Malls for tourists : Vacation shopping

Holiday traveling is directly proportional to increased shopping. Shopping big or small is a primary fad for the tourist. A tourist’s shopping behavior is very different from his/her normal shopping activity. Typically, tourists do not go shopping with a specific list; rather shopping is an indulgence. At the same time, Indians also prefer to buy lots of goodies for near and dear ones during vacations. Thus, they may spend money on things which they may not purchase in the normal course of their daily routine.

The holiday consumer is looking for a break from anything which is ‘every day’. Therefore mall developers also need to ensure that the shopping centres are not replicas of what is available back home. Tourist-focused shopping centers would typically include diverse food zones and entertainment options including kids zones, discos, casinos, gaming zones, etc. as part of their tenant mix.

World retail tourism experience

Globally, all the countries which project themselves as tourist destinations offer highest facilities to visiting tourists. Other than natural scenery, tourists are pampered with world class shopping Meccas housing the finest selections.

In USA, over a dozen shopping malls and open air-shopping centres are there for tourists in Hawaii. The Ala Moana Center in Waikiki, Hawaii is the largest open-air mall in the US with 290 national brands and 40 retailers, having the largest collection of luxury goods. Hawaii has over one dozen large malls and has more Louis Vuitton stores than India. As far as the shopping experience goes, it is no different than what would be in downtown Manhattan or the couture-capital, Paris. The same is true for destinations like Las Vegas, Singapore which thrives on its sheer scale of shopping experience and world class malls.

India as tourism destination

Tourists in large numbers from all over the world visit India to explore its exquisite locations. India has the most diverse tourism to offer to the world, varying from spiritual salvation, adventure sports, heritage sites or even some of the world’s most gorgeous beaches in a country. Picturesque locations, serene backwaters, coconut fringed shores, inviting surf and delectable sea-foods, provide a beautiful experience to tourists visiting India. But today’s tourist is looking not just for scenic locations but the entire package and that is why India sometimes becomes second choice. In 2007 alone, about 5 million foreign tourists visited India and spent USD 8.9 billion but in the name of shopping facilities all they got were some small artisan shops or government emporiums.

India is expected to see an influx of 10 million international tourists by 2010, up from just 5 million in 2007.

Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Karnataka and Rajasthan are the leading tourism destinations in India in terms of total tourist arrivals.

India has been promoting its healthcare tourism by providing the visitors with private healthcare facilities. It is expected that the total market for medical tourism will reach USD 2 billion by 2012, representing a CAGR of 60.69 per cent.

Personal disposable income during 2002-2007 grew at a CAGR of 14.16 per cent, thereby driving domestic as well as outbound tourism.

Indian outbound tourist flow is expected to increase at a CAGR of 13.30 per cent over the five-year period spanning from 2008 to 2012.

India’s share in global tourism is expected to reach 1.5 per cent by 2010.

The growth in India’s tourism market is expected to serve as a boon, driving the growth of several associated industries, including the hotel industry and medical tourism.

Source: Indian Tourism Industry Analysis

Developers’ take on tourism retail

“Tourism retail has yet to come up in India. The brands are coming up for the first time and are now being promoted in the metros. First of all, we need to promote India as a tourist destination. Our government is very slow and for the first time, we could see some promotional efforts in the direction by the campaign of incredible India. Jodhpur is a hot destination for foreigners. Developers are thinking in this direction and I have seen some such facility in Goa. We are planning such destinations later on after seeing the response at our first tourist destination,” says Mr Pradip Seth, MD, Stadia Group.

Mr Pradip Jain, CMD, Parsvnath Developers says, “Development of highway malls alongside popular and busy routes has started to emerge as one of the most preferable means of retail development. We have already initiated efforts to capitalise on the increasing percentage of foreign and domestic tourists. We have shopping malls under development at tourism destinations such as Goa, Dehradun, Jaipur, Jodhpur, Agra, Ujjain and few other locations.”

“Developing open air malls is a decision that needs a detailed thought process before implementation. There is always a risk that an open air mall might be misconceived as an organised high street rather than a shopping mall.  However, in our endeavour to introduce new and innovative concepts and formats to our esteemed customers, we would explore all best viable project opportunities,” he said.

“India is expecting to see an influx of 10 million international tourists by 2010 and the personal disposal income is growing, giving a major impetus to the tourism. Today, the trend of highway malls has already started and now the developers are thinking about highway malls for accruing high footfall in malls. Mall developments are also coming up at tourist interest locations and even larger towns across the country. Now it will be possible to shop for national and international brands at tourist-interest destinations because of increasing tourists in India and increasing disposal income in these areas. Tourists want an entire experience during their journey. “Siliguri Mall is the central place for North Bengal and Sikkim tourists,” said Mr Harshvardhan Neotia, CMD Ambuja Realty Developers, Kolkata.

“It is a good idea to have malls in tourist locations as tourism is booming in India. Tourists can purchase tourism related brands hassle-free. However, we believe that for such a move we as a developer as well as a retailer need a comfort level in terms of viability for choosing such locations. Some developers are very optimistic about the concept of tourist destination malls,” he added.

Need for malls as tourism destination

Up till now, the tourist destinations in India have been lagging behind in offering retail experience. However, the good news is that developers have now started thinking on the lines of developing shopping malls designed specifically for domestic, NRI & international tourists to cater to their vacation shopping needs. With several prestigious plans gaining ground with shopping malls coming up at Agra, Jodhpur, Udaipur, Goa and various other cities, Indian tourist destinations will, in the very near future, serve as an anchor for tourist traffic, not just in terms of scenic beauty, but also in providing ample scope for delighting shoppers who want to splurge while holidaying.