Tourism Policy

Contents

• The World Scenario and Indias Position
• Tourism in the State
• Objectives
• Approach and Strategy
• Policy Proposals

5.1 Tourism as Industry

5.2 Redefining the roles of the State and the Market

5.3 Perspective Planning

5.3.1 Religious (Pilgrimage) and Archaeological Tourism

5.3.2 Heritage Tourism

5.3.3 Wildlife Tourism

5.3.4 Coastal and Beach Tourism

5.3.5 Tourism Based on Traditional Art and Craft and Cultural Activities

5.3.6 Corporate Tourism

5.3.7 Adventure Tourism

5.3.8 Highway Tourism

5.4 Human Resources Development

6. Feedback and Monitoring

1. The World Scenario and Indias Position

In recent years tourism has emerged as a major economic activity that is employment oriented and earns foreign exchange. Its share in the worlds GDP in 1994-95 was 10% which is more than the world military budgets put together. In global terms, the investment in tourism industry and travel trade accounts for 7% of the total capital investment. Today 21.2 crore people around the globe are employed in travel trade and tourism. In future, this industry is likely to see unprecedented growth. According to the World Tourism Council at Bruseels, the revenues from travel and tourism in Asia Pacific region will grow at the rate of 7.8% annually over the next decade.

Amongst the economic sectors, the tourism sector is highly labor intensive. A survey by the Government of India notes that the rate of employment generation (direct and indirect) in tourism is 52 persons employed per Rs.10 lakh investment (based on 1992-93 Consumer Price Index). This is much higher than the rates of employment generation in most other economic sectors.

Indias tourism industry has also recorded phenomenal growth. The rate of international arrivals in India in recent years has been to the tune of about 19 lakh arrivals per year. The unprecedented growth in tourism in India has made it the third largest foreign exchange earner after gem and jewellery and ready-made garments. This is not surprising since India possesses a whole range of attractive normally sought by tourists and which includes natural attractions like Iandscapes, scenic beauty, mountains, wildlife, beaches, kajor rivers and manmade attractions such as monuments, forts, palaces and havelis. However, in global terms, inspite of such attractions, tourist arrivals in India are a mere 0.30% of the world arrivals. Receipts are similarly low, just a 0.50% of the world receipts. We are still quite far from the target of 50 lakh tourist arrivals per year.

2. Tourism In The State

A separate Tourism Department was established in 1973 to identify and develop the tourism potential in the State. This was followed by the creation of Tourism Corporation of Gujarat Limited in 1978 which was entrusted with the task of undertaking and developing tourism-related commercial activities. The Corporation is presently engaged in a variety of activities such as creation of lodging and boarding facilities for the tourists and other aspects of tourist acilitation such as transportation, packaged tours, wayside catering along the National and State Highways, arranging cultural festivals, organizing exhibitions and producing and distributing maps, posters, brochures and pamphlets. The Corporation has set up accommodation facilities at Chorwad, Ahmedpur Mandvi, Porbandar, Veraval, Hajira, Ubharat and Tithal. Similar facilities at pilgrimage centres like Palitana, Somnath, Dwarkja, Pavagadh and Dakor have also been set up by the Corporation. One of the recent tourist attractions introduced by the Corporation in collaboration with the Indian Railways is a special tourist train. The Royal Orient Train which connects up various tourist destinations straddling the Gujarat and Rajasthan State. However, the Corporation has suffered losses due to a number of organizational constraints. In order to minimize these losses and also to provide better services to the tourists, the Government has undertaken privatisation of some of the commercial property units of the Corporation.

In spite of possessing a variety of tourist attractions such as wildlife, scenic beauty, pilgrimage centres, exotic traditional crafts and festivals, beaches, hospitality of the region and a varied healthy and tasteful cuisine, the State has not been able to accelerate the pace of tourism in comparison to other states. In 1991, the State did declare a tourism policy but it did not elicit adequate response from the private sector since the policy contained only a handful of benefits while the implementation was tardy due to legal and administrative constraints. This was at a time when the Government of India had already declared tourism as an industry and a large number of states had followed suit. This enabled the tourism industry to avail of incentives, reliefs, benefits available to the industry in those states.

While other state Governments made successful efforts in developing tourism within their states, the relative inability of the Gujarat State to harness and develop its full tourist potential may be attributed to a combination of factors such as lack of effective policies, inadequate infrastructure, ineffective marketing and lack of decent facilities for the tourists.

The main rationale for formulating a comprehensive tourism policy is rooted, on one hand,in the convergence of socio-economic spread benefits, environment - friendliness and employment potential of tourism industry and on the other, in the growing demand for tourism products in the State, brought by a rapid industrial growth in the State during the recent years that has led to tremendous increase in number of business travellers.

3. Objectives

The main objective of the States Tourism Policy will be to undertake intensive development of tourism in the State and thereby increase employment opportunities. The following related objectives are dovetailed with main objectives

• Identify and develop tourist destinations and related activities.
• Diversifications of tourism products in order to attract more tourists through a varied consumer choice.
• Comprehensive development of pilgrimage centres as tourist destinations.
• Create adequate facilities for budget tourists.
• Strengthen the existing infrastructure and develop new ones where necessary.
• Creation of tourism infrastructure so as to preserve handicrafts, folk arts and culture of the state and thereby attract more tourists.

4. Approach and Strategy

In addition to the facilitation role assigned to itself by the Government in the development of tourism, the Government will adopt the following strategy towards the private sector with the objective of securing its active involvement in leading the development of tourism in the State.

• The tourism will be given the status of industry in order that the facilities and benefits available to the industry are also made available to tourism projects.
• A special incentives package will be made available for encouraging new tourism projects as well as expansion of existing tourism units.
• Infrastructural facilities will be strengthened and developed within the State, particularly in Special Tourism Areas which will be notified latter and which will be developed by adopting an integrated-area.
• Effective mechanisms will be set up to build meaningful co-ordination with the Central Government and the State Governments agencies, the local self-government bodies and the NGOs.
• Government will encourage building effective linkages with the relevant economic agents and agencies such as the national and international tour operators and travel agents of repute, hotel chains and global institutions connected with tourism such as WTO.

5. Policy Proposals

5.1 Tourism as Industry :

5.1.1 Like other industrial projects, tourism projects too involve professional management, capital investment, special skills and training. The Government of India and a number of other states have declared tourism as an industry. Gujarat State which is at the forefront of the industrial development will also declare tourism as an industry. This will enable the tourism projects to be reliable to get benefits contained in the paras 5.1.2 and 5.1.3 below.

5.1.2 Availability of land is a primary requirement of any project. The process of grant of land will be facilitated in urban areas for the projects concerning setting up of hotels, restaurants and apartment hotels etc.

Existing arrangements for grant of government waste land to industrial units will be made applicable to various tourism projects.

Arrangements will be made to acquire private land under Land Acquisition Act for various tourism projects by companies registered under the Companies Act.

The existing commercial rates of NA assessment applicable to land involving tourism projects would be reviewed and rates of NA assessment for industrial purposes will be made applicable to them.

5.1.3 As one of the sets of infrastructural institutions, the State Financial Institutions have made an important contribution in creating conductive environment for industrial entrepreneurs. They will be called upon to do the same for tourism entrepreneurs in terms of making available adequate finance.

So far, the lending from the State Financial Institutions has been largely confined to hotels only. In reality, the range of activities for tourism projects is far larger than just hotels as can be seen from the following illustrative list :

Accommodation Projects :

• Hotels
• Resorts
• Motels
• Apartment Hotels
• Heritage Hotels

Food Oriented Projects :

• Restaurants
• Wayside Facilities on the State Highways.

Other Tourism - Related Projects :

• Amusement Parks and Water Sports
• Handicraft Village Complexes
• Fairs and Festivals.
• Camps and Facilities Encouraging Adventure
• Train Travel Projects
• Sea/RiverCruise Projects
• Sound and Light Shows
• Museums
• Natural Parks/Zoos
• Safari Projects
• Ropeways
• Sports/Health Facilities Complexes
• Training Schools for the managerial expertise for Hospitality Industry.
• Golf Courses.

Service Oriented Projects :

• Travel Agency
• Tour operation
• Transport Operation
• Linkage with the International Hotel Chains (Franchise)
• Human Resources Development (HRD) for Tourism Industry and necessary training facilities.

Most of the projects on this illustrative list are not eligible for loans from the banks or the State Financial Agencies. It will be necessary to make suitable changes in the lending criteria for viable projects in the listed activities in order than their financial requirements are met.

The modification of the lending criteria of the State Financial Agencies will be made with regard to the financial ceiling, debt equity ratio, recovery period, moratorium etc.

Necessary arrangements will be made to ensure that the State Financial Agencies and the banks attach adequate priority to the financing requirements of tourism projects.

5.1.4 As referred to in Para 4(b), a new incentive pac kage will be made available to replace the existing incentive policy instituted in 1991. A tax holiday of 5-10 years in respect of following taxes will be made available upto 100% of capital investment to various tourism projects located in Special Tourism Areas whether declared by the Central Gov ernment or the State Government, located in designated areas and located on National and State Highways. The scope and the extent of the benefits of tax holiday will vary according to certain considerations such as the admissible expenditure, the size of the capital investment etc. The benefit of tax holiday will also be made available for the purpose of expansion of the existing tourism projects in these areas :

• SalesTax
• Purchase Tax
• Electricity Duty
• Luxury Tax
• Entertainment Tax

Necessary administrative arrangements will be made at the State and District Level to operationalize the incentive schemes.

Suitable schemes will be designed to market tourism products, and particularly wide publicity will be secured in respect of various facilities being offered by the travel agents, tour operators etc.

Special paying guest scheme will be formulated for providing adequate and inexpensive lodging and boarding facilities too take care of seasonal flows of tourists to the pilgrimage centres during festivals.

Financial assistance will be provided for the preparation of feasibility reports by consultants in respect of tourism projects.

Structure of the taxes and tariffs, e.g. luxury tax, entertainment tax, sales tax, etc., will be reviewed with reference to developmental needs of tourism sector and necessary amendments will be made.

5.2 Redefining the roles of the State and the Market :

Since the approach of the Tourism Policy focuses on market-led developments, the role of the State would be as follows :

5.2.1 The Government proposes to make commercial services available entirely through private sector or in association with it. The States role will primarily focus on strengthening and upgrading existing infrastructure and development of new infrastructure. Reputed consultants will be hired to prepare area development master plans/feasibility studies in respect of important tourist destinations and areas of tourism potential, e.g. Sardar Sarovar Project Area, Kutch, Beach sites and area covering Porbandar,Gir Forest, Veraval, Somnath, Ahmedpur-Mandvi, Saputara, Modhera etc.

Efforts will be made to get funding for development of infrastructure for these destinations/areas from national and international agencies.

5.2.2. To ensure timely provision of necessary funding, the Government will earmark funds in the annual budgets of the departments concerned for securing the purpose mentioned in 5.2.1.

5.2.3 In conformity with States promotional role in the development of tourism sector, all competitive and commercial activities of Tourism Corporation of Gujarat Limited will be privatised except where no entrepreneur is coming forward to meet the existing need. This privatisation would help strengthen the financial position of the corporation and also help provide qualitative services to the tourists.

Tourism Corporation of Gujarat Limited will assume a catalytic role focused on acting as clearing house of information, production and distribution of promotional literature, policy advice etc.

The Tourism Corporation will assist entrepreneurs and agencies in tourism sector and will try to help alleviate their difficulties particularly vis a vis the Government and its agencies.

A Computerized Information Centre will be set up at the State level to make available necessary information to the agencies/entrepreneurs who wish to set up tourism projects.

In addition to its existing offices in Bombay, Delhi and Madras, the Tourism Corporation will also open its offices in other major cities of India to give wide publicity and disseminate information on Gujarat Tourism and market tourism products through these offices and through reputed travel agents in other big cities. Thus, the information about Gujarats tourist destinations and related information would be made available to tourists from outside the State in their own cities.

5.2.4 There is already a scheme of 50% matching grant from the State Government to the local self-governing bodies for the development of local tourist destinations. This scheme will be made more effective and attractive and necessary provisions in the budget will be made. This will help centralize the process of developing tourist destinations.

The process of decentralization will be further strengthened by delegation of administrative and executive powers of approval of incentives to small tourism projects to District Level Bodies headed by the Collector. These bodies, in addition, will also secure co-ordination from other departments / agencies of the Government in development and promotion of tourism. Representation will be given on this body to the experts, individual agencies and individuals connected with the tourism.

5.2.5 A Single window clearance system will be instituted for speedy clearance of various permissions, approvals required under different laws and rules. Necessary modification/amendment will be made to various administrative arrangements and laws which are not consistent with the approach of this Policy. Care will be taken to ensure that prospective investors do not have to suffer protracted and complex administrative process.

5.2.6 Intensive efforts will be undertaken to attract investors from outside the State as well as from other countries including non-resident Indians to invest in tourism sector on large scale. Tourism Corporation of Gujarat Limited and Directorate of Tourism will play active role to ensure that investors get various permissions easily and are provided with all the necessary facilities.

5.2.7 A High Powered Committee under the Chairmanship of Chief Secretary with Director of Tourism as the Member Secretary will be constituted with the objective of securing effective co-ordination among various Government departments and agencies as also to speed up decision making proceeds concerning tourism. The committee will meet regularly and enjoy full powers of Government, provided the approval of the Chief Minister and the Council of Ministers will be obtained wherever required.

5.2.8 In order to create a participate forum for deliberation and discussion concerning tourism industry, a Tourism Advisory Council headed by the Chief Minister will be set up. The Ministers and Secretaries of administrative departments concerned will be the members. The representatives of tourism industry, experts and related organisations will be nominated as members. The Additional Chief Secretary (Tourism) will be the Member Secretary of this Council.

The Council will meet periodically to deliberate upon policy as well as individual issues and offer suitable advice to the Government.

5.3 Perspective Planning :

Perspective plan for tourism development will be prepared in consultation with experts. An overview of possible tourism products is offered below :

5.3.1 Religious (pilgrimage) and Archaeological Tourism :

Gujarat has a preponderance of pilgrimage centers as in some other states. Somnath and Dwarka - some of the well known and revered sites of ancient Hindu temples are situated in the State. The temple architecture has reached heights of excellence in Jain temples at Shetrunji, Girnar and Taranga. The temple of Ambaji situated in Aravalli range in North Gujarat is an important religious centre for devotees in the country. Dakor, Pavagadh, Bahucharaji, Shamlaji, Narayan Sarovar, Sudamas Porbandar, Kabirvad Shuklatirth, Kayavarohan, Bhadrakali Temple Ahmedabad and Tankara - Maharshi Dayanand Saraswatis birth place are also important pilgrimage destinations which have kept alive the religious sentiments of the people. Lakhs of pilgrims visit these places every year.

These places are visited not only by the devotees from all over the country but also by non-resident Indians and travellers especially from the eastern part of the world. Necessary accommodation facilities and related services will be created on these sites. For ensuring orderly and planned development of pilgrimage centres, the State Government has constituted Pavitra Dham Vikas Board chaired by the Chief Minister. The Board will prepare and implement plans to provide necessary facilities to the devotees and also ensure conservation of cultural atmosphere consistent with sentiments of visiting devotees.

Shamlaji is an ancient site for Buddhists. The excavated relies of Buddhist period at the site are now kept in a museum at Baroda.

There are a number of places of archaeological importance is such as the temple-town of Palitana, Modhera with its Sun temple, historical Ranki Vav at Patan with relics of an ancient capital, the Girnar Hills with Hindu and Jain temples, Junagadh with a historical fort, Dabhoi, Champaner, Pavagadh, Shaking Minarets, Gandhi Ashram, Siddi Sayed Jali etc. These can be developed by providing necessary infrastructural facilities and marketed as tourist destinations to attract tourists.

5.3.2 Heritage Tourism :

A large number of old palaces, havelis, darbargadhs exist in the State. These historical buildings can be converted into hotels, restaurants or museums by providing suitable incentives to owners. Wildlife and Pilgrimage Tourism circuits can be linked to heritage properties exploiting the geographical congruity. Development of this sub-sector will not only attract foreign tourists but also provide encouragement and support to local art and craft.

Government will take necessary steps to promote Heritage tourism in the State.

5.3.3 Wildlife Tourism :

There is substantial scope for development of tourism based on wildlife in the State. Gir Forest of Gujarat is the last stronghold of Asiatic Lions. The Bear Sanctuary at Ratan Mahal (Dist.Panchmahal, Black Buch Sanctuary at Velavadar (Dist.Bhavnagar), Bird Sanctuary at Nalsarovar (Dist.Ahmedabad), Wild Ass Sanctuary at Kutch etc. can be effectively developed into tourist destinations by providing infrastructural facilities. In order to facilitate visitors to these areas, coordination among various agencies will be established.

5.3.4 Coastal and Beach Tourism :

The Gujarat State has the longest coastline among Maritime States of the country. Identified stretches of coastline can be developed into beaches from tourism point of view. It will be the endeavour of the State to develop beach potential by providing such facilities as may attract foreign tourists.

Various tourist destinations easily accessible from the coast will be linked through coastal shipping circuits.

5.3.5 Tourism based on Traditional Art and Craft and Cultural Activities :

Banni in Kutch, Khambhat, Junagadh etc. are known for their craftsmanship. Similarly, there are hundreds of fairs that are celebrated through out the year with enthusiasm. Tarnetar Fair in Surendranagar District, Chitra Vichitra Fair at Poshina (Sabarkantha District), Kanwat Fair at Chhota Udepur (Panchmahals District), Dang Darbar in Dang. Bhavnath Fair of Junagadh, Vautha Fair of Ahmedabad etc. have immense tourism value. By developing accommodation, transport and other facilities, these fairs and festivals will be promoted nationally and internationally. The places of importance from art and craft point of view will be included in the tourist circuits and necessary facilities provided to tourists.

5.3.6 Corporate Tourism :

Private sector will be encouraged to build the state of the art convention centres, seminar halls etc. so as to attract corporate events like seminar, workshops and annual general meetings. Participants in such events generally have high purchasing power and provide a boost to local economy.

5.3.7 Adventure Tourism :

This is also a territory with possibility of development as a sub-sector which will be examined and new activities like Camel Safari in Kutch, Horse-riding in Aravalli hill ranges, Parachuting in Saputara, Trekking in Dang, Pavagadh, Palitana etc. will be promoted. Such activities will create large scale employment opportunities for guides, coolies, traders for hire of tents and equipments etc. and will also encourage paying guest accommodation in such areas. Private entrepreneurs and institutions will be encouraged to develop such facilities.

5.3.8 Highway Tourism :

There is a good network of State and National highways which criss-cross the State and a large number of travellers prefer road journey. Because of large geographical expanse of the State, these journeys tend to be quite long and boridng. There is a need for creating necessary facilities like hotels, restaurants, picnic spots, water parks etc. along the highways at suitable intervals for the highway travellers to relax. In fact, travellers can be induced to follow certain traffic routes if such facilities are better developed. Highway facilities and wayside amenities are so well developed in some states that this has become the mainstay of tourism. State shall encourage private investors to create such facilities on highways.

5.3.9 Various sub-sectors of tourism activities listed above will be encouraged by marking new tourism units eligible for incentives under Tax Holiday incentive scheme in designated areas.

5.3.10 As mentioned earlier, the State Government intends to designate certain areas having significant tourist potential as Special Tourism Areas. To this end, reputed consultants and institutions will be engaged to prepare area development plans in respect of various areas such as Kutch District, areas around Sardar Sarovar project area, South Saurashtra areas covering Gir, Porbandar, Veraval, Somnath, beaches and areas of pilgrimage/heritage towns. These areas will be developed by following integrated area development approach. The State Government will make efforts to tap all the source of national and international funding for development of these areas and provide special encouragement to tourism projects being established therein. For ensuring faster development of these areas, area development committees will be constituted.

5.4 Human Resources Development :

5.4.1 Human Resources Development is an important aspect of service industries. Tourists depend upon travel agents, guides and hence trained manpower is a sine qua non of tourism industry. On the basis of available statistics, training facilities can be safely said to be totally inadequate. If trained manpower is not available locally, the objective of local employment will not be achieved.

5.4.2 Keeping in view the approach of market-led development, the State Government will encourage and support creation of training facilities in the private sector by private agencies/individuals.

Hotel Management course, courses meant for guides, caterer and other supervisory and non-supervisory staff of hotel will be introduced in Industrial Training Institutes (I.T.Is). Approved hotel associations and private entrepreneurs will be encouraged to create new training facilities by making available land to them for this purpose and by giving other appropriate incentives. The Government will consider setting up a Hotel Management Training Institute at the State level preferably in private sector.

5.4.3 Residents of Gujarat, especially local youths, would be encouraged and facilitated to take part in such training courses.

5.4.4 The Institute of Hotel Management, Catering & Nutrition which is working under the administrative control of the Central Government will be utilized to start new training courses so that the residents of Gujarat can get admission and manpower requirement of this sector is met.,

The residents of Gujarat undergoing such training will be reimbursed a part of the tuition fees through scholarships.

6. Feedback and Monitoring

To make the New Tourism Policy result oriented, implementation will be monitored by a High Powered Committee under the Chairmanship of Chief Secretary.

A Management Information System will be set up to assist the Committee to make available information on various aspects of implementation on a continuous basis. The Committee will also review the policy from time to time.