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Tourism Finance Corporation of India
Limited
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Tourism Sector
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Tourism industry
Tourism in India is among the largest in the services industry and
industry guesstimates project this to increase to 1 in every 9.6 jobs by
2020.
Though the country is ranked 41st in terms of inbound tourist arrivals,
it is 16th in total tourism receipts as per the UNWTO.
The foreign tourist arrivals were 7.70 million during 2014 as compared
to 6.97 million during previous year, recording a growth of 10.5%.
The Foreign Exchange Earning(FEE) were Rs.120083cr as compared
to Rs.107671 crore during 2013,registering a growth of 11.5%.
According to the United Nations World Tourism Organization
(UNWTO) forecast, the travel and tourism industry in India is
expected to grow by 8% per annum between 2008-2016; Foreign
exchange earnings by 14% during the same period.
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Tourism industry
Upcoming sectors such as cruise and golf tourism present a
potential for development. Each year 150 ships pass India; this
certainly spells well for opportunities such as cruises.
India's medical tourism sector is expected to experience an
annual growth rate of 30%, estimated to grow to about $2 billion
by this year.
Indian Territory covers 75 per cent of the total Himalayan range,
4000 square km of the Sundarbans, 0.2 million square km of
deserts and 1000 caves. Yet India ranks at about 110th in
adventure tourism at a global level.
India possesses internationally revered and must see heritage
sites but ranks 65th in the world rankings for heritage tourism;
with all this, the country’s potential to tap visitors is immense.
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Initiatives by Government
Committing safety and building on the ‘Swatch Bharat’ initiative;
Rewriting tourism policies, Building Tourism circuits, Tourism enclaves
and townships, showcasing new destinations and diversified tourism
will certainly prove to boost the potential of the sector in India.
With the new government starting to drive reforms such as visa on
arrival schemes, India is hoping to double the number of tourists
visiting the country to 12 million over the next 2-3 years. This is
expected to bring the country among the top 10 recipients of tourist
earnings.
More than half of the Ministry of Tourism’s Plan budget is channelized
for funding the development of destinations, circuits, mega projects
as well as rural tourism infrastructure projects.
There is a renewed focus on skill development in the travel and
tourism sector – 21 government-run hotel management and catering
technology institutes and 14 food craft institutes have been
established to impart specialized training in hoteliering and catering.
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TFCI - VALUES
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TFCI – Highlights - 2014-15
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Financial assistance to following sectors:
Tourism Sector Tourism Infrastructure Sector
Hotels, Resorts, Motels, Conventional & Non-conventional
Wellness Spa, etc. power projects, Power distribution
networks
Entertainment centres,
Amusement parks & Water Roads, Airports, Ports, Rail Infra
parks related to tourism
Multiplexes, Shopping Centres, Hospitals, School, Colleges,
Family Entertainment Centres, Stadium
Clubs
Special economic zones, Industrial
Convention Centres estates, Warehouses
Ropeways Media, Entertainment & telecom
Travel & Transport
TFCI First of its kind to partner in the growth
of tourism industry
First Dedicated Institution to Cater to the needs of Tourism Industry
First Institution to Fund Innovative Tourism Projects such as
Luxury Trains
Theme parks
Health SPAs
Dolphinarium
Spice Village, etc.
First Institution to study the Carrying Capacity of a National Park
First Institution to carry out a Study on Hotel Accommodation needs of India
way back in 1990’s
First Institution to organise a National Seminar on Hotel Project Management
First Institution to carry out a study of Safety benchmarks of Hotel Industry
Apart from many First’s every third room in the approved category is Funded
by TFCI
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Types of financial assistance
Corporate Rupee
Loans Loans
Working
Bridge Subscription Capital
Loans to Equity Finance
Guarantee
Takeover/
of
Promoter
Deferred
Financing
Payments
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State –wise Number of projects assisted
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Sector-wise cumulative assistance
sanctioned by TFCI upto 31.3.2015
Segments No. of Amount Sanctioned Percentage
Projects (Rs. in Crore)
A. TOURISM
(i)Hotels
5 Star Hotels 148 2453.38 32.87%
4 Star Hotels 63 770.28 10.32%
3 Star Hotels 336 2083.29 27.91%
2 star, Heritage & Others 58 204.64 2.74%
Sub-Total 605 5511.59 73.84%
(ii)Amusement/Water Park/ 41 330.50 4.43%
Shopping Complex-cum-
entertainment centre/ multiplex
(iii)Restaurants/Food Court 25 99.23 1.33%
(iv)Other Tourism Projects* 58 620.04 8.30%
Total Tourism 729 6561.36 87.90%
B. Infrastructure:
Infrastructure projects 7 174.70 2.34%
C. Others:
Other Sectors 22 728.86 9.76%
Grand Total 758 7464.92 100.00%
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Financial Highlights for past five years
(Rs. in crore)
2010-11 2011-12 2012-13 2013-14 2014-15
Sanctions 738.16 779.98 423.48 680.86 807.32
Disbursements 378.75 563.24 343.11 354.63 508.02
Net worth 335.65 374.01 414.76 436.42 482.01
Profit Before Tax 68.8 63.08 72.43 84.06 81.86
Profit After Tax 44.41 49.47 55.53 58.5 60.18
Dividend 12% 12% 12% 12% 18%
Equity Share Capital 80.72 80.72 80.72 80.72 80.72
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Financial highlights for five years(Rs.in cr)
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TRENDS IN HOTEL INDUSTRY
Year Inventory Occupancy (%) ARR REvPar