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20 Year Perspective Plan for Tourism Development In 20 YEAR PERSPECTIVE PLAN FOR TOURISM DEVELOPMENT IN LAKSHADWEEP ISLANDS (FINAL REPORT) Prepared for DEPARTMENT OF TOURISM GOVERNMENT OF INDIA NEW DELHI JANUARY 2003 TATA ECONOMIC CONSULTANCY SERVICES VI-A, ELDORADO, 112, NUNGAMBAKKAM HIGH ROAD CHENNAI - 600 034 CONTENTS CHAPTER PAGE TITLE NO. NO. – EXECUTIVE SUMMARY 1-28 I INTRODUCTION 1-10 II DEMOGRAPHIC TRENDS AND ECONOMIC ACTIVITIES 1-8 III THE TRANSPORTATION SECTOR 1-19 IV OTHER PHYSICAL AND SOCIAL INFRASTRUCTURE 1-12 V PRESENT TOURISM SCENARIO IN THE ISLANDS 1-23 VI HUMAN RESOURCES DEVELOPMENT 1-5 VII TOURISM DEVELOPMENT STRATEGY AND 1-72 PROMOTIONAL PROGRAMME VIII ENVIRONMENTAL ISSUES 1-13 IX ECONOMIC BENEFITS 1-4 X MARKET DEVELOPMENT STRATEGY 1-7 XI FINANCIAL IMPLICATIONS 1-6 XII PROJECT BRIEFS 1-32 i.exe EXHIBITS EXHIBIT PAGE TITLE NO. NO. 2.1 LIST OF ISLANDS / ISLETS IN THE C.D. BLOCKS 7 2.2 POPULATION DISTRIBUTION AND OTHER RELATED 8 FACTORS 8.1 ENVIRONMENT MATRIX - POWER GENERATION 9 8.2 ENVIRONMENT MATRIX - PORT ACTIVITIES 10 8.3 ENVIRONMENT MATRIX - TOURISM 11 8.4 ENVIRONMENT MATRIX - PWD 12 8.5 ENVIRONMENT MATRIX - PRINTING 13 i.exe EXECUTIVE SUMMARY BACKGROUND 1. The central theme of the development process as envisaged in this Perspective Plan is to promote tourism potential as comprehensive as possible in the next span of 20 years. The basic premises under which the Tourism Perspective Plan is prepared and presented in this report involved: To identify and develop tourism assets in the islands in an optimum manner such that these can be enjoyed by both domestic and international markets and also in a manner that brings substantial benefits to the economy. To demarcate the development process in such way that is compatible to the sustainability of the fragile environmental conditions and the cultural heritage of the local residents. To prepare the available tourism product / assets with utmost care and value addition so that the tourist’s value - price concept is enhanced to induce increased spending. A satisfied customer through a variety of attractions and pleasant experiences is the key to success of tourism development. To enhance the quality of support services so that the entire process of tour planning and its implementation is conducted in an utmost satisfying manner. Transport services, accommodation, food, entertainment, sight seeing, escort services, interaction with the public are different components of the tourism industry and these require meticulous planning and motivation to conduct in a pleasant and acceptable ambience. To plan sharing of the economic benefits of the tourism development among all sections of the community. To facilitate privatization, both domestic and international in the development process so that the intervention of the Government is reduced and required only in formulation of policies and also as a catalyst to the development. 1 THE ISLAND BACKGROUND 2. The Lakshadweep group of islands constitutes 10 inhabited and 26 uninhabited islands located far off from each other. The land area of each of these islands is extremely small and consequently bringing the density of population at a higher level. All land-based activities in the islands are restricted for want of adequate vacant land. Moreover, the real estate transactions are allowed only among the islanders and hence outsiders cannot own assets in the island. All developmental processes can take place only through contractual agreements of leasing for a period of years. NEED FOR TOURISM PROMOTION 3. The economic activities of the islands are mainly restricted to primary sector, fisheries and coconut cultivation being the mainstay. Value added activities based on these two resources are also not very popular in the islands. The coconut growers are not able to get appropriate value for their produces and hence many a times the Government has to intervene in providing support prices. Tuna fish constitutes the main catch by the fishermen and fish landings also had shown erratic trend over the years. 4. In this context of uncertain scenario of economic activities by the islanders and the consequent heavy dependence on the Government support it is felt that the islands with their spectacular beauty of beaches, corals and lagoons, can be used for further promotion of tourism. Tourism has of late, evolved into a major revenue earner in the world over. While doing so, the natural assets of the islands (sea and its environs) are to be preserved and protected in such a manner that would bring about continuous economic advantages to the islands. DEVELOPMENT OPPORTUNITIES 5. The most outstanding strength of the islands is their immensely attractive seascape and the marine wealth. (The blue water lagoon, corals, coral reefs). The unspoilt virgin beaches are a piece of attraction to all connoisseurs, especially international tourists. 6. These attractions and the possibilities of sea based aqua sports are not adequately publicized in the international markets. This limitation can be 2 converted into an advantage to promote the unknown among those who seek new experiences at new destinations. 7. The local residents are extremely helpful and friendly in their warm interactions, which is of extreme importance in tourism promotion and tourist arrivals. The crime record is absent in the islands, which is ample testimony to the peace loving nature of the people and guarantee to the security of the tourists. DEVELOPMENT CONSTRAINTS 8. Transport bottlenecks between mainland and the island, difficulties encountered at embarkation and disembarkation points do not augur pleasant experiences to the tourists at all. Non availability of an international airport or even large airport cause considerable rethinking on the part of the international tourists in choice of destination, however attractive they may be. (Male Island in Maldives although the area is only 1.78 sq. kms. accommodates a large international airport where a large number of foreign flights are operated. This provided considerable headway in developing tourism resorts in uninhabited islands). Inadequacy of inter-island ferry service in a faster and convenient manner is yet another important constraint in transport infrastructure. 9. Although under a package tour, accommodation and food are provided by the tour operator, other visitors (who are also categorised as tourists if they spent more than 24 hours at a place) frequenting the islands do not have any accommodation (leave alone ‘good or standard’) or eating place of acceptable quality. This is true in the case of all islands. Government bungalows available in various islands are not adequate and many a times are occupied by Government officials on duty. The standards of eating establishments in terms of quality or variety are extremely poor and require a total transformation. The absence of quality accommodation and food restricts “free tourism” which is one of the critical areas of tourism development in the islands. 10. Apart from beaches and sea based activities the islands do not have any other land based tourism attractions like amusement parks, shopping arcades, entertainment plazas, fun cities, health resorts, trekking / skiing, adventure sports avenues, etc. Absence of such divergent attractions makes the tourist 3 arrival at a low key. One of the important side effects of the absence of such avenues is the low average length of stay of a tourist. 11. Very low carrying capacity of the islands and fragile nature of the marine wealth restrict the extent of development in terms of creation of infrastructure facilities or gathering of more number of people in places of attractions / activity like beach. Very limited physical area of the land which is already crowded and dwindling due to sea erosion, cannot be overlooked since these are going to be on an increasing scale in the years to come. Need for strict enforcement of the environment protection measures would automatically restrict the tempo of development and the tourism potential. 12. Institutional constraints are too many operating in the way of tourism growth. The existing CRZ Act when strictly enforced does not provide adequate space for development in certain narrow strips of islands. Restriction on entry of foreign visitors (International tourists are allowed only in selected islands) automatically brings down the number of high spending tourists. Need for entry permit to all visitors and special permit for foreign tourists. Enforcement of prohibition in all inhabited islands. Lack of policy initiatives for private sector participation in critical sectors like transportation, accommodation, etc. PRESENT TOURISM SCENARIO 13. Tourism activities in the islands are currently conducted in a controlled manner through a few specific tour packages sponsored by SPORTS (Society for Promotion of Nature Tourism and Sports). SPORTS was set up as a registered society under the Societies Act. Being controlled, the travel, stay and food are taken care of by the sponsor. These packages depend on the travel schedule of a few ships now plying between Kochi and the island. The tour packages include coverage of a few islands like Minicoy, Kalpeni, Kadmat, and Kavaratti where resort facilities are available. 4 14. One of the uninhabited islands, Bangaram is leased out to a private party to manage tourist arrivals. The island resort facilities partly available earlier were refurbished by the company. In another inhabited island Agatti, although SPORTS had established the resort facilities, these are managed by private parties. 15. Tourist arrivals in the island were showing an erratic trend over the years and during 2000 – 01 the total arrival was 3863 numbers including 871 (22.5%) international visitors. (International visitors are mainly at Bangaram island). During 2001-02 the total number of tourists visited the islands was 3798 including 539 international visitors. Overall the growth rate was only 3.92 percent between the end periods, (1988-89 to 2001-02) although considering the year to year variations the growth rate was about 12.50 percent. This is seemingly high due to the sudden fall in tourist arrivals in 1999 – 2000 and then the jump in 2000 – 01.
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