Observations of the Committee Contained in Its Two Hundred and Eighty Eighth Report on the Demands for Grants (2021-22) of Ministry of Tourism

REPORT NO. 298 _

PARLIAMENT OF INDIA RAJYA SABHA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE

TWO HUNDRED NINETY EIGHTH REPORT Action Taken by the Government on the Recommendations/ Observations of the Committee contained in its Two Hundred and Eighty Eighth Report on the Demands for Grants (2021-22) of Ministry of Tourism

(Presented to the Rajya Sabha on 3rd August, 2021) (Laid on the Table of Lok Sabha on 3rd August, 2021)

Rajya Sabha Secretariat, New Delhi August, 2021/ Sravana, 1943 (Saka)

Website : https://rajyasabha.nic.in E-mail : [email protected]

PARLIAMENT OF INDIA RAJYA SABHA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE

TWO HUNDRED NINETY EIGHTH REPORT

Action Taken by the Government on the Recommendations/ Observations of the Committee contained in its Two Hundred and Eighty Eighth Report on the Demands for Grants (2021-22) of Ministry of Tourism

(Presented to the Rajya Sabha on 3rd August, 2021) (Laid on the Table of Lok Sabha on 3rd August, 2021)

RAJYA SABHA SECRETARIAT NEW DELHI

August, 2021/ Sravana, 1943 (Saka)

C O N T E N T S

P AGES

1. COMPOSITION OF THE COMMITTEE (i) 2. INTRODUCTION (ii) 3. ACRONYMS (iii)-(vi) 4. REPORT 1-46 5. RECOMMENDATIONS/OBSERVATIONS-AT A GLANCE 47-50 6. *MINUTES

______

*To be appended

COMPOSITION OF THE COMMITTEE

(2020-21) (Constituted on 13th September, 2020)

1. Shri T.G. Venkatesh - Chairman

Rajya Sabha

2. Shri Prasanna Acharya 3. Shri Sambhaji Chhatrapati 4. Dr. Sonal Mansingh 5. Shri Derek O’Brien 6. Shri Tiruchi Siva 7. Shri Dharmapuri Srinivas 8. Shri Vinay Dinu Tendulkar 9. Shri K.C.Venugopal 10. Shri Sushil Kumar Modi

Lok Sabha

11. Shri Anto Antony 12. Shri Margani Bharat 13. Shri Tapir Gao 14. Shri Rahul Kaswan 15. Shri Ramesh Chandra Majhi 16. Shri Sunil Baburao Mendhe 17. Shri K. Muraleedharan 18. Shri S.S. Palanimanickam 19. Shri Chhedi Paswan 20. Shri Kamlesh Paswan 21. Shri Sunil Kumar Pintu 22. Shri Prince Raj 23. Shri Tirath Singh Rawat 24. Shrimati Mala Roy 25. Shri Rajiv Pratap Rudy 26. Shri Dushyant Singh 27. Shri Rajbahadur Singh 28. Shri Ramdas Chandrabhanji Tadas 29. Shri Manoj Tiwari 30. Shri Krupal Balaji Tumane 31. Shri Dinesh Chandra Yadav

SECRETARIAT Dr. Shikha Darbari, Joint Secretary & Financial Advisor Shri P. Narayanan, Director Shri Dinesh Singh, Additional Director Shri Rajendra Prasad Shukla, Additional Director Ms. Catherine John L., Under Secretary Shri Agam Mittal, Assistant Committee Officer

INTRODUCTION

I, the Chairman, Department-related Parliamentary Standing Committee on Transport, Tourism and Culture, having been authorized by the Committee to present on its behalf, do hereby present this Two Hundred Ninety Eighth Report on Action Taken by the Government on the recommendations/observations of the Committee contained in its Two Hundred and Eighty Eighth Report on the Demands for Grants (2021-22) of Ministry of Tourism.

2. The Two Hundred and Eighty Eighth Report of the Department-related Parliamentary Standing Committee on Transport, Tourism and Culture was presented on the 9th March, 2021 to the Parliament.

3. The Action Taken Replies on the recommendations of the Committee contained in its Two Hundred and Eighty Eighth Report were received from the Ministry of Tourism on 14th July, 2021.

4. The Committee considered and adopted the Report in its meeting held on the 2nd August, 2021.

(T.G. Venkatesh) NEW DELHI; Chairman, August 2, 2021 Department-related Parliamentary Standing Sravana 11, 1943 (Saka) Committee on Transport, Tourism and Culture, Rajya Sabha

ACRONYMS

ASI Archaeological Survey of India ATOAI Adventure Tour Operators Association of India B&B Bed and Breakfast BSF Border Security Force CBEC Central Board of Excise and Customs CBSP Capacity Building for Service Providers CC Cash Credit CEO Chief Executive Officer ChPT Chennai Port Trust CRIF Central Road and Infrastructure Fund CoPT Cochin Port Trust COVID Corona Virus Disease CPWD Central Public Works Department CRIF Central Road and Infrastructure Fund CRISIL Credit Rating Information Services of India Limited CSSS Champion Services Sector Scheme DCCO Date of Commencement of Commercial Operations DEA Department of Economic Affairs DFS Department of Financial Services DIPP Department of Industrial Policy and Promotion DPPH Domestic Promotion and Publicity including Hospitality DPR Detailed Project Report DSCR Debt Service Coverage Ratio EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization ECLGS Emergency Credit Line Guarantee Scheme EPCG Export Promotion Capital Goods EPF Employee Provident Fund EPFO Employees' Provident Fund Organization FCI Food Craft Institute

iii

FEE Foreign Exchange Earnings FIs Financial Institutions

FTAs Foreign Tourist Arrivals FY Financial Year GECL Guaranteed Emergency Credit Line GFC Good for Construction GITB Great Indian Travel Bazaar GoI Government of India GST Goods and Services Tax HML Harmonised Master List IDBI Industrial Development Bank of India IHM Institutes of Hotel Management IHR Indian Himalayan Region IIB&B Incredible India Bed & Breakfast IISM International Institute of Sports Management IITF Incredible India Tourist Facilitator IITTM Indian Institute of Tourism and Travel Management INR Indian Rupee IRCTC Indian Railway Catering and Tourism Corporation ITAs International Tourist Arrivals ITDC India Tourism Development Corporation ITM International Tourism Mart IWAI Inland Waterways Authority of India IWT Inland Water Transport JMVP Jal Marg Vikas Project MbPT Mumbai Port Trust MD Managing Director MDA Market Development Assistance MICE Meetings, Incentives, Conferences and Events MoCA Ministry of Civil Aviation MoF Ministry of Finance MoPT Mormugao Port Trust MoRTH Ministry of Road Transport and Highways MoT Ministry of Tourism MoU Memorandum of Understanding iv

MSMEs Micro, Small and Medium Enterprises MT Metric Ton MUDRA Micro Units Development and Refinance Agency NBFC Non- Banking Financial Company NCAER National Council for Applied Economic Research NCGTC National Credit Guarantee Trusty Company NCHMCT National Council for Hotel Management and Catering Technology NCSM National Council of Science Museums NH National Highway NHAI National Highways Authority of India NITI National Institute for Transforming India NIWS National Institute of Water Sports NMPT New Mangalore Port Trust NPA Non Performing Asset NWs National Waterways O&M Operations and Maintenance OPMD Overseas Promotion and Publicity including Marketing Development OPP Overseas Promotion and Publicity OTA Online Travel Aggregators OTR One Time Restructuring PPP Public- Private Partnership PRASHAD Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation RBI Reserve Bank of India RCS Regional Connectivity Scheme SAATHI System for Assessment, Awareness and Training for Hospitality Industry SBI State Bank of India SCBs Scheduled Commercial Banks SD Swadesh Darshan SDS Swadesh Darshan Scheme SEIS Service Export from India Scheme SGoS Sectoral Group of Secretaries SIDBI Small Industries Development Bank of India SMA Special Mention Account SOPs Standard Operating Procedures TCS Tax Collected at Source

TFC Tourist Facilitator Certification TVCs Television Commercials

UC Utilization Certificate UDAN Ude Desh Ka Aam Nagrik UT Union Territory

REPORT The Report of the Committee deals with the Action Taken by the Ministry of Tourism on the recommendations/observations as contained in its Two Hundred Eighty Eighth Report on Demands for Grants (2021-22) of the Ministry of Tourism which was presented to both the Houses of Parliament on 9th March, 2021.

2. The Action Taken Replies were received from the Ministry on 14th July, 2021 in respect of all the observations/ recommendations contained in the Report. The replies have been categorized as follows:-

Chapter-I: Recommendations/Observations which have been accepted by the Ministry: Paragraph Nos.: 43, 71, 75, 76, 77, 83, 84, 95, 105, 107, 131, 132, 146, 148, 176, 179, 181, 182. Total: 18

Chapter-II: Recommendations/Observations which the Committee does not desire to pursue in view of the replies of the Ministry: Paragraph Nos.: 41, 44, 45, 69, 72, 85, 90, 91, 120, 121, 122, 144, 147, 149, 154, 155, 156, 160, 172, 173, 175, 180, 183, 184. Total: 24

Chapter-III: Recommendations/Observations in respect of which replies of the Ministry have not been accepted by the Committee: Paragraph Nos.: 42, 70, 73, 74, 82, 106, 108, 145, 152, 153, 161, 174, 177, 178, 185. Total: 15

Chapter-IV: Recommendations/Observations in respect of which the final replies of the Ministry are still awaited: Paragraph Nos.: Nil Total: Nil

CHAPTER-I

RECOMMENDATIONS/OBSERVATIONS WHICH HAVE BEEN ACCEPTED BY THE MINISTRY

ANALYSIS OF BUDGETARY ALLOCATIONS FOR 2021-22

Recommendation/Observation

1. The Committee notes the submission of the Ministry that the Swadesh Darshan Scheme is under review by the PMO, that new projects have not been sanctioned during the previous year and the Ministry of Finance has made an allocation of Rs. 630 crore for the FY 2021-22 against the projected demand of Rs. 1500 crore for the scheme. The Committee observes that the Swadesh Darshan Scheme has been launched for the sole purpose of integrated development of theme based tourist circuits and aims to promote, develop and harness the potential of tourism in India in a big way. The Committee, therefore, recommends that the policy measures for overcoming the shortcomings in the Swadesh Darshan Schemes be expedited so that the actual requirement of funds for the Scheme could be assessed and allocated at the earliest. (Para 43)

Reply of the Ministry

1.1. Suggestion of the committee is noted. The Ministry of Tourism is in the process of taking due measures in this regard.

IMPACT OF COVID-19 PANDEMIC ON TOURISM, TRAVEL AND HOSPITALITY SECTOR

Recommendation/Observation

2. The Committee observes that India currently has approximately 1% share of global MICE (Meetings, Incentives, Conferences, & Events) market. Since MICE forms a large segment of tourism business, the Committee recommends that the Government should incentivize Indian corporates to undertake domestic MICE and to prevent MICE events from going abroad. (Para 71) Reply of the Ministry 2.1. Recognizing the importance of MICE and its benefits to the national economy, the Ministry of Tourism has taken the following initiatives to promote India as an attractive MICE destination: -

• Ministry of Tourism provides financial assistance to Active members of India Convention Promotion Bureau (ICPB) for bidding/to win international conferences to India.

• Under the Champion Services Sector Scheme, 50% refund on GST is payable on accommodation for international conferences for 2 nights with minimum no. of 250 delegates.

• To facilitate conference traffic to India, Government of India has introduced e- conference visa for all conferences including private sector conferences being held in India.

• Ministry of Tourism offers complimentary booth space to ICPB under Incredible India banner for participation in the major MICE trade shows.

• Ministry of Tourism annually supports the ICPB's Conclaves with financial assistance and providing of complimentary air tickets for inviting potential buyers/speakers to the Conclave for experiencing India as a MICE destination.

• Ministry of Tourism in association with ICPB organised the Khajuraho MICE roadshow in March, 2021 to bring the domestic buyers and suppliers of the industry on this platform to reiterate India’s strengths as a MICE destination.

2.2. In order to position India as MICE destination in the world and a hub of mega conferences and exhibitions, Ministry of Tourism has formulated draft National Strategy and Roadmap for MICE Industry. The following strategic interventions have been identified and a roadmap for implementation of the same has been drafted in the document: (i) Institutional support for MICE (ii) Developing Eco-system for MICE (iii) Enhance competitiveness of Indian MICE industry (iv) Enhance ease of doing business for MICE events (v) Marketing India as a MICE destination (vi) Skill development for MICE industry

2.3. The document has been circulated to all stakeholders, such as concerned Central Ministries, State Governments/UT Administrations and industry associations for their comments/suggestions.

Recommendation/Observation

3. The Committee notes that based on the representations of the industry stakeholders, the Ministry of Tourism has taken up several issues with the Ministry of Finance and Ministry of Commerce and Industry for revival of the tourism sector. One of the issues taken up with the Ministry of Commerce is enhanced benefits of 10% under the Service Exports from India

Scheme (SEIS). Under this scheme, the Government offers domestic exporters duty credit scrips in the range of 5% to 7% of the net foreign exchange earned, depending on the nature of services. The Committee has been given to understand that the SEIS scrips due for the financial year 2019-20 have not been paid as yet. Since services exporters need continued support to survive in these challenging times, the Committee recommends that the Ministry of Tourism should increase the scale of its engagement with Ministry of Commerce to ensure that the SEIS credit scrips due to service providers against their foreign exchange earnings are paid without further loss of time. (Para 75)

Reply of the Ministry

3.1. The matter has already been taken up with Ministry of Finance and Ministry of commerce and Industry. Recently Secretary (T) has sent a letter again in the month of June, 2021, requesting Ministry of Finance; and Ministry of Commerce and Industry to consider the matter.

Recommendation/Observation

4. The Committee also recommends that given the changed scenario and at a time when the tourism sector is faced with the crisis of the century, the notified services be incentivised under SEIS at an enhanced rate of 10% for both tour operators and hotels, in order to provide them cash flow support. The Committee desires to be kept apprised of the action taken in this regard. (Para 76)

Reply of the Ministry

4.1. The Hon’ble Minister for Commerce and Industry has been requested to ensure that SEIS for the year 2019-20 is immediately disbursed. Recommendation/Observation

5. The Committee observes that as per the provisions contained under IGST law, export of goods or services or both are regarded as “zero-rated supplies” and GST is not levied on export of such goods and services and exporters who earn in convertible foreign exchange are exempted from GST. However, the foreign exchange earned by the inbound tour operators and hotels are not exempted from GST. The Committee observes that the foreign exchange earnings through tourism were to the tune of Rs. 211661 crore in 2019. After serious reflection, the Committee recommends that in order to enhance export competitiveness of Indian tourism as also to provide relief to the tourism and hospitality sector, the payments received by all the tourism and hospitality entities in convertible foreign exchange be considered as deemed export and be exempted from GST and the concept of zero-rating also be applied to tourism foreign exchange earnings. (Para 77)

Reply of the Ministry

5.1. The recommendation of the committee has been noted. Since, this is a policy decision to be taken by GST council, a reference from Ministry of Tourism is being made to GST council in this regard and committee would be appraise of the progress

INTEGRATED DEVELOPMENT OF TOURIST CIRCUITS AROUND SPECIFIC THEMES (SWADESH DARSHAN) Recommendation/Observation

6. The Committee is constrained to note that two projects, one each in Kerala and Tripura launched in 2018-19 with the sanctioned cost of Rs. 69.47 crore and Rs. 65 crore respectively, have not even taken off. This not only reflects poorly on the functioning of the Ministry, but also eventually impacts the creation of world class tourist infrastructure. The Committee expects the Ministry to address non operationalization of these two projects with utmost seriousness and formulate appropriate remedial measures so that the tourism infrastructures so created, could improve the standards of the region. The Committee desires to be kept apprised of the progress made towards operationalization of the above projects, as also the reasons for inordinate delay in starting them. (Para 83)

Reply of the Ministry

6.1. Recommendation of the Committee is noted. 6.2. The Ministry of Tourism sanctioned a project ‘Development of Surma Cherra – Unakoti – Jampui Hills, Gunabati – Bhuvaneshwari –Matabari – Neermahal – Boxanagar – Chottakhola – Pilak – Avangchaarra’ for an amount of Rs. 65 Crore in the Tripura in 2018- 19. On receipt of the tendered cost, the Ministry of Tourism has released an amount of Rs. 10.10 Cr. as first instalment to the implementing agency. The Ministry of Tourism has also sanctioned a project ‘Development of Sivagiri Sree Narayana Guru Ashram – Arrivipuram – Kunnumpara Sree Subrahmania – Chembazhanthi – Sree Narayana Gurukulam’ for Rs. 69.47 Cr. Continuation of this project was sanctioned in June, 2020. Further, an amount of Rs. 1.61 Crore has been released to the implementing agency for commencement of the project.

Recommendation/Observation

7. The Committee, in its 275th Report, had commented about rural tourism being among a few emerging areas of tourist interest world-wide and its impact on inclusive development of remote and backward areas by way of enhancing earning capacity and better livelihood for the rural population. The Committee notes from Annexure 1 that two projects, one each in Bihar and Kerala, focussed on rural theme with a sanctioned cumulative cost of Rs 125.02 crore are under implementation. The project in Bihar has reported the physical progress and financial progress of 50% and 38% respectively and Rs. 17.86 crore has been spent against the actual release of Rs. 22.32 crore. In Kerala, Rs. 23.77 crore has been released for the

implementation of Rural Circuit, but nothing has been spent so far. The Committee wishes to know the reasons for the same. The Committee observes here that one of the objectives of Rural Circuit under the SDS is to enable local people to access the tourism market and benefit from it and, therefore, a proactive interventionist approach is needed from the Ministry in order to operationalize these projects of rural tourism at the earliest. The Committee, therefore, urges upon the Ministry to take tangible action to address the inadequacies in the planning and implementation process and speed up execution of the above projects. The Committee desires to be kept apprised of the action taken and the progress made in this regard. (Para 84)

Reply of the Ministry

7.1. The recommendation of the Committee is noted. The matter regarding slow progress of these projects is being taken up with the respective State Governments.

ICONIC TOURIST SITES

Recommendation/Observation

8. The Committee notes that the Expenditure Finance Committee has approved the proposal of the Ministry of Tourism for the development of 19 iconic Tourist Destinations with an outlay of Rs. 5109 crore from 2020-21 to 2024-25. Since the implementation of projects under Iconic Tourist Destinations Scheme involves a host of Central Ministries such as Ministries of Culture, Road Transport and Highways, Shipping, etc., convergence among the Ministries concerned should be ensured and role of these Ministries in implementing the projects should be clearly delineated so that they are able to pinpoint the roadblocks and concrete action can be taken while implementing the projects. The Committee also recommends that the Ministry should quickly move towards addressing all pending issues and implementing the above Scheme within a designated timeline. (Para 95)

Reply of the Ministry

8.1. Recommendations of the Committee are noted for compliance.

CRUISE TOURISM

Recommendation/Observation

9. The Committee, in its 275th Report, presented to Parliament on 3rd March 2020 had recommended that the Ministry of Tourism in collaboration with the Ministry of Ports, Shipping and Waterways should expedite appropriate policy measures for developing India’s

6 largely untapped and hitherto small cruise market. The Committee notes with satisfaction that on the recommendations of the Task Force constituted with Secretary (Tourism) as the Chairman and Secretary (Shipping) as the Co-Chairman, several measures like Standard Operating Procedure, extension of the facility for e-tourist visa, waving of biometric requirements for cruise passengers, etc., have been taken. The Committee notes that in the FY 2020-21, 451 cruise vessels (both foreign and domestic ships) made calls at Indian ports. Given India‟s enormous cruise potential, the number of cruise lines making their presence in India is still small and there is still massive untapped potential for the growth of cruise tourism. The Committee, therefore, recommends that the Ministry of Tourism, in collaboration with the Ministry of Ports, Shipping and Waterways, should target to increase the cruise line traffic to 800 in FY 2021-22 with the right mix of policies and infrastructure. (Para 105)

Reply of the Ministry

9.1. The recommendation of the Committee is noted and will be taken up with the Ministry of Ports, Shipping and Waterways.

Recommendation/Observation

10. The Committee takes note of the submission of the Ministry that cruise tourism in India is still at a nascent stage and Indian Ports are primarily ports of call for cruise lines at ports in Mumbai, Goa, Cochin, New Mangalore and Chennai. The Committee observes that cruise shipping is emerging as one of the most dynamic segments of the leisure industry world-wide and cruise tourism can be a major contributor to the Indian economy if the Government gives policy thrust to making Indian ports home port by way of encouraging cruise operators to position their cruise ships in India, using the Indian ports as home ports. The Committee would, therefore, like the Ministry to spell out its policy stance on this issue. (Para 107)

Reply of the Ministry

10.1. Ministry of Ports, Shipping and Waterways has been approached in the matter. OVERSEAS PROMOTION & PUBLICITY INCLUDING MARKET DEVELOPMENT ASSISTANCE Recommendation/Observation

11. The Committee notes from the information furnished by the Ministry that India’s share in world’s International Tourist Arrivals was 1.23% in 2019 and the Foreign Exchange Earnings (estimated) from Tourism was USD 30.058 billion in the same year. It is worth mentioning here that NITI Aayog has targeted to increase India’s share in world’s International Tourist Arrivals to 3 per cent. Also, despite having unique endowments of bio-

7 diversity and rich culture and heritage, India’s rank in Travel and Tourism Competitiveness Index of World Economic Forum was 34 in 2019. All this indicates that the country’s massive potential for inbound tourism remains grossly underutilized and that the country has not been able to market the precious assets embedded in its rich culture and heritage to their fullest potential. It is in this context that the Committee welcomes the allocation of Rs. 524 crore in BE 2021-22 for Overseas Promotion and Publicity including Market Development Assistance which is higher than the BE 2020-21 allocation of Rs 450 crore. The Committee would like the Ministry to utilize the budgeted allocation to position India as a favoured tourist destination in the tourism generating markets overseas and increase India’s share in the global tourist markets by way of working out country-wise targets of Foreign Tourist Arrivals from various overseas source markets. (Para 131)

Reply of the Ministry

11.1. The recommendation of the Committee has been noted. The Ministry of Tourism would undertake aggressive promotion in the tourism generating markets overseas post COVID-19 to boost foreign tourist arrivals to the country.

Recommendation/Observation

12. The Committee notes that the Ministry plans to undertake aggressive global media campaign in FY 2021-22 to revive the tourism demand to bring it to the pre-COVID-19 levels. In this connection, the Committee recommends that as part of the global media campaign, the Minsitry should launch a six month promotional campaign for PIOs and NRIs, focussed on the theme – “Return to Your Roots” to boost demand in 2021. (Para 132)

Reply of the Ministry

12.1. The suggestion made by the Committee is very valuable in the Post-Covid scenario. In order to retain the tourist arrivals from the source countries, it would be imperative to have a sustained and POI/ NRI focused campaign as part of the Global Media Campaign to boost the demand. 12.2. The Ministry already took the cognizance and importance of targeting the Indian Diaspora, while planning for the Global Media Campaign 2020-21 and had included the significant number of publicity medium to focus and target the India Diaspora. 12.3. However, due to ongoing pandemic situation, the planned campaign could not be undertaken. Further, future global media campaign would be prepared considering this suggestion and various other important inputs received through various sources.

HUMAN RESOURCE DEVELOPMENT Recommendation/Observation

13. The Committee takes note of the submission of the Ministry that it has been decided to bring hospitality education into the mainstream. It wishes to be apprised of the progress made towards positioning hospitality education in the central space which is presently occupied by the courses such as engineering, medical, etc. (Para 146)

Reply of the Ministry

13.1. To bring in more synergies and to be able to meet the requirements of the fast- changing hotel and hospitality landscape, Ministry of Tourism is in the process to up-grade National Council for Hotel Management and Catering Technology (NCHMCT) into National Institute of Hospitality Management (NIHM) as a statutory degree awarding body in the hotel and hospitality sector. Recommendation/Observation

14. The Committee is aware that till the year 2015-16, the Hunar Se Rozgar Tak Programme was geared only towards the creation of employable skills. However, with the adoption of Common Norms on Skill Development notified by the Ministry of Skill Development and Entrepreneurship, it has been made mandatory on the part of the Training Provider Institutes to arrange placement/ self-employment for at least 70% of the certified trainees within three months of completion of the courses. The Committee would like to be apprised whether the implementing agencies have adjusted to this provision. The Committee would also recommend that the Ministry should prepare a robust and reliable database of the Training Provider Institutes who have lagged behind the targets set and also closely monitor fulfilment of the norms stipulated by the Ministry of Skill Development and Entrepreneurship. (Para 148)

Reply of the Ministry

14.1. Post adoption of Common Norms on Skill Development notified by the Ministry of Skill Development and Entrepreneurship, 20% of the base cost of the training program is also outcome based linkedto the placement/ self-employment, which is only released on receipt of the successful placement report along with all relevant documents as per the guidelines. 14.2. Moreover, this Ministry has also set up an online portal, “Tourism and Hospitality Institute Management System” (THIMS) to leverage the full potential of information technology & information and communication technology in it. Ministry of Tourism’s sponsored Institutes conduct their day-to-day operations through this system as it offers real- time data management and information retrieval through a common platform. This system also incorporates the entire placement process and record the details of placements/self- employment of the certified trainees. In the current financial year, it is envisaged that THIMS will be further strengthened once the Scheme is approved. With this the monitoring of the scheme will get a further boost to assess the roll out of the programmes keeping in view the demand and supply conditions for a specific skill in the hospitality and tourism sector.

MISCELLANEOUS Recommendation/Observation

15. The Committee notes that the COVID-19 pandemic has caused an unprecedented crisis throughout the world and International Tourists Arrivals have come to a naught as tourist visas are not permitted. Since the high end international tourists who prefer the five star hotels and come in with a lot of revenue are not coming to India and international travel will remain majorly out of bounds for a considerable period of time, the Committee would like to be apprised of the impact of non-arrivals of International Tourists on the tourism industry and policy measures initiated to mitigate the impact. (Para 176)

Reply of the Ministry

15.1. Ministry of Tourism has engaged National Council of Applied Economic Research (NCAER) in January, 2021 to conduct study on “India and the Coronavirus Pandemic: Economic Losses for Households Engaged in Tourism and Policies for Recovery”. The objectives of this study are as follows:

1. Quantify the sector-wise (or industry-wise) direct and indirect impact of tourism activities on overall economy, as a whole and especially on household income, which may be further disaggregated into different types of households like formal and informal. 2. Quantify the sector-wise and overall loss in income of the economy and of the household sector and also the loss in jobs, due to the impact of Coronavirus pandemic on the tourism sector. 3. Estimate the impact of gradual opening up of domestic tourism activities and of the sectors related to tourism. 4. Estimate the likely impact of opening of international tourism, in the phased manner. 5. Propose policy measures appropriate to provide relief to the tourism sector, in general, and households involved in tourism related activities, in particular.

Recommendation/Observation

16. The Central Road and Infrastructure Fund (CIRF) is earmarked for various infrastructure sectors. The Committee would like the Ministry to help formulate a policy for earmarking of CRIF funds for developing and providing highway link as well as last mile road connectivity to tourist destinations, including historical places and temples such as Gulmarg, Pahalgaam, Shankracharya Temple, Srinagar, Leh, Ladakh, Manali, Coorg, Alleppey, etc., historical places, and temples. (Para 179)

Reply of the Ministry

16.1. The suggestion of the Committee is noted. The Ministry of Tourism under its Swadesh Darshan scheme sanctions funds for tourism infrastructure development. Under this scheme 76 projects have already been sanctioned in various States and UTs, which are under different stages of implementation. Sanctioning of new projects under the scheme is currently is being reviewed. After sanctioning of new projects is approved, the Ministry of Tourism can take up the issue of providing last mile connectivity to the tourist places developed under the scheme with the States / UTs. Recommendation/Observation

17. The Committee would like the Ministry of tourism to appoint international domain experts of the highest order of excellence as consultants to work out the strategies for development of the tourism industry. (Para 181)

Reply of the Ministry

17.1. Ministry of Tourism has appointed domain experts as consultants to provide expertise and extend support services for projects being implemented under different schemes of this Ministry. In addition, Ministry of Tourism has recently engaged M/s Invest India to provide strategic thinking for preparing policy and vision documents for the growth and development of the tourism sector in the country.

Recommendation/Observation

18. The Committee notes that the Task Force constituted to address various issues related to tourism does not include the Ministry of Ports, Shipping and Waterways. Since this Ministry has been entrusted with the responsibility to formulate policies and programmes related to cruise tourism and is, thus, an important stakeholder in influencing the pace and structure of tourism infrastructure, the Committee recommends that the Ministry of Ports, Shipping and Waterways be included in the Task Force. (Para 182)

Reply of the Ministry

18.1. For promotion and development of cruise tourism in India, a specific Task Force has been constituted with Secretary, Ministry of Tourism as the Chairman and Secretary, Ministry of Ports, Shipping and Waterways as the Co-chairman. The Task Force consists of representatives from the all the major Ports under MoPS&W, Ministries of Health, Home Affairs, External Affairs, Customs, CISF, Coastal States, etc. ***

CHAPTER-II

RECOMMENDATIONS/OBSERVATIONS WHICH THE COMMITTEE DOES NOT DESIRE TO PURSUE IN VIEW OF THE REPLIES OF THE MINISTRY

ANALYSIS OF BUDGETARY ALLOCATIONS FOR 2021-22

Recommendation/Observation

1. The Committee notes that budgetary allocation for the Ministry of Tourism has been slashed by 19% from the BE 2020-21 allocation of Rs. 2499.83 crore to Rs. 2026.77 crore this fiscal year. The Committee also notes that though this year’s allocation is 62% higher than the RE 2020-21 allocation of Rs. 1260 crore, it leaves a yawning gap of Rs. 1151.29 crore between the projected demand of Rs. 3178.06 crore of the Ministry of Tourism and the actual allocation made by the Ministry of Finance. The Committee is concerned to note that the Budget Estimates of the Ministry of Tourism has been considerably scaled down at a time when unprecedented COVID-19 induced crisis has led to a near-complete shutdown of the Travel and Tourism industry which is reeling from huge losses due to the pandemic. The Committee takes note of the fact that the revenue buoyancy has fallen on account of moderation in economic growth in the aftermath of COVID-19 pandemic due to which the allocation to the Ministry has witnessed a reduction. But given the fact that the activities of the Ministry harness the direct and multiplier effect on employment and poverty eradication in the country and act as a catalyst for integrated development of tourism infrastructure and facilities through effective partnerships and convergence with various stakeholders and that the contribution of tourism (direct and indirect) to GDP was 5% in 2018-19 and the Ministry has targeted to increase tourism sector’s contribution to GDP to Rs. 8.5 lakh crore and increase the number of direct and indirect jobs to 125 million over the next five years, making available adequate resources to the Ministry is of paramount importance and should, therefore, be insulated from budgetary cuts. The Committee apprehends that with the budgetary allocation of Rs. 2026.77 crore for the financial year 2021-222, which in the opinion of the Committee, is low, it would be difficult for the Ministry to even run activities related to the Swadesh Darshan Scheme, PRASHAD Scheme, etc., for realizing the vision of increasing tourism sector’s contribution to India’s GDP to Rs.8.50 lakh crore. In view of the above, and also the fact that the Indian economy is expected to sharply rebound in FY 2021- 22 the Committee is of the considered view that in order to boost the expenditure in and provide growth stimulus to the tourism sector, there is a need to enhance the quantum of allocation for the Ministry of Tourism significantly when the growth momentum of the economy gets revived and the additional resources become available as a result of revenue buoyancy. The Committee accordingly recommends that the Ministry of Tourism be provided with a substantially higher outlay for the financial year 2021-22 at RE stage so that tourism infrastructure activities could be ramped up to boost development of the sanctioned tourism circuits/ destinations and also facilitate development of new tourism products of global standards. (Para 41)

Reply of the Ministry

1.1. The Hon’ble Committee is very much aware of the deadly situation prevailing in the country from March, 2021 due to the second wave of COVID-19. The entire country was under utmost uncertain and fearful condition in the wake of the vast outbreak of COVID-19 Leading to loss of life of lakhs of people untold suffering to millions of people. The entire country was in a state of lockdown till almost the entire first quarter of the Financial Year 2021. There was absolutely no scope of any domestic or international tourism during this period. Considering the total lack of tourism in the country, the Ministry stopped the global and domestic publicity to avoid wastage of public money as it would not yield any result. Accordingly, no expenditure or very little funds were spent on promotion and publicity during the first quarter. Similarly, on the infrastructure projects also, due to the country-wide lock down, the progress of on-going project was nil and new projects also could not be sanctioned. Accordingly, except for some expenditure on ongoing projects, there was no major spending during the first quarter.

1.2. On the Schemes regarding skill development also, due to the lockdown and the consequent closure of educational institutions, the scheme could not make much progress and expenditure on this front is also less. In the circumstances mentioned in the preceding paras, it is highly unlikely that the Ministry would require additional funds during the current financial year. However, if the situation improves and if the Ministry is able to pursue the schemes vigorously, and if additional funds are required for any particular scheme, the same would be projected to the Ministry of Finance at the RE stage.

Recommendation/Observation

2. The Committee notes that an amount of Rs. 1239. 83 crore remained unspent in FY 2020-21 on account of the budgetary cuts imposed by the Ministry of Finance in the wake of the unprecedented crisis induced by the COVID-19 pandemic, and was surrendered to Ministry of Finance on 08-02-2021. The Committee is concerned that a huge amount of Rs. 1239.83 crore was kept till the penultimate month of the financial year 2020-21. The Committee observes that India’s COVID-19 induced lockdown was first imposed in March 2020 and its cost on the Indian economy and economic activities was visible from the very beginning. The Ministry should, therefore, have anticipated the unspent provisions well in advance and surrendered them promptly instead of keeping them idly parked. Timely surrender of savings could have been gainfully utilized for other fund-starved projects. The Committee, therefore, exhorts the Ministry to gear up its monitoring mechanism so as to ensure realistic assessment of budgetary requirements. (Para 44)

Reply of the Ministry 2.1. The recommendation of the Committee is noted. The recommendation of the Hon’ble Committee has been taken very seriously and all the Programme Divisions are advised to

13 ensure due diligence to ensure proper assessment of requirement of funds in future years. It is however submitted that as per the budgeting procedure in vogue, the requirement of funds of the Ministry or any particular scheme is reviewed at the Revised Estimates Stage by the Ministry of Finance. There is no provision of surrender of funds in the intermediary stage between BE and RE. Further, the major surrender of funds occurred in the Swadesh Darshan Project and the Overseas Promotion and Publicity Schemes. The Global Media Campaign of the Ministry was launched by the Ministry and it has been under temporary suspension since Mid – March, 2020 due to the global lockdown on account of COVID-19 pandemic. The Ministry was hopeful of re-starting the global media campaign expecting that the pandemic situation would improve and inbound tourism would take off. 2.2. Since March, 2020, Covid situation in the country and globally became grim. In anticipation of the easing of Covid situation and lockdown, ease of visa restrictions, movement of flights under air bubble arrangements, Ministry planned suitable awareness campaign in TV/Theatre/Print to create gradual awareness among the target audience. However, this could not be undertaken as uncertainty continued for longer time. During the same period focus was laid on making gradual entry into the domestic media space and being visible to the prospective travellers. As such domestic Media Campaign, more focused and with wider reach is required to be rolled out in FY 2021-22. As regards the Swadesh Darshan Scheme, as pointed out, the Scheme was under review by the Government and the Ministry was hopeful that once the review is over, it would be able to incur expenditure on some projects. Further, had the lock down situation improved, the ongoing projects would have picked up momentum and the Ministry would have been in a position to spent much of its allocation under the Scheme.

Recommendation/Observation

3. The Committee takes note of the submissions of the Ministry that strict monitoring of Utilization Certificates (UCs) is done through the review meetings. The Committee is, however, concerned to note that the number of pending UCs under the Swadesh Darshan Scheme and Assistance to IHM/FCI/IITTM scheme, and the amount involved therein, are still substantial. This leads the Committee to conclude that the steps taken so far have not yielded the desired results. The Committee, therefore, would like the Ministry to review the methodology of monitoring the progress of utilization of funds so that the execution of projects under the flagship schemes of the Ministry is not hamstrung by lack of funds. The Committee desires to be kept apprised of the measures initiated in this regard. (Para 45) Reply of the Ministry

3.1. All the implementing agencies under the Scheme Assistance to IHMs/FCI, /IITTM, etc. have been directed to submit UCs within the stipulated timeline as per the sanction order. Regarding the submission of UCs under the project ‘Joint Development of Railway Stations’, the Ministry has taken up the projects jointly with Ministry of Railways for development of tourist facilities and amenities at the identified 22 railways stations. Ministry of Railways

14 have been requested to get the projects’ completion expedited and also for submission of UC in time.

3.2. Under PRASHAD Scheme only one UC for an amount of Rs. 10 crore is pending that relates to Puri PRASHAD Project in Odisha. Ministry has vigorously taken up matter with the SG and now the project has been declared completed to the extent it has been executed and the State Government has been asked to submit UC accordingly and refund the GoI amount along with interest accrued on it in terms of GFR 230(8).

3.3. The Ministry of Tourism is holding review meeting for the projects sanctioned under the Swadesh Darshan Scheme on regular basis. During the pandemic period, such meetings are held through virtual mode. During these meetings, the Ministry of Tourism is incessantly urging the State Governments/ Implementing Agencies to expedite progress of the projects and utilize the sanctioned fund in time. In addition, the Ministry of Tourism is also requesting the States Governments / Agencies to refund the unutilized amount lying unspent with them in order to follow financial discipline. 3.4. The Ministry of Tourism is also working on the MIS system in order to ease the process of monitoring. It is requested the States/ UTs/implementing agencies to submit the details including UCs online through MIS system in order to enable the Ministry of Tourism to monitor the progress of the projects. Under Market Research scheme, only 2 UCs of amount Rs.11,72,088/- belonging to year 2012-13 are pending. Ministry has taken up the matter with respective State Governments /UT Administrations to send the UCs at the earliest.

IMPACT OF COVID-19 PANDEMIC ON TOURISM, TRAVEL AND HOSPITALITY SECTOR

Recommendation/Observation

4. The Committee observes that the tourism, travel and hospitality sector which has direct as well as multiplier effect on a host of sectors and contributes significantly to the national economy, has suffered unemployment and bankruptcies due to the COVID-19 pandemic. Though the Government of India has undertaken various fiscal and relief measures under the Atmanirbhar Bharat to restore the growth momentum of the economy, these measures have not been supplemented with sector specific credit measures for the tourism sector. The Committee notes that as per the “Report of the Working Group on Tourism” of the 12th Five Year Plan in India, the travel and tourism sector is estimated to create 78 jobs per million rupees of investment compared to 45 jobs in the manufacturing sector for similar investment. This critical sector is one of India’s largest contributors to GDP. The sector which has huge potential to stimulate overall economic growth and can act as a catalyst for the recovery of the currently battered economy needs direct Government support by way of relief measures like a stimulus package, rationalization of GST, liquidity support, etc. The Committee has been informed that governments across the world are

15 undertaking measures to mitigate the impact of COVID-19 pandemic on this critical sector. For example, the United Kingdom has provided a 12-month business tax rates holiday for all retail, hospitality and leisure businesses in England; France has set up a €2 billion Solidarity Fund for which many Tourism Businesses will be eligible; in Singapore, tourism businesses affected by COVID-19 received wage subsidies of up to 75%. Taking all the above mentioned factors into account, the Committee is of the considered view that since the COVID-19 pandemic and the consequent lockdowns have dealt a crippling blow to the Indian tourism, travel and hospitality industry and the whole value chain has been hit hard, the Government needs to provide targeted support to the sector. The Committee accordingly, recommends that the Government should inject tourism sector-specific financial/monetary stimulus in the system and offer immediate liquidity support and rationalization of the GST structure for the sector. The Committee observes, even at the cost of sounding repetitive, that such a critical sector contributing so much to the GDP and generating employment opportunities should not be ignored, especially when it is in dire straits. The Committee would like the Ministry to pursue this matter with the Ministry of Finance with a sense of urgency and promptitude and apprise the Committee of their response. (Para 69)

Reply of the Ministry

4.1. Ministry of Tourism is constantly taking up issues relating to financial/monetary relief for the tourism and hospitality sector with the Department of Economic Affairs, Ministry of Finance. The requests for industry stakeholders in this regard have also been taken up with Ministry of Finance and concerned ministries. The issues are at various stages of consideration by the concerned Ministries/Authorities. The global outbreak of COVID-19 in 2020 has been an unprecedented global health emergency with tremendous impact on societies and livelihoods. Travel and Tourism has been among the sectors most affected by this crisis with complete curtailment of all travel – domestic and international. When the situation eases, domestic travel and tourism is likely to spearhead revival of the Tourism sector in the country. The focus of the Ministry at present is therefore on reviving and revitalizing the domestic tourism sector. 4.2. In view of the above situation, the Guidelines for the Scheme of Market Development Assistance (MDA) for promotion of domestic tourism have been modified to enhance the scope and reach of the Scheme, so as to provide maximum benefits to the stakeholders.

4.3. As per the modified guidelines of MDA dated 28.11.2020, financial support will be extended to tourism service providers approved by the Central/State Governments for undertaking the following promotional activities within the country, as a onetime measure to overcome corona pandemic's adverse impact on tourism and hospitality sector:

 Participation in domestic travel fairs / exhibitions;  Participation in Tourism related Conferences/ Conventions /Seminars organized by National Tourism and Hospitality Associations including ADTOI, ATOAI, FHRAI,

IATO, ABTO, ICPB, IHHA, ITTA, HAI, TAAI, TAFI & FAITH and by reputed Commerce, Industry and Trade  Organizations/ Associations in the country, such as CII, FICCI, ASSOCHAM, PHD Chamber of Commerce and Indian Chambers of Commerce and any other trade association recognised by the Ministry of Tourism from time to time;  Participation in Conferences /Seminars/ Conventions /organised by the Central and State Government Tourism Ministries;  Participation in Road Shows in different regions of the country;  Online Promotion of tourism destinations and products, tour packages in the domestic market, including production of digital promotional brochures / leaflets;

4.4. Apart from this, financial support will also be extended to Tourism Departments of State Governments/ UT Administrations for undertaking the following promotional activities within the country.

 Participation in domestic travel fairs / exhibitions;  Online Promotion of tourism destinations and products, tour packages in the domestic market, including production of digital promotional brochures / leaflets;  Travel undertaken by officers and Staff of State govt./UT administration for Tourism product familiarisation.

Recommendation/Observation

5. The Committee notes that the Government, under the leadership of Prime Minister Narendra Modi, has set a target of taking the economy to 5 trillion-dollar Gross Domestic Product (GDP) by 2024.It has been widely accepted that the tourism sector in the country has the potential to emerge as a key economic driver for this economic growth and can create large scale employment. The Committee feels that the country can make a giant leap towards reaching the 5-trillion dollar GDP target by focussing on this critical sector. However, this cannot be achieved without the active cooperation from the States and Union Territories – because a comprehensive set of strategies for a diversity of actions from macro to micro level, including product and infrastructure development, marketing, branding, promotion, planning, policy and investment would need to be developed and the multiple challenges thrown up by capacity constraints and inadequate policies would need to be addressed. The Committee, however, notes that the Travel and Tourism Sector does not figure in the Centre, State or Concurrent Lists. Ours is a federal polity and the responsibility for policy making and implementation are fragmented across the various levels of Government and coordination between them is often lacking due to absence of clearly defined mandate. Since tourism is a multi-sectoral activity, inclusion of tourism in the Concurrent List will play an important role in facilitating the issues involved with multiple Ministries/Organisations at Central level as well as with the States/Union Territories to create convergence and synergy of actions across multiple agencies and programmes. The Committee, therefore, recommends that Tourism be included in the Concurrent List. (Para 72)

Reply of the Ministry

5.1. Travel & Tourism Sector has backward and forward linkages with other sectors of the economy, like transport, construction, handicrafts, manufacturing, horticulture, agriculture and involves multiple issues falling under the purview of both Centre and State Governments. Ministry of Tourism being the nodal Ministry for the development of tourism sector in the country has set up several mechanisms for holding consultations with the State Governments, Central Ministries and private stakeholders on different subjects to create convergence and synergy across multiple agencies and programme for the development & growth of tourism sector in the country. These steps have been able to create robust mechanism for facilitating the implementation of the tourism policies and programmes, resulting in the growth of the tourism sector over the years. The Foreign Tourist Arrivals (FTAs) have increased from 5.78 Million in 2010 to 10.93 Million in 2019. Similarly, Foreign Exchange Earnings (FEEs) from Tourism have increased from Rs. 66,172 Crore in 2010 to Rs.2,11,661 Crore in 2019. INTEGRATED DEVELOPMENT OF TOURIST CIRCUITS AROUND SPECIFIC THEMES (SWADESH DARSHAN) Recommendation/Observation

6. The Committee notes that an amount of Rs. 161.48 crore is involved in pending UCs under the Swadesh Darshan Scheme. Needless to say, pendency of utilization certificates and huge amount involved therein would not only have implications for further release of funds, but also impinge on the effective implementation of the projects. The Committee, therefore, recommends that the Ministry should develop an effective and efficient mechanism for timely submission of UCs. This would not only speed up execution of all the projects well within the approved cost, but also help in prevention of cost overruns in the projects. (Para 85)

Reply of the Ministry

6.1. The Ministry of Tourism is holding review meeting for the projects sanctioned under the Swadesh Darshan Scheme on regular basis. During the pandemic period, such meetings are held through virtual mode. During these meetings, the Ministry of Tourism is incessantly urging the State Governments/ Implementing Agencies to expedite progress of the projects and utilize the sanctioned fund in time. In addition, the Ministry of Tourism is also requesting the States Governments / Agencies to refund the unutilized amount lying unspent with them in order to follow financial discipline. 6.2. The Ministry of Tourism is also working on the MIS system in order to ease the process of monitoring. It is requested the States/ UTs/implementing agencies to submit the details including UCs online through MIS system in order to enable the Ministry of Tourism to monitor the progress of the projects.

THE NATIONAL MISSION ON PILGRIMAGE REJUVENATION AND SPIRITUAL AUGMENTATION DRIVE (PRASHAD) Recommendation/Observation

7. The Committee notes that in a span of six years since the launch of the PRASHAD Scheme in January, 2015, only 11 projects have been completed out of the 36 projects sanctioned with an estimated expenditure of Rs. 1160.55 crore whereas the actual release is to the tune of Rs. 629.58 crore only. Some of the projects such as (i) Development of Nada Saheb Gurudwara and Mata Mansa Devi Temple with physical progress of 5% (ii) Development of Trimbakeshwar with physical progress of 10% (iii) Development of Pilgrimage Infrastructure in Nagaland with physical progress of 35% (iv) Infrastructure Development at Puri, Shree Jagannath Dham – Ramachandi – Prachi River front at Deuli under Mega Circuit with physical progress of only 5% (v) Development of Infrastructure for Pilgrimage Facilitation in Badrinath Ji Dham with physical progress of 25% and (vi) Development of Infrastructure Facilities at Govardhan Mathura with physical progress of 20% have witnessed massive under performance. What troubles the Committee is that slippage in implementation of the above projects have a significant bearing on achieving the envisaged objectives of the PRASHAD. The Committee observes that the slow progress of projects under the PRASHAD Scheme not only depicts poor planning on the part of the Ministry, but is also reflective of the inefficiency of the mechanism purportedly evolved by it to monitor and implement projects under the PRASHAD Scheme. The Committee, therefore, exhorts the Ministry to play a more proactive role and take remedial measures from the ongoing fiscal to remove all the bottlenecks so that all projects can achieve considerable progress under the PRASHAD Scheme and stick to deadlines. The Committeeurges the Ministry to make use of the system of infographics to analyse the delayed projects and take remedial measures accordingly. (Para 90)

Reply of the Ministry

7.1. Out of 36 projects approved under PRASHAD Scheme, 7 projects have been approved in FY 2020-21. Further, of the 29 projects approved up to the year 2019-20, 16 projects are complete. 03 more projects with the present physical progress of more than 80% and are likely to be completed in near future. This has been achieved as a result of a focused approach of the Ministry to complete the approved project rather than approving new projects to the states where projects were already sanctioned. The achievement has been done despite the ongoing Pandemic Situations and intermittent lockdowns across the country and States for the last one and a half years. 7.2. Position of the projects mentioned in the para are given below:

(i) Development of Nada Saheb Gurudwara and Mata Mansa Devi Temple: Present physical progress is 35% despite the challenges of the intermittent lockdowns due to Covid-19 pandemic. It is likely that the project would be completed within the scheduled time.

(ii) Development of Trimbakeshwar, Nasik, Maharashtra: Ministry has taken up the matter with the State Government appropriately. The SG has submitted its proposal for modifications in the project, which is likely to be decided soon in the Ministry.

(iii) Development of Pilgrimage Infrastructure in Nagaland: The first instalment for the project was released in September, 2019 after completion of the tendering process by the State Government. The recorded slow progress is attributable to the Covid-19 pandemic situations prevailing in the country for the last 15 months. However, Ministry of Tourism is following the State Government for timely completion of the project.

(iv) Infrastructure Development at Puri, Shree Jagannath Dham – Ramachandi – Prachi River front at Deuli under Mega Circuit, Odisha: Keeping in view the unacceptable slow progress in the project, the Ministry took up matter with the State Government. After several round of discussions, it has been decided to close the project with the only interventions which have been completely executed. The SG has been communicated to send the required documents to complete the project closure formalities along with refund of unspent GoI fund available with them and the interest accrued by them on it, if any.

(v) Development of Infrastructure for Pilgrimage Facilitation in Badrinath Ji Dham: This is to inform that the project was kept on hold by the State Government keeping in view the proposed master plan for holistic development of Badrinath Ji town. This plan, as informed by the State Government, was being finalized in close coordination with the PMO and the other Ministries/Departments of GoI and the State Government. The plan has been finalized now. Some of the components approved under PRASHAD Project have been included in this Master Plan appropriately and the work for execution of the same has been started. (vi) Development of Infrastructure Facilities at Govardhan Mathura: Despite the Corona Pandemic Situations prevailing for the last more than 15 months, present physical progress in the project is >35%. However, Ministry of following Uttar Pradesh State Government for early closure of the project.

Recommendation/Observation

8. The Committee notes that six projects, one each in Arunanchal Pradesh, Chhattisgarh, Madhya Pradesh, Sikkim, Telangana and Tripura have been approved under the PRASHAD Scheme in 2020-21, but funds are yet to be released. The Committee hopes that hindrances in implementation of the projects are ironed out early so that the sanctioned funds do not remain idly parked. The Committee desires to be kept apprised of the updated status of implementation of the above projects. (Para 91)

Reply of the Ministry

8.1. During the FY 2020-21, Ministry of Tourism approved 7 projects. Position about release of funds for each of them is given in the table below:

S.No Name of Name of the Project Relea the State Sanctioned sed

/ UT Cost funds (Cr. INR) (Cr. INR)

1 Meghalay Development of Pilgrimage a Facilitation in Meghalaya 29.32 06.53

2 Chhattisg Development of Maa arh Bamleshwari Devi Temple, 43.33 12.16 Rajnandgaon, Dongargarh, Chhattisgarh

3 Arunacha Development of Parasuram 37.88 NIL l Pradesh Kund, Lohit (05.01.2021) 4 Madhya Development of Pradesh Amarkantak, Madhya 49.99 NIL Pradesh(08.01.2021)

5 Sikkim Development of Pilgrimage Facilitation at Four Patron 33.32 09.50 Saints,Yuksom,Sikkim

6 Telangan Development of Jogulamba a Devi Temple, 36.73 05.14 Alampur,Telangana 7 Tripura Development of Tripura Sundari 37.84 NIL Temple,Udaipur,Tripura(0 8.2. 8.01.2021)

As the Committee has already been informed that to avoid any undue blockage of GoI funds with the States/UT due to prolong tendering process or unavoidable delay on part of the State Governments /UTs in completion of tendering process under PRASHAD Scheme, Ministry of Tourism is now releasing the funds only after completion of tendering process. As soon as the States of Arunachal Pradesh, Madhya Pradesh and Tripura completes the tendering process and submits required documents to the Ministry, funds will be released to them without any delay, after completing due procedure. Ministry of following all concerned State Governments to submit the documents for release of the funds, after completing tendering process.

DOMESTIC PROMOTION AND PUBLICITY (DPPH) SCHEME INCLUDING MARKET DEVELOPMENT ASSISTANCE

Recommendation/Observation

9. The Committee takes note of the submission of the Ministry that Travel and Tourism has been one of the sectors hit hardest by the Corona virus pandemic and given the international travel restrictions in place, domestic tourism would be the mainstay of post- COVID times. The Committee observes that in this time of unprecedented crisis, apart from allaying the anxieties of tourists through the desired robust protocols for safety and hygiene, the Ministry would need to make a paradigm shift in showcasing different facets of tourism products and promote niche tourism products such as adventure tourism, golf tourism, polo tourism, wildlife tourism, etc. The Committee also recommends that the Ministry, in coordination with the States and Union Territories, should have a targeted marketing campaign to communicate the safety measures taken by the Government at various tourist attractions. This will help educate tourists and build their confidence to travel for tourism purposes. (Para 120) Reply of the Ministry

9.1. Ministry of Tourism undertakes promotional activities in domestic and international markets through its schemes of ‘Domestic Promotion & Publicity including Hospitality (DPPH)’ and Overseas Promotion & Publicity Including Market Development Assistance (OPMD). Under these schemes, Ministry of Tourism promotes India as a holistic destination under the Incredible India brand-line. As part of its on-going activities, the Ministry releases print, electronic, online, social media and outdoor media campaigns in the international and domestic markets, to promote various tourism destinations and products of the country including various Niche Tourism products such as adventure tourism, golf tourism, polo tourism, wildlife tourism, etc.

Recommendation/Observation

10. The Committee notes that the guidelines of Market Development Assistance have been modified to inter-alia extend financial support to the tourism service providers for undertaking promotional activities within the country. The Committee would like the Ministry to carry out an appraisal of the efficacy of the above measures in promoting domestic tourism. (Para 121)

Reply of the Ministry

10.1. The modified scheme has not yet been taken off substantially due to several restrictions imposed during second wave of corona pandemic. However, as suggested, appraisal of the efficacy of the measures taken for promoting domestic tourism would be undertaken in due course. Recommendation/Observation

11. Though India has a very robust domestic market, much of the domestic tourism is low end. The Committee recommends that publicity, promotion and marketing strategies of the Ministry should focus on persuading high end domestic tourists to substitute domestic tourism for foreign tourism. (Para 122) Reply of the Ministry

11.1. The Ministry of Tourism promotes India as a holistic destination and as part of its ongoing activities, releases domestic and international print, electronic and online media campaigns under the ‘Incredible India ’brand-line, to promote various tourism destinations including Niche Tourism products of the Country under the Domestic Promotion and Publicity including Hospitality (DPPH) and Overseas Promotion and Publicity including Marketing Development Assistance (OPMD) schemes. 11.2. During the Covid-19 period promotions are also undertaken through the Website and Social Media accounts of the Ministry. Keeping in mind the importance of Social Media and digital platforms for advertising being cost effective and wide reach more emphasis is given to these new mediums. In addition, the India Tourism Offices in India and overseas undertake various promotional activities with the objective of showcasing various tourism destinations including Niche Tourism products of the Country. From April 2020 till 8thMay, 88 Webinars were held under Dekho Apna Desh. As such these campaigns target to the various tourism segment including high end domestic tourists.

HUMAN RESOURCE DEVELOPMENT Recommendation/Observation

12. The Committee notes that in order to meet the needs of the tourism and hospitality sector, 47 Institutes of Hotel Management (IHMs) and 14 Food Crafts Institutes (FCIs) have been set up and one Central IHM at Jagadishpur, Uttar Pradesh is under implementation with the support of the Ministry. Since this sector faces huge deficit in trained manpower, servicing the sector with skilled manpower becomes imperative. The Committee is of the view that the existing institutional capacities would not be able to meet the requirement of the trained manpower in the tourism and hospitality sector and, therefore, there is a need to give major boost to setting up more IHMs and FCIs. The Committee, therefore, recommends that in order to bridge the huge skill gap the Ministry should set up more demand-driven Central and State Institutes of Hotel Management and Food Crafts Institutes through convergence with other Central Ministries, State Governments/ Union Territory Administrations and the Private Sector. (Para 144)

Reply of the Ministry

12.1. There are 13 State IHMs and 6 FCIs in pipeline. In-principal approval has been granted for setting up of 3 FCIs in Madhya Pradesh in 2020-21. In addition to the

23 institutional arrangement made by the Ministry, large number of private institutions have been enrolled for conducting hospitality related skill development program.

Recommendation/Observation

13. The Committee observes that tourism is a multi-sectoral labour intensive industry and a major source of employment and, therefore, the training programmes should articulate well with employment generation so that maximum synergy could be achieved. The Committee notes that under the Hunar Se Rozgar Tak Programme, 1092 persons have been trained/ certified in the FY 2019-20 and under the Entrepreneurship Programme, a total of 2117 persons have been trained/ certified in the FY 2019-20. Though the Committee welcomes the achievements made under the above programme, it apprehends that there is huge variation between the annual target fixed and the actual achievement made in the matter of training and certification under the Scheme of Capacity Building for Service Providers. The Committee, therefore, desires to be apprised of the achievements made vis-à-vis the targets fixed programme-wise under the CBSP in 2019-20 and 2020-21. (Para 147)

Reply of the Ministry

13.1. Under the Hunar Se Rozgar Tak Programme, 10922 persons have been trained/ certified in the FY 2019-20.The targets are fixed based on the assessment of performance by the implementing agencies in the previous year along with the increase of demands in number of skilled tourist service providers by the stakeholders.

SI. Financial Target Fixed Achievements No year (No. of Persons

trained/ certified) 1 2019-20 57430 32324 2 2020-21 36720 7314* *provisional

13.2. It may be seen that the variation between the annual target fixed and the actual achievement made in the matter of training and certification under the scheme during the year 2019-20 is due to the fact that the implementing agencies could not complete their training programme before the pandemic's arrival in the country. Moreover, as a precautionary measure the number of trainees were also reduced in the various programmes in line with the Covid-19 protocol pursuant to the instructions issued by the Ministry of Home Affairs. 13.3. During the year 2020-21, the target was initially fixed at 58600. However, with the pandemic's adverse impact including several restrictions, the same was reduced to 36720. Further, the targets are fixed based on the feedback of the implementing agencies in respect to the skill gap assessment, number of tourist footfalls as reported by the concerned State/ UT Governments and consultations with the tourism stakeholders. It is the Ministry’s continuous endeavour to train more and more youth in various hospitality sectors and increase the employability of the local youths in the relevant sectors. Being skill development program, it

24 is more useful, if it is conducted in the offline mode by the implementing agencies rather than online training programme.

Recommendation/Observation

14. The Committee notes that one of the main objectives of the Scheme of Capacity Building for Service Providers is to provide professional experience to the local populace as well as create fresh opportunities for employment generation in urban and rural areas. In this connection, the Committee invites attention of the Ministry to the recommendation of the Planning Commission in its 12th Plan document seeking development of tourism to eliminate poverty. The Committee, therefore, expects the Ministry to take tangible steps to expand the job opportunities for the poor and the marginalized, through capacity building and transfer of skills in coordination with the Training Service Providers. The Committee desires to be kept apprised of the precise achievements in this regard. (Para 149)

Reply of the Ministry

14.1. As per the recommendation of the planning commission in its 12th Plan document making promotion of tourism as a pro-poor activity, the scheme of Capacity Building for Service Providers (CBSP) has also moulded its implementation in this direction so that more and more local youth both urban as well as rural areas can be provided skill training programme so that they are employable in the tourism sector including movement from informal to formal sectors. The achievement of the scheme during the last three years is given below for information of the committee.

SI.No Financial year Outcome (No. of Persons trained/ certified)

1. 2017-18 16592

2. 2018-19 28612

3. 2019-20 32324 Total 77528

CONNECTIVITY Recommendation/Observation

15. In North-Eastern India, most tourist destinations are reachable only by road which entails long travel time between destinations. There is lack of roadside amenities including toilets in the routes. This is true for travel in all NorthEastern States with few exceptions in certain circuits in Assam and Meghalaya. The Committee would, therefore, like the Ministry to address lack of wayside amenities on the routes in North-Eastern States. (Para 154)

Reply of the Ministry

15.1. Ministry of Tourism (MoT) has been pursuing the matter regarding improvement of road connectivity/ setting up of Wayside Amenities, prominent signages and beautification of the area, at a distance of 15-20 km to important tourist destinations including the destinations falls in the states of North – Eastern India with the Ministry of Road Transport & Highways (MoRTH) and had submitted a list of 50 Tourism Destinations to MoRTH for taking up in the first phase. 15.2. Further, the Virtual meetings with the States / UTs Tourism Departments were held on 24th and 25th November, 2020 to get their inputs and suggestions on other tourist destinations where road connectivity / wayside amenities are required. So far, a list of 114 destinations including the destinations of North-Eastern States has been sent by Ministry of Tourism to Ministry of Road Transport & Highways to take up in the second phase. On receipt of the further list of tourist destinations from the States/UTs, it will be forwarded to Ministry of Road Transport and Highways Recommendation/Observation

16. Air connectivity is key to unlocking India’s inbound tourism. Some States including those in the North-Eastern region and other hilly areas have great tourism potential but lack air connectivity. The Committee notes that the Ministry of Tourism has got 46 tourism sectors/routes included under the Regional Connectivity Scheme UDAN-3 of the Ministry of Civil Aviation out of which only 21 routes have been operationalized. The Committee, therefore, recommends that the Ministry of Tourism, in coordination with the Ministry of Civil Aviation and through the Inter-Ministerial Coordination Committee for Tourism Sector should thrash out the lingering issues and operationalize the remaining sectors/routes in a time bound manner. (Para 155)

Reply of the Ministry

16.1. A Task Force has been constituted under the chairmanship of Secretary (Tourism), Government of India to address various issues related to tourism. The task Force comprises representatives from the Ministries of Civil Aviation, External Affairs, Home Affairs, Railways, Road Transport & Highways, Culture, DONER, Environment & Forests and IRCTC, ASI. Virtual meetings of the Task Force have been held on 1st September, 2020 and 19th October, 2020 when various issues were taken up with the concerned Ministries. 16.2. Under RCS UDAN-3, Ministry of Tourism approached Ministry of Civil Aviation, with the purpose of further improving connectivity for 46 tourism routes of important tourist places including Iconic sites. Currently 21 tourism routes have been operationalized. Ministry of Civil Aviation has included ADG/JS level officer of the MoT as member of the monitoring committee to oversee and evaluate the projects undertaken under the schemes of RCS- UDAAN. The committee meets regularly.

16.3. MoCA has informed that due to impact of COVID, operations had been scaled down and indicated that the remaining tourism routes are likely to be operationalized by end of June 2021. Further to this, Ministry of Tourism has also been supporting and giving its recommendations for inclusion of tourism routes and improving the air connectivity in the North Eastern region. The Ministry of Civil Aviation has recently finalised 78 Routes under RCD UDAN–4 which largely aim at increasing air connectivity to and within the North Eastern Region. Recommendation/Observation

17. The Committee notes that as per the Railway Budget Announcement 2011-12, 26 railway stations had been identified for joint development of tourist amenities. Four projects have since been dropped and 22 projects have been sanctioned by the Ministry of Tourism at a cost of Rs. 108.54 crore as Ministry of Tourism’s share. The Committee is constrained to note that ten years have elapsed since the Announcement made in 2011-12; but these projects are still languishing. The Committee apprehends that the delay in operationalization of these projects of tourism importance will not only obstruct seamless flow of tourists and result in cost escalations but also have a bearing on overall economic growth and employment generation. The Committee, therefore, recommends that the Ministry of Tourism in collaboration with the Ministry of Railways should urgently address the pending issues pertaining to implementation of the Scheme of joint development of tourist amenities at the 22 railway stations and also set a timeframe to complete it. (Para 156)

Reply of the Ministry

17.1. The cause for earlier delay in the operationalization of the Railway project was due to release of the fund to Railway zones for implementation of the project. The Railway Zones were taking time to transfer the fund to the Divisions for implementation of the Project. For the smooth implementation of the Project, now the fund is directly released to Railway Divisions for speedy implementation of the Project. The status for the Joint Development 22 Railway Station project with the Ministry of Railways is as under: 1. Puri and Agra Cantt. Railway Station Project is complete. 2. Jaipur; Ajmer; Trivandrum; Kamakhya and Guwahati Railway Station Projects are nearing Completion.

17.2. The Pending issues were taken up with the Ministry of Railways in the meeting held under the Chairmanship of Secretary (T) on 01.09.2020 followed by a letter dated 11.09.2020 to the Director (T&C) Railway Board. Further, the Railway Board had been asked to share the status report on the progress of work at the other Sanctioned Railway station to take a view on the way forward vide letter dated 18.02.2021.

SAFETY & SECURITY OF TOURISTS Recommendation/Observation

18. Underlining the importance of safety and security of tourists, the Committee in its 275th Report had recommended the deployment of a committed and professionally trained police for ensuring safety, security and dignity of the visiting tourists. The Committee is constrained to note that though fourteen States/Union Territories have deployed the tourist police in one form or the other, no forward movement has been reported in respect of the remaining States/Union Territories in this regard. The Committee would, therefore, like the Ministry to take up this matter with the remaining States/Union Territories and urge upon them to deploy the tourist police at all important tourist destinations. (Para 160)

Reply of the Ministry

18.1. The Ministry of Home Affairs had taken up the pilot project for providing tourist police at 25 tourist sites identified by the Ministry of Tourism. Subsequently, the Ministry of Tourism has been seeking support of the Ministry of Home Affairs for taking up the matter with the State Governments. In the meantime, the Ministry had also got a study conducted by IITTM, an autonomous institute under its control, to understand the requirement of tourist police and sensitizing the tourist police so created towards their needs. Ministry of Tourism forwarded a copy of this Study report titled “Functioning of Tourist Police in States/UTs & Documentation of Best Practices to all the State Govts/UT Admn. with the request to create a separate unit of police in the respective states/UT and also to sensitize them about the needs of the tourists. Some of the State Governments have put the tourist police system in place. However, there remains variation at the policy and implementation level. 18.2. To develop a comprehensive framework, The Bureau of Police Research & Development (BPR&D) commissioned a study on Tourist Police Scheme. The study has been now completed by BPRD and its recommendations have since been received by MoT. The report is very comprehensive in its analysis and recommendations and once implemented at the pan- India level, it may be able to create an enabling framework for tourist safety. The mater is taken up with BPR&D to help the Ministry in working out a consensus by the States/UTs to implement the Tourist Police Scheme in their States/UTs. 18.3. Further to this, to make it successful, the matter has also been taken up with Ministry of Home Affairs requesting for convening of a meeting of the DGPs of States / UTs for implementation of Tourist Police Scheme at the Pan-India level.

INDIA TOURISM DEVELOPMENT CORPORATION Recommendation/Observation

19. The Committee notes that ITDC is presently running, inter alia, four Ashok Group of Hotels and one restaurant and for the financial year 2020-21 the revised budget estimates for capital outlay was Rs. 34.39 crore. The Committee observes that as a consequence of disinvestment of nine hotels of ITDC, adequate attention has not been paid to upgradation and renovation of the remaining ITDC properties and improving the standards of the

28 infrastructure at other verticals like Transport Units, Light and Sound Shows, etc. Given the fact that the infrastructure projects are capital intensive and normally have substantial gestation period, the Committee apprehends that the Capital outlay of Rs. 34.39 crore would be inadequate. The Committee is, therefore, of the considered view that in order to meet the fund requirements for infrastructure upgradation and renovation of ITDC properties as also to meet the established industry standards in order to match the private players, ITDC would need funding support from the government of India by way of equity infusion. The Committee, therefore, recommends that the Ministry of Tourism should chalk out a viable financial plan for providing funding support to ITDC by way of equity investment so that ITDC could carry out major capital expenditures. (Para 172)

Reply of the Ministry

19.1. Presently ITDC has only 3 hotels i.e. Hotel Ashok, Hotel Samrat at New Delhi and Hotel Kalinga Ashok at Bhubaneswar and one restaurant at Taj Mahal Compound, Agra. Disinvestment process of Hotel Kalinga Ashok, Bhubaneswar had already been started in 2018 and Request for Proposal (RFP) for giving the hotel on Operation & Management Contract to third party is to be issued after the approval of revised selection criteria by the Inter Ministerial Group. This will be the fourth RFP, before this 3 RFPs have been issued but could not be succeeded. 19.2. Further, the disinvestment process of Hotel Ashok has also been started. Core Group of Disinvestment (CGD) in its meeting held on 15.03.2021 has approved the recommendations of Inter-Ministerial Group for licensing out of Hotel Ashok for 60 years. Ministry of Tourism is in the process of obtaining CCEA clearance for in-principal approval for disinvestment of Ashok – Samrat Complex and for conducting the road shows. 19.3. In view of the disinvestment process being undergone, it is generally not advisable to go for major upgradation and renovation (except normal & essential Repairs & Maintenance) of properties. Due to outbreak of pandemic COVID-19 since March, 2020, the hotel properties remained out of the operations most of the time during 2020-21 and therefore the budget estimates for Capital outlay during 2020-21 was further reduced from Rs.34.39 crore to Rs.4.61 crores which includes Rs.0.55 crore on renovation of properties. The expenditure for Capital Outlay for the year 2020-21 is to be met out from internal resources available and expected funds generation. For the year 2021-22, the expenditure for Capital outlay for ITDC is estimated at ₹ 24.73 Crores, which includes ₹ 18.89 Crores against renovation/Up- gradation of hotel properties. This amount shall be met-out from the funds generated from internal resources.

Recommendation/Observation

20. The Committee notes that ITDC Board had appointed M/s Deloitte to advise ITDC to expand its existing business and to tap the potential business related with tourism and hospitality sector. M/s Deloitte has submitted the draft Stage 1 Report which is yet to be examined by ITDC Board. The Committee expects that the Report of M/s Deloitte would

29 usher in high corporate governance standards in ITDC. The Committee, therefore, recommends that the Report of M/s Deloitte be examined and acted upon with a sense of expediency so that ITDC could maximize the revenue by leveraging resources of the existing hotels and other verticals and consolidate its existing businesses. The Committee desires to be kept updated in this regard. (Para 173)

Reply of the Ministry

20.1. The presentation on Stage-1 of Business Plan Report by Team Deloitte was fixed for the Board Meeting held on 31.03.2021 but during the Board meeting, out of six directors, only three directors were present. The presentation was therefore deferred and it was decided to have an exclusive Board meeting for the presentation by M/s Deloitte. However due to second wave of COVID-19 which has infected many officers of ITDC along with their family members, the meeting could not be held. The presentation is likely to be taken in the next meeting of the Board which is tentatively scheduled in the 2nd week of June, 2021. MISCELLANEOUS Recommendation/Observation

21. The Committee observes that in these COVID times, tourists are concerned about their safety and would prefer tourist destinations which are unexplored and away from hustle and bustle of cities. The country is blessed with myriad lesser-known destinations and diverse landscapes rich in biodiversity whose potential is yet to be tapped. These destinations can help attract tourists if they could be transformed into world-class tourist attractions. The Committee, therefore, recommends that the Ministry should make a conscious effort to develop new unexplored and niche destinations to harness the full potential of Indian tourism. (Para 175)

Reply of the Ministry

21.1. The Ministry of Tourism has taken the initiative of identifying, diversifying, developing and promoting niche tourism products in the country. This is done in order to overcome the aspect of ‘seasonality’ and to promote India as a 365 days’ destination, to attract tourists with specific interest, and to ensure repeat visits for the unique products in which India has a comparative advantage. Thus, new products may be added in due course. The Ministry of Tourism has constituted Board/Task Forces/Committees for the promotion of Golf, Medical/Wellness, Cruise and Adventure Tourism in the country.

Recommendation/Observation

22. The Committee observes that the existing accommodation units are not sufficient for the targeted growth of tourism in the country which has pushed the tariff rates high. The Committee, therefore, recommends that in order to address the shortage of hotels, and augment the inventory of hotels for tourism promotion, the Ministry should help devise a

30 scheme for development of hotels at all the important tourist destinations. In this connection, State Governments may be requested to identify and offer land for construction of hotels at the important tourist destinations. (Para 180)

Reply of the Ministry 22.1. The Ministry of Tourism is not directly involved in the process of hotel construction. Making land available for infrastructure such as hotels is the responsibility of States/UTs. However, Ministry of Tourism has requested States/UTs to allot land on lease so that relevant infrastructure can be met by private players. With a view to encourage the growth of Bed & Breakfast/ Homestay establishments the Ministry of Tourism has requested States/UTs to encourage house owners to set up Bed & Breakfast/ Homestay units. The Ministry of Tourism is also conducting sensitization workshops to hand hold house owners to establish such units within the accepted norms.

Recommendation/Observation

23. The Committee observes that air, rail and road connectivity to important tourist destinations is of vital importance. Though some of the tourist destinations are well- connected by more than one mode of transport, a large number of tourist destinations are still not connected even through one mode of transport. The Committee, therefore, recommends that the Task Force should help prepare a Master Plan dedicated to providing air/rail/road connectivity to all present and future ports, airports, historical and cultural places and other important tourist destinations and this Plan should be implemented within a designated timeline. (Para 183)

Reply of the Ministry

23.1. A Task Force has been constituted under the chairmanship of Secretary (Tourism), Govt. of India to address various issues related to tourism. The task Force comprises representatives from the Ministries of Civil Aviation, External Affairs, Home Affairs, Railways, Road Transport & Highways, Culture, DONER, Environment & Forests and IRCTC, ASI. Virtual Meetings of the Task Force have been held on 1st September, 2020 and 19th October, 2020 when various issues were taken up with the concerned Ministries including providing air/rail/road connectivity to all present and future ports, airports, historical and cultural places and other important tourist destinations. Apart from these the inputs and suggestions received from various stakeholders time to time were perused and also taken up by the Ministry with the concerned Ministries. Recommendation/Observation

24. The Committee has been given to understand that several proposals, including the one from Bihar regarding Sonpur Mela have been submitted to the Ministry, as far back as three years, for approval and inclusion under the Swadesh Darshan Scheme. However, they

31 are yet to be sanctioned for implementation. Similar other proposals received from Bihar and across the country are also pending approval and implementation. The Committee recommends that since these proposals for development of Tourism Infrastructure have immense tourist potential, the Ministry should quickly process them for approval and implement them within a definite time-frame. The Committee desires to be kept apprised of the updated status in this regard. (Para 184)

Reply of the Ministry

24.1. Recommendation of the Committee is noted. The Ministry of Tourism under its Swadesh Darshan scheme has sanctioned 76 projects in the country during the period 2014- 15 to 2018-19. Sanctioning of new projects under Swadesh Darshan scheme is under review. The Ministry of Tourism vide its letter dated 15.03.2021 has informed to all the State Governments / Union Territory Administrations that since sanctioning of new projects under Swadesh Darshan scheme is under review, no new project can presently be considered for sanctioning. Once the review is complete and the new guidelines for the scheme are issued, State Governments/ Union Territories / Central Agencies will be apprised of the same and they can then submit the proposals as per the details mentioned in the new guidelines. All the proposals submitted for consideration and approval of the Ministry of Tourism under Swadesh Darshan scheme are therefore deemed to be returned. Out of the total 76 projects sanctioned in the country, the following projects have already been sanctioned in the State of Bihar under Swadesh Darshan scheme:-

Sl. State/UT Circuit Sanction Name of the Project Amt. No. Year Sanctioned (Rs. in Crore) 1. Bihar Tirthankar 2016-17 Development of 37.19 circuit Vaishali- Arrah- Masad- Patna- Rajgir- Pawapuri- Champapuri 2. Bihar Spiritual 2016-17 Integrated 44.76 circuit Development of Kanwaria Route: Sultanganj – Dharmshala- Deoghar 3. Bihar Buddhist 2016-17 Development of 98.73 Circuit Buddhist circuit- Construction of Convention Centre at Bodhgaya 4. Bihar Rural 2017-18 Development of Gandhi 44.65 Circuit Circuit: Bhitiharwa-

Chandrahia- Turkaulia 5. Bihar Spiritual 2017-18 Development of Mandar 47.52 Circuit Hill & Ang Pradesh Total 272.85

***

CHAPTER-III

RECOMMENDATIONS/OBSERVATIONS IN RESPECT OF WHICH REPLIES OF THE MINISTRY HAVE NOT BEEN ACCEPTED BY THE COMMITTEE

ANALYSIS OF BUDGETARY ALLOCATIONS FOR 2021-22

Recommendation/Observation

1. The Committee finds that there is persistent mismatch between the Budget Estimates (BE) and Actual Expenditure (AE) during the years 2018-2019, 2019-20 and 2020-21. The shortfall in the Actual Expenditure was to the tune of Rs. 47.47 crore, Rs. 789.01 crore and Rs. 1239.83 crore for the years 2018-19, 2019-20, and 2020-21 respectively. The Committee does find the explanation furnished by the Ministry tenable that the savings of Rs. 1239.83 crore for 2020-21 were on account of the cuts imposed by the Ministry of Finance in the wake of COVID-19 pandemic and the resultant lock downs. However, the shortfall in the utilization of budgeted outlay for the years 2018-19 and 2019-20 clearly indicates fiscal indiscipline and poor budgetary planning on the part of the Ministry and is also reflective of the inefficiency of the mechanism purportedly evolved by it to prevent underutilization of funds. The Committee, therefore, exhorts the Ministry to be more prudent in its budget formulation and make their estimates only after proper assessment and planning. The Committee expects remedial measures from the next fiscal onwards. (Para 42)

Reply of the Ministry

1.1. With reference to the above observation of the Hon’ble Committee, it is submitted that there is difference in the figures of BE and RE due to cut imposed by the Ministry of Finance at RE stage. Except for the financial year 2020-21, in all other years, the Ministry has demanded higher allocation that BT at RE stage. However, the Ministry of Finance, based on various considerations and availability of resources reduced the allocation of funds to the Ministry at RE Stage. In the year 2020-21, the Ministry projected a lower allocation at RE stage due to the COVID-19 pandemic and its consequent impact on the implementation of various schemes of the Ministry. As regards the gap in allocation and actual expenditure, it is submitted that the Ministry has been able to spend almost 100% of the RE allocation in all previous years except during 2020-21 as indicated below:

Year BE RE Acutal Exp. % Exp of RE 2016-17 1590.32 1670.83 1638.61 98.07 2017-18 1840.77 1776.40 1766.09 99.42 2018-19 2150.00 2113.48 2102.53 99.48 2019-20 2189.22 1416.00 1399.21 98.81 2020-21 2499.83 1200.00 1137.38 90.27

1.2. The allocation at RE stage during 2020-21 and the actual expenditure was low due to the COVID-19 pandemic and quarterly financial expenditure limit imposed by the Department of Expenditure, Ministry of Finance.

Further Recommendation/ Observation

1.3. The Committee is of the view that the growth momentum in the tourism sector has witnessed a huge slump in the wake of the lockdown induced by the Covid-19 pandemic. Further, with international tourism not being an option for a domestic traveler until the situation of Covid-19 pandemic is prevailing across various countries, domestic tourism needs to be focused upon by the Ministry. The Committee would like to recommend to the Ministry that it should review its status of utilization of funds and expedite the process of additional requirement of funds with the Ministry of Finance, if any, in order to complete the ongoing and stalled tourism projects within a designated time-frame.

IMPACT OF COVID-19 PANDEMIC ON TOURISM, TRAVEL AND HOSPITALITY SECTOR

Recommendation/Observation

2. Domestic tourism plays an important role in overall tourism development in the country. At a time when foreign tourist arrivals have registered a de-growth due to the COVID-19 pandemic, domestic tourism visits have re-started and are helping to soften the blow in a significant way. The Committee, however, observes that despite having a strong domestic tourism base coupled with a rapidly rising middle class with disposable incomes, domestic tourists currently represent an extremely small fraction of the total population of the country. The Committee, therefore, recommends that Government should incentivise domestic tourism by way of modifying rules and allowing citizens to avail Leave Travel Allowance benefit on domestic tours including travel fare and accommodation expenses for a period of two years. This will give the necessary fillip to the sector and help make domestic tourism a mainstream part of our economy. (Para 70)

Reply of the Ministry

2.1. Industry stakeholders in a meeting with Secretary (Tourism) held on 8th June, 2021 requested that in order to boost domestic tourism, the Government should provide tax rebate of up to Rs. 1.5 lakh for spending on domestic holidays in the lines of the Leave Travel Allowance (LTA). The Ministry of Tourism will take up the issue with concerned Ministries.

Further Recommendation/ Observation

2.2. The Committee takes note of the reply of the Ministry. The Committee would, however, recommend that a policy formulation should take place in coordination with

35 the State Governments/ UTs/ private stakeholders of the tourism industry in order to incentivise domestic tourism by way of modifying rules and allowing citizens to avail Leave Travel Allowance benefit on domestic tours including travel fare and accommodation expenses for a period of two years. This would not only give a boost to domestic tourism but would also lead to more and more revenue generation and growth of employment opportunities. The Committee desires to be kept apprised of the new measures proposed in this regard.

Recommendation/Observation

3. The Committee observes that the hospitality industry is in huge distress under the impact of the COVID-19 pandemic and is looking at mass unemployment and pan India bankruptcies. The Committee notes from the written submissions of the Ministry of Tourism that all star-rated hotels with a project cost of over Rs. 200 crores were granted infrastructure status by their inclusion in the Harmonized Master List of Infrastructure sub- sectors vide gazette Notification dated 07.10.2013 which lapsed three years after notification via sunset clause. The Ministry’s proposal for grant of infrastructure status to investment in hotel industry of over Rs. 50 crore and in towns with less than 5 lakh population has been turned down by the Ministry of Finance. Subsequently, the Ministry of Finance was requested to grant infrastructure status to hotel projects with lower investment, i.e. hotel capex above Rs. 25 crore (excluding land) capex, but the Department of Economic Affairs is yet to respond to the proposal. The Committee has been given to understand that the Reserve Bank of India has equated the hotel sector with real estate which leads to lending at high interest rate from banks. The Committee observes that shortage of quality accommodation to tourists is a big deterrent to the development of tourism. One of the key impediments for investment in the hospitality and hotel sectors has been the non-availability of credit at low interest terms. Considering the fact that construction of hotels is highly capital intensive and has a long gestation period with a long break even period, availability of quality hotel accommodation has a direct correlation to the Ministry’s vision of taking the share of India’s Foreign Tourist Arrivals (FTAs) from 0.75% in 2019 to 2% by 2025. The Committee therefore is of the considered view that there is an imperative need to accord infrastructure status to hotel projects with capex above Rs. 25 crore (excluding land) and include the same in the infrastructure lending list of the RBI. The Committee exhorts the Ministry of Tourism to immediately bring the above recommendation to the notice of Ministry of Finance who should enumerate their policy stance on this issue with a sense of urgency and expediency and bring down this threshold limit to Rs. 25 crore. This move will attract more investment in hotel projects, which in turn shall drive employment generation. The Committee desires to be kept apprised of the decision taken by the Ministry of Finance in this regard so that the matter could be deliberated/pursued with them in the right earnest. The Committee is convinced that according infrastructure status to hotels will not only attract more investments in hotel projects, but also go a long way in reviving the growth momentum of this sector which has witnessed a major slump since the outbreak of the COVID-19 pandemic. (Para 73)

Reply of the Ministry

3.1. Ministry of Tourism has requested Ministry of Finance to sympathetically consider grant of infrastructure status for hotels in cities with population upto 5 million instead of current stipulation of 1 Million to give a boost to investment in the accommodation sector, after industry stakeholders reiterated their request in a virtual meeting held on 8th June, 2021.

Further Recommendation/ Observation

3.2. The Committee should be apprised of the current status of the proposal for granting infrastructure status to hotels. The Ministry should inform the Committee of the bottlenecks being faced in the same and reasons for the delay.

Recommendation/Observation

4. The Committee observes that one of the bottlenecks in tapping the full potential of the hospitality sector is the high incidence and multiplicity of taxes. While some States like Maharashtra, Gujarat, Uttarakhand, etc., have accorded industry status to hospitality sector, there is no uniformity in the tax structure across States and the cumulative impact of the present tax structure is that room tariffs in the country have become exorbitantly high, thereby leading to tourist packages being priced out in comparison to competing destinations of other countries who are luring tourists. The Committee is, therefore, of the view that levy of taxes on hotels should be rationalized and industrial rates for power supply, water supply, property tax should be charged instead of the commercial rates. This, in the opinion of the Committee, would be a game changer in reviving this badly hit sector due to COVID-19 pandemic and boost investment in the sector. The Committee, therefore, recommends that the Ministry should immediately initiate policy measures for according Industry status to hotels so that benefits of lower rates of electricity, water, property tax could be extended to hotels and taxes levied on hotels are rationalized and made globally competitive. (Para 74)

Reply of the Ministry

4.1. The Ministry of Tourism has taken up the issue of inclusion of tourism in the Concurrent List with the concerned Ministry, so that tourism can be placed on the national agenda.

Further Recommendation/ Observation

4.2. The Committee takes note of the submission of the Ministry that a proposal for inclusion of tourism in the Concurrent List has been initiated. The Committee sincerely hopes that the proposed measure will provide a level playing field to all the hotels which

37 have been badly hit by the ongoing Covid-19 pandemic. The Committee desires to be kept apprised of the efficacy of the new measures proposed. INTEGRATED DEVELOPMENT OF TOURIST CIRCUITS AROUND SPECIFIC THEMES (SWADESH DARSHAN) Recommendation/Observation

5. The Committee is constrained to note the poor physical and financial performance of the Swadesh Darshan Scheme. Out of the 76 projects sanctioned so far for Rs. 5667.40 crore, only 9 projects have reached their logical conclusion and the remaining projects have witnessed physical progress and financial progress ranging from 2% to 99% and 2%to 98% respectively. The Committee is also dismayed to note that against the sanctioned provisions of 5667.40 crore, only Rs. 4265.81 Crore have been released so far and the expenditure incurred is even less at Rs. 3548.30 crore. What appears to be more surprising is that the Ministry had sought an upward budgetary allocation of Rs. 1500 crore for the FY 2021-22 despite the released amount having remained unspent in the preceding years. The Committee would, therefore, like to be apprised of the reasons behind such large scale unspent provisions and low physical and financial performance achieved under the SDS which had been launched during 2014-15 with the avowed objective of developing world class infrastructure in the circuit destinations, promoting cultural and heritage value of the country and enhancing employment opportunities. (Para 82)

Reply of the Ministry

5.1. The Ministry of Tourism during the year 2014-14 to 2018-19 has sanctioned a total number of 76 projects for the revised sanctioned cost of Rs. 5667.39 Crore. As on 31st March, 2021, an amount of Rs. 4340.96 Crore have been released by the Ministry of Tourism, out of which Rs. 3693.68 Cr. has been utilized by the implementing agencies. The Ministry of Tourism in order to avoid parking of funds at the end of the implementing agencies, releases funds in a phased manner and as per guidelines. Similarly, the next instalment is released only when 75% of the previously released money is utilized by the implementing agencies. The Ministry of Tourism also requests the agencies to refund the unspent money lying with them. 5.2. After the year 2018-19, no new project has been sanctioned by the Ministry as sanctioning of new projects under Swadesh Darshan scheme is currently being reviewed. The Ministry of Tourism has sought a budget of Rs. 1500 Cr. in the financial year 2021-22 with the objective to make next set of releases to the projects already sanctioned and which are under different stages of completion. In addition, it is anticipated that the sanctioning of new projects under Swadesh Darshan scheme will be approved and hence this may lead to requirement of funds. 5.3. Out of 76 sanctioned projects, 11 projects are physically complete whereas 10% are over 95% complete and another 16 projects are over 85% complete. The remaining projects are under different stages of implementation.

Further Recommendation/ Observation

5.4. The Committee in its 284th Action Taken Report on Demands for Grants (2020- 21) of Ministry of Tourism recommended for a creation of a web-based monitoring system/ online portal to monitor the progress level of the projects sanctioned under the SDS alongwith having a feature of uploading photos/ videos made by the Project Monitoring Committee during its visit to the project site. The Committee would like the Ministry to update the Committee about the progress made in this regard.

5.5. The Committee notes from the reply of the Ministry that out of 76 sanctioned projects, only 11 projects are physically complete and rest are under different stages of implementation. Further, no new project has been sanctioned by the Ministry as sanctioning of new projects under Swadesh Darshan scheme is currently being reviewed. The Committee is not satisfied with the progress of tourism related projects under SDS. SDS was launched in January, 2015 with the aim to boost domestic tourism but has not shown remarkable achievements due to delay in completion of projects. The Committee would like to recommend to the Ministry that the Government must take stringent measures for expediting the completion of remaining projects under various thematic circuits in a time bound manner.

CRUISE TOURISM

Recommendation/Observation

6. The Committee notes that the construction/upgradation of cruise terminals at six major ports, namely Mumbai, New Mangalore, Mormugao, Chennai, Cochin and Visakhapatnam have been taken up. The Committee, while welcoming the above measures, recommends that international standard, accessible and well equipped cruise infrastructure with world-class passenger services should be developed at more such ports so that more cruising opportunities for the country and cruise liners can be created and the Prime Minister's vision of putting India on the global cruise map gets realized. (Para 106)

Reply of the Ministry

6.1. The aim and object of construction / upgradation of cruise terminal that are taken by Port Trust in the country are of International standard, accessible and well equipped cruise infrastructure as it is constructed for world class passengers and Cruise Liners. At present, there is no such proposal which is under consideration in the Ministry. Once it is received, Ministry would consider for supporting the project under the provisions of the guidelines of the scheme.

Further Recommendation/ Observation

6.2. The Committee recommends that in order to enable the cruise sector to reshape the Indian travel industry, the Government must revamp the country’s current Port infrastructure, set up dedicated terminals to cater to the needs of tourists and undertake riverfront development on a massive scale. The Committee desires that this mode of transport facility should be affordable to the tourists who could not afford cruise tourism facilities so that cruise tourism can reach the masses.

Recommendation/Observation

7. The Committee notes that in order to support cruise industry and domestic cruise tourism against the economic impact of the COVID-19 pandemic, the Government has taken several steps including rationalization of tariff rates for cruise vessels plying on the rivers and oceanic waters of India. The Committee desires to be apprised of the efficacy of such measures taken. (Para 108) Reply of the Ministry

7.1. Ministry of Ports, Shipping and Waterways has been approached in the matter.

Further Recommendation/ Observation

7.2. The Committee would like the Ministry to expedite the process of formulation of policy for rationalizing the tariff rates for cruise vessels of the country. The Ministry should chalk out ways in coordination with the Ministry of Ports, Shipping and Waterways in this regard and apprise the Committee of the same.

HUMAN RESOURCE DEVELOPMENT Recommendation/Observation

8. The Committee observes that as of now, the Ministry does not have a rigorous and reliable statistical system for assessment of annual requirement of skilled manpower and supply in the hospitality sector. Since correct statistical data are extremely important for framing any policy, the Committee recommends that the Ministry should commission a study to estimate the requirement of manpower in the Hospitality sector. (Para 145)

Reply of the Ministry 8.1. Study on Employment Level and Skill Gap Analysis in Hospitality and Allied Sectors was conducted in the year 2019 through Nielsen by the Ministry as per which the “Demand Supply Gap" in the hospitality industry till 2022 are 8,18,762 and till 2025 are 10,94,074.

Further Recommendation/ Observation

8.2. The Committee would recommend that the Ministry in co-ordination with the State Governments/ UTs should formulate a multipronged approach to bridge the skill gap in the tourism sector and should also launch a programme to upgrade the skills of the existing tourist service providers. The Ministry of Tourism should look towards Destination Based Skill Development Training Programmes at Pan India level alongwith inviting applications from Private Institutions/ Organizations for empanelment as implementing agencies for delivering need based skill development programs to address the shortage of skilled manpower in travel, tourism and hospitality sector.

CONNECTIVITY Recommendation/Observation

9. Poor Road connectivity has been one of the impediments for the growth of tourism in India. The Committee takes note of the submission of the Ministry that out of the 50 important tourist destinations selected for road connectivity, 23 destinations fall under the purview of Ministry of Road Transport and Highways/ NHAI where the work is going on. However, there is no clarity whether any headway has been made in respect of the remaining tourist destinations which are under the ambit of the State governments. Since road connectivity is one of the fundamental components for successfully developing a tourism market, the Committee would like the Ministry of Tourism to vigorously pursue the matter with the concerned State governments for expeditious execution and completion of the 27 projects. The Committee desires to be kept updated in this regard. (Para 152)

Reply of the Ministry

9.1. The matter has already been taken up with the State Governments/UT Administrations with request to expedite it.

Further Recommendation/ Observation

9.2. Proper road connectivity to any tourist destination plays an important role in determining the tourism potential of that particular site. Since most of the Tourist sites in India especially those located in the hilly regions of Jammu and Kashmir, Uttarakhand, North-Eastern States does not have proper rail/ air connectivity, therefore, connectivity through road is the only means of connectivity to such tourist sites. The Committee, therefore, recommends that road connectivity to most visited tourist destinations needs immediate attention and the Ministry should formulate policy in order to develop pucca roads with wayside amenities to enhance connectivity to preferred tourist destinations. Recommendation/Observation

10. The Committee wishes to point out the absence of last mile road connectivity to several tourist destinations which needs immediate attention. The Committee would, therefore, like the Ministry to pay attention to last mile road connectivity to preferred tourist destinations to potentially boost tourist footfall. (Para 153)

Reply of the Ministry

10.1. Recommendation of the Committee is noted. The last mile connectivity is of prime importance for any tourist destination. This facility is admissible under PRASHAD Scheme and has been approved for almost all the destinations/sites covered under the scheme.

Further Recommendation/ Observation

10.2. The Committee would like the Ministry to formulate a policy for earmarking of sufficient funds for developing and providing highway link as well as last mile road connectivity to tourist destinations. The Committee desires to be kept apprised of the progress made by the Ministry in this direction.

SAFETY & SECURITY OF TOURISTS Recommendation/Observation

11. The Committee is aware that the Ministry of Tourism had adopted the Code of Conduct for “Safe and Honourable Tourism” on the 1st July, 2010 to strengthen safety of tourists and ensure that Indian tourism follows international standards of safe tourism practices. The Committee would like to be apprised whether the objectives of the Code have been achieved and to what extent the Code has succeeded in encouraging the stakeholders to undertake tourism activities without compromising the basic rights like dignity, safety and freedom from exploitation of both tourists and local communities. (Para 161)

Reply of the Ministry

11.1. The undertaking/pledge is mandatory for all service providers who apply for recognition / renewal of ‘Recognition of Tourism Service Providers by the Ministry of Tourism’ recognition, under the guidelines, granted under three broad sub-categories of Tour Operators (Inbound, Domestic, Adventure, MICE), Travel Agents, Tourist Transport Operators to encourage the stakeholders to undertake tourism activities without compromising the basic rights like dignity, safety and freedom from exploitation of both tourists and local communities.

Further Recommendation/ Observation

11.2. The Committee would like the Ministry of Tourism to take up the matter of safety and security of tourists with all States/UTs in order to encourage the stakeholders

42 to undertake tourism activities without compromising the basic rights like dignity, safety and freedom from exploitation of both tourists and local communities. The Ministry should apprise the Committee of the current status of adoption and implementation of the Code of Conduct for “Safe and Honourable Tourism” by all the States/ UTs alongwith the possibility of including new safety policies in the same.

MISCELLANEOUS

Recommendation/Observation

12. The Committee notes from the information made available to it that the Ministry of Tourism undertakes promotion and publicity through (i) Domestic Promotion and Publicity including Hospitality for promotion of Domestic Tourism Scheme and (ii) Overseas Promotion and publicity including Market Development Assistance Scheme and as part of the activities under these Schemes, releases print, electronic, online and outdoor media campaigns in the international and domestic markets, under the Incredible India brand name, in order to showcase various tourism products of India. Promotions are also undertaken through the social media accounts and website of the Ministry. In addition, the India tourism offices in India and overseas also undertake a wide range of promotional activities. Though the Committee welcomes the wide-ranging advertising campaigns encompassing multiple activities under the above schemes, it is of the view that in this day of the internet, minute details of destinations are available and the Ministry should, therefore, spend more resources on infrastructure, capacity building, etc., in order to provide world class experiences for visitors. The Committee also recommends that the Ministry should get surveys conducted for concurrent and impact evaluation of the marketing strategies adopted and publicity campaigns launched by it in various countries. (Para 174)

Reply of the Ministry

12.1. Global media campaign plans are prepared by the Ministry’s appointed global media agency after taking detailed inputs including the market assessment, key findings of international studies & surveys.

Further Recommendation/ Observation

12.2. The Committee would like the Ministry to develop a database pertaining to planning and evaluation of the promotional and publicity schemes, both for the domestic and overseas tourism. The Ministry should focus on development of tourism infrastructure and skilled workforce to boost tourism.

12.3. The Ministry should apprise the Committee of the factors taken into account by the agencies enrolled for conducting tourism related surveys. Further, what policies and programmes have been designed by the Ministry keeping in view the outcomes of all the

43 surveys conducted till date alongwith the measures adopted to address the bottlenecks while implementation of tourism infrastructure development schemes.

Recommendation/Observation

13. Tourism is the largest sector in the economy of the Maldives as it plays a vital role in earning foreign exchange revenues and generating employment. In order to promote tourism, the Maldivian Government has leased dozens of uninhabited islands to local and foreign resort developers. The Committee notes that India has a number of islands. These islands have several virgin places, beaches and an array of features to transform them into global tourism hotspot. But a lack of strategy has worked as a barrier to such transformations. The Committee would like the Ministry to explore the possibility of following the Maldivian model in places in the Andaman and Nicobar Islands and Lakshadweep Islands and facilitating leasing of islands to local and foreign resort developers for tourism purposes. (Para 177)

Reply of the Ministry 13.1. Ministry of Home Affairs has constituted the Islands Development Agency (IDA) to look into the holistic development of islands. NITI Aayog has been entrusted with the responsibility to steer the process for Holistic Development of identified Islands. The recommendation of the Committee is noted and will be taken up with MHA and NITI Aayog.

Further Recommendation/ Observation

13.2. The Committee would expect the Ministry to coordinate with the Ministry of Home Affairs and NITI Aayog and chalk out plans for development of tourism facilities in the islands of the country. The Ministry should study the Reports regarding various models of development of tourism in island countries such as Thailand, Singapore, Indonesia, Maldives, Sri Lanka, etc. and should carry out the assessment of the tourist site before initializing any project in order to avoid time and cost overruns.

Recommendation/Observation

14. Since the road, highway and railway networks play an important role in promotion of tourism and also improving the Indian economy, the Ministry should formulate a policy to promote tourism by connecting tourist spots across the country through roads, National Highways and Railways. Last mile road connectivity to most frequented destinations also needs immediate attention. The Ministry should, therefore, give policy push to last mile road connectivity to enhance connectivity to preferred tourist destinations. (Para 178)

Reply of the Ministry

14.1. The last mile connectivity is of prime importance for any tourist destination. This facility is admissible under PRASHAD Scheme and has been approved for almost all the destinations/sites covered under the scheme.

Further Recommendation/ Observation

14.2. The Ministry should apprise the Committee of the connectivity details to all tourist sites under PRASHAD Scheme. Further, it should highlight the bottlenecks being faced in the implementation of Last Mile Connectivity programme and steps being taken to address the bottlenecks.

Recommendation/Observation

15. The Committee also takes note that no special budgetary allocation has been made for Adventure Tourism and Sports, which include air-based, water-based and land-based activities. The Committee recommends that a separate budgetary allocation and Head should be created for these activities, especially for promotion of such adventure sports for which regulatory mechanism is being drawn out, by the Ministry of Youth Affairs & Sports and Ministry of Civil Aviation. (Para 185)

Reply of the Ministry

15.1. The recommendation of the Committee is noted and the Ministry of Tourism will explore the action to be taken in this regard. However, with regard to promotion of adventure tourism, separate budget provision is made to IISM, Gulmarg.

Further Recommendation/ Observation

15.2. The Committee would recommend to the Ministry that it must come out with a policy document focusing on harnessing the potential of adventure tourism in a safe and environment-friendly manner. The Committee desires to be kept apprised of the specific measures initiated to promote and boost the adventure tourism in the country. The Ministry should allocate some part of their funds towards the development of adventure tourism and should issue guidelines to all the States/ UTs for effective implementation of adventure tourism related policies.

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CHAPTER-IV

RECOMMENDATIONS/OBSERVATIONS IN RESPECT OF WHICH THE FINAL REPLIES OF THE MINISTRY ARE STILL AWAITED

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RECOMMENDATIONS/OBSERVATIONS — AT A GLANCE

CHAPTER-III

RECOMMENDATIONS/OBSERVATIONS IN RESPECT OF WHICH REPLIES OF THE MINISTRY HAVE NOT BEEN ACCEPTED BY THE COMMITTEE

ANALYSIS OF BUDGETARY ALLOCATIONS FOR 2021-22

The Committee is of the view that the growth momentum in the tourism sector has witnessed a huge slump in the wake of the lockdown induced by the Covid-19 pandemic. Further, with international tourism not being an option for a domestic traveler until the situation of Covid-19 pandemic is prevailing across various countries, domestic tourism needs to be focused upon by the Ministry. The Committee would like to recommend to the Ministry that it should review its status of utilization of funds and expedite the process of additional requirement of funds with the Ministry of Finance, if any, in order to complete the ongoing and stalled tourism projects within a designated time-frame. (Para: 1.3)

IMPACT OF COVID-19 PANDEMIC ON TOURISM, TRAVEL AND HOSPITALITY SECTOR

The Committee takes note of the reply of the Ministry. The Committee would, however, recommend that a policy formulation should take place in coordination with the State Governments/ UTs/ private stakeholders of the tourism industry in order to incentivise domestic tourism by way of modifying rules and allowing citizens to avail Leave Travel Allowance benefit on domestic tours including travel fare and accommodation expenses for a period of two years. This would not only give a boost to domestic tourism but would also lead to more and more revenue generation and growth of employment opportunities. The Committee desires to be kept apprised of the new measures proposed in this regard. (Para: 2.2)

The Committee should be apprised of the current status of the proposal for granting infrastructure status to hotels. The Ministry should inform the Committee of the bottlenecks being faced in the same and reasons for the delay. (Para: 3.2)

The Committee takes note of the submission of the Ministry that a proposal for inclusion of tourism in the Concurrent List has been initiated. The Committee sincerely hopes that the proposed measure will provide a level playing field to all the hotels which have been badly hit by the ongoing Covid-19 pandemic. The Committee desires to be kept apprised of the efficacy of the new measures proposed. (Para: 4.2)

INTEGRATED DEVELOPMENT OF TOURIST CIRCUITS AROUND SPECIFIC THEMES (SWADESH DARSHAN) The Committee in its 284th Action Taken Report on Demands for Grants (2020-21) of Ministry of Tourism recommended for a creation of a web-based monitoring system/ online portal to monitor the progress level of the projects sanctioned under the SDS alongwith having a feature of uploading photos/ videos made by the Project Monitoring Committee during its visit to the project site. The Committee would like the Ministry to update the Committee about the progress made in this regard. (Para: 5.4)

The Committee notes from the reply of the Ministry that out of 76 sanctioned projects, only 11 projects are physically complete and rest are under different stages of implementation. Further, no new project has been sanctioned by the Ministry as sanctioning of new projects under Swadesh Darshan scheme is currently being reviewed. The Committee is not satisfied with the progress of tourism related projects under SDS. SDS was launched in January, 2015 with the aim to boost domestic tourism but has not shown remarkable achievements due to delay in completion of projects. The Committee would like to recommend to the Ministry that the Government must take stringent measures for expediting the completion of remaining projects under various thematic circuits in a time bound manner. (Para: 5.5) CRUISE TOURISM

The Committee recommends that in order to enable the cruise sector to reshape the Indian travel industry, the Government must revamp the country’s current Port infrastructure, set up dedicated terminals to cater to the needs of tourists and undertake riverfront development on a massive scale. The Committee desires that this mode of transport facility should be affordable to the tourists who could not afford cruise tourism facilities so that cruise tourism can reach the masses. (Para: 6.2)

The Committee would like the Ministry to expedite the process of formulation of policy for rationalizing the tariff rates for cruise vessels of the country. The Ministry should chalk out ways in coordination with the Ministry of Ports, Shipping and Waterways in this regard and apprise the Committee of the same. (Para: 7.2 )

HUMAN RESOURCE DEVELOPMENT The Committee would recommend that the Ministry in co-ordination with the State Governments/ UTs should formulate a multipronged approach to bridge the skill gap in the tourism sector and should also launch a programme to upgrade the skills of the existing tourist service providers. The Ministry of Tourism should look towards Destination Based Skill Development Training Programmes at Pan

India level alongwith inviting applications from Private Institutions/ Organizations for empanelment as implementing agencies for delivering need based skill development programs to address the shortage of skilled manpower in travel, tourism and hospitality sector. (Para: 8.2)

CONNECTIVITY Proper road connectivity to any tourist destination plays an important role in determining the tourism potential of that particular site. Since most of the Tourist sites in India especially those located in the hilly regions of Jammu and Kashmir, Uttarakhand, North-Eastern States does not have proper rail/ air connectivity, therefore, connectivity through road is the only means of connectivity to such tourist sites. The Committee, therefore, recommends that road connectivity to most visited tourist destinations needs immediate attention and the Ministry should formulate policy in order to develop pucca roads with wayside amenities to enhance connectivity to preferred tourist destinations. (Para: 9.2)

The Committee would like the Ministry to formulate a policy for earmarking of sufficient funds for developing and providing highway link as well as last mile road connectivity to tourist destinations. The Committee desires to be kept apprised of the progress made by the Ministry in this direction. (Para: 10.2) SAFETY & SECURITY OF TOURISTS The Committee would like the Ministry of Tourism to take up the matter of safety and security of tourists with all States/UTs in order to encourage the stakeholders to undertake tourism activities without compromising the basic rights like dignity, safety and freedom from exploitation of both tourists and local communities. The Ministry should apprise the Committee of the current status of adoption and implementation of the Code of Conduct for “Safe and Honourable Tourism” by all the States/ UTs alongwith the possibility of including new safety policies in the same. (Para: 11.2)

MISCELLANEOUS

The Committee would like the Ministry to develop a database pertaining to planning and evaluation of the promotional and publicity schemes, both for the domestic and overseas tourism. The Ministry should focus on development of tourism infrastructure and skilled workforce to boost tourism. (Para: 12.2) The Ministry should apprise the Committee of the factors taken into account by the agencies enrolled for conducting tourism related surveys. Further, what policies and programmes have been designed by the Ministry keeping in view the outcomes of all the surveys conducted till date alongwith the measures adopted to address the bottlenecks while implementation of tourism infrastructure development schemes. (Para: 12.3)

The Committee would expect the Ministry to coordinate with the Ministry of Home Affairs and NITI Aayog and chalk out plans for development of tourism facilities in the islands of the country. The Ministry should study the Reports regarding various models of development of tourism in island countries such as Thailand, Singapore, Indonesia, Maldives, Sri Lanka, etc. and should carry out the assessment of the tourist site before initializing any project in order to avoid time and cost overruns. (Para: 13.2) The Ministry should apprise the Committee of the connectivity details to all tourist sites under PRASHAD Scheme. Further, it should highlight the bottlenecks being faced in the implementation of Last Mile Connectivity programme and steps being taken to address the bottlenecks. (Para: 14.2) The Committee would recommend to the Ministry that it must come out with a policy document focusing on harnessing the potential of adventure tourism in a safe and environment-friendly manner. The Committee desires to be kept apprised of the specific measures initiated to promote and boost the adventure tourism in the country. The Ministry should allocate some part of their funds towards the development of adventure tourism and should issue guidelines to all the States/ UTs for effective implementation of adventure tourism related policies. (Para: 15.2)

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