Transcript City Travel Briefing: Mumbai

INTRODUCTION
Key findings
High population
Mumbai is the fourth most populous city in the world, with a total metropolitan
population of 20.5 million.
Lucrative investment
Destination
The city is the most promising real estate investment destination in Asia
Pacific, with a very strong outlook.
Luxury destination
Most of the hotels in Mumbai offer world class services, and cater mainly to
business travellers and high-end leisure tourists.
Risk of terror attacks
Mumbai faced terror attacks in July 2011, which resulted in a slowdown in the
inflow of tourists during the months of August and September.
International and national
conferences
Mumbai hosts the highest number of international conferences in India, and
this attracts business tourists. The city is also well-known for organising
leisure events, which attract international and domestic tourists.
Financial and commercial
capital
India’s most important stock exchanges are located in Mumbai. These include
the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Expensive real estate
Mumbai is ranked among the top 10 cities in the world for the cost of office
property. Average housing costs are also among the highest in India.
Film city – “Bollywood”
Mumbai is referred to as the Bollywood capital, as it is home to most of the
key players involved in film-making, including production houses, producers,
directors and actors.
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KEY FACTS
SWOT: Mumbai
STRENGTHS
WEAKNESSES
Gateway to western and Business hub
southern India
 As the international
 As the financial capital
gateway to southern
of India, Mumbai
and western India,
attracts both inbound
Mumbai acts as a transit and domestic business
hub for foreign tourists
tourists. Most
hoping to explore the
international and
beaches of Goa or the
national financial
Kerala Backwaters.
institutions have key
offices in the city.
Inadequate offer for
Public transportation and
budget travellers
infrastructure
 Mumbai is strongly
 Cheaper means of
positioned as a luxury
public transportation are
destination, making it
not conducive to tourist
less accessible to budget travel as they are often
travellers and more
crammed with local
vulnerable during times
commuters.
of economic crisis, when  Traffic jams due to
tourists are more likely to vehicle congestion and
seek budget destinations. road construction also
deter tourists from
exploring the city
THREATS
Heavy reliance on
Competing destinations
business tourists
 As the financial capital  Its neighbouring state of
of India, Mumbai
Gujarat is making
continues to be heavily
substantial investments
reliant on business
to lure MICE travellers.
tourists, both domestic  Aurangabad is
and international. Any
overhauling its
financial slowdown is
monuments, airports
likely to hit tourism
and roads to attract
significantly.
leisure tourists.
OPPORTUNITIES
Transit Hub
Booming economy
 Mumbai is used as a
 With India’s economy
transit hub by
expected to continue
international tourists
growing at a rapid rate,
visiting Goa, and could
Mumbai will have a
promote Marine Drive,
higher proportion of
and other famous
wealthy Indians willing
shopping areas, such as to travel overseas for
Colaba, to attract these
vacations.
tourists.
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TOURISM FLOWS
Inbound arrivals suffer lower growth after the terrorist attacks
Mumbai Arrivals by Country 2010/2011
2010
2011
% Growth
2010/2011
Western Europe
761
780
2.58
North America
469
489
4.24
East Asia
149
170
13.59
Africa
163
175
6.89
West Asia
155
165
5.98
95
106
11.09
184
201
8.76
47
51
8.03
141
146
3.09
60
68
12.83
2,224
2,349
7.02
‘000 trips
Southeast Asia
Australasia
Eastern Europe
South Asia
Central and South
America
TOTAL
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 A total of 2.4 million tourists travelled to Mumbai in
2011, compared to 2.2 million in 2010.
 Growth in 2011 was around 7%, which is
comparatively lower than growth in 2010.
 The major causes for lower growth were the
terrorist attacks in July, which impacted both
inbound and domestic tourism.
 The UK and the US remained the largest source
countries, with around 17% of arrivals in 2011.
Historically, these two countries have led arrivals;
however, they have lost share year-on-year.
 East Asia and Southeast Asia were the two fastest
growing source markets in 2011.
 Mumbai is the starting point for tourists exploring
central and south India.
 Mumbai hosted three matches during the ICC
Cricket World Cup in 2011, including the final,
which attracted many tourists.
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TOURISM FLOWS
Business leads visitor demand
Business and MICE arrivals
Leisure destination
 Business arrivals to Mumbai account for about
70% of the total. These are driven in part by trade
events and conferences taking place throughout
the year.
 Leisure arrivals to Mumbai are driven by the tourist
attractions available in the Mumbai and
Aurangabad circle. These range from heritage
sites, including the Ellora caves, to religious sites,
such as Shirdi.
 Mumbai is also a key business hub and home to a
number of national and international companies’
regional headquarters, such as Aditya Birla Group
and Reliance Industries.
 The city is well equipped with business hotels and
convention centres to cater to business tourists.
 The US and UK lead business arrivals in Mumbai.
Most business travellers from the US visit Chennai
and Bangalore, the IT hubs.
© Euromonitor International
 Mumbai is also popular for shopping, with a
number of shopping malls in the city, where many
major fashion, electronics and other brands are
found. South Mumbai, including Colaba, is well
known for street shopping and therefore attracts
leisure tourists.
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TOURISM FLOWS
Domestic tourism is fast growing
 The number of domestic tourists in Mumbai has
been growing continuously over the years, in line
with the growth of domestic tourism in the country.
 The number of domestic tourists grew by a CAGR
of 10% between 2006 and 2011, and is expected
to grow at a CAGR of 9% during the period 20112016
 The 2011 Cricket World Cup contributed to growth
in domestic trips. The leading cricket stadium
hosted 33,000 spectators and over 70% were
domestic tourists.
 Mumbai has a higher number of domestic business
trips than Delhi by virtue of being the financial
capital of the country, and business accounts for
the majority share of total tourism.
 Mumbai attracts many domestic leisure tourists
because of the temperate climate, proximity to the
ocean as well as to Goa, and its status as the film
capital. Tourists from north India visit Mumbai
especially during the winter months of December
and January
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