14. Water Sports Facilities in Gujarat.Pptx
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Development of Water Sports Facilities Tourism Government of Gujarat Contents Project Concept 3 Growth Drivers 4 Market Potential 5 Gujarat – Competitive Advantage 6 Project Information 10 - Location/ Size - Infrastructure Availability/ Connectivity - Raw Material/ Manpower - Key Players/ Machinery Suppliers - Potential Collaboration Opportunities - Key Considerations Project Financials 16 Approvals & Incentives 18 Key Department Contacts 20 Page 2 Project Concept Water Sports Activities – Overview Water sports include all adventure sports or sporting activities that involve water such as skiing, motor rides, water scooters and speedboats. These rides are attaining popularity in India. Some popular water sports activities are discussed below: 1 Speed boating Speed boating is the recreational activity of operating or traveling in a motorboat, speedboat, or powerboat, which is a boat powered by an engine. 2 Water Scooter Water scooter is a recreational watercraft of two categories. The first is a sit down, where the rider drives the watercraft mainly sitting down and typically holds two people. The second is a stand up, where the rider uses the watercraft standing up. 3 Parasailing Parasailing is a recreational activity in which a person is towed behind a boat with specially designed parachute known as parasail. The boat then drives off, carrying the parascender into the air. The parascender has no control over the parachute. 4 Banana Boat Ride Banana boat is an unpowered, inflatable recreational boat meant for towing. Different models usually accommodate three to ten riders sitting on a larger, main tube and resting their feet on two laterally flanking tubes which stabilize the boat. The main tube is often yellow and banana-shaped. 5 Snorkelling Snorkelling is the practice of swimming at the surface of a body of water while equipped with a diving mask, a shaped tube called a snorkel and usually swim fins. 6 Scuba Diving Scuba diving is a mode of underwater diving in which a scuba diver uses a self- contained underwater breathing apparatus (scuba) to breathe underwater. Page 3 Growth Drivers Potential Market Size Water sports primarily caters to the needs of adventure tourists, as well as other adventure enthusiasts. The target market for this facility are the domestic and foreign adventure tourists and the youth population. The local/weekend tourists can also generate substantial demand. Adventure sports market The global adventure sports market is (in INR billion) estimated at nearly INR5,340 billion (US$89 billion), while the Indian market is Global 5,340 estimated to be around INR5 billion (US$83 million). India 5 There is a significant potential to drive growth and cater to the growing demand for adventure sports in India. Growth Drivers M 66% of the population in India is below 35 years, with 0-14 >34 years, the median age of 27 years driving consumption. years, 34% Demographic 31% M Adventure sports are a huge attraction among the age dividend 15 - 34 years, group of 15-34 years. 35% M By 2020, 35% of the population will reside in urban centres, with nuclear Greater households. Higher incomes would drive growth of adventure sports. urbanisation M The proportion of the working-age population is expected to rise to 46% by 2020, raising the amount of income per household. M India’s per capita income at the current market price is estimated to increase Rising per at a CAGR of 15% to INR190,000 in 2014-2020E. capita income M Moreover, share of discretionary spend is expected to increase from 59% in FY10 to 67% in FY20. Within discretionary spend, the share of leisure is expected to increase at a CAGR of 6.4%. M Campaigns such as Khushboo Gujarat Ki, Incredible India, Athithi Devo Bhava Policy were launched to harness the tourism industry’s potential. FDI under the support automatic route in tourism and hospitality is allowed up to 100%, subject to applicable regulations and laws. Tourism and hospitality had a cumulative FDI inflows of US$8.45 billion in FY15. M The GoI has made concerted efforts to improve and upgrade infrastructure Improved facilities at important tourist destinations, thereby, improving accessibility. The infrastructure FY16 Union Budget allocated INR14.8 billion toward infrastructure development for destination and circuits, domestic / overseas promotion and publicity, etc. Page 4 Market Potential Demand – Supply 1 M Growing popularity of adventure sports M Adventure tourism is one of the most popular segments of tourism industry. It includes a wide range of adventure sports activities. M India’s adventure tourism industry nearly doubled in size between 2009-2014, driven by a key shift in interest towards adventure sports, primarily from domestic tourists who are looking beyond usual holidays for new experiences. M The demand for adventure sports by Indian tourists increased 400% between 2008- 2013, indicating a strong domestic market for adventure sports, including water sports. M Out of nearly 2 million adventure tourists, international tourists contribute up to 10% or 0.2 million, while the rest 1.8 million are domestic tourists. According to an analysis by industry chamber, PHDCII, adventure tourism is growing at 20% YoY, and is expected to emerge as one of the biggest foreign exchange earners — surpassing US$27 billion market size by 2018, provided that key policy initiatives are undertaken by state governments. 2 M Increasing monetization opportunities M Opportunities to monetize water sports activities are now better than ever. With internet users in India set to grow to 500 million by the end of 2016, the online space and social media is becoming a key source to promote and monetize water sports. M Gujarat has a youth population (15-24 years) of around 12 million. This youth population provides a significantly large target market for water sports in Gujarat. M Promotions and monetization methods may include offering water sports as weekend getaway packages, partnering with online travel and coupon portals to offer deals on water sport activities, striking corporate tie-ups, as well as partnering with foreign tourism boards. 3 M Rise in water sports training institutes M India is seeing a rise in water sports training institutes across states. Most recently, two new water sports institutes are being established. M In December 2015, Haryana Govt. announced the establishment of Adventure Sports Academy that would be set up on 5 acres of land at Morni in Panchkula district, and will offer adventure sports training, including aero sports, ground sports, and water sports. M In January 2016, Gujarat Govt. started the Water Sports Academy at Narmada Park to impart water sports training on sailing, water skiing and wind surfing, knee boarding, wake boarding, fly boarding, jet ski and speed boat. Page 5 Gujarat - Competitive Advantage Mapping Gujarat Tourism Business Tourism M High presence of Indian and global companies Archeological and Heritage Adventure Tourism M 18 SEZs operational Tourism M Longest shoreline of 1,600 km - beaches, forests, hills, M Variety of historical forts, Science City, theme parks, palaces, dargahs, temples Gujarat zoos, lakes M Proactive Government and aggressive marketing M Untapped tourism opportunity M Strategic location M Unique blend of pilgrimage, adventure, hill station, beaches, Cultural Tourism Wild Life Tourism heritage and desert M Handicrafts such as M Rarest and large number bandhani, patolas, kutchi of flora and fauna M Fairs and festivals like M Four national parks and navratri, makarsankranti Religious Tourism 21 sanctuaries M Home to multitude devotional centres and temples like Dwarka, Dakor, Ambaji, Somnath Key Initiatives to Promote Gujarat Tourism by the Government M The Gujarat government granted industry status to tourism and unveiled a new tourism policy in 2015, providing incentives to boost the sector. Investment in Gujarat’s tourism sector is expected to grow five-fold from INR54 billion (US$0.8 billion) to INR269 billion (US$4 billion) during 2014–2025. M Eight tourism hubs have been created for the convenience of tourists visiting Gujarat. These are in Ahmedabad metro, Ahmedabad (north Gujarat); Surat (south Gujarat), Vadodara (central Gujarat), Rajkot, Junagadh and Jamnagar (Saurashtra) and Bhuj (Kutch). M Gujarat Infrastructure Development Board has prepared concession agreement model under PPP for the development of tourism sector projects in Gujarat M The state government has implemented Panchavati Yojana, with the objective of providing facilities for recreation in villages and encouraging environment friendly activities to develop natural sites with tourism potential. M Emerging areas in Gujarat’s tourism industry are spiritual tourism, heritage tourism, cultural tourism, event based tourism, water and adventure sports, nature tourism, cruises, theme parks, convention centres for meetings and conferences. Page 6 Gujarat - Competitive Advantage Gujarat stands at an excellent business opportunity for domestic and international tourists Domestic Tourists (in lakhs) International Tourists (in lakhs) 1,233 22 CAGR: CAGR: 14.1% 13.2% 637 12 376 7 194 4 FY11 FY16 FY20E FY25E FY11 FY16 FY20E FY25E Source: Tourist Flow Information System- Annual Report 2015-16 M The total flow of tourist is expected to record an increase over the years M This is attributed to the growing prominence of the state as a major business hub. Total contribution to GDP Total Investment (USD billion) Employment (in million) CAGR: CAGR: 5.0% 3.00 5.76% 11.0% 4.00 CAGR: 15.63% 2.7% 0.95 0.81 2014 2025P 2014 2025P 2014 2025P Source: Tourism Policy for state of Gujarat(2015-20) M Tourism in India accounts for 7.5% of the GDP and is the third largest foreign exchange earner for the country. Gujarat is expected to contribute 5% to the total GDP by 2025. M The business is expanding both in terms of turnover and boundaries and therefore contributions total investments by Gujarat are expected to increase. M Today worldwide, one in eleven jobs may be ascribed to the tourism industry.