In an exclusive to PRAVEEN K SINGH, the minister said a business model for investment and operations is being evolved, funded mainly by the ministry, state governments, viability gap funding (hotels and allied sectors to be included) and private participation.
Following are the excerpts:After assuming the role of Cabinet Minister for Tourism, what are your main concerns?Tourism is the largest service industry in our country. Its importance lies in being an instrument for economic development and
employment generation, particularly in remote and back-ward areas.
While laying the groundwork for the 12th Five Year Plan, we have asked for Rs 21,900 Crore in the 12th Five Year Plan outlay, in order to take new initiatives to accelerate growth and make it more inclusive. This will, directly and indirectly, provide 25.9 million jobs, and will result in foreign exchange worth 15.7 billion dollars.
We plan to increase India’s share of global tourist traffic from the current half per cent to one per cent in the 12th plan, apart from increasing its annual growth from the current 9 per cent to 12.5 per cent. We have identified 35 destinations to be developed as tourism hubs. The ministry is also planning to develop 20 tourism parks across the country. Our approach will be to carry out these development activities within the gambit of the PPP model.
We also propose to undertake an extensive social awareness campaign under the ‘Atithi Devo Bhava’ initiative.
What, according to you, are the road-blocks looming up ahead?First and foremost is infrastructure development, for which we are trying to create a synergy between all the stakeholders.
The issues of sanitation, solid waste management and clean water are major concerns. We are also planning to sensitise and create general awareness among all stakeholders, including local communities.
Other than that, we also need to rationalise the tax structure, as it is counter-productive to growth in its current state.
What are your plans to upgrade infra-structure for sustainable growth in the tourism sector?We are planning integrated development of tourist circuits, destinations and cities in mission mode, on the pattern of the JNNURM and Delhi-Mumbai Industrial Corridor. For this. we have initially identified 35 tourist circuits, destinations and cities for development in Phase–I, through professional agencies.
We have also looked into gaps in infrastructure and amenities, and assessed the investment requirement. The ministry is working on business models for investment and operations, funded mainly by the ministry, state governments, viability gap funding (hotels and allied sectors to be included) and private participation.
[PAGE BREAK]We are insisting on capacity augmentation of states by setting up Project Monitor Units (PMUs) for project implementation. The out lay required for this strategy in the 12th Plan is Rs 9450 crore. We think that we will be able to harness private investment of Rs 28000 crore to this end.
We are working on the development of Tourism Parks, each spanning at least 50 acres of land, and on ear-marking sufficient land for
hotels, convention centres, entertainment parks and skill training centers. Facilities for craft centers, haats, entertainment and amusement, food streets, sports and hosting of cultural events and festivals are also on our plan.
The idea is to create Tourism Parks on the pattern of Sentosa (Singapore) and Cancun (Mexico). The tourism destinations will also enhance rural infrastructure and supplement the Bharat Nirman Plan. We want state governments to provide tax incentives, speedy clearances, higher Floor Area Ratio (FAR) and connectivity to sup-port the initiative.
From our side, we will provide core infrastructure and tax incentives. Initially, in the first phase, 20 tour-ism parks to be developed in mission mode, with an outlay of Rs 1000 Crore. We are also working towards developing Rural Tourism Clusters (RTCs). For this, we have identified clusters of 5 to 7 villages which have unique crafts, ethnic art forms, or other USPs that can be marketed as a ‘tourism product’. 70 RTCs are to be identified and developed under the 12th Plan, with an outlay of Rs 770 crore.
How do you plan to involve the states towards an integrated tourism development plan in the country?Active involvement of all the states is a pre-requisite for integrated tour-ism development. We are planning to involve states through convergence and the framing of an investor-friendly Tourism Policy.
We wish the tourism initiative to spring from the cultural and historical diversity in the country. Part of the plan is to develop various religious circuits to attract large number of foreign tourists.
We are involving industry chambers like ASSOCHAM, CII, FICCI, PHDCCI and ICC to increase awareness of states with regard to realising the potential of tourism for economic development and employment generation.
We have also instructed states to identify infrastructure gaps and ensure intervention at the highest level. We want to make tourism development an economic and political agenda, and for this, states should promote sustainable, safe and honourable tourism.
The issue of service tax has been a big hurdle in the promotion of the sector. How do you plan to tackle it?Service tax is indeed a matter of concern for us. I have already written to the Finance Minister to reconsider it. The Prime Minister has given me an assurance about the same. The government has to realise the fact that the tourism sector is a forex and employment-generating sector.