By Pratul Sharma
The Tourism ministry will launch an online media campaign to attract foreign tourists who have been shying away from coming to the country after the 26/ 11 terror attack.
The ministry decided to launch the campaign on country- specific web portals after the success of hosting video clips of Incredible India on popular website YouTube . The campaign will promote India as a safe destination.
The government, which has already announced 2009 as Visit India Year, believes the next year would be tough for the industry, which is feeling the heat after the terror attacks in Mumbai and the recession.
The move came after major players in the tourism industry asked the government to aggressively market Brand India abroad. Officials said the online campaign will be comprehensive, covering major portals and websites in the countries that register the maximum visits in India.
“ This year, the thrust has been on selecting region- specific portals. Some of the portals which will be featured in the current campaign are project India as a safe destination MSN , Yahoo, Google, orange. fr , t- online, libero.com, baidu.com, zuji.com, news. com. au, khaleejtimes.com, wallstreetjournal.com .
The campaign will stress on how large India is geographically and would highlight its varied products,” said an official.
The ministry currently has seven international media campaigns running in Europe, Americas and Asia Pacific.
Some of the important publications covered under the print media campaign include the Financial Times , Economist and Sunday Magazine in Australia; China Daily; News Week Asia, Nikki Business Magazine in Japan; Sunday Times in the UK; Le Monde in France; Geo Magazine in Germany; Travel & Leisure and Conde Nast Traveller in the US; and Proxima Viagem in Brazil.
Under the Visit India Year, foreign tourists would get free holiday packages for 2010 and 2011. The ministry is also working on special packages on rural India, eco- tourism, and adventure tourism.
Officials claimed the tourism offices overseas have also been advised to liaise with the media and travel trade in their respective regions and examine the possibility of organising familiarisation tours to Mumbai and other regions of the country.
Showing posts sorted by relevance for query tourism. Sort by date Show all posts
Showing posts sorted by relevance for query tourism. Sort by date Show all posts
Friday, December 26, 2008
Thursday, February 26, 2015
That Part Of Indo-Pak Border Act With 'Beer & Guns' Of Joy
Yet, there it was. The man was young, wearing a red shalwar kameez, with an unmistakable green Murree Brewery beer can. He caught me staring and offered me one, and I graciously accepted, still dumbfounded.
There were whiffs of narcotics too, but the strong wind blew them away intermittently. We were stationed at a particularly sharp corner along with hundreds of spectators on the second day of the 10th Cholistan Desert Jeep Rally, watching massive 4×4’s struggle with the treacherous sand as they came in to the turn.
Saturday, April 27, 2013
RAPE TAKES SHINE OFF 'INCREDIBLE INDIA'
India isn’t so incredible any more. Tourist inflows have dropped significantly this financial as the rape tag seems to have got glued to the nation’s image. Worse, the endless questions on safety and security that prospective tourists are asking travel agents indicate the slip may soon become a slide.
The worrying growth in crime against women and its media coverage worldwide, especially the December 16 gang rape of last year, have now pushed the tourism business to the edge. One major operator on the Japanese circuit says the dip in arrivals is between 25 and 30 per cent this year. A leading adventure tour operator says he faces a 10 per cent dip over the last financial year, and that he is flooded with queries from Germany and France about the state of safety for travelers, particularly women.
Tuesday, January 28, 2014
'Big Amitabh' Spreads 'Khushbu Gujarat ki' In Ahmedabad
In a bid to promote the famous "Khushbu Gujarat ki (KJK)" commercial, Bollywood's Big B arrived the diamond city for campaigning.
Amitabh, who arrived here for a two-day promotional campaign to Gujarat said, "The next phase of KJK has been started. The idea is to promote tourism in the state."
"Surat is truly one of the fastest growing cities of the country and I am proud to be a part of it." said the Shehanshah of Hindi film industry.
Friday, March 29, 2013
'World Best Job' Hunt Returns In Australia
The marketing push is targeting the youth segment, which contributes Aus$ 12 billion ($ 12.2 billion) annually in tourism spending and delivers nearly 1.6 million, or 26 percent, of Australia’s international arrivals. It follows a similar campaign that attracted huge interest in 2009, won by Briton Ben Southall, who was paid to become caretaker on a picture-perfect island on the Great Barrier Reef for six months.
This time six “best” jobs are on offer — each in a different Australian state and each coming with a six-month salary package worth Aus$ 100,000.
It is open to travelers aged between 18 and 30, with particular focus on international markets eligible for Australian working holiday visas including Britain, the United States, France, Hong Kong, Taiwan, South Korea and Japan.
Hopefuls have until April 10 to upload a 30-second video explaining why they’re the best for the job.
The initiative was largely well received, but some Australians questioned why such plum jobs should be offered to foreigners when there were adequately skilled local people looking for work.
“I’m pretty sure most Australians would be against this publicity stunt... I would love this job, just like any other Australian, and paying some foreigners $100,000 to come here for 6 months! How about giving those jobs to Australians first!” wrote one unemployed Australian on the campaign’s Facebook page.
Tourism Australia managing director Andrew McEvoy said the competition was expected to appeal to youth travelers’ sense of fun and adventure. “The competition provides an excellent platform to entice more young people from around the world to come to Australia to holiday, but also to work, helping to fill many unfilled tourism jobs across Australia,” he said.
The chief funster position is New South Wales-based and involves becoming a Sydney VIP, attending and reviewing festivals and events and tweeting thoughts.
The taste master in Western Australia will tour top restaurants, wineries, breweries and pubs while the outback adventurer will be tasked with uncovering the best experiences for Northern Territory working holidaymakers.
Previous winner Southall said the experience was life-changing.
“I didn’t know if I was going to be diving, or skydiving or cooking or bushwalking — and I did all of them,” he said.
“It’s one of those things where you’ve just got to go for it and see where it leads you.”
Wednesday, July 17, 2013
Hotel Around 'Holy Mosque' Prices Dive 150% In Saudi
A tourism official in Makkah has confirmed that the prices of hotels have undergone radical change and returned to their normal rates. “We have witnessed a 150-percent decline in both the prices of hotels around the Grand Mosque and suites with direct views of the Kaaba,” said Fahad Al-Wethyiani, head of the Hotels and Tourism Committee at the Makkah Chamber of Commerce and Industry.
Tuesday, July 12, 2016
Aviation Trends: Why 'GoAir' Going On Hard Destinations Where No Indian Airline Has Gone Before?
India’s fifth-largest airline is planning to touch down in some relatively unchartered territories.
GoAir, promoted by the 280-year-old Wadia group, has sought India’s aviation ministry’s permission to fly to Iran, Turkey, Uzbekistan, Azerbaijan and Kazakhstan—countries where no Indian airline flies directly to.
Wednesday, July 31, 2013
Heritage Politics In Guj Makes Chiru Sulk In Charminar
It is not clear whether the Congress’ new strategy is to invade Narendra Modi’s turf and woo Gujarati asmita. The UPA has decided to nominate Gujarat’s Rani Ki Vav (Queen’s Stepwell) to the Unesco World Heritage Committee (WHC) for world heritage status, rejecting Minister of State for Tourism K Chiranjeevi’s plea for the Qutub Shahi monuments in Hyderabad to be nominated, leaving him sulking.
Friday, July 22, 2016
Where Is The Telangana State 'Brand Ambassador'? Is Tennis Star 'Sania Mirza' Really Missing In Action?
As all brand ambassadors do for thier work and cause for endorsement, where is the Hyderabadi Tennis Ace star Sania Mirza, the brand ambassador for Telangana State? Despite the several populist schemes launched and programmers organised since last 2-years, Sania Mirza is missing from her new role?
Exactly two years ago, on July 22, 2014, the Telangana government anointed ace tennis player Sania Mirza as its brand ambassador. And on the occasion, she was also handed over a cheque for Rs one crore.
Monday, July 08, 2013
Why Rebuilding Uttarakhand Will Cost 600,000 Crores?
What did the cloudburst on 16 June take away from Uttarakhand, apart from the lives of 10,000 people? It snapped the backbone of a state – its infrastructure – into several pieces and literally turned it into a ghost state that needs to be re-civilised painstakingly over several years to come. You can trust India’s predilection for religion and all things holy to see tourists returning to the state, but a lot needs to be done to make it visit-worthy again. A PHDCCI survey pegs the tourism industry’s losses at a staggering Rs 12,000 crore.
Sunday, May 19, 2013
NAGZIRA FOREST: A PLACE TO VISIT IN SUMMER
Nagzira Wildlife Sanctuary (Longitude 790 58’ E to 800 11’ E; Latitude 210 12’ N to 210 21’ N) in the state of Maharashtra in India has great importance from the point of view of bio-diversity conservation, and has been becoming a popular destination for wildlife lovers, bird watchers and even “picnic tourists” for the last five years, though it is still lesser known comparative to other renowned sanctuaries. The Sanctuary extends over an area of 152.81 sq. km, and its height from mean sea level varies from nearly 30 meters to about 560 meters. According to a government estimate, about 25000 tourists visit every year.
Friday, April 19, 2013
NOW, THE 'WILD CRAZE' OF 'SEX TOURISM' IN INDIA
By Nuzhat Shereen / HyderabadWorld's best 'sex tourism' spot is in India, where the business is flourishing with Arab Shaiks, Sudanese professionals, Americans, Europeans and many more. Just they have to come to India, visit selective places and find a best match for a month or so to enjoy. This flourishing business makes many young lives destroyed for the sake of money in poor families.
A Hyderabadi teenager who escaped from a one-month contract marriage has exposed the depth of Islamic sex tourism in the country.
A 17-year-old girl has exposed the scale of Islamic sex tourism in India where Muslim men from the Middle East and Africa are buying 'one month wives' for sex.
Campaigners for Muslim women's rights said while short term 'contract marriages' are illegal in India and forbidden in Islam, they are increasing in Hyderabad, in southern India, where wealthy foreigners, local agents and 'Qazis' – government-appointed Muslim priests – are exploiting poverty among the city's Muslim families.
The victim, Nausheen Tobassum, revealed the scale of the problem when she escaped from her home last month after her parents pressurised her to consummate a forced marriage to a middle aged Sudanese man who had paid around a lakh of rupees for her to be his 'wife' for four weeks.
Monday, December 29, 2008
Ten Issues India Inc Has to Contend With in 2009
By M H Ahssan
What lies ahead for the Indian economy in 2009? This is the question looming large in corridors of the country's corporate world, as India Inc hopes the economy will transition from annus horribilis that 2008 was to annus mirabilis, which it hopes the New Year will be. A look at 10 major issues which the country's corporate sector has to contend with in 2009:
Demand Slowdown: This is the first critical problem and it is hitting all sectors of the economy. The slowing demand has filtered down to the retail space with shops finding fewer buyers even in the normally robust festive season from October to December. One of the main reasons for this has been the impact of the global financial crisis. Export growth has come to a halt after many months of double-digit expansion. This has had a cascading effect on many other sectors of the economy, leading to stagnation in both industrial output and infrastructure development.
The good news, however, is that the ensuing harvest season, or the rabi crop, is expected to be bountiful and the outlook is positive for higher rural demand within the next three-four months. With farm output still accounting for a large chunk of the country's economic pie, the rise in rural demand is likely to translate into a greater sense of all-round well being.
Job Losses: The aviation industry tried to bite the bullet when Jet Airways chief Naresh Goyal issued pink slips to nearly 1,000 employees and said similar sack orders were in the offing for 800 more. But he had to quickly back down and reverse the decision. Yet, jobs are going in many sectors, especially in export-oriented industries like textiles, handicraft and gems and jewellery. The fallout of employment losses in the diamond trade has snowballed into a political issue in Gujarat and the crisis may be mirrored in other states over the next few months. Job losses will increasingly become politicized in the run up to the general elections early next year. But industry may have little choice but to cut flab unless demand picks up significantly later in the year.
Public Issues: Number three on the list is how the corporate sector can raise money from the public when stock markets are not particularly buoyant. In January, the sensitive index (Sensex) of the Bombay stock Exchange (BSE) was at an all-time high, but now rules at 50 percent lower. Indications, nevertheless, are that the market has now bottomed out with the Sensex having finally moved to the vicinity 10,000-point mark. But most companies that had planned public issues for 2009 are going to hold their fire till the situation comes back to a much more even keel.
Consolidation: The fourth issue India Inc will have to face is the prospect of a shakeout in key industries. The aviation sector, for instance, is already in the throes of buyouts and mergers. The unlikely alliance between Jet Airways and Kingfisher Airlines to avoid competition on flight schedules is unprecedented in India and based on falling demand. Similarly the numerous TV channels are also expected to see a shakeout. A recently launched English news channel is reported to be looking for a buyer and other media houses have begun retrenchments though this has not been reported widely in the press.
Inflation: True, the annual rate of inflation based on wholesale prices has come down sharply from over 12 percent a few months ago to a little over 6.5 percent now. But the rise to double-digit inflation during 2008 had pushed up prices of raw materials and components sharply. Industry will be watching the price index closely to see its impact on production costs. The Reserve Bank of India (RBI) will also have to continue monitoring the price index to ensure that it declines to the targeted level of 4 percent by the end of the current fiscal. This will be crucial for easing its monetary policy so that India Inc can get credit at competitive rates.
Energy Security: The cost of energy is the sixth problem the corporate sector will have to face in the ensuing year. Global oil prices may have fallen now, but this is not expected to be a long-term trend. Prices are expected to rise as soon as demand picks up in the emerging economies like China and India. This will continue to be a worrying feature of the country's economy since more than 70 percent of our crude oil requirements are met from abroad.
Services: Another key issue would be the fate of the information technology and outsourcing sectors. The IT industry is linked to demand for services in the global economy. With this demand having diminished, the ever-rising graph of this sunrise industry may now slow down. Fortunately, IT majors have so far weathered the storm well, but much will depend on the extent to which they are able to bag more contracts in the future. The outsourcing industry has provided a large number of jobs within the country. Here again, it is integrally linked to multinationals facing the impact of the global meltdown - and do we see an opportunity here? This is the question that will determine this industry's fate in 2009.
Credit: Linked somewhat to the need to raise funds through public issues, finding cash to run enterprises will be another crucial issue in 2009. India Inc has been crying hoarse that liquidity is not the only problem when it comes to accessing funds from banks. They also want interest rates to be cut. The government is doing its bit by pump priming the economy. Eyes, therefore, are on the Reserve Bank and commercial lending institutions for desirable rate cuts.
Entrepreneurship: The prospect of declining entrepreneurship is also looming large, primarily because two sources of funding are drying up - venture capital and private equity. This factor may force further consolidations.
Tourism: The 10th major issue would be the need to prop up the tourism industry as it has its implications on a host of related sectors - from hospitality to aviation. The tourism industry was getting a major boost with the "Incredible India" campaign but there now appears to be a question mark following the Mumbai terror attacks. A fall in tourism will also lead to a drop in dollar receipts - also called invisibles earnings.
These imponderables - much of it linked to the external economy, the political situation within the country and the strategic security scenario with neighbors like Pakistan - will ultimately determine whether 2009 becomes a year of miracles or horror. Yet, few expect India's growth rate to fall below six-seven percent. And if that is achieved, the country may again end up being one of the fastest growing economies in the world.
What lies ahead for the Indian economy in 2009? This is the question looming large in corridors of the country's corporate world, as India Inc hopes the economy will transition from annus horribilis that 2008 was to annus mirabilis, which it hopes the New Year will be. A look at 10 major issues which the country's corporate sector has to contend with in 2009:
Demand Slowdown: This is the first critical problem and it is hitting all sectors of the economy. The slowing demand has filtered down to the retail space with shops finding fewer buyers even in the normally robust festive season from October to December. One of the main reasons for this has been the impact of the global financial crisis. Export growth has come to a halt after many months of double-digit expansion. This has had a cascading effect on many other sectors of the economy, leading to stagnation in both industrial output and infrastructure development.
The good news, however, is that the ensuing harvest season, or the rabi crop, is expected to be bountiful and the outlook is positive for higher rural demand within the next three-four months. With farm output still accounting for a large chunk of the country's economic pie, the rise in rural demand is likely to translate into a greater sense of all-round well being.
Job Losses: The aviation industry tried to bite the bullet when Jet Airways chief Naresh Goyal issued pink slips to nearly 1,000 employees and said similar sack orders were in the offing for 800 more. But he had to quickly back down and reverse the decision. Yet, jobs are going in many sectors, especially in export-oriented industries like textiles, handicraft and gems and jewellery. The fallout of employment losses in the diamond trade has snowballed into a political issue in Gujarat and the crisis may be mirrored in other states over the next few months. Job losses will increasingly become politicized in the run up to the general elections early next year. But industry may have little choice but to cut flab unless demand picks up significantly later in the year.
Public Issues: Number three on the list is how the corporate sector can raise money from the public when stock markets are not particularly buoyant. In January, the sensitive index (Sensex) of the Bombay stock Exchange (BSE) was at an all-time high, but now rules at 50 percent lower. Indications, nevertheless, are that the market has now bottomed out with the Sensex having finally moved to the vicinity 10,000-point mark. But most companies that had planned public issues for 2009 are going to hold their fire till the situation comes back to a much more even keel.
Consolidation: The fourth issue India Inc will have to face is the prospect of a shakeout in key industries. The aviation sector, for instance, is already in the throes of buyouts and mergers. The unlikely alliance between Jet Airways and Kingfisher Airlines to avoid competition on flight schedules is unprecedented in India and based on falling demand. Similarly the numerous TV channels are also expected to see a shakeout. A recently launched English news channel is reported to be looking for a buyer and other media houses have begun retrenchments though this has not been reported widely in the press.
Inflation: True, the annual rate of inflation based on wholesale prices has come down sharply from over 12 percent a few months ago to a little over 6.5 percent now. But the rise to double-digit inflation during 2008 had pushed up prices of raw materials and components sharply. Industry will be watching the price index closely to see its impact on production costs. The Reserve Bank of India (RBI) will also have to continue monitoring the price index to ensure that it declines to the targeted level of 4 percent by the end of the current fiscal. This will be crucial for easing its monetary policy so that India Inc can get credit at competitive rates.
Energy Security: The cost of energy is the sixth problem the corporate sector will have to face in the ensuing year. Global oil prices may have fallen now, but this is not expected to be a long-term trend. Prices are expected to rise as soon as demand picks up in the emerging economies like China and India. This will continue to be a worrying feature of the country's economy since more than 70 percent of our crude oil requirements are met from abroad.
Services: Another key issue would be the fate of the information technology and outsourcing sectors. The IT industry is linked to demand for services in the global economy. With this demand having diminished, the ever-rising graph of this sunrise industry may now slow down. Fortunately, IT majors have so far weathered the storm well, but much will depend on the extent to which they are able to bag more contracts in the future. The outsourcing industry has provided a large number of jobs within the country. Here again, it is integrally linked to multinationals facing the impact of the global meltdown - and do we see an opportunity here? This is the question that will determine this industry's fate in 2009.
Credit: Linked somewhat to the need to raise funds through public issues, finding cash to run enterprises will be another crucial issue in 2009. India Inc has been crying hoarse that liquidity is not the only problem when it comes to accessing funds from banks. They also want interest rates to be cut. The government is doing its bit by pump priming the economy. Eyes, therefore, are on the Reserve Bank and commercial lending institutions for desirable rate cuts.
Entrepreneurship: The prospect of declining entrepreneurship is also looming large, primarily because two sources of funding are drying up - venture capital and private equity. This factor may force further consolidations.
Tourism: The 10th major issue would be the need to prop up the tourism industry as it has its implications on a host of related sectors - from hospitality to aviation. The tourism industry was getting a major boost with the "Incredible India" campaign but there now appears to be a question mark following the Mumbai terror attacks. A fall in tourism will also lead to a drop in dollar receipts - also called invisibles earnings.
These imponderables - much of it linked to the external economy, the political situation within the country and the strategic security scenario with neighbors like Pakistan - will ultimately determine whether 2009 becomes a year of miracles or horror. Yet, few expect India's growth rate to fall below six-seven percent. And if that is achieved, the country may again end up being one of the fastest growing economies in the world.
Ten Issues India Inc Has to Contend With in 2009
By M H Ahssan
What lies ahead for the Indian economy in 2009? This is the question looming large in corridors of the country's corporate world, as India Inc hopes the economy will transition from annus horribilis that 2008 was to annus mirabilis, which it hopes the New Year will be. A look at 10 major issues which the country's corporate sector has to contend with in 2009:
Demand Slowdown: This is the first critical problem and it is hitting all sectors of the economy. The slowing demand has filtered down to the retail space with shops finding fewer buyers even in the normally robust festive season from October to December. One of the main reasons for this has been the impact of the global financial crisis. Export growth has come to a halt after many months of double-digit expansion. This has had a cascading effect on many other sectors of the economy, leading to stagnation in both industrial output and infrastructure development.
The good news, however, is that the ensuing harvest season, or the rabi crop, is expected to be bountiful and the outlook is positive for higher rural demand within the next three-four months. With farm output still accounting for a large chunk of the country's economic pie, the rise in rural demand is likely to translate into a greater sense of all-round well being.
Job Losses: The aviation industry tried to bite the bullet when Jet Airways chief Naresh Goyal issued pink slips to nearly 1,000 employees and said similar sack orders were in the offing for 800 more. But he had to quickly back down and reverse the decision. Yet, jobs are going in many sectors, especially in export-oriented industries like textiles, handicraft and gems and jewellery. The fallout of employment losses in the diamond trade has snowballed into a political issue in Gujarat and the crisis may be mirrored in other states over the next few months. Job losses will increasingly become politicized in the run up to the general elections early next year. But industry may have little choice but to cut flab unless demand picks up significantly later in the year.
Public Issues: Number three on the list is how the corporate sector can raise money from the public when stock markets are not particularly buoyant. In January, the sensitive index (Sensex) of the Bombay stock Exchange (BSE) was at an all-time high, but now rules at 50 percent lower. Indications, nevertheless, are that the market has now bottomed out with the Sensex having finally moved to the vicinity 10,000-point mark. But most companies that had planned public issues for 2009 are going to hold their fire till the situation comes back to a much more even keel.
Consolidation: The fourth issue India Inc will have to face is the prospect of a shakeout in key industries. The aviation sector, for instance, is already in the throes of buyouts and mergers. The unlikely alliance between Jet Airways and Kingfisher Airlines to avoid competition on flight schedules is unprecedented in India and based on falling demand. Similarly the numerous TV channels are also expected to see a shakeout. A recently launched English news channel is reported to be looking for a buyer and other media houses have begun retrenchments though this has not been reported widely in the press.
Inflation: True, the annual rate of inflation based on wholesale prices has come down sharply from over 12 percent a few months ago to a little over 6.5 percent now. But the rise to double-digit inflation during 2008 had pushed up prices of raw materials and components sharply. Industry will be watching the price index closely to see its impact on production costs. The Reserve Bank of India (RBI) will also have to continue monitoring the price index to ensure that it declines to the targeted level of 4 percent by the end of the current fiscal. This will be crucial for easing its monetary policy so that India Inc can get credit at competitive rates.
Energy Security: The cost of energy is the sixth problem the corporate sector will have to face in the ensuing year. Global oil prices may have fallen now, but this is not expected to be a long-term trend. Prices are expected to rise as soon as demand picks up in the emerging economies like China and India. This will continue to be a worrying feature of the country's economy since more than 70 percent of our crude oil requirements are met from abroad.
Services: Another key issue would be the fate of the information technology and outsourcing sectors. The IT industry is linked to demand for services in the global economy. With this demand having diminished, the ever-rising graph of this sunrise industry may now slow down. Fortunately, IT majors have so far weathered the storm well, but much will depend on the extent to which they are able to bag more contracts in the future. The outsourcing industry has provided a large number of jobs within the country. Here again, it is integrally linked to multinationals facing the impact of the global meltdown - and do we see an opportunity here? This is the question that will determine this industry's fate in 2009.
Credit: Linked somewhat to the need to raise funds through public issues, finding cash to run enterprises will be another crucial issue in 2009. India Inc has been crying hoarse that liquidity is not the only problem when it comes to accessing funds from banks. They also want interest rates to be cut. The government is doing its bit by pump priming the economy. Eyes, therefore, are on the Reserve Bank and commercial lending institutions for desirable rate cuts.
Entrepreneurship: The prospect of declining entrepreneurship is also looming large, primarily because two sources of funding are drying up - venture capital and private equity. This factor may force further consolidations.
Tourism: The 10th major issue would be the need to prop up the tourism industry as it has its implications on a host of related sectors - from hospitality to aviation. The tourism industry was getting a major boost with the "Incredible India" campaign but there now appears to be a question mark following the Mumbai terror attacks. A fall in tourism will also lead to a drop in dollar receipts - also called invisibles earnings.
These imponderables - much of it linked to the external economy, the political situation within the country and the strategic security scenario with neighbors like Pakistan - will ultimately determine whether 2009 becomes a year of miracles or horror. Yet, few expect India's growth rate to fall below six-seven percent. And if that is achieved, the country may again end up being one of the fastest growing economies in the world.
What lies ahead for the Indian economy in 2009? This is the question looming large in corridors of the country's corporate world, as India Inc hopes the economy will transition from annus horribilis that 2008 was to annus mirabilis, which it hopes the New Year will be. A look at 10 major issues which the country's corporate sector has to contend with in 2009:
Demand Slowdown: This is the first critical problem and it is hitting all sectors of the economy. The slowing demand has filtered down to the retail space with shops finding fewer buyers even in the normally robust festive season from October to December. One of the main reasons for this has been the impact of the global financial crisis. Export growth has come to a halt after many months of double-digit expansion. This has had a cascading effect on many other sectors of the economy, leading to stagnation in both industrial output and infrastructure development.
The good news, however, is that the ensuing harvest season, or the rabi crop, is expected to be bountiful and the outlook is positive for higher rural demand within the next three-four months. With farm output still accounting for a large chunk of the country's economic pie, the rise in rural demand is likely to translate into a greater sense of all-round well being.
Job Losses: The aviation industry tried to bite the bullet when Jet Airways chief Naresh Goyal issued pink slips to nearly 1,000 employees and said similar sack orders were in the offing for 800 more. But he had to quickly back down and reverse the decision. Yet, jobs are going in many sectors, especially in export-oriented industries like textiles, handicraft and gems and jewellery. The fallout of employment losses in the diamond trade has snowballed into a political issue in Gujarat and the crisis may be mirrored in other states over the next few months. Job losses will increasingly become politicized in the run up to the general elections early next year. But industry may have little choice but to cut flab unless demand picks up significantly later in the year.
Public Issues: Number three on the list is how the corporate sector can raise money from the public when stock markets are not particularly buoyant. In January, the sensitive index (Sensex) of the Bombay stock Exchange (BSE) was at an all-time high, but now rules at 50 percent lower. Indications, nevertheless, are that the market has now bottomed out with the Sensex having finally moved to the vicinity 10,000-point mark. But most companies that had planned public issues for 2009 are going to hold their fire till the situation comes back to a much more even keel.
Consolidation: The fourth issue India Inc will have to face is the prospect of a shakeout in key industries. The aviation sector, for instance, is already in the throes of buyouts and mergers. The unlikely alliance between Jet Airways and Kingfisher Airlines to avoid competition on flight schedules is unprecedented in India and based on falling demand. Similarly the numerous TV channels are also expected to see a shakeout. A recently launched English news channel is reported to be looking for a buyer and other media houses have begun retrenchments though this has not been reported widely in the press.
Inflation: True, the annual rate of inflation based on wholesale prices has come down sharply from over 12 percent a few months ago to a little over 6.5 percent now. But the rise to double-digit inflation during 2008 had pushed up prices of raw materials and components sharply. Industry will be watching the price index closely to see its impact on production costs. The Reserve Bank of India (RBI) will also have to continue monitoring the price index to ensure that it declines to the targeted level of 4 percent by the end of the current fiscal. This will be crucial for easing its monetary policy so that India Inc can get credit at competitive rates.
Energy Security: The cost of energy is the sixth problem the corporate sector will have to face in the ensuing year. Global oil prices may have fallen now, but this is not expected to be a long-term trend. Prices are expected to rise as soon as demand picks up in the emerging economies like China and India. This will continue to be a worrying feature of the country's economy since more than 70 percent of our crude oil requirements are met from abroad.
Services: Another key issue would be the fate of the information technology and outsourcing sectors. The IT industry is linked to demand for services in the global economy. With this demand having diminished, the ever-rising graph of this sunrise industry may now slow down. Fortunately, IT majors have so far weathered the storm well, but much will depend on the extent to which they are able to bag more contracts in the future. The outsourcing industry has provided a large number of jobs within the country. Here again, it is integrally linked to multinationals facing the impact of the global meltdown - and do we see an opportunity here? This is the question that will determine this industry's fate in 2009.
Credit: Linked somewhat to the need to raise funds through public issues, finding cash to run enterprises will be another crucial issue in 2009. India Inc has been crying hoarse that liquidity is not the only problem when it comes to accessing funds from banks. They also want interest rates to be cut. The government is doing its bit by pump priming the economy. Eyes, therefore, are on the Reserve Bank and commercial lending institutions for desirable rate cuts.
Entrepreneurship: The prospect of declining entrepreneurship is also looming large, primarily because two sources of funding are drying up - venture capital and private equity. This factor may force further consolidations.
Tourism: The 10th major issue would be the need to prop up the tourism industry as it has its implications on a host of related sectors - from hospitality to aviation. The tourism industry was getting a major boost with the "Incredible India" campaign but there now appears to be a question mark following the Mumbai terror attacks. A fall in tourism will also lead to a drop in dollar receipts - also called invisibles earnings.
These imponderables - much of it linked to the external economy, the political situation within the country and the strategic security scenario with neighbors like Pakistan - will ultimately determine whether 2009 becomes a year of miracles or horror. Yet, few expect India's growth rate to fall below six-seven percent. And if that is achieved, the country may again end up being one of the fastest growing economies in the world.
Ten Issues India Inc Has to Contend With in 2009
By M H Ahssan
What lies ahead for the Indian economy in 2009? This is the question looming large in corridors of the country's corporate world, as India Inc hopes the economy will transition from annus horribilis that 2008 was to annus mirabilis, which it hopes the New Year will be. A look at 10 major issues which the country's corporate sector has to contend with in 2009:
Demand Slowdown: This is the first critical problem and it is hitting all sectors of the economy. The slowing demand has filtered down to the retail space with shops finding fewer buyers even in the normally robust festive season from October to December. One of the main reasons for this has been the impact of the global financial crisis. Export growth has come to a halt after many months of double-digit expansion. This has had a cascading effect on many other sectors of the economy, leading to stagnation in both industrial output and infrastructure development.
The good news, however, is that the ensuing harvest season, or the rabi crop, is expected to be bountiful and the outlook is positive for higher rural demand within the next three-four months. With farm output still accounting for a large chunk of the country's economic pie, the rise in rural demand is likely to translate into a greater sense of all-round well being.
Job Losses: The aviation industry tried to bite the bullet when Jet Airways chief Naresh Goyal issued pink slips to nearly 1,000 employees and said similar sack orders were in the offing for 800 more. But he had to quickly back down and reverse the decision. Yet, jobs are going in many sectors, especially in export-oriented industries like textiles, handicraft and gems and jewellery. The fallout of employment losses in the diamond trade has snowballed into a political issue in Gujarat and the crisis may be mirrored in other states over the next few months. Job losses will increasingly become politicized in the run up to the general elections early next year. But industry may have little choice but to cut flab unless demand picks up significantly later in the year.
Public Issues: Number three on the list is how the corporate sector can raise money from the public when stock markets are not particularly buoyant. In January, the sensitive index (Sensex) of the Bombay stock Exchange (BSE) was at an all-time high, but now rules at 50 percent lower. Indications, nevertheless, are that the market has now bottomed out with the Sensex having finally moved to the vicinity 10,000-point mark. But most companies that had planned public issues for 2009 are going to hold their fire till the situation comes back to a much more even keel.
Consolidation: The fourth issue India Inc will have to face is the prospect of a shakeout in key industries. The aviation sector, for instance, is already in the throes of buyouts and mergers. The unlikely alliance between Jet Airways and Kingfisher Airlines to avoid competition on flight schedules is unprecedented in India and based on falling demand. Similarly the numerous TV channels are also expected to see a shakeout. A recently launched English news channel is reported to be looking for a buyer and other media houses have begun retrenchments though this has not been reported widely in the press.
Inflation: True, the annual rate of inflation based on wholesale prices has come down sharply from over 12 percent a few months ago to a little over 6.5 percent now. But the rise to double-digit inflation during 2008 had pushed up prices of raw materials and components sharply. Industry will be watching the price index closely to see its impact on production costs. The Reserve Bank of India (RBI) will also have to continue monitoring the price index to ensure that it declines to the targeted level of 4 percent by the end of the current fiscal. This will be crucial for easing its monetary policy so that India Inc can get credit at competitive rates.
Energy Security: The cost of energy is the sixth problem the corporate sector will have to face in the ensuing year. Global oil prices may have fallen now, but this is not expected to be a long-term trend. Prices are expected to rise as soon as demand picks up in the emerging economies like China and India. This will continue to be a worrying feature of the country's economy since more than 70 percent of our crude oil requirements are met from abroad.
Services: Another key issue would be the fate of the information technology and outsourcing sectors. The IT industry is linked to demand for services in the global economy. With this demand having diminished, the ever-rising graph of this sunrise industry may now slow down. Fortunately, IT majors have so far weathered the storm well, but much will depend on the extent to which they are able to bag more contracts in the future. The outsourcing industry has provided a large number of jobs within the country. Here again, it is integrally linked to multinationals facing the impact of the global meltdown - and do we see an opportunity here? This is the question that will determine this industry's fate in 2009.
Credit: Linked somewhat to the need to raise funds through public issues, finding cash to run enterprises will be another crucial issue in 2009. India Inc has been crying hoarse that liquidity is not the only problem when it comes to accessing funds from banks. They also want interest rates to be cut. The government is doing its bit by pump priming the economy. Eyes, therefore, are on the Reserve Bank and commercial lending institutions for desirable rate cuts.
Entrepreneurship: The prospect of declining entrepreneurship is also looming large, primarily because two sources of funding are drying up - venture capital and private equity. This factor may force further consolidations.
Tourism: The 10th major issue would be the need to prop up the tourism industry as it has its implications on a host of related sectors - from hospitality to aviation. The tourism industry was getting a major boost with the "Incredible India" campaign but there now appears to be a question mark following the Mumbai terror attacks. A fall in tourism will also lead to a drop in dollar receipts - also called invisibles earnings.
These imponderables - much of it linked to the external economy, the political situation within the country and the strategic security scenario with neighbors like Pakistan - will ultimately determine whether 2009 becomes a year of miracles or horror. Yet, few expect India's growth rate to fall below six-seven percent. And if that is achieved, the country may again end up being one of the fastest growing economies in the world.
What lies ahead for the Indian economy in 2009? This is the question looming large in corridors of the country's corporate world, as India Inc hopes the economy will transition from annus horribilis that 2008 was to annus mirabilis, which it hopes the New Year will be. A look at 10 major issues which the country's corporate sector has to contend with in 2009:
Demand Slowdown: This is the first critical problem and it is hitting all sectors of the economy. The slowing demand has filtered down to the retail space with shops finding fewer buyers even in the normally robust festive season from October to December. One of the main reasons for this has been the impact of the global financial crisis. Export growth has come to a halt after many months of double-digit expansion. This has had a cascading effect on many other sectors of the economy, leading to stagnation in both industrial output and infrastructure development.
The good news, however, is that the ensuing harvest season, or the rabi crop, is expected to be bountiful and the outlook is positive for higher rural demand within the next three-four months. With farm output still accounting for a large chunk of the country's economic pie, the rise in rural demand is likely to translate into a greater sense of all-round well being.
Job Losses: The aviation industry tried to bite the bullet when Jet Airways chief Naresh Goyal issued pink slips to nearly 1,000 employees and said similar sack orders were in the offing for 800 more. But he had to quickly back down and reverse the decision. Yet, jobs are going in many sectors, especially in export-oriented industries like textiles, handicraft and gems and jewellery. The fallout of employment losses in the diamond trade has snowballed into a political issue in Gujarat and the crisis may be mirrored in other states over the next few months. Job losses will increasingly become politicized in the run up to the general elections early next year. But industry may have little choice but to cut flab unless demand picks up significantly later in the year.
Public Issues: Number three on the list is how the corporate sector can raise money from the public when stock markets are not particularly buoyant. In January, the sensitive index (Sensex) of the Bombay stock Exchange (BSE) was at an all-time high, but now rules at 50 percent lower. Indications, nevertheless, are that the market has now bottomed out with the Sensex having finally moved to the vicinity 10,000-point mark. But most companies that had planned public issues for 2009 are going to hold their fire till the situation comes back to a much more even keel.
Consolidation: The fourth issue India Inc will have to face is the prospect of a shakeout in key industries. The aviation sector, for instance, is already in the throes of buyouts and mergers. The unlikely alliance between Jet Airways and Kingfisher Airlines to avoid competition on flight schedules is unprecedented in India and based on falling demand. Similarly the numerous TV channels are also expected to see a shakeout. A recently launched English news channel is reported to be looking for a buyer and other media houses have begun retrenchments though this has not been reported widely in the press.
Inflation: True, the annual rate of inflation based on wholesale prices has come down sharply from over 12 percent a few months ago to a little over 6.5 percent now. But the rise to double-digit inflation during 2008 had pushed up prices of raw materials and components sharply. Industry will be watching the price index closely to see its impact on production costs. The Reserve Bank of India (RBI) will also have to continue monitoring the price index to ensure that it declines to the targeted level of 4 percent by the end of the current fiscal. This will be crucial for easing its monetary policy so that India Inc can get credit at competitive rates.
Energy Security: The cost of energy is the sixth problem the corporate sector will have to face in the ensuing year. Global oil prices may have fallen now, but this is not expected to be a long-term trend. Prices are expected to rise as soon as demand picks up in the emerging economies like China and India. This will continue to be a worrying feature of the country's economy since more than 70 percent of our crude oil requirements are met from abroad.
Services: Another key issue would be the fate of the information technology and outsourcing sectors. The IT industry is linked to demand for services in the global economy. With this demand having diminished, the ever-rising graph of this sunrise industry may now slow down. Fortunately, IT majors have so far weathered the storm well, but much will depend on the extent to which they are able to bag more contracts in the future. The outsourcing industry has provided a large number of jobs within the country. Here again, it is integrally linked to multinationals facing the impact of the global meltdown - and do we see an opportunity here? This is the question that will determine this industry's fate in 2009.
Credit: Linked somewhat to the need to raise funds through public issues, finding cash to run enterprises will be another crucial issue in 2009. India Inc has been crying hoarse that liquidity is not the only problem when it comes to accessing funds from banks. They also want interest rates to be cut. The government is doing its bit by pump priming the economy. Eyes, therefore, are on the Reserve Bank and commercial lending institutions for desirable rate cuts.
Entrepreneurship: The prospect of declining entrepreneurship is also looming large, primarily because two sources of funding are drying up - venture capital and private equity. This factor may force further consolidations.
Tourism: The 10th major issue would be the need to prop up the tourism industry as it has its implications on a host of related sectors - from hospitality to aviation. The tourism industry was getting a major boost with the "Incredible India" campaign but there now appears to be a question mark following the Mumbai terror attacks. A fall in tourism will also lead to a drop in dollar receipts - also called invisibles earnings.
These imponderables - much of it linked to the external economy, the political situation within the country and the strategic security scenario with neighbors like Pakistan - will ultimately determine whether 2009 becomes a year of miracles or horror. Yet, few expect India's growth rate to fall below six-seven percent. And if that is achieved, the country may again end up being one of the fastest growing economies in the world.
Saturday, January 24, 2009
Apollo Hospitals' Suneeta Reddy: 'Medical Tourism Is a Huge Market'
Medical tourism -- the phenomenon in which hospitals in emerging markets offer "sun, sand and surgery" at low prices to patients from North America and Europe -- is gaining in popularity. While India lags behind countries like Thailand as a result of airport infrastructure and other bottlenecks, health care providers such as Apollo Hospitals are expanding at 10% a year. In an interview with HNN chief M H Ahssan, Suneeta Reddy, Apollo's executive director of finance, discussed the company's opportunities and challenges in this fast-growing market.
An edited transcript of the conversation follows:
How has medical tourism grown over the years?
Reddy: It has grown...I wouldn't say substantially, but it's grown by 10%. Ten years ago, Apollo started focusing on patients outside India. It didn't happen as a result of marketing; it was more of a pull of customers towards good quality medicine, rather than our pushing them through advertising and marketing. The reason it happened was that all over Southeast Asia, people began to see a value proposition -- which was high value in terms of clinical outcomes and high-quality care -- at one-fifth of what they would traditionally pay in the U.S., and probably a third of what they would pay in a country like Singapore. As a result, we started attracting patients from all over Southeast Asia.
As it progressed, people began to realize that the India story, where health care was concerned, was improving dramatically. Just two years ago, we got the JCI [Joint Commission International] accreditation which puts us on par with hospitals in the rest of the world. We are now shoulder to shoulder with the Mayo Clinic and the Cleveland Clinic. And with that we started getting patients from the West as well. Most of them use the Internet as the medium through which they schedule their appointments and arrange consultations with doctors. But again, it's this value proposition that is really driving consumers. I would say that currently 10% of our total revenues come from medical tourism. That is not really a large amount, and it has grown by 2% to 3%.
There are obstacles in the way of what is happening. One is our airport facilities. If you look at the hospitals that are really doing well, they are connected to international airports that have around maybe 50 to 60 flights a day. Compare us with Thailand, which has 260 international flights flying into Bangkok every day -- that makes it very easy for patients to go to Bangkok for medical tourism. If you compare that with the Chennai Airport, where our largest hospital is, there are about 15 flights. So, I think that you have to look at the airport infrastructure.
Secondly, the case mix of most of the work that comes to India is tertiary care and acute care. It's not the plastic surgeries that you see in Bangkok. It's high-end orthopedic work, it's cardiology, and some of it is oncology. Patients come to us for really high-end work. To do that, because we are recognized for that sort of work, it is quite uncomfortable for patients to make this journey. We need to smoothen out that process -- so that our patients don't have to spend 12 to 14 hours in Immigration and Customs -- and we are working on that. We now have people to facilitate and assist these patients as they come across.
Finally, I would like to say that there is a huge opportunity here. If you look at the U.S. alone, there are 40 million people in the country who are not insured. If you look at the U.K., there are about 250,000 Asians who are in the waiting line at NHS [National Health Service]. Medical tourism is a huge market. I believe the way to address it is to create a package that will enable these people to use Indian facilities. We tried talking to governments and asking, "Why don't you send patients who have no treatment options to India?" Then again, we've spoken to benefits companies, etc. The only single hurdle facing the U.S. and foreign patients coming here is legal liability and the fact that they cannot address their concerns through a legal forum in the United States. They could, of course, use the Indian legal system, but it's become a way of life; people want the legal system to back them up in case there is a problem.
Now, the incidence of problems is not even 0.01% so far, because the success rates are very good and clinical outcomes are so good -- we are JCI accredited -- and patients have the same rights in India as they would in the U.S., so they are protected. But I think that it's just a hurdle that we need to overcome. Once we have done this, we will be tying up with insurance companies and benefits companies to see how we can assist people who need that type of health care.
Have you seen a discernable increase in your Western clientele over the past few years? I know the story has been out for a while now. I was curious to know if you've seen an increase.
Reddy: Yes, we have. There has been a rise of about 5%.
What do you attribute that to, if it's difficult to access these people through insurance programs or through the government? Is it direct advertising?
Reddy: It's not advertising at all. It's the fact that people are so confident that the clinical outcomes will be good. And it's testimony from patients who have been through the whole process. As I said, it's pullingpatients to the system. This is because we don't market. I mean you don't see advertisements. But, we are now working with CII, the Confederation of Indian Industry, which is doing the branding in India. There is a branding foundation in India, and they have a campaign called "Incredible India." We work with them, and we are now doing a promotion around, "Experience Indian Health Care." It was just launched and hopefully we will see a lot of results from that.
Your program combines elements of both Western care and also Eastern medicine. I noticed that in a lot of your materials, you advertise the point that there are centuries of Eastern medical practice that you rely on as well. Can you talk specifically about what some of those elements are?
Reddy: We believe in an integrated health care package. In that sense, we talk about allopathic medicine for the actual treatment, in terms of surgery, diagnosis, etc., but where rehab and wellbeing are concerned, we've tried to integrate the systems of ayurveda [traditional Indian medicine] and yoga. This has helped because when patients go back [after their surgery] they need to readjust to a lifestyle that emphasizes continuous wellbeing. The key here is that there's a lot of value that they will get from ayurveda and yoga.
It is certainly a big market in the U.S., or at least a growing market, correct?
Reddy: It is. It's strange, but when Patanjali introduced Yoga thousands of years ago, there were very few Indians practicing it. And now, 6% of the world practices yoga. It has become famous because the movie stars in the West and people all over America are doing it. Now it has come back to India, and people are now saying, "Okay, this should become a way of life." Ayurveda is the science of life.
You are one of the largest health care systems in India, correct?
Reddy: Yes, we are.
How are you reaching out to poorer populations? Can you tell us a little bit about SACH and maybe some of your other community initiatives as well? The acronym stands for: Save a Child's Heart.
Reddy: I will start with SACH. SACH is Save a Child's Heart; it also means "the truth" in Hindi. The reason we started SACH is that we came across so many children who had heart disease. We believe that if there is an intervention at that stage, when the child is young, it will given them a more productive future. So, we said let's do something for children and make them productive adults, because that is what India really needs.
We started this foundation where the hospital does everything free of cost. The money for the consumables comes from donations, and people have donated in a large way. So far, we have completed 500 free surgeries and our target [this year] is to do 1,000. We would like to do 1,000 surgeries a year. The surgeon does not charge and the hospital does not charge. It's just 50,000 rupees for the consumables which comes as a donation. People have found it to be not so difficult to give a check for 50,000 rupees [$1,170] -- especially when you know that you are saving a child's life and you're assuring him or her of a good future.
The second thing we do is outreach at the village level, where health care is not available. We wanted to create a sustainable model and not really do it as charity, but to create something that was sustainable for the future. In fact, Bill Clinton, when he was the U.S. President, inaugurated this initiative in a village called Aragonda, a small town in the Chittoor district of Andhra Pradesh. We set up a small hospital, which was a primary care facility. We connected it through tele-medicine to our tertiary care facility.
Then we created an insurance product which was 1 rupee (0.02 cents) a day, which allowed people access into the primary care facility. If they fell ill, they would be treated here. They wouldn't have to pay anything, except for the 1 rupee a day or 325 rupees a year [$7.60 a year]. And, if they needed some tertiary care work, they would be connected by telemedicine to our specialists in the main hospital. They would only have to travel to the city when they needed acute care. I think that is an excellent model. Currently, we have 64 telemedicine centers that connect us to many centers in India. We are going to work on this model and set up more primary care initiatives.
The third activity we do is to organize medical camps. We go into the villages and screen people for cancer. You know, India is the only country where cervical cancer still exists. The numbers are growing exponentially, and we believe that early intervention and screening is one of the ways to check the growth and mortality from cancer. There are many camps that we do work with from each of our hospitals that have to do with cancer screening.
The fourth activity has to do with wellness, because preventive health care is a big aspect of health care. It will be a $1 trillion industry in the next five years. Without looking at it from an industrial viewpoint, health care education is important; Apollo tries to do that through its preventive health care schemes and our outreach programs, where we do these check-ups in villages.
What would you identify as the biggest challenges facing the industry?
Reddy: I think there are two challenges; the main one is skilled manpower. The fact that the government has not allowed the corporatization of colleges means that they still function at a trust level. This means that people pay capitation fees, and the number of seats is limited by state governments. Health is a state subject, so there is a dichotomy there; I believe there should be a Central government policy on health care. It's not a fundamental right that people get health care; in each state there is a separate policy.
The need for health care education is tremendous. First, people should learn about health care, and second, we need to get skilled manpower. That is a huge challenge because our nurses and doctors are migrating to the U.S.; in the past, they went to the U.K. The U.S. has at least 40,000 doctors who were trained in India at subsidized rates. These hospitals are run by trusts, so the doctors really don't pay that much for their education and training. But we need to double the capacity in terms of training colleges. This is because if you are going to create the 80,000 beds that are required for us to meet the World Health Organization's norms, then we need to staff those 80,000 beds.
Yet another challenge has to do with the high cost of real estate -- to set up a hospital, you need real estate, you need land. Property prices have almost doubled. Traditionally real estate was 40% of project cost and now it has increased to 65%. We may need to set up a health care real estate investment trust (REIT)like you have in the U.S. to overcome this hurdle.
An edited transcript of the conversation follows:
How has medical tourism grown over the years?
Reddy: It has grown...I wouldn't say substantially, but it's grown by 10%. Ten years ago, Apollo started focusing on patients outside India. It didn't happen as a result of marketing; it was more of a pull of customers towards good quality medicine, rather than our pushing them through advertising and marketing. The reason it happened was that all over Southeast Asia, people began to see a value proposition -- which was high value in terms of clinical outcomes and high-quality care -- at one-fifth of what they would traditionally pay in the U.S., and probably a third of what they would pay in a country like Singapore. As a result, we started attracting patients from all over Southeast Asia.
As it progressed, people began to realize that the India story, where health care was concerned, was improving dramatically. Just two years ago, we got the JCI [Joint Commission International] accreditation which puts us on par with hospitals in the rest of the world. We are now shoulder to shoulder with the Mayo Clinic and the Cleveland Clinic. And with that we started getting patients from the West as well. Most of them use the Internet as the medium through which they schedule their appointments and arrange consultations with doctors. But again, it's this value proposition that is really driving consumers. I would say that currently 10% of our total revenues come from medical tourism. That is not really a large amount, and it has grown by 2% to 3%.
There are obstacles in the way of what is happening. One is our airport facilities. If you look at the hospitals that are really doing well, they are connected to international airports that have around maybe 50 to 60 flights a day. Compare us with Thailand, which has 260 international flights flying into Bangkok every day -- that makes it very easy for patients to go to Bangkok for medical tourism. If you compare that with the Chennai Airport, where our largest hospital is, there are about 15 flights. So, I think that you have to look at the airport infrastructure.
Secondly, the case mix of most of the work that comes to India is tertiary care and acute care. It's not the plastic surgeries that you see in Bangkok. It's high-end orthopedic work, it's cardiology, and some of it is oncology. Patients come to us for really high-end work. To do that, because we are recognized for that sort of work, it is quite uncomfortable for patients to make this journey. We need to smoothen out that process -- so that our patients don't have to spend 12 to 14 hours in Immigration and Customs -- and we are working on that. We now have people to facilitate and assist these patients as they come across.
Finally, I would like to say that there is a huge opportunity here. If you look at the U.S. alone, there are 40 million people in the country who are not insured. If you look at the U.K., there are about 250,000 Asians who are in the waiting line at NHS [National Health Service]. Medical tourism is a huge market. I believe the way to address it is to create a package that will enable these people to use Indian facilities. We tried talking to governments and asking, "Why don't you send patients who have no treatment options to India?" Then again, we've spoken to benefits companies, etc. The only single hurdle facing the U.S. and foreign patients coming here is legal liability and the fact that they cannot address their concerns through a legal forum in the United States. They could, of course, use the Indian legal system, but it's become a way of life; people want the legal system to back them up in case there is a problem.
Now, the incidence of problems is not even 0.01% so far, because the success rates are very good and clinical outcomes are so good -- we are JCI accredited -- and patients have the same rights in India as they would in the U.S., so they are protected. But I think that it's just a hurdle that we need to overcome. Once we have done this, we will be tying up with insurance companies and benefits companies to see how we can assist people who need that type of health care.
Have you seen a discernable increase in your Western clientele over the past few years? I know the story has been out for a while now. I was curious to know if you've seen an increase.
Reddy: Yes, we have. There has been a rise of about 5%.
What do you attribute that to, if it's difficult to access these people through insurance programs or through the government? Is it direct advertising?
Reddy: It's not advertising at all. It's the fact that people are so confident that the clinical outcomes will be good. And it's testimony from patients who have been through the whole process. As I said, it's pullingpatients to the system. This is because we don't market. I mean you don't see advertisements. But, we are now working with CII, the Confederation of Indian Industry, which is doing the branding in India. There is a branding foundation in India, and they have a campaign called "Incredible India." We work with them, and we are now doing a promotion around, "Experience Indian Health Care." It was just launched and hopefully we will see a lot of results from that.
Your program combines elements of both Western care and also Eastern medicine. I noticed that in a lot of your materials, you advertise the point that there are centuries of Eastern medical practice that you rely on as well. Can you talk specifically about what some of those elements are?
Reddy: We believe in an integrated health care package. In that sense, we talk about allopathic medicine for the actual treatment, in terms of surgery, diagnosis, etc., but where rehab and wellbeing are concerned, we've tried to integrate the systems of ayurveda [traditional Indian medicine] and yoga. This has helped because when patients go back [after their surgery] they need to readjust to a lifestyle that emphasizes continuous wellbeing. The key here is that there's a lot of value that they will get from ayurveda and yoga.
It is certainly a big market in the U.S., or at least a growing market, correct?
Reddy: It is. It's strange, but when Patanjali introduced Yoga thousands of years ago, there were very few Indians practicing it. And now, 6% of the world practices yoga. It has become famous because the movie stars in the West and people all over America are doing it. Now it has come back to India, and people are now saying, "Okay, this should become a way of life." Ayurveda is the science of life.
You are one of the largest health care systems in India, correct?
Reddy: Yes, we are.
How are you reaching out to poorer populations? Can you tell us a little bit about SACH and maybe some of your other community initiatives as well? The acronym stands for: Save a Child's Heart.
Reddy: I will start with SACH. SACH is Save a Child's Heart; it also means "the truth" in Hindi. The reason we started SACH is that we came across so many children who had heart disease. We believe that if there is an intervention at that stage, when the child is young, it will given them a more productive future. So, we said let's do something for children and make them productive adults, because that is what India really needs.
We started this foundation where the hospital does everything free of cost. The money for the consumables comes from donations, and people have donated in a large way. So far, we have completed 500 free surgeries and our target [this year] is to do 1,000. We would like to do 1,000 surgeries a year. The surgeon does not charge and the hospital does not charge. It's just 50,000 rupees for the consumables which comes as a donation. People have found it to be not so difficult to give a check for 50,000 rupees [$1,170] -- especially when you know that you are saving a child's life and you're assuring him or her of a good future.
The second thing we do is outreach at the village level, where health care is not available. We wanted to create a sustainable model and not really do it as charity, but to create something that was sustainable for the future. In fact, Bill Clinton, when he was the U.S. President, inaugurated this initiative in a village called Aragonda, a small town in the Chittoor district of Andhra Pradesh. We set up a small hospital, which was a primary care facility. We connected it through tele-medicine to our tertiary care facility.
Then we created an insurance product which was 1 rupee (0.02 cents) a day, which allowed people access into the primary care facility. If they fell ill, they would be treated here. They wouldn't have to pay anything, except for the 1 rupee a day or 325 rupees a year [$7.60 a year]. And, if they needed some tertiary care work, they would be connected by telemedicine to our specialists in the main hospital. They would only have to travel to the city when they needed acute care. I think that is an excellent model. Currently, we have 64 telemedicine centers that connect us to many centers in India. We are going to work on this model and set up more primary care initiatives.
The third activity we do is to organize medical camps. We go into the villages and screen people for cancer. You know, India is the only country where cervical cancer still exists. The numbers are growing exponentially, and we believe that early intervention and screening is one of the ways to check the growth and mortality from cancer. There are many camps that we do work with from each of our hospitals that have to do with cancer screening.
The fourth activity has to do with wellness, because preventive health care is a big aspect of health care. It will be a $1 trillion industry in the next five years. Without looking at it from an industrial viewpoint, health care education is important; Apollo tries to do that through its preventive health care schemes and our outreach programs, where we do these check-ups in villages.
What would you identify as the biggest challenges facing the industry?
Reddy: I think there are two challenges; the main one is skilled manpower. The fact that the government has not allowed the corporatization of colleges means that they still function at a trust level. This means that people pay capitation fees, and the number of seats is limited by state governments. Health is a state subject, so there is a dichotomy there; I believe there should be a Central government policy on health care. It's not a fundamental right that people get health care; in each state there is a separate policy.
The need for health care education is tremendous. First, people should learn about health care, and second, we need to get skilled manpower. That is a huge challenge because our nurses and doctors are migrating to the U.S.; in the past, they went to the U.K. The U.S. has at least 40,000 doctors who were trained in India at subsidized rates. These hospitals are run by trusts, so the doctors really don't pay that much for their education and training. But we need to double the capacity in terms of training colleges. This is because if you are going to create the 80,000 beds that are required for us to meet the World Health Organization's norms, then we need to staff those 80,000 beds.
Yet another challenge has to do with the high cost of real estate -- to set up a hospital, you need real estate, you need land. Property prices have almost doubled. Traditionally real estate was 40% of project cost and now it has increased to 65%. We may need to set up a health care real estate investment trust (REIT)like you have in the U.S. to overcome this hurdle.
Wednesday, February 11, 2009
Exclusive: Take the money and run in Myanmar
By Seema Shaikh
Recent media reports indicate at least eight ministers and the mayor of the old capital of Yangon will resign their posts as a presage to Myanmar's general elections scheduled for 2010. The list is a veritable who's who of the ruling State Peace and Development Council's (SPDC) top lieutenants and signals the regime's intention to keep its members prominent in the transition towards an elected civilian-led administration.
Several of the outgoing ministers have served especially long tenures for Myanmar's cut-and-thrust politics and are expected to run for office at the upcoming polls under a military-supported political party. The regime has promoted the elections as part of its seven-step road map to democracy; opponents see the promised political transition as a sham to give a veneer of legitimacy to continued military rule. It's unclear where the departing ministers fit into that political future.
Minister of Construction Major General Saw Tun, for instance, has maintained control over the lucrative construction portfolio since 1995, predating the formation of the SPDC. While allegations of rampant corruption have tarnished the reputations of many Myanmar ministers and ministries, Saw Tun's name is usually not mentioned among them. According to a Myanmar businessman who knows the minister, Saw Tun often says that it is better to make a little bit of money over a long time than to make a lot of money quickly. Apart from that temperance, his longevity in the position can also be attributed to his hometown ties to junta leader Senior General Than Shwe, who likewise hails from the Kyaukse township of the country's central Mandalay division.
Another long-serving minister is U Aung Thaung, who has served as Minister of Industry No 1 since the SPDC's formation in 1997. According to businessmen who know both ministers, U Aung Thaung is not as inhibited as Saw Tun. Many Myanmar ministers who have bid to maximize short-term profits from their positions have had their careers ended prematurely on corruption charges. Some say U Aung Thaung has survived in his post because of his close connections to the senior leadership: He is a known favorite of Than Shwe and his son is married to the daughter of Vice Senior General Maung Aye, the junta's second top-ranking official.
Other officials apparently set to trade their military khakis for civilian garb include Minister of Forestry Brigadier General Thein Aung, Minister of Immigration and Population Major General Saw Lwin, Minister of Livestock Breeding and Fisheries Brigadier General Maung Maung Thein, Minister of Transport Major General Thein Swe, Minister of Agriculture and Irrigation Major-General Htay Oo and Minister of Communications, Posts and Telegraphs Brigadier General Thein Zaw. Also mentioned is Yangon mayor Brigadier General Aung Thein Lin.
Some of the departing ministers are believed to be building up financial war chests for the elections or securing preferential deals and concessions for their families' businesses. It's a sometimes predatory process that has increased competition for resources among the ministers and exerted pressure on the country's private business community.
Ministers and their associates have in particular targeted foreign investors, pressuring many of them to renegotiate their existing contracts and business arrangements. Officials have through the discretionary power of their ministries reviewed the documentation of various joint foreign-local ventures for legal loopholes to pressure companies into forfeiting assets, accepting new business partners or receiving lower profit percentages than originally agreed, according to people familiar with the situation.
One of the higher profile victims is Woodlands Travel, a tourism company founded in 1995 by U Win Aung and which lists company addresses both in Yangon and New Jersey in the United States. The company's website lists its investment in two boutique hotels, the Kandawgyi Lodge and Popa Mountain Resort, in line with the government's eco-tourism campaign.
Unstated on the company website, however, is the source of those investments' funding, though local businessmen note that several Singaporeans hold senior company positions. Speculation recently intensified around the Woodlands Travel when its two boutique hotels - among the country's finest upscale resorts - were purchased last November by Htoo Trading Co. The controversial company is headed by Tay Za, a businessman known for his close SPDC connections and who was individually targeted by the US government's new "smart" financial sanctions.
It's not clear whether Tay Za purchased the properties independently or as a nominee in league with junta officials or their family members, despite speculation that the Ministry of Forestry had earlier exerted pressure on the company. According to a source intimately familiar with the deal, Minister of Forestry Thein Aung had previously sought to have Woodlands Travel modify its concession terms to include another local company, which apparently offered little in terms of expertise or capital.
Company officials instead decided to sell the properties outright at below market value rather than face a protracted legal battle over being forced to take on the new business partner and retaining their original contractual rights. That, the source said, would have put the company up against "influential people" and made future business difficult.
Woodlands Travel had originally brokered its deal under the auspices of former intelligence chief and prime minister Khin Nyunt, who was ousted from power on corruption charges in October 2004 and is currently under house arrest. Thein Aung's ministry office declined an Asia Times Online request for a telephone interview to address the allegations.
Expansive family empire
Minister for Industry No 1 U Aung Thaung has come under similar criticism. The controversial minister was paraphrased in a recent media report saying that he would retire only after providing for a comfortable future for his children. Accounts from one well-placed source indicate the long-serving minister has followed up those words with actions.
In recent months, the source says several businesses and hotels in the popular Bagan Nyaung U tourist area have been approached by ministry officials to grant concessions and contracts to U Aung Thaung's family businesses, including the Aung Yee Phyo Co Ltd and IGE Co Ltd companies. Both companies are run by his sons, Nay Aung and Pyi Aung. Given the influence of ministers and ministries in Myanmar's political and economic systems, such approaches would be difficult to reject without fear of repercussions.
A senior advisor to both companies, contacted at their Yangon-based offices, told Asia Times Online that he had "never heard anything" about the allegations and didn't know if they were true. Initially involved in industrial equipment and supplies trading, U Aung Thaung's family businesses have recently expanded into the energy, information technology and tourism sectors, which the senior advisor acknowledged.
The company's bid to move into the tourism sector, currently in a lull but expected to accelerate after the 2010 elections, has been viewed by some in Yangon as an attempt to further diversify the family's business holdings before relinquishing his ministerial post. The ministry's head of office, U Myint Swe, said by telephone that he had "no comment" on whether the ministry was trying to wrest concessions from private businesses in the Bagan area. He said that the minister was away from his office and unavailable to speak by telephone.
There are several allegations of top government officials using their positions to ramp up personal business activities before the 2010 transition towards democracy. One recent Kachin News Group report suggested that the planned move towards civilian rule has served as catalyst for SPDC officials to cash in on their positions in the northern Kachin State, including through the recent establishment of road closures to tax passing motorists.
Corruption is so endemic in Myanmar, which consistently ranks among the global worst in international country graft ratings, that it's difficult to tie any given incident specifically to the 2010 elections. Yet if the reported ministerial changes come to fruition, the departure of some of the junta's longest-serving members will open up to a new generation of soldiers and regime loyalists some of the most lucrative ministerial positions in government.
Ministerial positions are normally given to flag officers and occasionally deputy ministers promoted to the ministerial level. Considering the personal profits that could be accrued in the portfolios reportedly set to be vacated, it is possible that incumbent ministers from less lucrative ministries, such as the Ministry of Culture or Ministry of Social Welfare, Relief and Resettlement, could be transferred laterally, as has happened in previous shake-ups.
Their current positions could in turn be filled with flag officers currently serving in operational positions within the Tatmadaw, as the Myanmar armed forces are known. Cabinet reshuffles are common inside the SPDC, an outgrowth of the regime's need to provide cushy advancement opportunities to officers who occupy critical field-grade positions, including command over areas fighting against ethnic insurgent groups.
Often the cabinet reorganizations are timed to ensure a number of brigadier positions open up for colonels graduating from the National Defense College. The frequent ministerial musical chairs among generals and ministers has the psychological effect of promoting loyalty while ensuring that nobody gets too comfortable in their position. Officers often feel a sense of relief and renewed loyalty to the top decision-makers if they still have a job when the music stops.
In private conversations, some senior SPDC officers suggest that the 2010 election date is not etched in stone. Knowing that the 76-year-old Than Shwe intends to hold onto supreme power for as long as possible, they anticipate the democratic transition could be postponed for any number of reasons, including, according to one officer, the simple top-down determination that "the country isn't ready". The prognostications of the junta leader's astrologer, E Thi, could also offer cosmic cause for delay, he suggests.
Until then, Myanmar's citizenry and businesses will likely come under increasing pressure from ministers and other officials preparing for either elections or life outside of public office. All in all, the mounting money grab augurs ill for the political change Than Shwe and his junta has promised democracy will hold.
Recent media reports indicate at least eight ministers and the mayor of the old capital of Yangon will resign their posts as a presage to Myanmar's general elections scheduled for 2010. The list is a veritable who's who of the ruling State Peace and Development Council's (SPDC) top lieutenants and signals the regime's intention to keep its members prominent in the transition towards an elected civilian-led administration.
Several of the outgoing ministers have served especially long tenures for Myanmar's cut-and-thrust politics and are expected to run for office at the upcoming polls under a military-supported political party. The regime has promoted the elections as part of its seven-step road map to democracy; opponents see the promised political transition as a sham to give a veneer of legitimacy to continued military rule. It's unclear where the departing ministers fit into that political future.
Minister of Construction Major General Saw Tun, for instance, has maintained control over the lucrative construction portfolio since 1995, predating the formation of the SPDC. While allegations of rampant corruption have tarnished the reputations of many Myanmar ministers and ministries, Saw Tun's name is usually not mentioned among them. According to a Myanmar businessman who knows the minister, Saw Tun often says that it is better to make a little bit of money over a long time than to make a lot of money quickly. Apart from that temperance, his longevity in the position can also be attributed to his hometown ties to junta leader Senior General Than Shwe, who likewise hails from the Kyaukse township of the country's central Mandalay division.
Another long-serving minister is U Aung Thaung, who has served as Minister of Industry No 1 since the SPDC's formation in 1997. According to businessmen who know both ministers, U Aung Thaung is not as inhibited as Saw Tun. Many Myanmar ministers who have bid to maximize short-term profits from their positions have had their careers ended prematurely on corruption charges. Some say U Aung Thaung has survived in his post because of his close connections to the senior leadership: He is a known favorite of Than Shwe and his son is married to the daughter of Vice Senior General Maung Aye, the junta's second top-ranking official.
Other officials apparently set to trade their military khakis for civilian garb include Minister of Forestry Brigadier General Thein Aung, Minister of Immigration and Population Major General Saw Lwin, Minister of Livestock Breeding and Fisheries Brigadier General Maung Maung Thein, Minister of Transport Major General Thein Swe, Minister of Agriculture and Irrigation Major-General Htay Oo and Minister of Communications, Posts and Telegraphs Brigadier General Thein Zaw. Also mentioned is Yangon mayor Brigadier General Aung Thein Lin.
Some of the departing ministers are believed to be building up financial war chests for the elections or securing preferential deals and concessions for their families' businesses. It's a sometimes predatory process that has increased competition for resources among the ministers and exerted pressure on the country's private business community.
Ministers and their associates have in particular targeted foreign investors, pressuring many of them to renegotiate their existing contracts and business arrangements. Officials have through the discretionary power of their ministries reviewed the documentation of various joint foreign-local ventures for legal loopholes to pressure companies into forfeiting assets, accepting new business partners or receiving lower profit percentages than originally agreed, according to people familiar with the situation.
One of the higher profile victims is Woodlands Travel, a tourism company founded in 1995 by U Win Aung and which lists company addresses both in Yangon and New Jersey in the United States. The company's website lists its investment in two boutique hotels, the Kandawgyi Lodge and Popa Mountain Resort, in line with the government's eco-tourism campaign.
Unstated on the company website, however, is the source of those investments' funding, though local businessmen note that several Singaporeans hold senior company positions. Speculation recently intensified around the Woodlands Travel when its two boutique hotels - among the country's finest upscale resorts - were purchased last November by Htoo Trading Co. The controversial company is headed by Tay Za, a businessman known for his close SPDC connections and who was individually targeted by the US government's new "smart" financial sanctions.
It's not clear whether Tay Za purchased the properties independently or as a nominee in league with junta officials or their family members, despite speculation that the Ministry of Forestry had earlier exerted pressure on the company. According to a source intimately familiar with the deal, Minister of Forestry Thein Aung had previously sought to have Woodlands Travel modify its concession terms to include another local company, which apparently offered little in terms of expertise or capital.
Company officials instead decided to sell the properties outright at below market value rather than face a protracted legal battle over being forced to take on the new business partner and retaining their original contractual rights. That, the source said, would have put the company up against "influential people" and made future business difficult.
Woodlands Travel had originally brokered its deal under the auspices of former intelligence chief and prime minister Khin Nyunt, who was ousted from power on corruption charges in October 2004 and is currently under house arrest. Thein Aung's ministry office declined an Asia Times Online request for a telephone interview to address the allegations.
Expansive family empire
Minister for Industry No 1 U Aung Thaung has come under similar criticism. The controversial minister was paraphrased in a recent media report saying that he would retire only after providing for a comfortable future for his children. Accounts from one well-placed source indicate the long-serving minister has followed up those words with actions.
In recent months, the source says several businesses and hotels in the popular Bagan Nyaung U tourist area have been approached by ministry officials to grant concessions and contracts to U Aung Thaung's family businesses, including the Aung Yee Phyo Co Ltd and IGE Co Ltd companies. Both companies are run by his sons, Nay Aung and Pyi Aung. Given the influence of ministers and ministries in Myanmar's political and economic systems, such approaches would be difficult to reject without fear of repercussions.
A senior advisor to both companies, contacted at their Yangon-based offices, told Asia Times Online that he had "never heard anything" about the allegations and didn't know if they were true. Initially involved in industrial equipment and supplies trading, U Aung Thaung's family businesses have recently expanded into the energy, information technology and tourism sectors, which the senior advisor acknowledged.
The company's bid to move into the tourism sector, currently in a lull but expected to accelerate after the 2010 elections, has been viewed by some in Yangon as an attempt to further diversify the family's business holdings before relinquishing his ministerial post. The ministry's head of office, U Myint Swe, said by telephone that he had "no comment" on whether the ministry was trying to wrest concessions from private businesses in the Bagan area. He said that the minister was away from his office and unavailable to speak by telephone.
There are several allegations of top government officials using their positions to ramp up personal business activities before the 2010 transition towards democracy. One recent Kachin News Group report suggested that the planned move towards civilian rule has served as catalyst for SPDC officials to cash in on their positions in the northern Kachin State, including through the recent establishment of road closures to tax passing motorists.
Corruption is so endemic in Myanmar, which consistently ranks among the global worst in international country graft ratings, that it's difficult to tie any given incident specifically to the 2010 elections. Yet if the reported ministerial changes come to fruition, the departure of some of the junta's longest-serving members will open up to a new generation of soldiers and regime loyalists some of the most lucrative ministerial positions in government.
Ministerial positions are normally given to flag officers and occasionally deputy ministers promoted to the ministerial level. Considering the personal profits that could be accrued in the portfolios reportedly set to be vacated, it is possible that incumbent ministers from less lucrative ministries, such as the Ministry of Culture or Ministry of Social Welfare, Relief and Resettlement, could be transferred laterally, as has happened in previous shake-ups.
Their current positions could in turn be filled with flag officers currently serving in operational positions within the Tatmadaw, as the Myanmar armed forces are known. Cabinet reshuffles are common inside the SPDC, an outgrowth of the regime's need to provide cushy advancement opportunities to officers who occupy critical field-grade positions, including command over areas fighting against ethnic insurgent groups.
Often the cabinet reorganizations are timed to ensure a number of brigadier positions open up for colonels graduating from the National Defense College. The frequent ministerial musical chairs among generals and ministers has the psychological effect of promoting loyalty while ensuring that nobody gets too comfortable in their position. Officers often feel a sense of relief and renewed loyalty to the top decision-makers if they still have a job when the music stops.
In private conversations, some senior SPDC officers suggest that the 2010 election date is not etched in stone. Knowing that the 76-year-old Than Shwe intends to hold onto supreme power for as long as possible, they anticipate the democratic transition could be postponed for any number of reasons, including, according to one officer, the simple top-down determination that "the country isn't ready". The prognostications of the junta leader's astrologer, E Thi, could also offer cosmic cause for delay, he suggests.
Until then, Myanmar's citizenry and businesses will likely come under increasing pressure from ministers and other officials preparing for either elections or life outside of public office. All in all, the mounting money grab augurs ill for the political change Than Shwe and his junta has promised democracy will hold.
Exclusive: Take the money and run in Myanmar
By Seema Shaikh
Recent media reports indicate at least eight ministers and the mayor of the old capital of Yangon will resign their posts as a presage to Myanmar's general elections scheduled for 2010. The list is a veritable who's who of the ruling State Peace and Development Council's (SPDC) top lieutenants and signals the regime's intention to keep its members prominent in the transition towards an elected civilian-led administration.
Several of the outgoing ministers have served especially long tenures for Myanmar's cut-and-thrust politics and are expected to run for office at the upcoming polls under a military-supported political party. The regime has promoted the elections as part of its seven-step road map to democracy; opponents see the promised political transition as a sham to give a veneer of legitimacy to continued military rule. It's unclear where the departing ministers fit into that political future.
Minister of Construction Major General Saw Tun, for instance, has maintained control over the lucrative construction portfolio since 1995, predating the formation of the SPDC. While allegations of rampant corruption have tarnished the reputations of many Myanmar ministers and ministries, Saw Tun's name is usually not mentioned among them. According to a Myanmar businessman who knows the minister, Saw Tun often says that it is better to make a little bit of money over a long time than to make a lot of money quickly. Apart from that temperance, his longevity in the position can also be attributed to his hometown ties to junta leader Senior General Than Shwe, who likewise hails from the Kyaukse township of the country's central Mandalay division.
Another long-serving minister is U Aung Thaung, who has served as Minister of Industry No 1 since the SPDC's formation in 1997. According to businessmen who know both ministers, U Aung Thaung is not as inhibited as Saw Tun. Many Myanmar ministers who have bid to maximize short-term profits from their positions have had their careers ended prematurely on corruption charges. Some say U Aung Thaung has survived in his post because of his close connections to the senior leadership: He is a known favorite of Than Shwe and his son is married to the daughter of Vice Senior General Maung Aye, the junta's second top-ranking official.
Other officials apparently set to trade their military khakis for civilian garb include Minister of Forestry Brigadier General Thein Aung, Minister of Immigration and Population Major General Saw Lwin, Minister of Livestock Breeding and Fisheries Brigadier General Maung Maung Thein, Minister of Transport Major General Thein Swe, Minister of Agriculture and Irrigation Major-General Htay Oo and Minister of Communications, Posts and Telegraphs Brigadier General Thein Zaw. Also mentioned is Yangon mayor Brigadier General Aung Thein Lin.
Some of the departing ministers are believed to be building up financial war chests for the elections or securing preferential deals and concessions for their families' businesses. It's a sometimes predatory process that has increased competition for resources among the ministers and exerted pressure on the country's private business community.
Ministers and their associates have in particular targeted foreign investors, pressuring many of them to renegotiate their existing contracts and business arrangements. Officials have through the discretionary power of their ministries reviewed the documentation of various joint foreign-local ventures for legal loopholes to pressure companies into forfeiting assets, accepting new business partners or receiving lower profit percentages than originally agreed, according to people familiar with the situation.
One of the higher profile victims is Woodlands Travel, a tourism company founded in 1995 by U Win Aung and which lists company addresses both in Yangon and New Jersey in the United States. The company's website lists its investment in two boutique hotels, the Kandawgyi Lodge and Popa Mountain Resort, in line with the government's eco-tourism campaign.
Unstated on the company website, however, is the source of those investments' funding, though local businessmen note that several Singaporeans hold senior company positions. Speculation recently intensified around the Woodlands Travel when its two boutique hotels - among the country's finest upscale resorts - were purchased last November by Htoo Trading Co. The controversial company is headed by Tay Za, a businessman known for his close SPDC connections and who was individually targeted by the US government's new "smart" financial sanctions.
It's not clear whether Tay Za purchased the properties independently or as a nominee in league with junta officials or their family members, despite speculation that the Ministry of Forestry had earlier exerted pressure on the company. According to a source intimately familiar with the deal, Minister of Forestry Thein Aung had previously sought to have Woodlands Travel modify its concession terms to include another local company, which apparently offered little in terms of expertise or capital.
Company officials instead decided to sell the properties outright at below market value rather than face a protracted legal battle over being forced to take on the new business partner and retaining their original contractual rights. That, the source said, would have put the company up against "influential people" and made future business difficult.
Woodlands Travel had originally brokered its deal under the auspices of former intelligence chief and prime minister Khin Nyunt, who was ousted from power on corruption charges in October 2004 and is currently under house arrest. Thein Aung's ministry office declined an Asia Times Online request for a telephone interview to address the allegations.
Expansive family empire
Minister for Industry No 1 U Aung Thaung has come under similar criticism. The controversial minister was paraphrased in a recent media report saying that he would retire only after providing for a comfortable future for his children. Accounts from one well-placed source indicate the long-serving minister has followed up those words with actions.
In recent months, the source says several businesses and hotels in the popular Bagan Nyaung U tourist area have been approached by ministry officials to grant concessions and contracts to U Aung Thaung's family businesses, including the Aung Yee Phyo Co Ltd and IGE Co Ltd companies. Both companies are run by his sons, Nay Aung and Pyi Aung. Given the influence of ministers and ministries in Myanmar's political and economic systems, such approaches would be difficult to reject without fear of repercussions.
A senior advisor to both companies, contacted at their Yangon-based offices, told Asia Times Online that he had "never heard anything" about the allegations and didn't know if they were true. Initially involved in industrial equipment and supplies trading, U Aung Thaung's family businesses have recently expanded into the energy, information technology and tourism sectors, which the senior advisor acknowledged.
The company's bid to move into the tourism sector, currently in a lull but expected to accelerate after the 2010 elections, has been viewed by some in Yangon as an attempt to further diversify the family's business holdings before relinquishing his ministerial post. The ministry's head of office, U Myint Swe, said by telephone that he had "no comment" on whether the ministry was trying to wrest concessions from private businesses in the Bagan area. He said that the minister was away from his office and unavailable to speak by telephone.
There are several allegations of top government officials using their positions to ramp up personal business activities before the 2010 transition towards democracy. One recent Kachin News Group report suggested that the planned move towards civilian rule has served as catalyst for SPDC officials to cash in on their positions in the northern Kachin State, including through the recent establishment of road closures to tax passing motorists.
Corruption is so endemic in Myanmar, which consistently ranks among the global worst in international country graft ratings, that it's difficult to tie any given incident specifically to the 2010 elections. Yet if the reported ministerial changes come to fruition, the departure of some of the junta's longest-serving members will open up to a new generation of soldiers and regime loyalists some of the most lucrative ministerial positions in government.
Ministerial positions are normally given to flag officers and occasionally deputy ministers promoted to the ministerial level. Considering the personal profits that could be accrued in the portfolios reportedly set to be vacated, it is possible that incumbent ministers from less lucrative ministries, such as the Ministry of Culture or Ministry of Social Welfare, Relief and Resettlement, could be transferred laterally, as has happened in previous shake-ups.
Their current positions could in turn be filled with flag officers currently serving in operational positions within the Tatmadaw, as the Myanmar armed forces are known. Cabinet reshuffles are common inside the SPDC, an outgrowth of the regime's need to provide cushy advancement opportunities to officers who occupy critical field-grade positions, including command over areas fighting against ethnic insurgent groups.
Often the cabinet reorganizations are timed to ensure a number of brigadier positions open up for colonels graduating from the National Defense College. The frequent ministerial musical chairs among generals and ministers has the psychological effect of promoting loyalty while ensuring that nobody gets too comfortable in their position. Officers often feel a sense of relief and renewed loyalty to the top decision-makers if they still have a job when the music stops.
In private conversations, some senior SPDC officers suggest that the 2010 election date is not etched in stone. Knowing that the 76-year-old Than Shwe intends to hold onto supreme power for as long as possible, they anticipate the democratic transition could be postponed for any number of reasons, including, according to one officer, the simple top-down determination that "the country isn't ready". The prognostications of the junta leader's astrologer, E Thi, could also offer cosmic cause for delay, he suggests.
Until then, Myanmar's citizenry and businesses will likely come under increasing pressure from ministers and other officials preparing for either elections or life outside of public office. All in all, the mounting money grab augurs ill for the political change Than Shwe and his junta has promised democracy will hold.
Recent media reports indicate at least eight ministers and the mayor of the old capital of Yangon will resign their posts as a presage to Myanmar's general elections scheduled for 2010. The list is a veritable who's who of the ruling State Peace and Development Council's (SPDC) top lieutenants and signals the regime's intention to keep its members prominent in the transition towards an elected civilian-led administration.
Several of the outgoing ministers have served especially long tenures for Myanmar's cut-and-thrust politics and are expected to run for office at the upcoming polls under a military-supported political party. The regime has promoted the elections as part of its seven-step road map to democracy; opponents see the promised political transition as a sham to give a veneer of legitimacy to continued military rule. It's unclear where the departing ministers fit into that political future.
Minister of Construction Major General Saw Tun, for instance, has maintained control over the lucrative construction portfolio since 1995, predating the formation of the SPDC. While allegations of rampant corruption have tarnished the reputations of many Myanmar ministers and ministries, Saw Tun's name is usually not mentioned among them. According to a Myanmar businessman who knows the minister, Saw Tun often says that it is better to make a little bit of money over a long time than to make a lot of money quickly. Apart from that temperance, his longevity in the position can also be attributed to his hometown ties to junta leader Senior General Than Shwe, who likewise hails from the Kyaukse township of the country's central Mandalay division.
Another long-serving minister is U Aung Thaung, who has served as Minister of Industry No 1 since the SPDC's formation in 1997. According to businessmen who know both ministers, U Aung Thaung is not as inhibited as Saw Tun. Many Myanmar ministers who have bid to maximize short-term profits from their positions have had their careers ended prematurely on corruption charges. Some say U Aung Thaung has survived in his post because of his close connections to the senior leadership: He is a known favorite of Than Shwe and his son is married to the daughter of Vice Senior General Maung Aye, the junta's second top-ranking official.
Other officials apparently set to trade their military khakis for civilian garb include Minister of Forestry Brigadier General Thein Aung, Minister of Immigration and Population Major General Saw Lwin, Minister of Livestock Breeding and Fisheries Brigadier General Maung Maung Thein, Minister of Transport Major General Thein Swe, Minister of Agriculture and Irrigation Major-General Htay Oo and Minister of Communications, Posts and Telegraphs Brigadier General Thein Zaw. Also mentioned is Yangon mayor Brigadier General Aung Thein Lin.
Some of the departing ministers are believed to be building up financial war chests for the elections or securing preferential deals and concessions for their families' businesses. It's a sometimes predatory process that has increased competition for resources among the ministers and exerted pressure on the country's private business community.
Ministers and their associates have in particular targeted foreign investors, pressuring many of them to renegotiate their existing contracts and business arrangements. Officials have through the discretionary power of their ministries reviewed the documentation of various joint foreign-local ventures for legal loopholes to pressure companies into forfeiting assets, accepting new business partners or receiving lower profit percentages than originally agreed, according to people familiar with the situation.
One of the higher profile victims is Woodlands Travel, a tourism company founded in 1995 by U Win Aung and which lists company addresses both in Yangon and New Jersey in the United States. The company's website lists its investment in two boutique hotels, the Kandawgyi Lodge and Popa Mountain Resort, in line with the government's eco-tourism campaign.
Unstated on the company website, however, is the source of those investments' funding, though local businessmen note that several Singaporeans hold senior company positions. Speculation recently intensified around the Woodlands Travel when its two boutique hotels - among the country's finest upscale resorts - were purchased last November by Htoo Trading Co. The controversial company is headed by Tay Za, a businessman known for his close SPDC connections and who was individually targeted by the US government's new "smart" financial sanctions.
It's not clear whether Tay Za purchased the properties independently or as a nominee in league with junta officials or their family members, despite speculation that the Ministry of Forestry had earlier exerted pressure on the company. According to a source intimately familiar with the deal, Minister of Forestry Thein Aung had previously sought to have Woodlands Travel modify its concession terms to include another local company, which apparently offered little in terms of expertise or capital.
Company officials instead decided to sell the properties outright at below market value rather than face a protracted legal battle over being forced to take on the new business partner and retaining their original contractual rights. That, the source said, would have put the company up against "influential people" and made future business difficult.
Woodlands Travel had originally brokered its deal under the auspices of former intelligence chief and prime minister Khin Nyunt, who was ousted from power on corruption charges in October 2004 and is currently under house arrest. Thein Aung's ministry office declined an Asia Times Online request for a telephone interview to address the allegations.
Expansive family empire
Minister for Industry No 1 U Aung Thaung has come under similar criticism. The controversial minister was paraphrased in a recent media report saying that he would retire only after providing for a comfortable future for his children. Accounts from one well-placed source indicate the long-serving minister has followed up those words with actions.
In recent months, the source says several businesses and hotels in the popular Bagan Nyaung U tourist area have been approached by ministry officials to grant concessions and contracts to U Aung Thaung's family businesses, including the Aung Yee Phyo Co Ltd and IGE Co Ltd companies. Both companies are run by his sons, Nay Aung and Pyi Aung. Given the influence of ministers and ministries in Myanmar's political and economic systems, such approaches would be difficult to reject without fear of repercussions.
A senior advisor to both companies, contacted at their Yangon-based offices, told Asia Times Online that he had "never heard anything" about the allegations and didn't know if they were true. Initially involved in industrial equipment and supplies trading, U Aung Thaung's family businesses have recently expanded into the energy, information technology and tourism sectors, which the senior advisor acknowledged.
The company's bid to move into the tourism sector, currently in a lull but expected to accelerate after the 2010 elections, has been viewed by some in Yangon as an attempt to further diversify the family's business holdings before relinquishing his ministerial post. The ministry's head of office, U Myint Swe, said by telephone that he had "no comment" on whether the ministry was trying to wrest concessions from private businesses in the Bagan area. He said that the minister was away from his office and unavailable to speak by telephone.
There are several allegations of top government officials using their positions to ramp up personal business activities before the 2010 transition towards democracy. One recent Kachin News Group report suggested that the planned move towards civilian rule has served as catalyst for SPDC officials to cash in on their positions in the northern Kachin State, including through the recent establishment of road closures to tax passing motorists.
Corruption is so endemic in Myanmar, which consistently ranks among the global worst in international country graft ratings, that it's difficult to tie any given incident specifically to the 2010 elections. Yet if the reported ministerial changes come to fruition, the departure of some of the junta's longest-serving members will open up to a new generation of soldiers and regime loyalists some of the most lucrative ministerial positions in government.
Ministerial positions are normally given to flag officers and occasionally deputy ministers promoted to the ministerial level. Considering the personal profits that could be accrued in the portfolios reportedly set to be vacated, it is possible that incumbent ministers from less lucrative ministries, such as the Ministry of Culture or Ministry of Social Welfare, Relief and Resettlement, could be transferred laterally, as has happened in previous shake-ups.
Their current positions could in turn be filled with flag officers currently serving in operational positions within the Tatmadaw, as the Myanmar armed forces are known. Cabinet reshuffles are common inside the SPDC, an outgrowth of the regime's need to provide cushy advancement opportunities to officers who occupy critical field-grade positions, including command over areas fighting against ethnic insurgent groups.
Often the cabinet reorganizations are timed to ensure a number of brigadier positions open up for colonels graduating from the National Defense College. The frequent ministerial musical chairs among generals and ministers has the psychological effect of promoting loyalty while ensuring that nobody gets too comfortable in their position. Officers often feel a sense of relief and renewed loyalty to the top decision-makers if they still have a job when the music stops.
In private conversations, some senior SPDC officers suggest that the 2010 election date is not etched in stone. Knowing that the 76-year-old Than Shwe intends to hold onto supreme power for as long as possible, they anticipate the democratic transition could be postponed for any number of reasons, including, according to one officer, the simple top-down determination that "the country isn't ready". The prognostications of the junta leader's astrologer, E Thi, could also offer cosmic cause for delay, he suggests.
Until then, Myanmar's citizenry and businesses will likely come under increasing pressure from ministers and other officials preparing for either elections or life outside of public office. All in all, the mounting money grab augurs ill for the political change Than Shwe and his junta has promised democracy will hold.
Sunday, March 03, 2013
Indian Aviation Scenario - Putting The Pieces Together
The potential is enormous. The market already has some 150 million travelers passing through its airports, and if Indians begin to travel with the same frequency as Americans, then the years ahead could see the market boom beyond the two billion mark. This will not happen quickly and is dependent on an expected increase in per capita GDP. Even so, by 2020 traffic at Indian airports is expected to reach 450 million, making it the third-largest aviation market in the world. Some 90 million passengers per annum (mppa) are projected to pass through Delhi alone.
At the same time, a multifaceted crisis has taken hold of the industry that threatens to nip any progress in the bud. Air India and Kingfisher Airlines, for example, are in critical condition. Airline losses approached $2 billion in the year ending March 2012—on the back of a $3.5 billion loss over the previous three years. The Centre for Asia-Pacific Aviation (CAPA) believes Indian airlines’ debt burden will soon reach $20 billion. Indian banks and financial institutions are exposed to about half of this amount.
Indian domestic traffic fell 1.1% in July compared with a year ago. After expanding at 20%-plus rates through 2010 and early 2011, the Indian market stopped growing at the end of 2011. July capacity rose 2.1%, ropping the load factor from 71.8% last year to 69.6%.
At least the crisis has pushed aviation to the forefront of national thinking. But current aviation policy has a fragmentary approach that is not connecting the dots in the value chain. Airports and fuel are getting more expensive even as airlines struggle.
A coordinated “India Inc.” approach that addresses the central challenges of infrastructure, costs, and taxes is urgently required.
A different picture
In terms of airport infrastructure, India has got a great deal right in previous years. The Public-Private Partnerships (PPP) model has delivered world-class facilities at Hyderabad, Cochin and Bangalore. And the benefits of these developments are clear to see. Bangalore’s international services have more than doubled over the past decade, for example, enabling India’s “Silicon Valley” to earn contracts throughout the world.
“In India, the PPP model for developing greenfield airports as well as upgrading existing airports has provided the opportunity to develop integrated airport cities on the lines of Dubai and Hong Kong,” says Promananda Elangbam, Manager of Marketing at Bangalore International Airport Ltd. “A holistic approach to airport infrastructure and its management is the need of the hour. Done in a transparent and effective manner, this can help boost international trade and tourism considerably.”
But at Mumbai a different picture emerges. A delayed new terminal that will push capacity to 40 mppa should finally open for business at the end of 2013. Traffic growth is such, however, that the airport will become congested again by 2017. And there is no possibility of significant further expansion at this facility.
Mumbai is India’s financial capital and an important part of the country’s economic wellbeing. A jam-packed airport will undoubtedly curtail the many benefits of healthy air connectivity.
Prime Minister Manmohan Singh has recognized the urgency of the situation and backed the Navi Mumbai airport project that dates back to the mid-90s. Even fast-tracking the development may not be enough, though. Projections suggest there will be nearly 275 million passengers in the Indian system by 2017, the majority of whom filter through Mumbai and Delhi.
A dire situation
The lack of space isn’t the only concern at Mumbai. It has a similar concession model to Delhi—and the northern hub has been making the headlines for all the wrong reasons.
The Airports Economic Regulatory Authority of India (AERA) approved a 346% increase in charges at Delhi Airport effective from May 2012. The increase will add more than $400 million annually in operating costs for airlines.
“An increase of this magnitude will impact travel demand 5% to 7%,” says Tony Tyler, IATA Director General and CEO. “That’s bad for airlines, for passengers, for Delhi International Airport Private Limited (DIAL), for the Delhi hub, for Delhi as a city, and indeed for India and its economy as a whole. We need to focus on how to make Delhi a more competitive airport, a successful hub and a driver of economic growth.”
DIAL pays 46% of top-line revenue to the Airports Authority of India (AAI) as a concession fee. Much of this is used to subsidize other public sector airports, which is not only in contravention of international standards but also distorts competition.
“I urge the government to initiate deliberations on utilizing the 46% concession fee to offset the increase in aeronautical charges and the cost for passengers,” says Tyler. “This could be the basis for a way forward that protects the interests of DIAL, its airline customers, the fare-paying public, and the economy. And it is important that we find a workable solution soon to avoid Mumbai, with a similar concession structure, falling into the same dire situation.”
Any discussions won’t come a moment too soon. The hike in prices has come about through aggressive concessions fees and the over-recovery of a $10 billion investment in airports over the past decade. The next 10 years are expected to see airport projects totaling $20 billion—which may mean yet more record rises in airports charges unless concession fees and over-recovery are tackled. Already Chennai has proposed a 118% increase to fund its modernization project, while at Kolkata, the Airports Authority of India has asked for a 242% increase in for 2012/2013 and a 35% increase the following period.
“There has been huge improvement in infrastructure with newer terminals like Terminal 3 in New Dehli, the Rajiv Gandhi International Airport at Hyderabad, Bengaluru International Airport and others across the country,” says Naresh Goyal, Chairman, Jet Airways. “However, the imposed levies and charges have resulted in an increase in operational costs.”
Tax increase
India is becoming increasingly expensive. Taxes are everywhere in India’s aviation sector, a clear indication that the government views the sector as a revenue source rather than a revenue generator. Including taxes on domestic fuel, India’s aviation sector contributes in the region of $2.15 billion (INR120 billion) in taxes annually according to an Oxford Economics India Benefits of Aviation study.
In contravention of International Civil Aviation Organization (ICAO) policy, India’s Ministry of Finance has put a service tax on tickets as well as landing and navigation charges. Fuel taxes—an excise duty of 8.2% and domestic charges that can add up to 30% to the bill—mean fuel is 45% of Indian carriers’ operating costs. This compares unfavorably with the global average of 33%.
“For the industry to recover from its current travails and achieve long-term sustainable growth, there is a need to address problems created by high input costs,” says Goyal.
It is little wonder that the sub-continent’s airlines are struggling. The difficulties being faced by Air India and Kingfisher Airlines in particular have been well documented. Aside from the structural issues, industry observers have cited Air India’s artificially low fares as the main factor behind the struggles of Indian carriers. It is reported that the average Indian ticket price of $95 is about $11 shy of a break-even figure. A weak rupee isn’t helping and has caused further cost increases in dollar-denominated expenses.
The contraction by Air India and Kingfisher Airlines does have a slight upside. CAPA reports yield increases for Indian airlines in the region of 10% in the fourth quarter of the 2011/2012 financial year, improving toward 15% in the first quarter of 2012/2013.
And capacity management will remain tight. Approximately 24 aircraft are due to be delivered in the next 12 months, eight of which will be Bombardier Q400s. This will lead to an increase in domestic capacity of 7% to 8%, only half of the increase seen in the previous financial year.
India’s carriers are not part of the global alliance scene and there has been little enthusiasm to revamp a number of bilateral agreements. Emirates—one of the few carriers looking to increase its presence on the sub-continent—has exhausted its entitlements, for example.
The government may be loosening the shackles slightly. In March 2012, then Finance Minister Pranab Mukherjee said the government would allow foreign airlines to take up to a 49% investment in Indian carriers. Closer ties with international airlines could make a crucial difference, although there has been little enthusiasm to date.
For many, though, it is putting the cart before the horse, as investment won’t be forthcoming while the fundamental aviation framework is so weak. “India is an attractive destination for us to serve, but I am not sure if India will be an attractive destination for us to invest in,” Willie Walsh, Chief Executive of International Airlines Group has noted.
Other challenges loom on the horizon. The policy on ground handling needs to be resolved. Airlines have argued against the government proposal to limit airports to a maximum of three competing handlers and no final decision has yet been made. It is also expected that much-needed investment in air traffic management could translate into higher fees.
It is estimated that Indian aviation will need about 350,000 new employees to facilitate growth in the next decade. Shortfalls in skilled labor would see staff salaries rise above inflation, adding further cost pressure. Robust training programs will be the key to a sustainable future, especially considering that India will probably continue to provide a significant workforce for Gulf carriers.
Numbers in the wings
If India can resolve the crisis, the economic and social benefits that derive from improved competitiveness and air connectivity would be enormous. Already, the aviation industry supports close to 0.5% of Indian GDP and some 1.7 million high-productivity jobs. The annual value added by each employee in air transport services in India is approximately 10 times higher than the Indian average.
Tourism is an obvious area of improvement. The Indian Tourism Ministry is targeting 10 million tourists by 2017, nearly double the 5.7 million arrivals expected in 2012. Foreign visitors—around 89% of which arrive by air—contribute $9.8 billion (INR548 billion) every year. Stronger air services would make a notable difference, not only to the tourism sector, but also to the bottom line of the Indian economy.
Indian exports could also gain substantially from a more competitive and cost-efficient air transport sector. The Commerce Ministry wants to double India’s exports to $500 billion by 2013-14 compared with the 2010-11 level. The Indian government must utilize the determination it has shown in fighting the European Emissions Trading Scheme to put its aviation sector back on track.
“The world is focused on Indian aviation—from manufacturers, tourism boards, airlines, global businesses to individual travelers, shippers and businessmen,” notes Tyler. “If we can find common purpose among all stakeholders in Indian aviation, a bright future is at hand. The benefits of such an effort will be shared across the entire economy.”
The optimism is echoed by Jet Airways’ Goyal. “In an emerging economy like India where the need for connectivity is critical to facilitate the growth of trade and travel, one can only be optimistic about the future.”
Action plan for India
A Knowledge Paper on India: The Emerging Aviation Hub by the Federation of Indian Chambers of Commerce and Industry in collaboration with KPMG released in March 2012 suggested the following eight-point action plan for Indian aviation.
- Ensure collaboration between the Ministry of Civil Aviation, other related ministries, regulators, and the industry
- Promote other sectors that can both support and benefit the aviation sector
- Reduce fuel sales tax. The long-term benefits in terms of higher economic activity and employment generation would more than compensate for the notional loss of tax revenue in the short run
- Create an Essential Air Services Fund (EASF) to support air connectivity to second and third-tier airports. Greater private sector investment in airports should also be encouraged
- Implement recent policy decisions such as the 49% Foreign Direct Investment limit, and establish safeguards to prevent excessive and predatory ticket pricing
- Establish an Air Cargo Promotion Board (ACPB) to address the significant challenges in the air cargo sector and make India an air cargo hub for the region
- Promote the domestic Maintenance, Repair and Overhaul industry by removing the anomalous tax structure and providing a “deemed export” status to help prevent business moving abroad
- Establish a world-class National Aviation University and promote private sector investments in training academies to produce highly-skilled human resources
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