a quarterly report by - Technopak

perspective
a quar terly repor t by
Enterprise Nexus, Mumbai, to create a television commercial.
In September 2002, the tourism department unveiled a new campaign called ‘Incredible India’ to promote
Indian tourism globally. The first phase of the campaign, for a period of three months, was jointly funded
by the Government of India and Experience India Society, an association of travel agents in India. The
campaign that focused on the himalayas, wildlife, yoga, and ayurveda, was widely promoted in the print
media, television, and the internet. The television campaign was telecasted on CNN, BBC, and other
popular channels across the world.
The government has identified 37 destinations for tourism development and over the last two years, over
600 projects in 300 tourist destinations have been developed with an investment of US$ 20 Mn. Central
financial assistance of US$ 1 Mn and US$ 2 Mn has been raised to US$ 5 Mn and US$ 10 Mn respectively
for major destinations depending on tourist traffic.
Through many innovative branding exercises, the government has been trying to promote tourism and
build awareness about India as a tourist destination – both in the domestic market and abroad. International
events such as Commonwealth Games in 2010 are also expected to increase arrivals in India. It is expected
that the inbound traffic is set to double to 10 Mn visitors in the wake of the Commonwealth Games in
2010.
To motivate travel agents to promote India and to familiarize them with new tourism products, the Ministry
of Tourism would provide financial assistance for participation in travel marts or annual conventions.
Through the India Tourism Initiative, the government plans to lease out heritage monuments which would
attract tourists from all across the globe.
The government has introduced a Capital Subsidy Program for budget hotels, a 5 year income tax holiday
for 2 to 4 star hotels and an exemption of fringe benefit tax for guest house facilities. Development of the
‘Home Stay’ concept and small capital subsidy for the development of budget hotels to encourage travel
stay options are being made popular.
In the 9th Five Year Plan, assistance has been provided for the construction of budget accommodation,
tourist complexes, wayside amenities, tourist reception centers, adventure & sports facilities, sound &
light shows, illumination and refurbishment of monuments. These schemes have been merged into two
schemes in the 10th Five Year Plan– integrated development of tourist circuits and product/infrastructure
and destination development.
The central government has introduced a scheme for assisting large revenue generating projects: Projects
like tourist trains, cruise vessels, cruise terminals, convention centers, golf courses etc. would qualify for
assistance. While considering projects for grant-in-aid under this scheme, priority will be given to projects
promoted by private sector and the projects with public private partnership (PPP).
A scheme of capacity building for service providers has been introduced and under this scheme the
institutions are conducting training at the Institutes of Hotel Management (IHMs) for the faculty and
students.
Uttarakhand State Government has announced 100% tax exemption for a period of 3 years to multiplex
projects in the state and for 5 years to all new amusement parks and ropeways. Similarly, Rajasthan
Government has reduced luxury tax from 10% to 8% for all hotels. Other states like Kerala, Gujarat, Madhya
Pradesh and Orissa are promoting themselves through the introduction of destination promotion coupled
with PPP.
The government is investing heavily on the infrastructure in the country. In the 11th Five Year Plan,
investment towards modernization of highways, development of civil aviation, irrigation systems, ports,
railways, telecom and power will be to the tune of US$ 472 Bn. In addition to the above, investments to
the tune of US$ 91 Bn have been planned in other infrastructure sectors like tourism infrastructure, urban
Volume 02 / 2009
| Volume 02
Indian Tourism : Managing Growth by Breaking Barriers |
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