I
ndia already allows for- eign-owned brokers to trade directly on the country’s exchanges.
Now, a panel set up by the gov- ernment has recommended the Finance Ministry make it easier for foreign retail investors and, in particular, affl uent Indian expatriates, to buy shares on Indian exchanges. Foreign investors will benefi t as they get to directly participate in India’s growth. T e main impediments to foreign invest-
ment are a cumbersome political system that slows the pace of reform, and the poor state of the country’s infrastructure. Progress has
MANOJ VOHRA Director of research, India Economist Intelligence Unit
already been made in some areas (notably telecoms, roads and ports), but the huge amount of investment still required means
infrastructure will be poor for many years. However, rising income levels mean this
population of almost 1.2bn is becoming an increasingly important market. In addition, India remains an increasingly attractive des- tination. T e enormous gap between limited hotel room supply and high demand implies strong potential returns on investments, and
A panel recently set up by the government has recommended that the Finance Ministry should make it easier for foreign retail investors to buy shares on India’s exchanges
W
e’re not a strong operator in India at the moment, but
we have 15 properties opening between 2011 and 2014, 13 of which will have spas. From our perspective, India is a market with high barriers to entry. Entering it can be challenging, but recently there have been changes from a development perspective. Governmental reforms have eased height restrictions, allowing for larger properties and more room for facilities like spas. It’s an exciting market, and we’ve got a
blend of development projects, from urban and resort to a very holistic retreat-style. We
VANESSA MAIN
Director, spa operations & development, Asia Pacifi c, Hilton Worldwide
don’t fi nd that in every market – here we’ve got the fl exibility to look at diff erent models. With
its natural beauty and spirituality, India provides a perfect environment for holistic modalities and retreats. T e people of India have a strong affi nity
with spa services and spiritual healing tra- ditions. However, we’re now also starting to see a demand for more sophisticated spa experiences, and people are beginning to embrace high performance-style treatments
and skincare. There’s more brand awareness coming into the mar- ket, and it’s starting to become a very competi- tive landscape as well. Cultural sensitivities
Hilton isn’t big in India yet, but it does have 15 hotels – and 13 spas (above) – in development
also have to be taken into consideration when developing Indian spas. It’s not just providing segregated areas for men and women – it’s about being sensitive to their culture. You need to be able to execute ayurveda with full integrity; you can’t take it halfway, because in certain areas that might off end. India is defi nitely a long-term market for
India, unlike many markets, lends itself to urban, resort and holistic retreat spa models SPA BUSINESS 4 2010 ©Cybertrek 2010
us. We’re consistently adding projects to our development pipeline, and I wouldn’t be sur- prised if in fi ve years time we’re operating more than 20 spas in India. We’re really look- ing forward to the upcoming challenges.
Read Spa Business online
spabusiness.com / digital 27
a large number of Indian and foreign com- panies are building new hotels across the country. T ree hundred hotel projects have been approved by the government and are in varying stages of development, according to India’s Ministry of Tourism. Still, capacity constraints are unlikely
to be eased in the short term, as demand is expected to continue to exceed supply. Furthermore, nearly half of the new hotel projects are luxury, suggesting the current situation of high prices and low availability of accommodation will continue. The opportunity exists at both ends:
budget and luxury. However, developers should identify investment locations care- fully, as the extent of the opportunity for each will vary from state to state.
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