Tourism Finance Corporation of India Limited - PowerPoint Presentation

Slide1

Tourism Finance Corporation of India Limited TOURISM INVESTORS MEET (TIM)FICCI, New Delhi

Tourism Finance Corporation of India Ltd.

PRESENTATION ON Slide2

Background

Incorporation

- based on the recommendations of the National Committee on Tourism (

Yunus

Committee) TFCI was incorporated as a Public limited company under the Companies Act. TFCI is a Public Financial Institution under section 4A of the Companies Act.

Regd. Office:- IFCI Tower, New Delhi.Branch Offices:- MumbaiSponsors:- IFCI and other Financial/Investment Institutions & Banks.Status/Objective:- All-India Financial Institution for funding Tourism-related projects. Slide3

TFCI - Vision

To make long term financing available for Hotels /resorts/ Amusement Parks/ other tourism related projects.

Help India in exploring the potential of Tourism as an engine for economic growth including generation of employment opportunities.Help India showcase Her tourism treasure to the world through creation of Tourism Infrastructure.

Make India a preferred destination for globe-trotters by expanding the horizon of Tourism.

To make long term resources available for creation/ development of Tourism

Infrastructure.3Slide4

TFCI - Mission

To help tourism industry grow as one of the main industries through innovative means of financial & advisory assistance and to attain and maintain the leadership role in financing

tourism-related projects.Catalyze &

Channelise

investments into various segments of the tourism industry and across various locations in a need based manner.

Take steps to promote the tourism industry within the overall framework of the Govt. of India policy. 4Slide5

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Tourism SectorSlide6

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. 6

Tourism industrySlide7

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.‹#›

7Tourism industrySlide8

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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Initiatives by GovernmentSlide9

TFCI - VALUES

Blend

of Knowledge & WisdomSelf-sustaining capability

Encourage creativity and innovation

Empathize with the client

9Slide10

India’s only Institution for Funding Tourism projects with more than two decades of existence. Created 45910 hotel rooms by funding 758 projects.

Catalyzed investments to the tune of Rs.25657crore.Created Direct employment to the tune of 86465 persons and indirect employment to many more.

TFCI –

Highlights - 2014-15Slide11

‹

11›

TFCI - Who We Are & What We Do ? Slide12

Financial assistance to following sectors:

Tourism Sector

Tourism Infrastructure

Sector

Hotels, Resorts, Motels, Wellness Spa, etc.

Entertainment centres, Amusement parks & Water parks

Multiplexes, Shopping

Centres

, Family Entertainment

Centres

, Clubs

Convention

Centres

Ropeways

Travel & Transport

Conventional & Non-conventional power projects, Power distribution networks

Roads, Airports, Ports, Rail Infra related to tourism

Hospitals, School, Colleges, Stadium

Special economic zones, Industrial estates, Warehouses

Media, Entertainment & telecom

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First Dedicated Institution to Cater to the needs of Tourism Industry

First Institution to Fund Innovative Tourism Projects such as Luxury Trains

Theme parksHealth 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’sFirst Institution to organise a National Seminar on Hotel Project ManagementFirst Institution to carry out a study of Safety benchmarks of Hotel IndustryApart from many First’s every third room in the approved category is Funded by TFCI

TFCI

First of its kind to partner in the growth of tourism industry

FRONT RUNNER IN SUPPORTING INNOVATIVE PROJECTSSlide14

Shareholding pattern – As on March 31, 2015‹#›

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15›

Types of financial assistanceSlide16

16

Avenues for investmentSlide17

Geographical presence

17Slide18

State –wise Number of projects assisted‹#›

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Sector-wise cumulative assistance sanctioned by TFCI upto 31.3.2015

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Segments

No. of Projects

Amount Sanctioned

(

Rs

. in Crore)

Percentage

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/ Shopping Complex-cum-entertainment

centre

/ multiplex

41

330.50

4.43%

(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 Sectors22728.869.76%Grand Total7587464.92100.00%Slide20

Financial Highlights for past five years 20

(Rs. in crore)

 2010-112011-12

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

Reserves and surplus

254.93

296.63

339.29

355.75

401.29

Capital Adequacy ratio

50.74

40.47

37.21

39.86

38.75

Book Value(

Rs

.)

41.58

46.3451.456.4659.72Slide21

Financial highlights(Rs. In cr)‹#›

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Financial highlights for five years(Rs.in cr)‹#›

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YearInventory

Occupancy (%)ARRREvPar2011-12

8431359.3060323575

2012-13

94255

57.80577333882013-1410385558.90553132462014-1512229856.5058583309

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TRENDS IN HOTEL INDUSTRY

The revenue growth in the hotel industry is expected to strengthen to 9-11% in 2015-16.

India will be investing about

Rs

. 448 billion in hospitality industry in next five years.

Currently India has 163000 rooms in classified category and there is a need for additional 137ooo rooms out of which 90,000 rooms are required in mid-market/ budget segment in next 5 years.Slide24

THANK YOU

TOURISM FINANCE CORPORATION OF INDIA LTD.REGD. OFFICE: 13

TH FLOOR, IFCI TOWER-1, 61-NEHRU PLACE, NEW DELHI-110019.

www.tfciltd.com

Helping Tourism Grow