and service sectors.

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SKILL DEVELOPMENT

CHAPTER 4

TYPE HERE

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TYPE HEADING

AND PASTE CONTENTS HERE

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CHAPTER 5

INITIATIVES & PLANNING:

BUSINESS TOURISM IN LUDHIANA

25MAJOR INITIATIVES & PLANNING

The World Bank ranked Ludhiana as the city in India with the best business environment in 2009 and 2013. Ludhiana is located on the south banks of River Sutlej and is quite aptly called the "Manchester of India", for its world famous hosiery products. From Moscow to Montreal, shopping malls retail both cotton and woollen products from Ludhiana. The money is on a roll in Ludhiana, mostly by the small-scale units, which produce industrial goods, machine parts, auto parts, household appliances, hosiery, apparel and garments.

Ludhiana is Asia's largest hub for bicycle manufacturing and produces more than 50% of India's bicycle consumption of more than 10 million each year. Ludhiana produces 60% of India's tractor parts and a large portion of auto and two-wheeler parts. It is India’s home of industry and famous Punjab Agriculture University. Ludhiana attracts a sizeable number of business tourists.

Ludhiana’s claim to fame is not its commercial enterprises alone; it is home to several places of tourist interest, thereby, complimenting the stay of the traveller, whilst on a Business Tourism circuit. Ludhiana has for its Business Tourists, entertainment options like multiplexes, air-conditioned shopping malls, Golf Course etc. and is an important pilgrim centre with lots of Gurudwaras, temples and sacred shrines located all over the city. A few of them are listed below: -

Manji Sahib – Linked Guru Gobind Singh Ji.

Degsar Sahib Gurudwara, Katana

Gurudwara Attari Sahib, Kanghrali

Nanaksar Sahib Gurudwara, Jagraon

Dera Bhani Sahib

Khawaja Azam Kothi

Shri Ayyappa Temple

Sri Durga Mata Mandir

26

BUSINESS IN LUDHIANA

MAJOR ATTRACTIONS

Christ King Church, Sahnewal

Maharaja Ranjit Singh War Museum

Tiger Safari, Amaltas

Lodhi Fort 

Phillaur Fort (Maharaja Ranjit Singh)

Nehru Rose Garden

Museum of Rural Life of Punjab, PAU

Roshni Mela - Fair of Lights

About 67% of the tourists are business tourists and 33% constitute religious tourists. The maximum expenditure of a tourist is on transportation (37%) followed by accommodation (33%), while food constitutes about 20% of the spending. A tourist spends 10% on shopping and other activities.

In addition to having a domestic airport, Ludhiana is well connected with other parts of the country by rail and also has an excellent network of roads connecting cities, towns and villages. All major highway stretches are dotted with numerous dhabas. These dhabas offer good food at reasonable cost and provide basic toilet, drinking water and tele-communication facilities.

A good number of restaurants are present all over the city to suit the taste buds of all types of business travellers. As per Ministry of Tourism data, Ludhiana has 68 approved category hotels having 1,934 rooms in different categories. The average duration of tourist staying in Ludhiana is for 3 days.

27

INFRASTRUCTURE – BUSINESS TRAVELLER

Meetings, Incentives, Conventions and Exhibitions (MICE) tourism is on a rise on account of increased Business Tourism/ Travel. The International tour operators located in Ludhiana provide range of services, which include air/ railway ticket booking, provision of transport facilities, hotel booking package tours, transport facility, tour guides, event management, etc.

It is evident that India needs to focus on developing allied infrastructure to attract conference visitors. For a developing nation like India, the bottom up approach entailing investment in Roads, Airports and Hotel rooms is the logical direction ahead, rather than heavy public investments in building stand-alone convention centres. However, it should be borne in mind, that at least one world-class convention centre needs to be developed in each of the top 10 destinations in the country including Ludhiana, to demonstrate the capacity to host large international conventions.

Although, the current market trends indicate a steady shift towards smaller sized (delegate-wise) conventions, it is also true that all the major convention destinations have invested in building impressive convention facilities to signal their capabilities of hosting large conventions. Therefore, the concentration should be on to:

Public Investment complemented by private participation in Convention Infrastructure can jumpstart the convention businesses. Focus. In addition to develop and utilise the conventions ‘Eco-System’, it should also delve upon developing the complementary infrastructure - airports, hotel rooms and road networks to ensure sustainable business growth.

Encourage private investment in increasing Room capacities.

In order to have a better/ world class infrastructure, e.g. Roads, Airports and Urban transport facilities, it can be planned for development in two distinct clusters - covering six cities as part of the Phase I, which includes Ludhiana. In Phase II of the development, the other 4 cities may be covered under subsequent plans.

The long-term sustainability of conference business can be ensured through building an extensive network of allied infrastructure, which

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PROPOSED PATH OF

BUILDING THE ECO-SYSTEM

ranges from availability of hotel rooms, excellent connectivity to the venue, a well-developed transport network and other tourist attractions. Currently, this understanding of dependence is low, and conventions are regarded as a stand-alone phenomenon. Apart from India Convention Promotion Bureau (ICPB), Punjab Government as the nodal agency too has a foremost role to play i.e. bridging other members in the network. The figure below summarises this view:

Ludhiana has been chosen for being developed as a smart city.

Convention centre at Ludhiana worth Rs 1.5 crore has been planned to be constructed.

The tourism industry has adopted an integrated approach to successfully promote this sector.

Bharti Foundation has pledged an amount of INR 100 crore for constructing girls' toilets in Ludhiana in the next three years.

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INITIATIVES

The efforts put in by the Government of Punjab in order to give a thrust to the Business Tourism include the following:

Extending monetary benefits under the Market Development Assistance (MDA) scheme to the associations/ societies, thereby facilitate in bringing more business travellers.

Participation in international travel marts, like EIBTM, IT&CMA, PATA Travel Mart etc. to give exposure to India’s conference infrastructure.

Organising seminars to motivate Indian Associations to bid for International Conferences.

Hotel classification norms have been simplified. The business hotels and resorts at various centres in the country to provide a combination of accommodation and other conference support facilities.

Conducted road shows & outdoor publicity coupled with printing of brochures and food festivals.

The following initiatives must be taken by the various organisations to

facilitate a delightful experience by the Business Traveller: -

Top down approach required to give a boost to this industry. Industry needs to work closely with various government agencies.

Working as a real ‘single-window’ entity to facilitate Business Tourists, who need professional help.

The India Convention Promotion Bureau (ICPB) should have the access to the highest-level authorities in the government and have the capability to bring in change- through strong lobbying and making its voice heard.

Government of Punjab must be made the liaison entity between the individual organiser and the government.

Awareness about technology and its usage among the manufacturers.

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EFFORTS BY GOVERNMENT

REQUISITES

GOVERNMENT

Networking, lobbying, use of contacts is required well ahead of time. Also, one needs to gauge one’s competitors well ahead of time.

High quality physical infrastructure within the city needs to be developed and well integrated - visitors can choose between an extensive network of trains, buses or the subway systems.

The Government of Punjab should proactively attract a large plant for automotive manufacture, because of its potential for positive downstream effects on the numerous small scale auto-component manufacturers.

The State Government must work to promote an international airport in Ludhiana.

The Delhi-Ludhiana link in the dedicated rail freight corridor must be expedited by getting it developed in the first phase of the project.

Skill development to meet the growing demands of industry requires a major effort on the part of the state to revive its infrastructure for training. The state should use the assistance provided by the Government of India and the partnership offered by the private sector in this effort. More generally, quality of vocational education is a major challenge facing Punjab even as the state has a very good infrastructure for basic education and a reasonably good infrastructure for higher education. Delivering good quality vocational and skill related education is one of the principal governance challenges facing the state.

The industry is generally doing well in Ludhiana, but the Government of Punjab needs to diversify the businesses. The proposed strategy that needs to be evolved is indicated below:

Create Special Economic Zones (SEZs) particularly in agri-processing and agri-exports..

Attract investments in logistics and cold chains. The new Mittal-HPCL petroleum refinery in Bathinda has opened up the

possibility of a large scale petroleum hub around it. To promote a

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SKILL DEVELOPMENT

SETTING UP NEW ENGINES OF GROWTH

Petroleum Chemicals and Petrochemical Investment Region (PCPIR), the state government should put forth a proposal to the Government of India to set up a petrochemical industrial complex in the outskirts of Ludhiana.

The government of Punjab must start planning for an Industrial Zone along the dedicated rail freight corridor, which can generate a great deal of economic activity in the state.

Some of the major convention destinations have entered into interesting partnerships, which allow them to position their destinations uniquely - Barcelona has partnered with the leading universities and business schools in the city and district to offer “Corporate and Outdoor Training” to incentive customers, where visitors can undergo managerial training in a natural and relaxed setting. India can also offer similar differentiated offerings, as most of its important destinations are also centres of higher education, which combine modern management techniques with traditional ethos and spirituality.

One of the interesting trends in the recent years has been the move towards developing a “green” convention infrastructure. Climate change and global warming have been flagged as high priority areas in the MICE industry and many destinations are positioning themselves as “green” destinations, offering environment friendly measures to reduce CO2 emissions and setting low energy requirements. Since, the available convention infrastructure is minimal, India can straightaway position itself as a “green” location by developing large number of “green centres”, since they are found to be more cost effective and also create a niche for itself with a head-start in this area.

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PARTNERSHIPS

BUILDING A GREEN