" If we limit our approach, we limit our marketing possibilities."
A.V. Jim Edwards , 69, the founder of Tiger Mountain Group that owns and operates Tiger Tops Lodge and a number of other facilities at Chitwan, Bardia, Pokhara and other places that offer jungle safaris, trekking and adventure holidays to high end tourists, is a living legend in Nepal's tourism business. Retired from active business since 2001 (though he still provides his expert advice to his son, Kristjan, CEO of Tiger Mountain Group, he is now the Chairman of the Group), Jim shared, in an interview with us, some age-old wisdom gleaned from his over four decades-long experience in operating tourism business in Nepal, as well as, Thailand, Sri Lanka, Malaysia and India. Excerpts:
As a tourism entrepreneur who has studied Nepal for a fairly long period, what do you attribute the failure of Nepal to attract high spending tourists to?
To be fair, I think, Nepal has attracted a reasonable percentage of high spending tourists. After all, tourism is a mixed bag. Besides FITs (generally the higher end of the market) there is group tourism where the price is structured by agents to attract more numbers, mainly from the middle income segment of the market. Tiger Tops gets a good share of high paying tourists, but we also sell at a competitively low price when business is low. What we are talking about is the overall reputation of a destination that caters to high yield tourists. Nepal tour operators do not do themselves (and hence Nepal) a favour by undercutting each other's rates and thereby offering low rate packages. This tends to place Nepal as a "cheap destination" and therefore attracts low end agents.
In the 60s and 70s, Nepal had a better reputation for offering reliable service. Now it's a "mixed bag". However, I judge that almost 20 per cent of the tourists to Nepal belong to the high end, and this is the highest in anywhere in Asia. People still come to Nepal for its unique cultural and adventure features, including Tiger Tops. About 30 to 40 per cent of the market is from the middle and the rest of the market comprises the lower spending visitors, including backpackers. This is not a bad thing as it also supplies hundreds of small inexpensive hotels and lodges and trekking companies. I think the mix is good.
What is your comment on the way Nepal is being promoted abroad by the Nepal Tourism Board? For example, what do you say about the unique selling propositions (USPs) that are being highlighted?
Considering the budget it has, NTB is trying its best. Nowadays, because of the political situation with the uncertainties of Nepal as a destination, it's a "hard sell". I think more money should be allotted to NTB to promote Nepal as a safe, beautiful destination. If you take the examples of Malaysia and various Indian states, you find that they advertise a lot. Now when the business is low in Nepal, we must show a happy face of tourism. Stress on the fact that Nepal is safe and that all political parties welcome tourists. Try and counter some of the negatives of CNN and BBC.
Regarding the USP, Nepal has many different aspects that attract tourists and can be offered in a single package. In China or India, for example, you have to travel a long way to cover much of what is different. Nepal is unique. All major tourist attractions are available within striking distance from Kathmandu. What we need now is to upgrade and update the brochures and other forms of advertising by NTB with what we have. If we limit our approach, we limit our marketing possibilities.
How hopeful are you from the recently started campaign of Nepal Tourism Board with the new brand "Naturally Nepal: once is not enough"?
I have more or less covered this thing in my previous comments. Overall, I think it is a good campaign. The slogan gives a message that Nepal has lot of things to offer. In fact many potential tourist selling points don't know what exactly Nepal offers. We need to emphasise on the wide range of "products" that Nepal offers.
How do you evaluate the trends in Nepal's tourism?
Tourism has gone down at least 60 per cent from the mid 90s, so obviously, a lot has to be done to encourage agents abroad to still sell Nepal. With BBC and CNN often reporting the situation in Nepal, people are not encouraged to come here. Once peace is restored the return and growth of Nepal's tourism will be swift. Even the recent negative publicity has made Nepal more known, so once peace is restored, this can be capitalised upon with positive advertising.
What unique marketing strategies should be followed by Nepal in these situations? What best practices from other countries do you suggest Nepal should follow?
As I said, Nepal (through the hotels and travel agents network) should spend a lot more on international advertising to let people know that it is safe for them to come here. It must be stressed that Nepal is dedicated in making visitors comfortable and in spite of the recent political disturbances, all political parties, including the Maoists have a policy to treat tourists as friends. In my emails abroad, I specifically mention the fact that so far not a single tourist has been targeted by the parties of the conflict.
What other strategies can be learnt from the other countries?
Marketing is something that a lot of people have yet to learn. It's often thought that marketing is simply a distribution of brochures or email correspondence. In fact, one of the most important aspects of marketing is the reliability of the product. Nepal's trekking companies are generally very good. They are developed as an example by the standards set by the famous Col. Jimmy Roberts (who invented the word "trekking" for Nepal in 1964). His training of the Sherpas and other staff set the standard for many trekking companies in Nepal, which are generally very high. So, Nepal's trekking reputation is that they give good "service". However, I think many of the agencies are now selling too low. They are not selling the value of the product. If some students cannot come to Nepal due to the high price, let them not come. They will come here in the future. But no tourist should be allowed the opportunity to complain about the standard of the service in any hotel, trekking agency, travel agency, lodge or restaurant. Tiger Tops is the best. Its standards are the best in Asia and among the best in the world. I think that this is the main reason why Tiger Tops still has reasonably good occupancy now, in spite of the general downturn in tourism. Training of manpower is important. Nepal has good manpower. Nepalis are well known over the world for their hard work. Nepalis in the service industry give the feeling that they are not servants. They show that they are doing their job because they like it. We should stress on these facts in our operations so that the reputation of Nepal's tourism, to give good service, contributes to our marketing success.
In a "nut-shell", we need to reach out to the various categories of tourists in different ways and use all the different means of marketing in a coordinated manner.
How much is your business affected by the on-going security situation in Nepal?
Because we are known all over the world to offer reliable services, we have managed to save a lot of business. We constantly stay in touch with the agents and motivators, reassuring them. They believe us and send us business.
However, we have lost about 50 per cent of our business over the last four years. We are striving to maintain the standards and praying for a turn around.
What can be the survival strategy for the tourism businesses under the present circumstances?
Cut unnecessary costs, but keep in touch with agents worldwide. Americans won't come at present, so don't "flog a dead horse", and try another market. There was a very good idea put forward by the Hotel Association Nepal (HAN) asking the government to help us with taxes and fees. The proposal went to the cabinet but it was somehow stopped. Tourism touches the lives of so many people. I feel, some long term strategy should be adopted to help the tourism industry.
What can the tourism entrepreneurs themselves do?
I think they are doing their best right now. They are holding on and hoping. That is what best can be done right now!
Can't they do something together even without the help of the government?
The problem is that many ideas are planned to suit each type of organisation and individual egos, of course, creep in. Many have their own individual techniques. So, the scope for working together is limited. In our case, Tiger Mountain has talked to several other operators and agents-and we are working together. While it helps a little bit, it does not solve the big problems.
What can Nepal do to attract tourists as Sri Lanka did even during when the security situation was not so good in that country?
They advertised a lot. Their sales promotion at many levels was successful. Some of these strategies could be used by Nepal. The first among these is to encourage the local agents with the cost of preparing a general Nepal brochure and other sales promotional materials. I have already stressed a lot on targeted advertising.
Would you mind sharing with us your plan for the short and medium term for your business in Nepal?
The short-term plan of Tiger Mountain is to hold on. The medium term will be to resurrect the products that we already have but not fully operational. Under this we will advertise and try to get back business that was diverted to India by our agents. Long term is difficult to assess, but for a start we should go to the American market aggressively. At present, the Europeans and Japanese are continuing to come to Nepal. This is helping us to survive, but we need the Americans, especially for high yield business.
What is your comment on the ongoing opposition from some tourism entrepreneurs to the recent changes in the government policy regarding the management of the conserved areas?
That is very difficult to answer. I think the government is doing quite well with the management of the national parks. The government needs to continue to run the conservation areas management. It may require a little bit more input from the tourists sector, where appropriate, but if you leave a lot to the private sector, vested interests will come in. Furthermore, many conservation groups abroad are phony. They talk about "sustainable" resources, but "throw in" a lot of ideas that are simply not practical. You must not forget that. Nepal still has one of the best reputations for running national parks. Private enterprise cannot run conservation areas alone. There must be strong government involvement. Security for one, anti-poaching efforts and so forth are all to be co-ordinated. Only the government has the authority to do this.
What is your comment on the logic of some conservationists that the oligopoly being granted perpetually to a few entrepreneurs to operate resorts inside the conservation areas should be withdrawn?
First of all, you must realise that for any concession to operate our business inside the parks, or near the parks, demand a lot of money as fees or royalties. For instance, Tiger Tops pays more than 50 per cent of the total National Park fees collected. Others pay a lot less, but all are paying relatively hefty amounts, especially these days when we all have little business. Tiger Tops also actively supports Nepal Conservation efforts of International Trust for Nature Conservation (ITNC) and King Mahendra Trust for Nature Conservation (KMTNC). What do the lodges out of the Parks do? Little or nothing. Those running lodges at the fringe of the parks charging $3 or $5 a day are simply jealous of the businesses running inside the park. Furthermore, they do not realise how many tourists are needed, for higher rates, to run the lodges inside the park!
Are you interested to take the lease of any of the conservation areas that the government is offering to the private sector?
Not now. We are running a good show at Chitwan and Bardia, at present, but we are, like others, struggling with it under the present circumstances.
You are accused of not reinvesting the money you earned by virtue of a monopoly that you enjoyed for about 25 years in the jungle safari business in Nepal. What is the reason?
It is not true. We started with Tiger Tops alone and expanded first into Tented Camps and the Tharu Village. Then we expanded to West Nepal Lodge and Tented Camps (where at that time, nobody, except Hikmat Bisht, Silent Safari, would go). We also expanded into the trekking business. And we are the first to start river rafting with Himalayan River Exploration. Tiger Tops is wholly or part owner of them all. We also built Tiger Mountain Pokhara Lodge, one of the best of its kind in Asia. How could we do that if we did not reinvest? We have our critics, but there are very few who can compete with us in wildlife and adventure tourism, nor in conservation efforts. Jealousy strikes often!
Would you mind sharing something about the elephant polo that you invented and popularised?
It was started as a bit of joke. A friend of mine James Mainclark from Scotland, said to me one day: "Jim, you play polo. Why don't we try it on elephant?" So on 1st of April 1982, we got on elephants with long sticks and played with footballs. However, the elephants would step on the footballs and they burst. Some say that the elephants did that on purpose. We would laugh and have another drink of Nepali raksi and carry on. We then decided that it was a fun event. A good excuse for a party. Tiger Tops started holding an annual event of Ele Polo. We still keep it quite exclusive, with people called on my private invitation. Recently, we helped Thailand, Sri Lanka and India introduce this game as a competition. The World Elephant Polo Association was registered in Nepal in 1984 with the National Sports Council and the Nepal Olympic Committee. Thus the headquarters of WEPA is in Nepal. The Championships are held once a year and are usually weeklong. During that time, we raise money what we can for local schools, medical clinics and wildlife conservation. Elephant polo is a fun party, international PR and helps various charities. It has also become an advertising vehicle for Nepal to attract tourists. The events are shown on CNN, BBC, Trans World Sports and other TV networks worldwide. Even those who may not come to Nepal for elephant polo, will know that Nepal is where it started. Every little helps.
