Date:07/12/2004 URL: http://www.thehindubusinessline.com/2004/12/07/stories/2004120701890200.htm

Back `Supply side of tourism needs re-look'

C.J. Punnathara

Kochi , Dec. 6

AFTER the demand side paradigm of the nineties, the supply side is becoming critical in current tourism planning.

With more and more properties coming up in well-established locations, the quality of the experience or the quality of the local environment has to pay the price, said Mr Jose Dominic, Managing Director of CGH Earth Group of Hotels, in an interview to Business Line. Excerpts from the interview:

Going by your experience, how far do you think you can replicate your success stories in other south Indian States?

It is not a matter of replication. Each of the southern States has got an entirely different flavour and ethos that have to be captured uniquely, in tandem with the intrinsic culture, local values and environment. This is what we have been able to do in Kerala. We are confident that this can be emulated in other south Indian States as well.

To what extent has Kerala been able to play a leading role in making South India a sought-after tourist destination?

First, Kerala had several small and unique products, rich in local content and flavour. Exactly what the alert independent traveller of the nineties was looking for. They were good value proposition, not the international standardised products available in every part of the world. The aggressive marketing endeavour of the Government synchronised the demand side and the products were able to meet the global expectations. This can be emulated by entrepreneurs in other States as well.

How would you compare the experience of the State with other regions?

The State still has vast potential, which is yet to be tapped. We have, maybe, achieved 20 per cent of our potential. But now comes the tough stage in tourism growth. The stage which Goa had been at the nineties.

Goa had shown resurgent growth during the eighties before losing steam and virtually stagnating through the nineties. For almost 10 years, they were stranded - searching for fresh direction and impetus. We are at that stage right now.

What measures do you suggest to revive the growth impetus?

We need a systemic approach to sustain the growth impetus. A qualitative understanding of our value proposition is essential. It is no longer sufficient to engage with the demand side alone. The supply side is becoming even more critical.

As more properties come up at established locations, either the quality of the experience or the quality of the environment invariably has to pay the price. We should not wait for the Government to take a pro-active role, but every one of the stakeholders must shoulder the responsibility. It is a challenging task. But it can be done.

Tourism is truly a scalable product. But we must not fall into the trap of sheer volumes of standardised product, indistinguishable from thousands of others cropping up in other parts of the world.

What sort of a roadmap would you set up for tourism in South India?

The demand and supply side of tourism industry is itself setting up the roadmap. So far, we have been able to grow consistently because of the tourism infrastructure that we have been able to build over the years.

I do not perceive any constraints on the demand side even today. But as far as the supply side is concerned, we have hit some critical levels. Further development in established locations can undermine the local environment, culture and way of life of the people. We have to build new destination, new roads, transport facilities and other infrastructure.

And this is a very challenging task because nobody wants to experiment with new locations when there is money to be made in established locations. The task is eventually left to the small individual entrepreneur. It is also time that the region as a whole was seen as tourism destination.

What are you doing on that count?

We have begun to formulate our investment plans for south India as a whole. Work has commenced on a Rs 12-crore, 30-room seaside resort at Gokarnam, close to Karwar in Karnataka. We have been awarded a contract to construct a resort along with Karnataka Tourism at the Hampi ruins, which had been declared a world heritage by UNESCO. We are also looking at two other locations in Karnataka, another heritage site as well as a forest experience. Unlike Kerala's backwaters and Kathakali, we will be creating an entirely new flavour in Karnataka: one of heritage and of unique local content. Tamil Nadu, which is rich in temples, dance and music, is also on our immediate focus.