The Valley Of Gold?
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The Valley Of Gold?
Ford's Plans To Turbocharge Himalayan Tourism
December 2005

Today I shook hands with Alfred Ford, great grandson of the legendary Henry Ford. What's most surprising is that this wasn't in Aspen or St. Moritz, but in the small Himalayan town of Manali, a town Mr. Ford plans to put on the world tourism map with the construction of an ambitious new ski resort.

A Small Revolution

On October 25, 2005, Alfred B. Ford, trustee of the Ford Motor Company Fund, investor, philanthropist, and real estate developer, signed an agreement with the Chief Minister of the State of Himachal Pradesh, India, for the construction of a modern Himalayan Ski Village (HSV) over 50 acres nestled in the peaks above the Kullu Valley.

The proposed state-of-the-art HSV will feature 700 luxury rooms and 300 private chalets. With an initial investment outlay of $150 million over the first five years, construction is due to start in 2006. When complete, it will represent a $500 million investment, the largest single foreign investment in the tourism sector in India to date.
 
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It will be the largest resort project in the country, and the highest ski resort in the world.

The Himalayan Ski Village will employ over 3,000 people at the outset.

The taxes it will pay will double the state government's income from tourism.

This project will change the face of this valley, catapulting it from an obscure agrarian area favored by hippies and mountain enthusiasts to one of the top tourism destinations in Asia - a world class winter sports facility capable of hosting the Winter Olympics.

As you can imagine, the valley is abuzz with news, rumor and gossip about little else.

Already there's a veritable frenzy of real estate development. While Ford's plans may not(yet)be the major driving factor behind this, they are certainly in the minds of many developers. In contrast to previous years we've spent here this fall one can see columns sprouting up out of the ground

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Or from roof tops of existing buildings every few hundred meters as one drives along the winding mountain roads. There's a palpable excitement in the air, the sense of an incredible metamorphosis in the offing.

Peace, Love And Winter Sports

When I asked him why he chose the Kullu valley for the project, Mr. Ford said it was mostly because of his deep love and reverence for India and the Himalayas, and the incredible beauty of this valley.

Mr Ford, who converted to Hinduism many years ago and is involved with the International Society for Krishna Consciousness (ISKCON), has invested in other projects in India, including a Vedic Planetarium to be built by the ISKCON in the holy town of Puri. He said that having worked with several state governments in India on different projects, he found the state government of Himachal much easier to work with than most of the others. This area is also peaceful and politically stable, unlike the troubled state of Jammu & Kashmir.

Emphasizing that he and his associates are interested in developing a synergy between the HSV and the local culture and people, Ford said, "We did not come to take something from the people, we've come to contribute something".

The HSV will reflect local culture while providing state-of-the-art amenities. The architecture will be in traditional Himachali style. Mr Ford recognizes that "people will not come here to be in Switzerland or in Aspen, they want to be in Kullu". So from the outside, the resort will look like a quaint little Kullu valley hamlet, while its plush interiors and modern amenities will rival the best ski resorts in the world.

At its center, the HSV will feature a marketplace where artisans from across the country will have the opportunity to showcase their wares. An auditorium for theatrical and musical performances will be part of the Village as well.

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Ford and his associates strongly believe that interaction with local culture will be central in making the HSV experience unique.

Ford and his team certainly have good local advisors (including Mr. Iqbal Sharma, one of the area's top tour operators) and are playing by the rules of the valley. They were in Manali to pay their respects to the valley's devtas (deities) and to visit the temples in the area. As everyone who lives here knows, the devtas are powerful in the valley of Gods, and their blessings essential for any project. 

Infrastructure Upgrades

The valley doesn't currently have a hospital capable of providing adequate emergency care to victims of sporting mishaps, a shortcoming that HSV aims to address with a modern hospital to be built in collaboration with India's Apollo Group. The hospital will be located in the valley, away from the actual Village, which will be at a height of 10,000 feet. 

The hospital and the Village will both be open to all who wish to make use of them.

As almost every family in the valley ends up having to travel 300km. to Chandigarh multiple times a year for health checks and doctor visits, many of the local residents are understandably even more excited about the hospital than about the HSV itself.

Currently the valley is also quite remote and less than adequately connected. The closest airport in Bhuntar services the area with only a single flight a day (a 26 seater single-engine aircraft operated by Jagson Airlines). HSV will address the connectivity issue by working to bring other carriers, such as Indian brewery magnate Vijay Mallya's Kingfisher Airlines, to Bhuntar. 

Mr. John Sims, Managing Director of HSV, said that Mr Mallya had confirmed that he's purchased a 75 seater aircraft that will be able to land on airports with shorter runways, like the Bhuntar airport. Deccan Air, an Indian carrier, is also expected to service the area and Jagson is due to increase its fleet with 35 seater aircrafts. 

Mr Sims also said that with state revenues going up, they will work with the government to improve infrastructure in the valley, including improving the roads and electric supply.

Inside The Himalayan Ski Village

Although accommodation within the Village will be pretty pricey (upwards of $500 a night) in keeping with the ultra-luxury facilities, Ford and his associates are encouraging local hoteliers to up their standards and get ready for the heavy tourist influx to the area. 

Several international hotel chains will participate in the project, including Hyatt International, Mandarin Oriental and The Intercontinental.

Said Sims, "We do not intend to build hotels that will be competing with the present hotels in the valley. Our hotels are extremely up-market and they will not appeal to everybody. In fact, only 20% of the people who come here to ski will stay in our hotels. 70-80% will stay in the valley because they'll want to have a lower price point. We cannot afford to bring in new hotels at that elevation at a lower price point. So it puts the local operators at a price advantage to us, and we are happy to share the prosperity. "

HSV is also planning to build luxury villas (3000-5000 sq. ft each) which will likely be priced at more than a million US dollars a piece.

HSV is very keen on promoting the local handicrafts, restaurants and other businesses. Ford and Sims both stressed that they're not in this only for the money, which they could make plenty of in the US. They said they're interested in doing something new, interesting and fun, while raising the level of tourism in the area to new heights.

The project will provide a wealth of job opportunities in the hospitality sector. Sims said that the HSV would prefer to hire employees locally, and will also provide high quality training for the hospitality and tourism industry, as well as vocational training for local businessmen from taxi drivers to hotel owners.

A Frontrunner In Eco-Tourism

Ford and his associates are very conscious of environmental issues. The Village will be a car free zone and visitors will use cable cars to travel to and from the Village. Said Sims: "Alfred and I are children of the 60's and we want to be effective as environmental campaigners. We firmly believe in doing it right the first time and for this reason HSV has contracted the Indian Institute of forest Management as consultants for the project."

In response to questions about the local residents' forest access, including timber and grazing rights, Sims clarified that the skiing slopes would be on public lands and that the village itself would be constructed on private land above the tree line - therefore not interfering with grazing or timber lands.

Said Sims: "This project will be a frontrunner... Alfred did not come here to exploit India. This is not his interest. He came here because he wanted to show a better way forward in environmentally responsible tourism. This is needed in the world but especially needed in India. There is so much pressure on the environment. It's not good enough what they do to protect the environment in America, we have to do better in India because India is under more environmental pressure and social and economic strains."

Raising The Bar

Sims echoed my thoughts when he said that he often heard tourists complain that other than enjoying the weather and visiting the few tourist attractions, or trekking, there's not a lot to do in Manali. As I mentioned in my last article too, there are very few quality restaurants, bars, and entertainment options in the valley.

Sims said HSV will change that, by bringing in top notch entertainment and sports facilities, as well as customers who will demand a wider variety of high quality services.

Said Ford: "I would imagine that, as in America, more people will come in the summer to the HSV. There are festivals, there are institutes, there is trekking, there is white water rafting. And because India is a very hot country I would imagine that, as people do already, that people will come here from Delhi or Bombay for a vacation. I would hope also that we have special events and conventions. It'll be a wonderful place to bring people for conventions and special events."

The HSV will also lengthen the tourist season in Manali. Mr Sims pointed out that "summer tourism will be a mainstay for any hill station. What we are doing essentially is extending the tourist season in the Kullu valley into the winter months and this will have a huge impact on all the hotels".

By attracting a different class of traveler to the valley, the HSV will make it profitable for others to start quality businesses catering to this new and more discriminating clientele, and hopefully raise the bar for service quality and professionalism across the entire spectrum of local businesses.

Said Ford: "We will bring to the valley high quality training, high hospitality standards, professional management and aggressive business development. Those are the kind of things we can bring to this valley. Our intention is to create a benchmark for this kind of development".

Living In Interesting Times

Some of us in the valley have been anticipating the imminent evolution of the tourism industry here to the next level, and are thrilled that it may happen so soon and in such a dramatic manner. Others are more skeptical, and think that Ford's team will have to climb mountains of red tape just to get started, which could result in delays and changes to the plans.

Whatever happens with the HSV, it's an exciting time for the Kullu valley. The tourism in the area is already growing and evolving at a rapid pace, as we knew it would when we moved here, and I'm excited to be right here in the middle of it all as it happens. If Ford's plans to begin building next year stay on track, we could be witness to a gold rush that could well result in the "Valley of Gods" being transformed into the Valley of Gold.

This is going to be a great time for business here as, for the first time, the mighty Himalayas really open up to the international traveller. 

The game is afoot. I'll keep you posted.

You can get in touch with Qiwi at: ea@qiwi.neomailbox.com

The following is the previous article that Qiwi wrote for the magazine:

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