India has introduced a Goods and Services Tax (GST), which is an indirect tax applicable throughout the country. Unlike SA, various elements are taxed differently, for example packaged holidays are taxed at 5%, however if you purchased individual components, it is taxed at 18%,
According to South African Tourism (SAT) Country Manager for India, Hannelie Slabber, this makes the India a great market for packaged travel. This is one of the aspects SAT is focusing on during the seventh edition of its annual travel trade training sessions in India, “Learn South Africa” (Learn SA), a 17-city, 24-day training programme and roadshow which is currently underway until July 29.
“Learn SA helps ensure that Indian travel agents know how to choose the best quality hotels for their customers’ budget and needs. It also teaches them how to choose the best in-destination partners to escort the traveler while on holiday,” says Slabber, adding that it also covers basics like visas and logistical issues.
South Africa has become increasingly popular amongst Indian travelers in recent years, and the demand is only expected to continue in 2017. “2016 was a milestone year for us at South African Tourism in India and we are determined to set new benchmarks for the industry as well as ourselves by making 2017 bigger and better. Our internal target is to attract more than 100 000 Indian visitors in 2017,” added Slabber.
Indian leisure visitor numbers surged grew by 21.7% in 2016 to SA with 95 377 arrivals, ranking India in eighth position among South Africa’s international source markets. Overall spend from India (only in-country on-tour spends, excluding flights and attractions, hotels booked in advance) was more than R1.2 billion (€80.5 million) by the end of 2016.
The 2017 New World Wealth Report identified India as the sixth largest wealth markets in the world, translating into untapped potential for South Africa as a luxury travel destination.
SAT is also challenging India’s tendency to treat Johannesburg and Durban as “in and out” destinations. Cape Town on the other hand has the reverse problem. SAT says they plan to suggest Cape Town as an “anchor”, and then push the Garden Route, and what is available between Cape Town and Port Elizabeth.
The roadshows also includes sessions by Alpa Jani, Trade Relations Manager for SAT India who speaks about the support that is in place for the trade, from joint funding for marketing campaigns to the free deals site, Chalo SA, and the requirements to list. The private sector then has the opportunity to talk about their product offerings in SA and how the things that can be achieved commercially.
Learn SA had numerous participating South African product suppliers, including Tsogo Sun, Africa Incoming, Sun International, Trav Care, Tourvest DMC, Extraordinary, Centurion, Rwanda Air, Thompsons, African Link, Southern Africa 360 and Hertz.
Jay Bhatia, Hon. National Treasurer for Travel Agents Association of India (TAAI) said that SAT and TAAI have once again signed an agreement to educate and update travel agents across India.
He said: “This endeavour between SAT and TAAI is to empower and update over 1 700 tour operator personnel with skills and knowledge on products, facilities, and opportunities to promote SA as one of the leading outbound tourist destinations from India. It is expected that by 2020 the number of outbound travellers from India shall increase by over 40% than what it is today.”
Discussing Learn SA, Collin Thaver, Managing Director of Southern Africa 360, says: “We find that this format is an ideal way for us to encourage, educate and expand our presence into a growing market, allowing us to make our brand and services readily available to new agents we meet.”