1 TOURISM - GLOBAL CONTEXT

- International tourist arrivals during 1995 were 567.4 million (in world-wise)

- International tourism receipts during 1995 were US $ 372.6 billion.

- Tourism receipts have grown at a faster rate (12.7%) than commodity exports (11.5%) since 1960.

- International travel has grown at a compound rate of 6.2% between 1961 to 1995. In today's senario, tourism accounts for more than 30% of international trade in services, about 12% of the world GDP and over 8% of the world's export

- International tourist traffic is expected to grow at a compound rate of growth of about 3.1% from 1995 to 2000 and reach 661 million tourist arrivals by 2000 A.D.

- Tourism receipts were about 7.3% of commodity exports during 1990.

Year Commodity Exports Tourism Receipts Percentage

Million US $ Million US $
1960 129.1 6.9 5.3
1970 315.1 17.9 5.7
1980 1,998.6 102.4 5.1
1990 3,415.3 249.3 7.3

Average

Annual Growth 11.5 12.7 --

- Tourism is the third largest export industry in the world after transport equipments and Petroleum products. In 1995 travel and tourism was expected to prvide direct and indirect employment for 212 million people and account for 10.7% of the global work force.

Billion US $
Item ------------------------
1980 1988

Petroleum and its Products 415.2 217.4
Transport equipments 142.7 287.4
Tourism 102.4 197.7

Forecast Of Arrivals Of Tourists From South Asia By Destination 1990-2010

Particulars 1990 1995 2000 2010 Avg Annual Avg. Annual Growth rate Growth rate (% PA) (% PA)

Long Haul (MN) 2.61 3.31 4.47 7.21 5.50 4.90
Intraregional (MN) 0.94 1.21 1.70 3.33 6.12 7.00
Total 3.55 4.52 6.37 10.54 5.68 5.50

% Intraregional 26.50 26.80 27.60 31.60 0.00 0.00 of . total

Forecast Of Tourist Arrivals In The South Asia Region (1990-2010)

Particulars 1990 2000 2010 % Avg. Annual % Avg. Annual MN MN MN Change Change 1990-2000 1990-2010

France 0.15 0.30 0.57 7.25 6.50
Gremany 0.21 0.42 0.79 7.27 6.50
Japan 0.13 0.34 0.80 10.00 9.00
United Kingdom 0.43 0.70 1.09 5.00 4.50
United States 0.20 0.30 0.44 4.00 4.00
Total 5 major Maekets 1.21 2.06 3.69 6.30 6.00

% Total Arrivals In 35.20 35.80 35.50 0.00 0.00 the Region Source : Department of Tourism : Annual Report 1995-96

Estimated Foreign Exchange Earnings From Tourism : 1993-1995

Including The Nationals Of Pakistan & Bangladesh

Months 1993 1993 1994 1994 1995 1995 % Change

January 550.50 190.62 691.97 220.58 778.48 248.16 25.70
Feburary 536.85 185.89 615.39 196.17 721.92 230.13 14.60
March 489.76 169.58 636.94 203.04 705.98 225.05 30.10
April 402.55 128.32 549.24 175.08 61.48 194.61 360.40
May 338.10 107.78 438.55 139.80 182.25 153.73 29.70
June 382.82 122.02 457.64 145.88 507.07 161.64 19.50
July 544.04 163.86 653.93 208.46 710.47 226.48 27.20
August 476.21 151.81 614.94 196.03 656.92 209.41 29.10
September 433.51 138.91 517.47 164.94 615.15 196.09 19.10
October 571.49 182.18 430.08 137.10 823.65 262.56 -24.70
November 677.96 216.21 632.57 201.65 948.63 302.40 -6.70
December 768.02 244.83 864.81 275.68 1079.02 344.00 12.60

Total 6141.81 2001.20 7103.53 2265.21 8640.02 2754.26 15.70

2 TOURISM - INDIA

- International tourist arrivals in India during 1992 were 1.87 million. which has increased to 2.12 million in 1995, recording an annual growth of 17.6% during 44 year period.

- Tourism receipts were Rs. 3989.5 crores or US $ 1.39 billion during 1994-95.

- International tourism receipts were equivalent to about 7.5% of commodity export and 19% of invisible earnings.

- Tourism is the third largest foreign exchange earner after Gem & jewellery and readymade garments.

(In Rs. Crores)

Item 1980-81 1991-92

Gems & Jewellery 618.4 6750.0
Readymade garments 550.3 5422.0
Leather and leather products 389.7 3128.0

Tourism 1166.3 3318.6

- Tourism industries employ 6.39 million persons directly accounting for 2.4 per cent of the total labour force in 1994-95.

- The foreign exchange earnings from tourism during 1994-95 estimated to be abouts. 9186 crores during 1995-96.

Statistics of Foreign Tourist Arrivals

Years Total Arrivals Growth Rate (In Thousands)

1993 1765 -
1994 1886 6.9
1995 2124 12.6

Source : Department of Tourism : Annual Report 1995-96

Foreign Exchange Earnings From Tourism

Years Total Arrivals Growth Rate $ Millions (In Thousands)

1993 2001.2 -
1994 2265.2 13.2
1995 2754.3 21.6

Source : Department of Tourism : Annual Report 1995-96

3 Comparative study

- Arrivals in India are 0.39% of world arrivals.

- Receipts are 0.51% of world receipts.

- Small countries like Singapore and Thailand receive over 5 million tourists.

- The average duration of stay of tourists in India is, however, one of the highest. It is about 30 days as compared to 3 days in Singapore and 7 days in Thailand. Thus the estimated tourist nights were about 50 million in India as compared to 16 million in *Singapore* and 36 million in *Thailand* during 1991.

- But the average duration of stay of tourist is high (average 30 days) in India. 'Tourists stays', therefore are higher than countries like Singapore, Thailand though 'arrivals' are lower.

4 Resources

- India has all the tourist attractions sought by the tourists anywhere in the world including natural attractions, like land scapes, scenic beauty, mountains, wild life, beaches, rivers and glaciers and manmade attractions, like monuments, forts, palaces, havelis etc. as well as pilgrims.

5 TOURISM PRODUCT

Tourism comprises the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes. These persons invariably seek a pleasant and delectable experienceon their trips. The most desired tourism product thus consists of :

- an environment of peace and stability.

- an assurance of safety and security.

- an affable host society.

- an industry and a Government that provide the requisite services with a smile.

- absence of extortions and hostility.

- accessible tourist attractions and

- an integrated system of physical infrastructure that does not fail these include :

- international air seat capacity

- internal transport system

- hotels and restaurants and bars*

- entertainment and recreational avenues

- shopping and communication facilities

- well preserved monuments with tourist amenities

- basic amenities like drinking water, toilets, snack bars etc at the tourist sites.

Just like raw materials get converted into finished products by moving through various machines in a processing system, the different components of tourism supply should be so organised that the expectations of the tourists while planning the trip get converted into full satisfaction and pleasant memories on his return. It means there should be perfect co-ordination and linkages in the availability and performance of all components of tourism infrastructure. Tourism is being seen as a priority sector and 124 proposals involving foreign investment of rs. 1892.63 crores were approved till the end of September 1995.

6 MANPOWER RESOURCES

Tourism industry consists of several activities starting from air transportation to guide services. Each of these segments need trained manpower to ensure their availability in good measure and quality. The airlines need highly trained pilots, engineers, air hostesses and a host of other technicians. The immigration officers at the airports need to be smart, personable and capable of handling both security and public relation functions efficiently.

The taxi drivers, coach operators and other grass root level workers need to be trained to behave well with the tourists. Hotels, restaurants, travel agents, tour operators and other providers of tourist services need professionally trained man power at all levels. Training is also to be imparted to guides and watch and ward staff of monuments, wild life sanctuaries etc. to make them more responsive to the tourists. Development of manpower resources is thus a major activity in the promotion of tourism.

In order to harness the resources and provide a central thrust, the ministry of Tourism established to National Council for Hotel Management and catering technology in 1984 with the objective of expanding and modernising the training capabulities of Hotel and catering education institutes. The ministry also established the Indian Institute of Tourism & Trvel management(IITM) in 1983 to develop and promote education training and research in travel and tourism and to provide trained manpower to that sector.

7 OFFERS

7.1 AT PRESENT

- Except for a few approved hotels, the tourism infrastructure presently available is very weak. It is particularly so in the case of *transport*, entertainment and shopping facilities. Even the available *infrastructure*usually fail to function during the hours of need.

- Airline services are often curtailed during peak season

- Rail links are normally over-crowded and poor in quality.

- Bad roads and inferior transport vehicles.

- Even basic amenities like toilets and drinking water are not available at sites of most of

monuments.

- Standard shopping places are almost non-existent. There are several complaints of cheating by unethical shop-keepers and traders.

- Airports, railway stations and tourist sites are infested by touts and anti-social elements.

- Teasing and cheating of tourists by taxi drivers, guides and others are very common at most places.

7.2 IN THE PAST

The developmental activities have been taken-up through State/UT Governments in view of the fact that the infrastructural systems like land, roads, water and electricity supplies etc are mostly under their control. The Central Government has been acting almost as a funding agency without exercising much of planning ofperformance checks. As a result the tendency has been to take up a large number of small projects of peripheral nature in as many centres as possible. Thus, there has been very little impact on the development of tourism infrastructure in any specific destination. No attempts were made earlier to integrate the activities in various segments particularly transport systems and site facilities leading to infrastructural inbalances. A policy of 'Choose, Plan and Execute' is therefore necessary to develop tourism.

7.3 NEEDED

The 'Drawing Room' concept - selected sectors/sites, invested with saturation level facilities. (As is being planned in 'Industrial Model Towns'/ 'Industrial Parks'/ 'Technology parks')

The National Action plan for Tourism was presented in parliament in May 1992, which specifies various actions to be undertaken for a directed development of tourisms in the country.

7.4 A CLOSER LOOK

According to a survey conducted during 1988-89, there were 38places in the country, each of which was visited by at least onepercent of the foreign tourists arrived during that year. The infrastructural facilities available in these centres however do not measure upto the level of tourist traffic. The data clearly reveal that :-

- There has not been any co-ordinated approach for tourism development so far.

- Environmental planning and area development has never been attempted in any of the tourist centres.

- The transport infrastructure is not planned according to tourist traffic.

8 INVESTMENT IN TOURISM

- Adequate investment is necessary to take advantage of immense tourism potential that exist in the country.

- Investment in tourism creates more jobs than in several other sectors. The labour/capital ratio is more favourable in the case of tourism than many other industries. The comparative ratios of some of the economic sectors per million rupee of investment at 1985-86 prices are as given below :-

0Sector Labour/Capital ratio

Agriculture 44.7
Manufacturing 12.6
Mining and Quarrying 2.6
Railways 0.9
Other transport 13.8
Hotel and restaurants 89.0

- Investment in tourism ensures the overall development of the area and better facilities to local population and as such the investment is never exclusively meant for tourists.

For various scehdules to be implemented by the Directorate General of Toursim an allocation of Rs. 272 crores was approved by the planning commission for the Eighth Five Year Plan (1992-97). For the year 1994-95, Rs. 92.81 crores mere approved by the Planning Commission.

9 HOW TO PROCEED

- Tourism development is a composite subject and it does not necessarily mean the development of only the tourism facilities like hotels, restaurants, recreational activities etc.

- The creation of tourism infrastructure will be meaningful only if the area has the minimum basic amenities and infrastructure like roads, water, electricity, sewerage and tele-communication facilities. Thus, there must be a total area development plan before attempting to promote tourism. The different components of the area development plan will fall within the purview of different agencies. All there agencies have to work together and earmark adequate funds for such development. The first step, therefore, will be to identify the specific tourism zones and their development needs in the form of an area development plan.

- Formulate such area development plans as Tourism-Sub plans and earmark funds for the execution of various components of the sub-plans by the respective departments within a specified time period.

- The necessary plan allocation should be made available both by the Planning Commission and State Planning Departments for the Sub-Plan.

- The Central Department of Tourism should play a more positive role in the formulation and monitoring of such sub-plans. A monitoring mechanism must be established in the *Department of Tourism in this regard.

- The air, rail and road links to the sub-plan areas should be improved by the concerned Central/State Departments according to the integrated area plan.

- Specific steps should be taken to augment international air seat capacity to India.

- Priority must be given for the development of manpower for tourism activities.

- The development of Tourism should be recognised as a joint responsibility of all the Ministries and Departments in the Central Government and the States.

10 TARGET

Given the dimensions and tourist attractions that exist in the country, a target of 5 million tourists by 1996-97 is achievable if the necessary infrastructural facilities are provided.

The benefits that would accrue on realisation of the target in comparison to 1992-93 are as indicated below :

1992-93 1996-97

Foreign Exchange Earnings (Rs. Crores) 3,990 14,000 (at 1993-94 prices)
Value Added (Rs. Crores) 1,479 5,415 (at 1993-94 prices)
Employment (Million Persons) 1.48 5.18
Tax revenue (Rs. Crores) 503 1,764

Note : The estimates are worked out on the basis of value added, labour-output and indirect tax ratios.

Target - 5 million tourist arrivals (by 1996-97)
Base - 1.87 million (1992)
Growth - 20%

(The number of 'tourist-days' also needs to be set.) Projections based in 5 million tourist arrivals

11 STRATEGY

The strategy for attaining 5 million tourist arrivals by 1996-97 include :

- Increasing the international air seat capacity to India.

- Increasing the passenger handling capacity of existing *international airports* and opening of new international airports at *Bangalore, Hyderabad and Goa*.

- Upgradation of facilities at national airports to allow the landing of wide bodied aircrafts for taking the tourists closer to their place of interest through charters.

- Increasing the domestic air seat capacity.

- Improvement of rail and road transport facilities in those segments connecting major tourist centres and introduction of new tourist trains

- Improvement of tourist facilities at the four metro cities to international standards according to integrated tourism sub-plans. The components of the sub-plan will include upgradation of airport facilities and transport infrastructure particularly cars and coaches, refurbishing of monuments and beautification of areas around them with provision for basic amenities, air-conditioned shopping complexes, parks and pedestrian paths, activity centres and information counters, proper signages etc.

- Undertake environmental planning and development of 40 popular tourist centres according to tourism sub-plans. These centres should have adequate basic amenities and tourism infrastructure.

- Develop 27 new tourist centres including 5 major pilgrim centres which are having high potential for meeting the demand for diverse tourism products, like, beach resorts, wild life monuments, pilgrim centres etc. While 70% of the tourists visiting India would continue to be attracted by cultural and pilgrim motivations, about 20% have to be serviced by beaches and the rest by wild life sanctuaries and others.

- Refurbishing of important monuments and provision of basic amenities around them.

- Provision of tourist facilities around important wild life sanctuaries and national parks in consonance with the environmental guidelines and carrying capacity.

- Provision of basic amenities, and essential tourism facilities in the pilgrim centres.

- Provision of adequate tourism infrastructure like hotels, restaurants, shopping complexes, entertainment and information centres etc. in all the tourist centres taken-up for product development.

- Development of adequate man power resources in all sectors connected with tourism.

- Improvement of tourist facilitation services and removal of visa and entry restrictions.

- Protection of tourists from touts, unethical taxi drivers and traders and other anti social elements in all the tourist centres through greater vigil by law enforcing agencies and effective use of the provisions of *Consumer Protection Acts and Rules*.

- Provision of a package of incentives and facilities for attracting private investment to develop tourism infrastructure.

- Implementing aggressive and effective marketing and promotional strategies in the major tourist generating countries.

12 ACTION PLAN

The detailed action plan for achieving the targets are summarised in the following :-

12.1 INTERNATIONAL AIR SEAT CAPACITY

Infrastructure component - International air seat capacity

Present Availability - 5.3 million

Target - 10 million (Assuming that the number of Indians going abroad remain unchanged).

Action Programme/Investment -

(a) Adopt an open sky policy to allow all the international airlines to come to India without conditions of reciprocity and royalty.

(b) Capacity expansion of Air India and Indian Airlines to cover at least 20% of the additional capacity required. It would need additional 23 aircrafts of 400 seats each.

(c) The estimated investment requirement by Air India and Indian Airlines is Rs. 8500 crores.

12.2 INTERNATIONAL AIR PORTS AND PASSENGER HANDLING CAPABILITIES

Infrastructure component - International air ports and passenger handling capabilities Present Availability -
Bombay - 5 million
Delhi - 3,35 million
Madras - 0.46 million
Calcutta - 0.52 million
Trivandrum - 0.46 million

Total - 9.79 million

Target - (i) Increase the air craft and passenger handling capabilities of existing airports to 19 million.

Bombay - 5 million
Delhi - 5 million
Madras - 1 million
Calcutta - 1 million
Trivandrum - 1 million

(ii) Convert the airport at Goa, Bangalore and Hyderabad into international airports with a capacity to handle 1 million passengers each.

(iii) Provide proper run way, landing equipments and terminal buildings in the other selected airports to facilitate landing of wide bodied charter flights. Each airport should have a capacity to handle at 0.11 million international passengers per year.

Action Programme/Investment -

(a) Private sector including foreign investors must be encouraged to construct and operate airports by providing the necessary land and other facilities

(b) Modernise and expand the existing international airports.

(c) Upgrade the facilities and capacity of identified airports.

(d) Estimated Investment requirement is Rs. 2500 crores. (including Rs. 400 crores for *Ajmer*)

12.3 DOMESTIC AIR SEAT CAPACITY

Infrastructure component - Domestic air seat capacity
Present Availability - 10 million
Target - 18 million

Action Programme/Investment -

(a) Encourage private air taxi operators to increase their fleet, frequency and places of operation to cover all the tourist centres.

(b) Indian airlines should be able to carry at least 12 million people per year by increasing its capacity. The present excess capacity is expected to take care of the increase in domestic demand.

(c) The estimated investment requirement is Rs. 4,000 crores. However, if the aircrafts are taken on lease, the investment would be such less.

12.4 RAILWAY NETWORK

Infrastructure Component - Railway network
Present Availability - Palace on wheels Shatabadi Express, Taj Express
Target - (i) Palace on wheels type tourist trains with air-conditioned coaches should be introduced in the following routes :-

Jaipur-Ajmer-Udaipur-
Chittaugarh-Kota-Sawai
Madhopur-Jaipur
Calcutta-Kharagpur-Tata nagar-
Dhanbad-Gaya-Varanasi-Lucknow-
Faizabad-Ayodhya-Patna-Calcutta
Kanniya Kumari-Manamadurai-
Rameswaram-Madurai-
Trichirapally-Madras-Tirupati-
Katpadi-Salem-Palghat-Trichur-
Ernakulam-Varkala-Trivandrum-
Kanniya Kumari

(ii) Introduce super fast air-conditioned trains of Shatabadi type in the following routes :

Bombay-Aurangabad-Manded
Calcutta-Bhubaneswar-Puri
Delhi-Ajmer-Bombay
Madras-Banglore-Mysore-Madras
Bombay-Junagarh-Palitana-
Mohamedpur-Diu
Bangalore-Hyderabad-Bijapur-Goa
Mangalore-Bekal-Cochin-
Trivandrum-Kanniya Kumari
(On completion of Konkan Railway)

Action Programme/Investment -

(a) Encourage joint collaboration of travel trade, State Government and Railway Ministry to run tourist trains.

(b) Upgradation of railway stations with proper passenger amenities including retiring rooms.

(c) Introduce both Palace on Wheel type and Shatabadi type trains as listed.

(d) Improve signal systems in the Delhi-Ajmer-Bombay line.

(e) Estimated investment requirement is Rs. 340 crores.

(Rs. 190 crores for Delhi- Ajmer-Bombay and Rs. 150 crores for others)

12.5 ROAD NETWORK

Infrastructure Component - Road network
Present Availability - Roads connecting most of the tourist centres are narrow and in poor condition.

Target - (i) There must be vide (4-lane) concrete roads connecting the following places :

Bangalore-Hampi-Badami-Pattadakal
Bangalore-Hassan-Mangalore
Bangalore-Mysore
Bombay-Shirdi
Calcutta-Trivandrum-Kaniyakumari
Delhi-Agra
Delhi-Jaipur-Udaipur
Delhi-Haridwar-Rishikesh
Hyderabad-Nagarjunasagar
Hyderabad-Bijapur
Jaipur-Jodhpur-Jaisalmer
Madras-Pondicherry
Madras-Tirupati
Varansi-Gaya-Patna

(ii) All the tourist centres must also be connected to metro cities.

Action Programme/Investment -

(a) Encourage private sector to build and maintain roads leading to tourist places.

(b) Ministry of Surface Transport and the concerned State Governments must take- up widening and improvement of selected roads immediately.

(c) Estimated investment requirement will be Rs. 1700 crores.

12.6 ROAD TRANSPORT SYSTEM

Infrastructure Component - Road transport system
Present Availability - Very few air conditioned cars and coaches.
Target - There must be atleast 500 air conditioned coaches and 2000 air conditioned cars.

(The Ministry of Finance, Govt of India vide notification dated 1st March 1994 have allowed one tonne import of 1500 Ac cars and 250 Ac coaches at reduced customs duty for specified Tourism corporations)

Action Programme/Investment -

(a) The scheme of allowing import of capital goods at a concessional duty of 15% with an export obligation of 4 times the CIF value within a period of 5 years be made applicable to hoteliers, travel agents, tourist operators etc. for the import of air-conditioned coaches and cars.

(b) Central and State Touriusm Development Corporations must be provided with funds for importing air-conditioned coaches and cars.

(c) Allow local manufactures to import parts and spares free of custom duty to manufacture and repair air- conditioned coaches and cars of international quality.

(d) Encourage reputed international companies to set up manufacturing units in India to produce air-conditioned coaches and cars.

(e) Estimated investment requirement is Rs. 350 crores.

12.7 INTEGRATED DEVELOPMENT OF TOURIST CENTRES

Infrastructure Component - Integrated Development of tourist centres.
Present Availability - The popular tourist centres in the country generally lack basic amenities and tourism infrastructure.
Target - The tourist facilities available at the metro cities need to be upgraded to international standards.

The basic amenities like internal roads, water supply, sewerage, electricity, gas, telephone connections etc. along with the necessary tourist facilities have to be provided at all the selected tourist centres.

Action Programme/Investment -

(a) formulate sub-plan for the development of tourist facilities in each of the metro cities and implement.

(b) Prepare master plans for each of the selected tourist centres and undertake environmental planning and area development according to tourism sub-plan.

(c) Provide proper road net work, water supply, sewerage, electricity, gas and telecommunication facilities.

(d) The authorities set up for the development of notified Special Tourism Areas like Bekal Beach, Sindhu Durg, Puri-Konark beach etc. should be given adequate funds for acquiring land to develop according to master plans.

(e) Estimated investment requirement will be Rs. 8,200 crores.

(At the rate of Rs. 500 crores each for 4 metro cities and Rs. 100 crores each for others)

12.8 MONUMENTS

Infrastructure Component - Monuments
Present Availability - Monuments which are the main stay of Indian tourism lack proper maintenance and basic amenities.
Target - Monuments of tourist importance need to be refurbished and facilities like drinking water, toilet etc. have to be provided around then along with land scaping.

Action Programme/Investment -

(a) The scheme should be implemented in co-operation with State Governments.

(b) The estimated requirement of investment is Rs. 150 crores.

12.9 PILGRIM CENTRES

Infrastructure Component - Pilgrim Centres
Present Availability - Pilgrim centres in the country generally lack basic amenities, essential tourism infrastructure and accessibility.

Target -

(a) Basic amenities like drinking water, drainage, sewage, solid waste disposal systems, electricity and telecommunication facilities need to be provided in all the identified pilgrim centres.

(b) All man-made congestion and obstructions on streets and passages around the shrines need to be removed to improve accessibility and appearance at the shrines. The necessary land scaping of the area also need to be done.

(c) Adequate accommodation and restaurant facilities (including temporary facilities to meet the increased demand during peak seasons) need to be provided in all the centres.

(d) The road net work connecting the pilgrim centres need to be improved for ensuring better accessibility. In the case of the five major pilgrim centres, airport facilities and air connections also need to be provided.

Action Programme/Investment -

(a) Prepare land use plans for the integrated development of each of the pilgrim centres. The plans should provide for basic amenities, essential tourist facilities, shopping complexes and better accessibility including airports.

(b) The concerned Shrine Management Committees and local bodies should raise resources for meeting the developmental expenses within the Shrine areas.

(c) Adequated funds by way of grant-in-aid should be provided by the Government for meeting all other expenses connected with the implementation of the land use plan as per the time schedule.

(d) The estimated investment requirement is Rs. 2050 crores.

12.10 HOTEL ROOMS

Infrastructure Component - Hotel Rooms
Present Availability - 48,000
Target - 125,000

Action Programme/Investment -

(a) Identify land for hotel construction in the master plan of all the selected tourist centres.

(b) Allot the identified land to private entrepreneurs freely for the construction and operation of hotels for a specified period of about 35 years. The hotels will pay lease fee according to turn over after third year of construction.

(c) Extend loan facilities by IFCI and other financial institution on easy terms.

(d) Provide all basic facilities like water, electricity, gas, telephone etc at reasonable rates.

(e) At an average cost of Rs. 10 lakhs per room, the estimated investment required is Rs. 7,700 crores during the next three years.

12.11 RESTAURANTS

Infrastructure Component - Restaurants
Present Availability - Standard restaurants are very few.
Target - There must be at least 10 good restaurants in each of the 71 tourist centres.
Action Programme/Investment -

(a) Identify land in the master plans and provide then on easy terms.

(b) Provide basic amenities including water, electricity, gas and telephone connections on priority basis.

(c) Provide the necessary loan assistance.

(d) The estimated investment required is about Rs. 370 crores.

12.11 RESTAURANTS

Infrastructure Component - Convention/Conference facilities
Present Availability - Available only at Delhi and Srinagar.
Target - Establish at least 4 convention cities.

Action Programme/Investment -

(a) Establish the convention cities as joint venture.

(b) The estimated investment required is Rs. 400 crores.

12.13 SHOPPING COMPLEXES

Infrastructure Component - Shopping complexes
Present Availability - Available only at major cities.
Target - There must be at least 2 shopping complexes selling standard items in each of the tourist centres.

Action Programme/Investment -

(a) Identify land in the master plans and provide them on easy terms.

(b) Encourage private entrepreneurs to put-up such complexes.

(c) The estimated investment

required is Rs. 1,400

crores.

12.14 ENTERTAINMENT AND INFORMATION

Infrastructure Component - Entertainment and Information

Centres.

Present Availability - Central Government and State

Government information centres

are available at some of the

places.

Target - Each of the 71 tourist centres

must have at least one

information cum activity

centres with modern

communication systems and

theatres.

Action Programme/Investment - (a) These centres have to be

established by the

concerned State

Governments.

(b) Estimated investment

requirement is Rs. 40

Crores.

12.15 MAN POWER

Infrastructure Component - Man Power

Present Availability - The training infrastructure

presently available includes :

(a) 16 Government Hotel

Management and Catering

Technology Institutes with

an annual intake of about

1200 trainees.

(b) 15 Government Food Craft

Institutes with an annual

intake of about 1200

trainees.

(c) A few private institutes

of Hotel Management with

an approximate total

capacity of 150 trainees.

(d) The Indian Institute of

Tourism and Travel

Management and its

chapters with an

approximate annual

capacity of 1300 trainees

for training in tourism

management.

(e) Some Universities and

private institutions with

an annual capacity of

about 1000 trainees for

training in tourism.

Target - The Capacity of training in

food crafts, hotel management

and catering has to be

increased to be at least 16700

per year.

It would mean :

(a) 41 Hotel Management

Institutes with a capacity

of 8200 trainees per year.

(b) 43 Food Craft Institute

with a capacity of 8500

trainees per year.

(c) The annual intake capacity

of the Indian Institute of

Tourism and Travel

Management and its

chapters along with

universities should be

increased to at least 3000

per year.

In addition the training

requirements of grass root

level workers and chief also

have to be met be

establishing the necessary

training infrastructure.

Action Programme/Investment - (a) The National Council of

Hotel Management and

Catering Technology should

encourage the setting up

of private institutes and

provide technical inputs

and recognition.

(b) At least one Hotel

Management Institute or

one craft institute each

should be established in

each of 71 tourist

centres. Of the additional

Institutes 15 more should

be in the Government

Sector.

(c) A national culinary

institute and 4 regional

institutes should be set

up for the training of

chiefs.

(d) The Indian Institute of

Tourism and Travel

Management (IITTM) and its

chapters should take up

training of grass route

level workers like

immigration officers, taxi

drivers, guides etc.

(e) The Universities should be

encouraged to start

regular and correspondence

courses on tourism.

(f) The State Governments

should also take up

training of grass route

level workers in tourism

activities.

(g) The estimated Investment

requirement is Rs. 140

crores.

12 ACTION PLAN

12.16 TOURIST FACILITATION SERVICES

Infrastructure Component - Tourist facilitation Services.

Present Availability - There are more controls and

less facilities.

Target - (a) All unnecessary controls

have to be removed.

(b) Facilitation services at

the airports need to be

upgraded to international

standards.

(c) Availability of

information and guide

services need to be

improved.

Action Programme/Investment - (a) Remove visa restrictions

at least in respect of

countries having high

tourism potential and

least security threats

like Japan and

Switzerland.

(b) Open up North Eastern

States by removing RAP/PAP

restrictions from most

part of them.

(c) Remove the restrictions on

photography and video

filming of monuments.

(d) Provide money changing

facilities through

authorised agents in all

the tourist centres.

(e) Establish information

centres in the major

tourist centres and

augment the information

services at the airports.

(f) Upgrade the hardware and

software systems for the

clearance of passengers at

the airports by

introducing trained

personnel and modern

technology equipments.

(g) Introduce air-conditioned

taxies with electronic

fare meters in all the

tourist centres. It has to

be immediately done in the

four metro cities and Goa,

Bangalore and Hyderabad.

(h) Taxi and Coach enclosures

extending from arrival

halls should be provided

in all the international

airports so that

passengers can queue up

easily and pick-up taxis

and coaches without

hassles. These enclosures

should be controlled by

special staff of

*Intelligence Bureau* to

check anti-social

elements.

(i) Estimated investment

requirement is Rs. 50

crores.

12.17 PROTECTION OF TOURISTS

Infrastructure Component - Protection of tourists

Present Availability - The tourists are presently being

cheated and extorted by unethical

taxi drivers, traders and guides.

Target - The tourist centres should be made

free from such evils.

Action Programme/Investment - (a) An effective publicity

campaign has to be launched to

educate the people about the

importance of tourism and how

their acts of extrotion and

hostility can destroy the

image of the country and

tourism.

(b) The law enforcing agencies

should exercise greater vigil

around airports, railway

stations and places of tourist

shopping.

(c) Central and State Government

agencies should make use of

the provisions of Consumer

Protection Act and Rules to

deal with dishonest taxi

drivers, traders and guides.

(d) The investment requirement is

Rs. 10 crores.

12.18 REGULATIONS AND INCENTIVES

Infrastructure Component - *Regulations and Incentives*

Present Availability - (a) There are certain regulations

at present which are adversely

affecting the balanced growth

of tourism industries.

(b) The incentives presently

available to tourism

industries are also not

capable of inducing

greferential investment in the

sector.

(c) The tax burden on hotel

industries is upto 45 precent

in certain states including

20% expenditure tax charged by

the Central Government.

Target - (a) The regulations and policies

on tourism industries should

be made growth oriented and a

package of incentives should

be made available to attract

large scale private

investment.

(b) The tax burden on hotel

industries has to be reduced

substantially to ensure

adequate demand and

profitability.

Action Programme/Investment - (a) The prohibition of any

construction within 200 mtrs

of high tide line may be

relaxed for small un-inhabited

islands selected for the

development of Inland tourism.

The developers of such islands

also should be allowed to

install desalination plants,

water treatment plants

incinerators etcs.

(b) The cost of land is a major

deterrent for the construction

of accommodation units in

tourist centres. Availability

of land freely as mentioned

against item 10 (b) has to be

ensured in all the listed

tourist centers.

(c) In view of the fact that

construction of hotels in

highly capital intensive, the

availability of loans at an

effective rate of interest

below 14% has to be ensured by

providing suitable interest

subsidy.

(d) Debt equity ratio of 1:2 to

1:4 should be allowed in the

case of hotel projects seeking

loans from financial

institutions.

(e) The cost of approach roads,

extension of electricity

lines, sewerage and water

supply should also be included

in the project cost while

sanctioning loans to heritage

hotel projects.

(f) The expenditure tax on all

hotels has to be abolished.

12.19 PROMOTION AND MARKETING

Infrastructure Component - Promotion and Marketing

Present Availability - The Department of Tourism is

presently having 18 overseas

offices and an annual budget of

about Rs. 54 crores for

publicity and promotion abroad

in the year 1994-95.

These offices are not fully

requipped with resources and

database for undertaking effective

market promotion. There is also no

machinery at the headquarters for

undertaking market research to

formulate marketing strategies

with reference to each specific

market and for guiding and

co-ordinating the activities of

field offices.

Target - The overseas publicity and

marketing efforts have to be

guided by proper market reseach

and specific strategies they

should also be regularly monitored

and reviewed.

Action Programme/Investment - (a) Strengthen the Market Research

Division of the Department

immediately by creating a few

professional posts like 2

Marketing experts, 2

statistics/survey experts and

one computer specialist. The

Department should also be

allowed to take the assistance

of professionals on short term

tenure basis.

(b) Initiate Market Research

Studies and surveys both

within the country and

selected overseas markets.

(c) Strengthen the Publicity and

Marketing Division of the

Department to guide and

monitor the activities of

overseas offices. The

immediate requirement is 4

marketing experts with

adequate experience in

overseas publicity and

promotion.

(d) The field offices at New York,

London, Franklurt, Paris,

Singapore and Tokyo need

immediate strengthening. Each

of these offices should have

one additional post of

Assistant Director and one

post of Information Assistant

and one Office Assistant each.

(e) There should be flexibility in

opening/relocation of overseas

field offices. An office each

has to be opened at Seol

(South Korea) Johannesberg

(South Africa) and Iel Aviv

(Israel) by closing offices at

Bangkok, Bahrain and

Kaulalampur.

(f) The annual publicity budget of

the Department has to be

increased to at least Rs.

200/- crore per year.

13 INVESTMENT

The total investment requirement in the next three years for achieving 5 million target would be of the order of Rs. 39,100crores with a Government expenditure of Rs. 13,640 crores, publicsector expenditure of Rs. 11,600 and private investment of Rs. 13,860 crores. The annual return on investment in foreign exchangewould be Rs. 14,000 crores. It means that the entire investmentwill be recovered in about three years.

13.1 PROJECTED INVESTMENT

-----------------------------------------------------------------------

Government Sector - Rs. 13,640 Crore

Public Sector - Rs. 11,600 Crore

Private Sector - Rs. 13,860 Crore

------------------------------------------------------------------------

Total - Rs. 39,100 Crore

-------------------------------------------------------------------------

13.2 ITEM-WISE BREAK-UP OF INVESTMENT

Rs. Crores

--------------------------------------------------------------------------------------------------------

ITEM Government Public Private

--------------------------------------------------------------------------------------------------------

International air seat capacity -- 8,500 --

International airports -- 2,000 500

Domestic air seat capacity -- 1,000 3,000

Railway net work 320 -- 20

Road Network 1,650 -- 50

Road transport systems -- 50 300

Integrated Development of tourist

centres 8,200 -- --

Monuments 150 -- --

Pilgrim centres 2,500 . -- 350

Hotel rooms -- -- 7,700

Restaurants -- -- 370

Convention/Conference facilitie 300 -- 100

Shopping Complexes -- -- 1,400

Entertainment & Information

counters 40 -- --

Manpower 70 -- 70

Tourist facilitation services -- 50 --

Protection of tourists 10 -- --

Regulations and incentives -- -- --

Promotion and Marketing 400 -- --

---------------------------------------------------------------------------------------------------------

Total 13,640 11,600 13,860

----------------------------------------------------------------------------------------------------------

14 INDIAN TOURISM

Tourism is the fastest growing industry in the world. However, India's share is stagnating at a small 0.3 per cent with almost seven major faiths and a population exceeding 800 million, India celebrates one festival or another every day of the year. But we have hardly been able to sell these festivals.

The only festivals which have attracted tourists are the Pushkar festival in Rajasthan, Hemis in Leh and the Khajuraho dance festival. But the Boat race on Onam and elephant race also has potential if promoted properly. Holi is not attractive due to health hazards associated with it. If it can be developed on proper lines, it can be a big draw. The Brazilian carnivals are sold out one year in advance, but now, even the Goa Carnivals are becoming popular. Durga Puja, Ganesh Utsav, Navratri, Holi, Diwali, all have great

potential.

The cultural diversity of India has resulted in a wide variety of handicrafts, which creates lot of interest among p73 foreign tourists. India has traditionally been a shoppers' paradise. Foreigners make a bee line for brassware, silk, carpet and jewellery etc. Most of the people come to India with two suitcases one of which is empty. But the absence of any kind of shopping system is a big drawback, as tourist often feel cheated.

By and large, Indians are not so mobile as people in the west, as most of them are economically poor. So they visit pilgrimage places or native and other places whenever they find time or are obliged by necessary socio-religious reasons.

However, of late, among the elite and the burgeoning upper middle class, people do find time to visit places of tourist interest either on their own or on leave travel allowance they get and enjoy vacations. Also, when people are on social or business tour, they do some sight-seeing around; they hardly go on tours- planned tours as such. But now with changing times, this trend towards tourism is also gradually picking up as can be seen from the increasing number of tour-operators and tourist agents in the country.

Nevertheless, pilgrim flows account for a very large chunk of domestic tourism. Most of the traditional pilgrims are from the lower middle and poor classes, who are often unmindful of hard-ships, in the journey. It does not mean that they do not like affordable facilities and amenities if provided.

Some of the well-known pilgrim places like *Tirupati, Shirdi*, *Veerpur*, etc do provide reasonable facilities for transport, lodging and boarding at affordable rates. But most of the traditional rest resorts like dharmashalas are often in bad conditions with poor sanitary amenities owing to financial constraints and management apathy. Under the circumstances, basic amenities like lighting, fans, drinking water and cleanliness provided at lodging and boarding places, will be most welcome, even if charged.

The need for promoting domestic tourism by offering for example Alibag in place of Agra with low budget decent boarding and lodging facilities provided. While reliable data are not available, the volume of domestic touists in the country was officially placed at around 63 million in 1990, this is much larger than the flow from abroad. The government has made significant contribution in the service sector which is best left to private initiative and investment both domestic and foreign, for accelerated growtll within the broad guidelines and incentives and fiscal concessions. In order to stimulate growth of accommodation at tourist places, the government has given a large number of concessions for hotels to come up in rural areas, hill station pilgrim centres and special tourism destinations. There are a larger number of places even in rural areas which can be collveniently converted into heritage hotels. A paying guest accommodation scheme can be introduced to provide affordable and hygienic accommodation both for domestic and foreign tourists.

With a view to attracting tourists and generating employment, craft villages like Surajkund Mela, Shilpagram, Udaipur and Bhujudi in Kachahah can be set up in different parts of the country which will also boost the traditional handicrafts of the regions.

15 PROBLEM

India's 6000 kms long coastline traces a shining garland of sand, rocks and pebbles around her outline and is dotted with several pristine beaches and world class beach resorts. Beaches are good, considering the size of the water, but there is a marked lack of infrastructure. If the same can be established, these can become the best beaches in the world.

15.1 BIHAR

India, being the land of Buddha, holds special attraction for tourists from *Japan, Korea, Taiwan* and other countries which have a large Buddhists following *Bodh Gaya, Nalanda, Rajgir, Sarnath and Sanchi* are revered by the followers of Buddha. The Japanese have donated generously to develop these places but even then the tourist inflow remains miniscule. They have been coming but not in numbers that were expected. Except for 2013 places, the accommodation is so bad that can't even stay there. Food is poor. In many in Bihar, even large distances have to be covered by road, which are so terrible that by the time half of the distance is travelled, air conditioner stops functioning. There have been security problems also. It is a must to improve the infrastructure to make this circuit grow in a big way.

15.2 GOA

Goa has gained tremendous popularity since the past 2-3 years but it is getting saturated now. But many other beaches can also be promoted in the same way. Kovalam is the best beach in India, and can be developed on the same line as that of Goa. It is lack of infrastructure, which is the main problem. There are excellent beaches in Orissa, but the airport facilities are to be upgraded, where at present only Boeing 737 can land.

15.3 ANDAMAN NICOBAR

For Andaman there are only three flights from Calcutta and four from Madras per week, which are full of local passengers. This island should be opened up for direct flights from places like Thailand, Lakshdeep has an airport at Agalti, but it takes only Vayudoot flights. Maldives, which is almost same as that of Lakshdeep receives so many direct charter flights from Europe. To overcome this the Department of Tourism has approved two luxurycruiser vessels for Andaman and Nicobar Islands.

15.4 KASHMIR

Stretching along the northern borders of India is the world's highest mountain chain - The Himalayas. India is a true mountaineering country with snow covered peaks, undulating forested foothills, mountain streams and an infinite variety of flora and fauna. Unfortunately, Kashmir was the only destination, which was promoted among hill stations, where terrorism has now taken over the natural beauty.

15.5 PROBLEM OF INFRASTRUCTURE

The problem is the same lack of infrastructure. There are hardly an hotels in Kulu. Compare it with Kathmandu, which has so many hotels, good surface transport and numerous flights. One of the most beautiful states in India, Sikkim, still doesn't have an airport. North-east is the most beautiful, but one should not be tempted to market if without proper infrastructure. It is clear that with the development of infrastructure tourism will have all the making of a booming industry. The government expects the foreign exchange earnings to improve Rs. 1000 crore by the end of the century. It expects the Indian share of tourism market to improve to 1 per cent from 0.3 per cent.

15.6 DESERTS

Even our deserts can prove to be a great attraction. Jaisalmer has already been established as a popular tourist destination. Muscat, Dubai and Sharjah has developed the desert tourism, should follow them to develop this kind of tourism.

India's vast geographical diversity provides an immense variety of outdoor thrills. Trekking altitudes range from 9,000 ft. to 14,500 ft. above sea level and in Ladakh goes upto as high as 18,000 ft. above sea level. Trekking is very popular. Part of the trekking traffic may be diverted to India, if we make efforts for the same. Water skiing on Srinagar, Dal and Nagin lakes is popular. Trout fishing is a delight in Kashmir, Himachal and Uttar Pradesh. India provides the cheapest ski holiday anywhere in the world. Skiing usually starts by the end of December and lasts till the end of March. There are gentle ski runs for beginners as well as exhilarating steep runs for advanced skiiers.

15.7 SPORTS

The adventure sports is the segment, where experts visua lise a possibility of India emerging on the top, but here too infrastructure is needed. You can't take adventure trips without expert and proper equipments as there is a risk to life. Still the positive fact is that equipments are not exhorbitantly costly and these can always be imported.

The country has a wide variety of wildlife. It's geo-graphic climatic and vegetational diversity makes it the home of over 1200 types of birds ancl 350 animals spices, many of which are unique to the subcontinent. India has 53 national parks and 247 sanctuaries spread over 90,000 sq.Km. Wildlife capable of attracting tourists independently or is it only a supplementary product offered in the other packages. Probably we have a much inferior product to offer in comparison to *Kenya and Tanzania*. It is not capable of being promoted as a main product. Now due to climatic changes, Bharatpur, is not attracting many birds from Siberia, which it used to attract many years ago. Also the lions found in our parks are not as attractive as the African Lion. In Tanzania, you may find Lions in groups of twenty, but in India two lions.