Webinar Proceedings Hospitality and Travel Trade Under Post COVID-19 & Rejuvenation Strategies, GoI Initiative to Support

S. Glory Swarupa Dibyendu Choudhury

National Institute for Micro, Small and Medium Enterprises (An Organisation of Ministry of Micro, Small and Medium Enterprises, Govt. of ) Yousufguda, Hyderabad - 500 045 ISO 9001: 2015 Certified Contents

Background 1

Context 1

Survey Method 1

Ist WEBINAR Tour Operators & Travel Agents : Northern Region 3 Talking Points 4

2nd WEBINAR Tour Operators & Travel Agents : Western and Central Region 6 Talking Points 7

3rd WEBINAR Tour Operators & Travel Agents : Eastern Region 9 Talking Points 10

4th WEBINAR Tour Operators & Travel Agents : North-Eastern Region 11 Talking Points 12

Conclusion 13

Outcome with suggested interventions: 19 Issues Affecting India’s Adventure Tourism 21 Issues Affecting India’s Cruise & Marine Tourism 25

Way Forward 26

WEBINAR PROCEEDINGS 1

Webinar Series on Hospitality and Travel Trade under MSME Post COVID-19 & Rejuvenation Strategies Govt. of India Initiative to Support

BACKGROUND The Indian economy has been experiencing significant slowdown over past few quarters. India’s real GDP decelerated to 4.7%, it is the lowest in over six years in Q3 2019-20 (Ministry of Statistics and Programme Implementation, 2020). Investment and consumption demand had been languishing and numbers of incentive measures have been taken to bring back the economy on a growth path. There was a strong hope of recovery in the last quarter of the financial year. However, the COVID-19 pandemic was disruptive to the growth and could hit India’s exports to COVID-19 infected nations and affected everyone in this world. The three major contributors to GDP - private consumption, investment and external trade will get affected. The outbreak has presented fresh challenges for the Indian economy now, causing severe disruptive impact on both demand and supply side elements which has the potential to negative India’s growth story.

CONTEXT “How to overcome this crisis and stay contextual” this might be the only question in the mind of the all the SMEs in the backdrop of COVID-19 Hygiene Disruption. Therefore, ni-msme organised a series of special Webinar on the topic titled “Hospitality and Travel Trade under MSME post COVID-19 & Rejuvenation Strategies, Govt. Of India Initiative to Support” in association with Ministry of Tourism Five Zones (Northern, Western, East, North Eat and Sothern Zone) with the Industry Experts, Bankers and Entrepreneurs as panel of subject matter experts. These Webinars had been open for the MSMEs only and free entry for all the MSMEs to clarify their doubts. COVID-19 is having an unprecedented impact on the Indian tourism industry. The impact on demand is well known, but less known is the impact on the thousands of Micro and Small Enterprises that make up the supply side of the tourism industry.

SURVEY METHOD ni-msme in association with Ministry of Tourism, Govt. of India has conducted series of Webinars with a survey to understand the impact on the members of Tourism sector to provide a comprehensive assessment of the status and intentions of tourism businesses. The responses received are overwhelming and also will serve to reinforce the findings emerging from Tourism industry outreach programmes. The survey was developed by ni-msme in discussion with Regional Tourism offices of India, and the draft survey was tested with small group members in Telangana Region. WEBINAR PROCEEDINGS 2

The survey was designed to cover the key points arising from the industry’s progression through the COVID-19 period. This included COVID-19 impacts on businesses, what mitigation actions are being taken, jobs lost, what government support is being utilised and what further support is needed. In addition to the quantitative questions, several text questions invited comments. This survey was undertaken internally using the online survey tool Google Forms. It was released on 2nd November 2020. Key quantitative results will be made available for the concerned department, with further analysis set out in this report and in separate sector and regional reporting. The other Panel Members touched few important aspects including the challenges and opportunities as highlighted in the proceedings further. WEBINAR PROCEEDINGS 3

1st WEBINAR Tour Operators & Trav el Agents : Northern Region

6th November 2020

Webinar was scheduled on 6th November 2020 for Northern Zone, Ministry of Tourism. Dr. Dibyendu Choudhury, Faculty Member, National Institute for Micro, Small and Medium Enterprises and Mr. Anil Oraw, Dy. Director General from India Tourism Delhi represented their concerned departments and explained the theme and idea behind conceptualizing this Webinar.

Session Name of the Speaker Idea and Concept of this Webinar Dr. Dibyendu Choudhury, Faculty Member, ni-msme Current Challenges & Opportunities for Mr. Anil Oraw, Regional Director (North) & the Tourism Sector as a whole Dy. Director General, MoT Challenges and Opportunities for Mr. Sanjay Basu, Sr. VP ATOAI Adventure Tour Operators WEBINAR PROCEEDINGS 4

Challenges and Opportunities for Mr. Chetan Sharma, General Secretary, ADTOI Domestic Tour Operators

Current Challenges and Opportunities Mr. P. Udaya Shanker for MSME’s & Govt. Schemes

Govt. Schemes to Promote MSME’s -1 Mr. Balbheem Vaidya, AGM (SME) LHO, Hyderabad Govt. Schemes to Promote MSME’s -2 Mr. Sanjay Jain, Regional Incharge & GM, SIDBI

TALKING POINTS 1. Mr. Sanjay Basu, Sr. Vice President, ATOAI

• Tourism and hospitality going through a phase of “survival, revival and growth” • Industry still is in survival mode, growth stage in from here another six months • Tourism most impacted and going to be the worst impacted and last to recover amongst all other sectors estimated to get into growth stage by next year mid-June onwards. • International tourism seeing zero cash flow since March. • Need for immediate handholding and financial support by the Govt for survival. • Govt. should give a message to the world for a tentative starting date of tourism in India so that tourism sector can prepare and plan.

If timely help is not provided, MSMEs in tourism sector may close. Here mere loan will not serve the purpose of survival, more subsidy is needed from Govt. Private NBFC’s also to be sensitized and their help also needs to be extended for this sector.

• Policy side 10-20% outstanding loan might not give the relief to any of the enterprises, rather this is needed to be 50% or more including the cash flow support.

2. Mr. Chetan Gupta, General Secretary, ADTOI • Challenges about the banking system and paperwork needed for the loan sanctioning including the process time is very long. • There had been several surveys done on MSME segment within the Tourism Sector, but no specific measures been taken addresses those issues so far. • MSME needs to be linked with DoT to facilitate approved agents & operators as service providers. • MSME needs to form a committee. Nobody from tourism sector is there as a member of the committee and it seems that is one of reason for no significant measures had been taken for this segment. WEBINAR PROCEEDINGS 5

3. Mr. P. Udaya Shanker, Former Director General I/c, National Institute for Micro, Small and Medium Enterprises Mentioned about Udyam Registration, Champions, Swadesh Darshan, Pilgrimage Rejuvenation and Spirituality Augmentation Drive (PRASAD), Destination travel, Hotels, Food, Medical Services, Community engagement, Eco tourism and changing strategies during this challenging time as opportunities.

4. Mr. Balbheem Vaidya, AGM (SME)-LHO, State Bank of India, Hyderabad, • MSME Financing related to tourism • 3 major schemes: MUDRA, Stand-Up (SC, ST and Woman Entrepreneurs) India and CLP • CGTMSME, upto Rs. 2 Crores • Credit Limit (CLP) Scheme with Credit Dispensation scheme • CCECL – Common COVID Emergency Credit Line, SBI initiative • GECL – 44k accounts benefited in Telangana alone to support outstanding loan. • CGTMSE- Credit Guaranty Scheme

5. Mr. Sanjay Jain, Regional Incharge & GM, SIDBI • Explained about MSME definition • Package announced under Atmanirbhar Bharat • Institutional Buildup • PMSVANidhi for the street vendors • Finance required by MSMEs • TreDS • Credit Financing Scheme • Innovative ways of financing to MSMEs 115 people actively participated from Northern Zone WEBINAR PROCEEDINGS 6

2nd WEBINAR Tour Operators & Travel Agents : Western and Central Region 12th November 2020

Session Name of the Speaker

Idea and Concept of this Webinar Dr. Dibyendu Choudhury, Faculty Member, ni-msme Current Challenges & Opportunities for Mr.Venkatesan Dhattareyan, Regional Director the Tourism Sector as a whole (West & Central India) India Tourism Mumbai, MoT Challenges and Opportunities for Mr. Pratul Trivedi, Secretary, ADTOI, MP Chapter Domestic Tour Operators Challenges and Opportunities for Ms. Vasuki Sundaram Inbound Tour Operators Chairperson, IATO, Maharashtra Chapter Current Challenges and Opportunities Mr. N. Srinivasan for MSME’s & Govt. Schemes Director, Swell Financial Services Pvt. Ltd. Govt. Schemes to Promote MSME’s -1 Mr. Balbheem Vaidya, AGM (SME), LHO, SBI, Hyderabad Govt. Schemes to Promote MSME’s -2 Mr. Ajit Nath Jha, General Manager, SIDBI Regional Office, Pune WEBINAR PROCEEDINGS 7

TALKING POINTS 1. Mr.Venkatesan Dhattareyan, Regional Director (West & Central India), India Tourism Mumbai, MoT • Travel Trade • Quarantine measures on many countries spoken • Talked on Social and Democratic cause for COVID-19 • Demand came down; downfall of payments were discussed • System (SAATHI) scheme operations • Connectivity is pushing the schemes reaching remote destinations • Road Travels (NASARA) Scheme from Mumbai to Alibagh details given • Digital media advantages discussed • Patience is the only key to come back Industry from current situation of COVID-19 • “Dekho Aapna Desh” an initiative towards Branding for boosting domestic travels is one of the initiative by Ministry of Tourism

2. Ms. Vasuki Sundaram, Chairperson, IATO, Maharashtra Chapter • Briefly spoken on MSME, Business, Salary, Zero Balance accounts. • Foreign Trades: Tour Operators should get collateral free loans suggested and related problems discussed. • Training programme on Hygiene and Sanitization among Tour operators. • SOPs like “No-Mask – No-Entry” discussed and business people following very strictly.

3. Mr. N. Srinivasan, Director, Swell Financial Services Pvt. Ltd. Current challenges and opportunities of MSME Sector discussed • Customised Travel, Personalised Services details. • Technology usages in MSME sector with examples. • Challenges faced from Social media & websites. • Eco-Tourism, Naturopathy, Homeopathy, Yoga practices discussed in part of Shift Business in Re-think Business. • Schemes: Udyami Mitra & Mudra schemes. WEBINAR PROCEEDINGS 8

4. Mr. Balbheem Vaidya, AGM (SME), LHO, SBI, Hyderabad

• Schemes: e-Mudra, Finance both purchase of Machinery and Leisure are discussed. • Subsidy and cash cutting, withdrawing, payment of wages detailed • Stand up India Scheme: SC, ST Women eligible (Minimum 10 lakhs and maximum 1 crore loan limit) • CGTMSE : upto 2 crores loans • CLP : Contact Less Portal online apply for 5 crores minimum loan (briefed up) • Working capital Term Loan explanation given • He had also spoken about e-Mudra loan which one entrepreneur can get within 15 minutes of application upto the amount of Rs.50000/- without any hassles.

5. Ms. Chand Kureel, AGM, SIDBI, Mumbai Zone • Udayami Mitra Portal details are briefed and discussed. • SIDBI schemes and achievements briefed up. • Revival of MSMEs discussed • Registration process discussed like online portal at Udyami Mitra and MUDRA Schemes

A total of 75 people attended the webinar from the Western and Central Zone. WEBINAR PROCEEDINGS 9

3rd WEBINAR Tour Operators & Trav el Agents : Eastern Region 25th November 2020 WEBINAR PROCEEDINGS 10

Session Name of the Speaker Current Challenges & Opportunities for Mr. Sagnik Chowdhury, Deputy Director General and the Tourism Sector as a whole Regional Director (East) Idea and Concept of this Webinar Dr. Dibyendu Choudhury, Faculty Member, ni-msme Challenges and Opportunities for Mr. Debjit Dutta, Chapter Chairman, Domestic Tour Operators IATO & ADTOI, West Bengal Govt. Schemes to Promote MSME’s - 1 Mr. Balbheem Vaidya, AGM (SME), LHO, SBI, Hyderabad Govt. Schemes to Promote MSME’s - 2 Mr. Sanjay Jain, Regional Incharge & GM, SIDBI

TALKING POINTS 1. Mr. Debjit Dutta, Chapter Chairman, IATO & ADTOI West Bengal • Challenges about the banking system and paperwork needed for the loan sanctioning including the process time is very long. • There had been several surveys done on MSME segment within the Tourism Sector but no specific measures been taken addresses those issues so far. • MSME needs to be linked with DOT to facilitate approved agents & operators as service providers. 2. Mr. Balbheem Vaidya, AGM (SME), LHO, SBI, Hyderabad • Schemes: e-Mudra, Finance, Stand up India Scheme for SC, ST Women eligible with CGTMSE upto 2 crores loans • Composite Loan Scheme: Contact less portal online apply for 5 crores minimum loan (briefed up) • Credit Limit (CLP) Scheme with Credit Dispensation scheme • CCECL – Common COVID-19 Emergency Credit Line, SBI initiative • GECL – 44k accounts benefited in Telangana alone to support outstanding loan. • CGTMSE- Credit Guaranty Scheme 3. Mr.Sanjay Jain, Regional Incharge & GM, SIDBI • Package announced under Atmanirbhar Bharath explained • Credit financing schemes-Direct and Indirect Finance role of SIDBI explained • Secured Business Loans, Privileged Customer scheme, Retail, Trade Finance & Service Sector Finance discussed. 4. Mr. Sagnik Chowdhury, Deputy Director General and Regional Director East Region • Sustainable Development growth • Strengthening the Tourism and various sectors are connected for the growth of Economic is essential • Marine Rural Industry • Different Govt. Schemes discussed. WEBINAR PROCEEDINGS 11

4th WEBINAR Tour Operators & Travel Agents : North-Eastern Region 27th November 2020

Hospitality and Travel Trade under MSME post COVID-19 & Rejuvenation Strategies, Govt. of India Initiative to Support WEBINAR PROCEEDINGS 12

Session Name of the Speaker Idea and Concept of this Webinar Mr. SS Devbarman, Regional Director, Indiatourism, & Dr. Dibyendu Choudhury, Faculty Member, ni-msme Current Challenges & Opportunities for Mr. Tridip Sharma, HRAA, Chief Advisor the Tourism Sector as a whole Challenges and Opportunities for Mr. Ranjeeth Das, Domestic Tour Operators President Tour Operator Association of Challenges and Opportunities for Mr. Arijit Purkayastha Inbound Tour Operators Chapter Chairman – North East Association of Domestic Tour Operators of India (ADTOI) Govt. Schemes to Promote MSME’s - 1 Mr. Balbheem Vaidya, AGM (SME) LHO, SBI, Hyderabad Govt. Schemes to Promote MSME’s - 2 Mr. S. R. Meena, DGM, Regional Incharge of NER, Guwahati

TALKING POINTS 1. Mr. Tridip Sharma, HRAA, Chief Advisor

• Unavailability of loans to MSME sector • Bankers CGMTSE without collateral is not sanctioning • Term loan were discussed with Bank person, private banks are denying the loans.

2. Mr. Ranjeeth Das, President, Tour Operator Association of Assam

• Effects of COVID-19 in North East is worst because the business cycle is only for 7 months. • First generation Entrepreneurs of Tourism sector effected because of unavailability of sector specific loans. • Champions utility for the Tour Operators • Excess to credit should be given prioritized • Release of Funds from banks are very crucial

3. Mr. Arijit Purkayastha, Chapter Chairman, North East, Association of Domestic Tour Operators of India (ADTOI) • COVID-19 SOP for the Tour Operators approved by Ministry of Tourism were discussed WEBINAR PROCEEDINGS 13

• North East Rules should maintain common rules pertaining to COVID-19 however, it is different to state to state in NER. • Tour operators are challenged because of unavailability of any loan for this sector. 4. Mr. Bhal Bheem Vaidya, AGM (SME), LHO, SBI, Hyderabad

• Schemes: e-Mudra, Finance, Stand up India Scheme for SC, ST Women eligible with CGTMSE upto 2 crores Loans. • Composite Loan Scheme: Contact less portal online apply for 5 crores minimum loan. • Working capital Term Loan explanation was given in details. 5. Mr. Gopi Nammi, Asst Manager, SIDBI, NER

• Credit Access discussed • MUDRA Scheme and different categories been briefed • Bank schemes, credit loans, Mudra loan, Stand-up India scheme, Green Field units etc Udyami Mitra portal had been discussed • Transport incentive, Employee incentive land cost component discussed • PMSVA Nidhi for the street vendors • Finance required by MSMEs • TreDS scheme been explained

Conclusion 1. National Tourism Policy (NTP)

The National Tourism Policy was formulated in 2002 o Considering the widespread, interrelated global developments and advancements that have had a strong bearing on the Tourism sector, a new draft National Tourism Policy was formulated in 2015, but not approved. o Suggest that the latest National Tourism Policy be amended with suggestions of the industry and released for development of tourism. At least, 30-40 model destinations must be selected for a focused and integrated development process with a coordinated marketing and publicity effort for these destinations on a worldwide basis. 2. Inclusion of Tourism in Concurrent list

o The Travel & Tourism Sector does not feature in any list under Seventh Schedule to Constitution of India; neither Centre, State or Concurrent list. o The Concurrent List will enable the Centre and States to effectively legislate and demarcate clear roles for the Centre and states/ Union Territories (UTs). WEBINAR PROCEEDINGS 14

3. Conferring Infrastructure Status to Tourism Sector o The minimum capital investment for 4- & 5-star hotels should be kept low to 20+ crores. o Convention and Exhibition centers should also be classified as Infrastructure. o Special consideration for different verticals of tourism based upon their uniqueness (Restaurants, Adventure Tourism) where industry status should be given for project of Rs. 1 crore if the same is being done in remote regions like Himalayan, North Eastern and interiors of desert and forest regions at a minimum distance of 100 kms from any city.

4. Eco and Adventure Tourism Policy Adventure & Natural Heritage Tourism is a global industry worth USD 678 billion and expected to cross USD 1 Trillion in a couple of years. However, India’s nature and adventure tourism is still nascent by comparison. o Suggest facilitating, controlled nature based and adventure tourism infrastructure in the various protected and natural heritage regions of India with the forming of conservancies in non-core areas of forests; a separate Eco and Adventure Tourism Policy is recommended. o Additionally, a cross-ministerial Eco and Adventure tourism board to be created with participation of industry at both center and states. o Adopt the Safety Norms created by the Adventure Tour Operators of India and accepted by the Ministry of Tourism throughout all the states. o Remote region air connectivity with fixed wing aircrafts needs to be supported with viability gap funding for a minimum period of 5 years as such destinations do not have available local markets and need to create new markets from both short and long-haul markets, which takes time. Without this, the country’s natural heritage can never achieve its potential. Helicopters are not a good solution because there is restriction on baggage carriage.

5. Creation of Empowered National India Tourism Board An empowered Board to be set up in the form of Public Private Partnership (PPP) between the and Private sector tourism industry to develop and market India as an attractive tourist destination especially for inbound travellers. The Board to include members of leading Hotel chains, Tour Operators and Outbound Travel Agents, Homestays, Airlines, Ministry of Tourism amongst others. The Board to be established on the sidelines of International Tourism Boards like Singapore and Nepal Tourism Board etc.

EASE OF DOING BUSINESS & COST OF DOING BUSINESS 6. Simplify Licensing and Approvals o Timeline based approvals and deemed approval status. WEBINAR PROCEEDINGS 15

o Provision for base minimum standards to include the unorganized sector. o Check for redundancy, repeat licensing and obsolete licenses. o State competitiveness ranking on the best states of doing tourism business and central financial rewards established accordingly. 7. Exports

o Export Sector Incentives for the SEIS Income. o The SEIS scheme provided for the tourism and travel services is 3-5% which is drastic decrease from the earlier 10%. o It is suggested to resume back to earlier 10% at least till the GST is not brought down to single digit levels. 8. Uncompetitive for Meeting, Incentives, Conferences and Exhibitions

o The place of supply for accommodation is the place where hotel is located similarly, place of supply for conferences is the place where conference is held. o In view of this, the hotels need to charge CGST+SGST and the customers outside the state do not get input tax credit. In view of this, it is recommended that place of supply in case of registered person should be the place of registration of customer. So IGST needs to be provided. For example, a Delhi corporate doing an event in Goa/ Meghalaya would not get the refund of GST. This is resulting in the business moving out of the country causing great loss to destinations and hotels within India. 9. GST needs to be benchmarked to global levels

o GST is higher by 50%+ in India. We need to gradually move to a globally competitive rate to below 10% with full setoffs. (Hotels). o Dual GST Structure for Restaurants: Option of choosing between 12% with Input Tax Credit (ITC) and 5% without ITC. o Zero rate GST for service exports. Align definition of service exports across Commerce and Finance Ministries including for Tax purposes. 10. Coastal Regulation Zone (CRZ) o The majority of hotels are currently existing in CRZ III B areas which as per 2011 census were less populated, the NDZ remains at 200 meters. o For CRZ III B areas, we suggest the following: a) Reduction from 200mtrs to 100mtrs. b) Height restrictions be increased from 9mtrs to 12mtrs. c) Allowing construction of ground + 2 floors. d) Increase in Floor Area Ratio (FAR) from 0.33 to 0.50 WEBINAR PROCEEDINGS 16

11. Low Floor Area Ratio (FAR) leading to higher capital investment Make provision for higher FAR in city centers which will reduce the cost of capital investment, interest costs and promote investments.

12. No standard framework for Public-Private Partnership exists in Tourism o Innovative Models and Frameworks need to be developed for participation between public assets and private wealth in tourism with an investor sensitive approach. For example, Joint Ventures can make an easier way than sale /divestment of public sector hostels / guest houses. o For different verticals of tourism, different PPP frameworks need to be identified and standardized across the country with special relaxation for remote region investments.

13. Community Conservancies The local communities should be formally recognized as the custodians of the biodiversity. Partnerships between communities, government conservators and private sectors can be conceptualized under the oversight of Eco-Tourism Boards. Some pilot studies need to be created to demonstrate the feasibility of the idea in selected sample natural heritage sites.

14. IT is now an integral part of the tourism value chain Especially in the home-stay segment, technology has made it possible for micro-entrepreneurs to earn an income by utilizing an existing asset – their home. Most states in India have policies that were created before the early days of internet and therefore there is limited understanding about IT Act, intermediary liability, consumer protection act, safe harbor provisions, e- commerce policy etc. NITI Aayog should share some best regulatory and policy practices to encourage progressive and relevant policy measures across states. However, strong quality control parameters need to be laid down as many homestays have failed due to inadequate quality to cater to international guests.

15. Skill Development and Training in Public Private Partnerships (PPP) Setting up of Skill Development Institutes and Model Career Centres through PPP mode in culinary skills, hospitality skills, guide training, language training, adventure and nature training programs.

16. Driving up the quality and sustainability at the bottom of the tourism pyramid A large part of tourism players in our country belong to the unorganized sectors. Homestays are the newest addition to this mix. Driving quality and sustainability at the bottom of the tourism pyramid would have a multiplier effect in engendering sustainability at the grass-roots level while giving a strong growth to their business. Voluntary sustainability certifications by sustainability certification processes should get 75% subsidy in the cost of these certifications to encourage them to go through the process. WEBINAR PROCEEDINGS 17

17. Do away with complex compliances for homestays The homestay segment should have simpler registration and certification process. Technology and app-based solutions should be put in place to speed up the process. Put in an industry representation verification process. This would motivate the micro-entrepreneurs and eliminate misuse of rules.

18. Metro Tourism Metros are the entry exit points; but all the major metros of India have an infrastructure deficit especially as it concerns the leisure tourism. Special zones for interesting experiences including dining experiences that show-case the uniqueness of the metro cities would go a long way in engaging the tourists as well as the large populations of the metros.

19. Heritage Attraction A lot still needs to be done to create world-class experiences around our major heritage attractions. Innovative PPP models need to be explored to drive infrastructure creation around these sites to handle the traffic and create a world-class experience.

20. Community based Tourism While a lot of state governments are promoting homestays, not enough attention has been given to community-based tourism enterprise. Just as self-help groups have proven to be far more effective in promoting entrepreneurship in the rural areas, similarly community-based tourism enterprise need to be incentivized as they create higher sustainability.

21. Eco-tourism not recognized as a contributor to conservation Forest Conservation Act does not allow setting up of toilet facilities, camping sites, Eco-lodges, trekker’s cabins etc. even in the non-core zones. Certified Eco-tourism projects should be eligible for recognition as an exception that are currently available to other conservation- oriented activities under the category “other like purposes”. State level and central Eco-tourism boards would be able to certify such eco-tourism projects.

22. Highly restrictive tourism in Tiger reserves o The area open for tourism in almost all the tiger reserves can go up to 40% or more of the area. Multiple entry points could be opened in order to disperse the tourism into different parts of the park o Collection and analysis of Tourism’s impact on wildlife, reduced poaching, and better surveillance should be mandatory for all parks. o Make it mandatory for all states to ensure visitor park fees and receipts should be ploughed back into conservation, protection and local communities through EDCs, with a percentage WEBINAR PROCEEDINGS 18

reinvestment in the tourism infrastructure, activities, training and monitoring within the destination. o Functioning of the envisaged Local Area Committees (LACs) should be made mandatory. 23. Highly restrictive tourism in Tiger reserves

o The area open for tourism in almost all the tiger reserves can go up to 40% or more of the area. Multiple entry points could be opened in order to disperse the tourism into different parts of the park. o Collection and analysis of Tourism’s impact on wildlife, reduced poaching, and better surveillance should be mandatory for all parks. o Make it mandatory for all states to ensure visitor park fees and receipts should be ploughed back into conservation, protection and local communities through EDCs, with a percentage reinvestment in the tourism infrastructure, activities, training and monitoring within the destination. o Functioning of the envisaged Local Area Committees (LACs) should be made mandatory. WEBINAR PROCEEDINGS 19

Outcome with Suggested Interventions

1. Eco-tourism not seen as a contributor to conservation goals

Government of India has clarified that ecotourism is not a forestry activity. The main problem has been that forest departments have not recognized eco-tourism as a part of the solution to their conservation goals.

Recommended Intervention:

As ecotourism unequivocally enhances the protection of forests and wildlife, it should also be clubbed under the exceptions given in the Act under the category “other like purposes”. This means ecotourism would encourage conservation and basic infrastructure such as toilet facilities, camping sites, eco-lodges, trekker’s cabins at least in non-core zones of forests would be possible without attracting the provisions of Forest Conservation Act. However, any such project being given permission could be reviewed by an MoEF&CC empowered committee as an Eco Tourism Board at Center and State levels comprising MoEF&CC, Ministry of Tourism, respective state forest and tourism departments, and responsible industry associations and conservation bodies like WWF as one suggested mechanism. Strict guidelines for construction, environment protection and community involvement need to be a part of the process which includes usage of renewable energies, local materials, waste disposal technologies. Every five years the efficacy of the project should be reviewed for implementation of responsible and sustainable tourism rules.

2. Small areas opened for eco-tourism leading to high concentration of tourists The present concept of small forest areas being opened for eco-tourism with high concentration of large number of tourists in these small areas is not sustainable and the World Economic Forum has rated the present sustainability model as being 134th out of 140 countries. Recommended Intervention:

All forest regions could allow for tourists to visit with the concept of dispersing tourism but with very small number of tourists in each zone. This model would be far more sustainable with a larger number of tourists experiencing India’s natural heritage. The development of eco-lodges with strict guidelines on minimal ecological impact will enable this dispersed tourism model.

3. Restrictive tourism guidelines in Tiger Reserves ‘Guidelines for Developing State Tourism Strategy for Tiger Reserves’ limits the maximum size of the tourism zone to 20% of the core area or the existing area in use, whichever is lower. The same does not have any scientific justification. WEBINAR PROCEEDINGS 20

Recommended Intervention:

The Ministry of Environment, Forest & Climate Change (MoEF&CC) to review these guidelines and change at any time without going back to the Supreme Court. The following is recommended: • The central guidelines should only include broad suggestions and expectations with the states free to formulate their own policies. The area open for tourism in almost all the tiger reserves can go up to 40% or more of the area. Multiple entry points could be opened in order to disperse the tourism into different parts of the park • Collection and analysis of Tourism’s impact on wildlife, reduced poaching and better surveillance should be mandatory for all parks. • Make it mandatory for all states to ensure visitor park fees and receipts should be ploughed back into conservation, protection and local communities through EDCs with a percentage reinvestment in the tourism infrastructure, activities, training and monitoring within the destination. • Functioning of the envisaged Local Area Committees (LACs) should be made mandatory as they were supposed to prescribe building norms in the eco-sensitive zones. This will ensure responsible construction norms as well as timely planning of waste disposal and recycling facilities. This is an industry in itself and business incentives for eco-entrepreneurs and provision for proper disposal and recycling should be built into every management plan. 4. Need for greater partnership with Forest Departments

Collaboration with State Forest Departments varies widely from State to State.

Recommended Intervention:

• State forest departments to work with the adventure and ecotourism sector and its Associations with greater openness and in a genuine partnership to make a win-win relationship for the benefit of all stakeholders - parks, visitors and communities. This may include:

• Decisions on yearly parks fee and tax discussions in collaboration with Associations and Local Area Committees and conveyed to the industry at least 18 months prior to their implementation so that all businesses can prepare for these changes and not be hit with yearly unbudgeted costs and expenses. • Present arrangements in most parks for rest stops singularly fail to have adequate provision for bathroom visits and ensures very unsavory and unsanitary arrangements or a complete lack of them creating un-told misery especially to the elderly guests. • Many vehicles driven in parks today are in poor working order and remain both poorly designed for visitor’s comfort, as well as a safety hazard for passengers. Drivers are often WEBINAR PROCEEDINGS 21

untrained and untaught on the etiquette of driving visitors in park areas – ensuring ongoing bad practices and poor wildlife viewing experiences. Lodges should be permitted to own and maintain their own vehicles according to the standards they need to set; all other vehicles and drivers should be registered and undergo annual vehicle check-ups and training. Soft loans for upgrading vehicles can be encouraged to upgrade park’s vehicles. This is a legitimate expense from park fees to invest in and maintain the visitor’s experience.

• The quality of park guides, and naturalists varies greatly in many parks. A universal Field Guide accreditation process is desperately called for that sets nature guiding standards monitoring both training and trainers. • Allow a range of controlled activities and nature-based enterprises to grow in buffer or reserve forests outside of protected areas, with licensing and monitoring to ensure sustainability and skills development. Hot-air ballooning can be permitted initially in the parks like Desert National Park, Rann of Kutch, Gir and Ranthambore wherein safe landing of the balloons will not be an issue but with a prescribed minimum altitude parameter. • In non-core areas of the forests launch the concept of Conservancies where is a designated land parcel of the forest a partnership between the Conservators, Local Communities and the selected Eco Tourism operators can be created for building of small eco-lodges with usage of renewal energies, local materials, and strict waste disposal management. Let the conservators and local communities be a stakeholder in the conservancies and the local community members who have non sustainable agricultural land enhance their stake in the project by contributing their land as private forests that would help increase the forest coverage of the country as a great win-win!

ISSUES AFFECTING INDIA’S ADVENTURE TOURISM 1. Limited access to 6000+ meter peaks

Despite India having 70% of the Himalayan range with one of the largest collections of 6,000- and 7,000-meter mountains in the world, tourism levels remain much lower compared to small countries like Nepal, Tibet (China) or small but high-profile Bhutan. Our mountains-based tourism is even smaller than that of Peru, Chile, and Russia.

Recommended Intervention:

Adventure tourism should be promoted in all Himalayan states. In the Himalaya, we would like to identify the following trekking routes which should be opened after carrying capacity assessment, guidelines, and monitoring mechanism.

• The Nanda Devi Sanctuary, Uttarakhand: This is one of the richest trekking and mountaineering zones within India and has been completely closed since 1982. Allow a limited number of professional climbers to access these peaks for climbing expeditions. India is missing out on the revenues and exposure from these peaks which Nepal is WEBINAR PROCEEDINGS 22

harnessing very well. By limiting the number of climbers each year, the environment will continue to be protected while making the available openings a valuable resource.

• Hemis National Park, Ladakh: This is one of the richest destinations for seeing the snow leopards and can be a major activity in winter months. • Pin Parvati Himalayan National Park: This is also one of the richest destinations for seeing various wildlife including the snow leopards and can be a great destination for both winter and summer treks to see the wildlife in the . • Kanchenjunga National Park: This is another destination where trekkers huts could facilitate natural history trekkers to explore this destination in both summer and winter months to see the wildlife in these regions. • The region should be opened for adventure tourism. • Climbing of mountains in Sikkim: Could be permitted with the clear guidelines to ensure that religious sentiments of the local people are paramount in access to these peaks. In history the erstwhile Chogial had permitted climbing of Mount Kanchenjunga by getting the climbers to stay 6 feet below the summit. This is a norm that can be followed in future too. 2. Better logistics, emergency, and infrastructure support for Mountaineering

The barriers to attract international professional and casual mountaineers and trekkers are high leading to an unfavourable image of expeditions in India.

Recommended Intervention: • Removal of X Visa as all mountaineering expedition’s permission is channelized through the Indian Mountaineering Foundation which then arranges the permission through the Ministry of Home Affairs (MoHA). The X Visa takes up to 6 months of processing time and many a times is either not received in time or is received at the last minute and the mountaineers then select other alternative peaks and countries. • Satellite phones to be permitted to be used in Ladakh, Assam and as these are peaceful regions. • Creation of Search and Rescue Centres in collaboration with the various mountaineering institutes or local mountaineering clubs throughout the Indian Himalayas. Where no other option, conversion of the state level NDRF to also act as a search and rescue team in case of accidents in adventure destinations. • Remote area GST relief for a period of 5 years to give a launch to this nascent sector of immense potential. • For five years, customs duty waiver for import of adventure equipment as these are presently not being manufactures in India. Purchase of zodiac boats (mix of powered and WEBINAR PROCEEDINGS 23

non-powered) in flood prone areas under the District Promotion Councils. These can be operated in profit-making activities on a PPP basis so that they don’t remain idle but are available to hand during emergencies. 3. Lack of defined and maintained trekking routes

Recommended Intervention: Mega trekking trails need to be identified and created from Uttarakhand till Ladakh and Kashmir in the West and from Arunachal Pradesh through Nagaland, Manipur, Mizoram and Tripura in the East. This is on similar lines as the Appalachian and Pacific Rim Trekking Trails in North America. In South India, similar trails can be created along the Western Ghats from Agumbe-Sakleshpur- Nishani-Talacauvery-Thadiyandamol-Brahmagiri-Muthanga-Mudumalai-Silent Valley. 4. Developing lodging infrastructure

Lack of infrastructure development hinders development of the potential.

Recommended Interventions:

• Develop trekking lodges along popular trekking routes/trails that pass-through forest areas at the identified night halt destinations only and which are within the tree line or, to the maximum height of 12,000 feet whichever is lower. If it is inside a village then there is no restriction. This will help to maintain a sustainable high-quality facility for trekkers thereby increasing the adventure tourism season and give greater employment generation opportunities to the local people in these under-developed regions.

• Develop eco-lodges in forest areas in the Himalaya to create leisure using a dispersed model to maintain sustainability and low impact footprint within sensitive zones. These lodges would be constructed using local materials only and should not exceed two floors. These eco-lodges should be built within open pieces of land without cutting of any trees. The eco-lodges would utilize renewable energy sources and sewage treatment plant for waste management to ensure zero pollution.

• Forest guest houses in South India can be offered to guests on prior booking basis. Create a centralized booking portal for these that operates transparently. 5. Unused or new requirements of airstrips in remote areas

Recommended Interventions: One of the main reasons holding back tourism to the Indian Natural Heritage including the Indian Himalayas is lack of accessibility. There is an urgent need to open / re use / reactivate airstrips in remote locations to enable access by fixed wing air crafts as helicopters do not allow WEBINAR PROCEEDINGS 24

for adequate baggage transportation and are expensive. This exercise will not only increase tourism footfalls to these remote destinations but also reduce pressure from the existing airstrips like Leh, which cannot handle such large, huge footfalls sustainably as is being seen there presently. a) We propose that a three-tier system may be implemented to achieve deep penetration to Himalayan destinations: • Large aircraft (Boeing/Airbus) till main airports like Dehradun, Pantnagar, Srinagar, Kohima, Imphal, Tezpur, Leh, etc. • Small 15 -17-seater fixed wing aircrafts from main state airports to connect with smaller STAL / Greenfield airfields within the mountainous regions of each Himalayan state. • Connecting heliports to the Greenfield / STAL airfields to remote and interior mountainous regions where the main adventure travel destination is located. b) The short-term plan to activate the existing airstrips in states as identified in phase I below: • In Uttarakhand: Gauchar, Pithoragarh, Chiniyalisaur (air strips are ready but not in use). • In Himachal Pradesh. Kullu (need to increase flights here). Re-start flights to Shimla. • In Ladakh: There is of the defense forces at those and Kargil, which need to be opened for commercial flights. • In Arunachal Pradesh: There is advanced landing ground of the defense forces at and which could be used by commercial airlines. • Strips in Pantnagar, Pithoragarh, Gauchar (Rudraprayag) & Chinyalisaur (Uttarkashi) may relate to Dehradun, Delhi and Lucknow. • Sikkim: Pakyong near Gangtok • Madhya Pradesh, Rajasthan, Maharashtra and Kerala: Bandhavgarh, Pench, Kanha, Tadoba, Nal at Bikaner and Wayanad. c) In the long run, the STAL (Short Takeoff And Landing) / greenfield airstrips that need to be constructed are the following:

• In Himachal Pradesh: Spiti Valley (near Kaza) • In Ladakh: Padum (Zanskar valley), Korzok (Tsomoriri) • ln Arunachal Pradesh: There are some advance landing grounds of the defense forces at Zero, and Pasighat which could be used by commercial airlines • In Sikkim: Yambung • In Andaman Islands: Havelock Island for Sea Planes WEBINAR PROCEEDINGS 25

Most of these places are remote regions which do not have a strong economic base and therefore is devoid of any major commercially viable local markets. The destinations will need to be promoted and the external markets will need to be developed. This process will take up-to 3-5 years during which the air operators will not be able to sustain themselves financially. It is essential that a direct and step-down style of viability gap funding will need to be put in place for example: For the first two years the airlines could be supported for 50% of the seats, the next three years the support could be for 25% of the seats and then stopped after five years. To ensure performance a bank guarantee could be taken from the airline to secure the financial support being given to them and to take a long-term commitment from them.

ISSUES AFFECTING INDIA’S CRUISE & MARINE TOURISM 1. Under-developed access and quality lodging in coral island areas

Recommended Interventions: • Permission for beach resorts to be developed near coves and lagoons in a sustainable manner using local materials to allow greater proximity of the tourists to the protected waters on the shores of such islands. However, care should be taken that the development does not contaminate the waters leading to the degradation of the corals that are now recovering after the tsunami’s impact.

• Permission for building of jetties and piers on such islands for expedition style cruise ships to come and unload their guests to enjoy the beaches and the waters for diving and swimming amongst the corals and marine life found in such locations. This is being offered to the Andamans from Thailand on 3-7 day live-aboard vessels and are hugely popular with locals and foreign tourists.

• Selected islands of tourism interest which form part of national parks, sanctuaries or forest reserves should be opened for day visits, like in the Galapagos. Forest trails, especially those leading to secluded beaches and coral reefs should be opened for trekking.

• Barren Island, India’s only active volcano should be opened for day tourism with all necessary safeguards in place. 2. Under-utilized potential of river tourism

River tourism, river cruising and river sports such as river rafting, kayaking and river touring in kayaks and canoes and beach camping are popular the world over. India has huge potential in this field with 105 rivers including 7 navigable rivers and it is suggested that we open this in a responsible and sustainable manner: Recommended Interventions: • Beach camping on rivers must be resumed by private operators at the very earliest keeping WEBINAR PROCEEDINGS 26

all environment safeguards in position under the control of an eco-tourism board where industry is a participant.

• For River Cruising, permission should be given for cruising through conservation zones on rivers as it is an established fact that marine life is not disturbed or harmed by movement of navigating vessels. Due to this cruise activities are conducted near Galapagos Islands, Alaska Bay, Antarctic, Arctic, Zambezi River, etc. • Along with this, permission should be given to proceed for safaris from the river front inside national parks which have riverside access as that is a natural process for natural history cruises as seen on the Zambezi, Amazon rivers. 3. Infrastructure development to support river tourism

Recommended Interventions: • Jetties to be located at all the destinations designed for river cruise vessels versus cargo vessels. • Proper metaled roads connecting the jetties. 4. Opportunity to develop coastal cruising

Recommended Interventions:

• Building of quays and jetties suitable for cruise vessels at coastal destinations like: Dwarka, Somnath, Diu, Shivaji's forts in Maharashtra, Bekal, Alleppey, Thiruvanthapuram, Rameswaram, Pondicherry, Mahaballipuram, Konarak and Puri.

Continuation of the 20% subsidy for cruise ship construction as this is a nascent industry and cruise ship building is a high capital cost with long gestation periods. India presently has only one sea going cruise ship despite a 7,500 km long coastline.

Way Forward The Indian tourism can easily double in revenues if the industry is given the right platform to grow. The present position stands at the 40th greatest destination of the world and the potential stands at 7th greatest destination of the world. The journey of uplifting the ranking will potentially create tens of millions of jobs throughout the country in the shortest possible time as the fundamental product of the destination already exists while, only bottlenecks of regulations, accessibility and on ground infrastructure needs to be addressed. This objective can easily be achieved within five years if there is a focused and coordinated effort made by central govt ministries, state govts and industry together. ni-msme - the premier Institute

National Institute for MSME (ni-msme), the pioneer institute in the field of MSME is playing a major role in providing pro-business environment to foster the progress of MSME towards success and prosperity. The raison detre of this Institute is to assist the Government in formulating policies for micro, small and medium enterprises and to help the practicing and potential entrepreneurs through a host of services like training, research, consultancy, information, education and extension. Set up in 1962, National Institute for MSME (ni-msme) has made valuable contributions by creating an impressive record of achievements beyond the Indian shores, enabling other developing countries to get the benefit of the Institute’s facilities and expertise. The Institute is associated with prestigious world bodies such as UNIDO, UNESCO, ILO, CFTC, UNICEF, AARRO and GIZ. ni-msme’s intellectual activities are pursued by its four Schools of Excellence, viz., School of Enterprise Development (SED), School of Enterprise Management(SEM), School of Entrepreneurship & Extension (SEE) and School of Enterprise Information & Communication (SEIC). The Institute is having theme focused Centers and Cells like National Resource Centre for Cluster Development (NRCD) for helping the MSMEs by implementing the Cluster Development Approach. At present, the Institute is involved in development of more than 50 Rural, Artisan, Industry clusters across the nation and supporting to KVIC, Coir Board, NBCFDC, NSFDC and various state Governments for development of Handlooms, Handicrafts, Food Processing and Textiles Clusters. Intellectual Property Facilitation Centre (IPFC) provide IP advisory services to various research and academic institutions, Clusters, SMEs & Start-Ups. The Centre has filed around 100 Trademarks, 40 Patents and GIs for the benefit of SMEs & Start-Ups towards IP Registrations. Goods & Services Tax Cell (GSTC) provide GST registrations and tax compliances. Entrepreneur Development Cell (EDC) and Livelihood Business Incubator (LBI) support MSMEs to create a favorable ecosystem for entrepreneurial development in the country. The Institute stores and supplies information that helps to make a successful entrepreneur who is well versed in the intricacies of business and can participate in business activities intelligently and diligently through its Small Enterprises National Documentation Centre (SENDOC). The Institute has trained more than 5,40,877 participants by organizing around 16, 106 programmes which includes prospective/existing entrepreneurs and officials from various Ministries of Govt. of India and State Governments. The Institute is implementing ITEC Scheme of Ministry of External Affairs, Govt. of India since 1967 and trained more than 10,350 International Executives from 143 developing countries. The Institute has also undertaken more than 945 research and consultancy projects. The management of the Institute rests with the Governing Council appointed by the Government of India. The governing body acts through the Director General. The present Director General is Ms. S. Glory Swarupa.

The Registrar National Institute for Micro, Small and Medium Enterprises (An Organisation of the Ministry of MSME, Govt. of India and ISO 9001:2015 Certified) Yousufguda, Hyderabad - 500 045, India Tel: 91-40-23608544, 23608546, 23608317, 23633499, Fax: 91-40-23608547, 23608956 Website: www.nimsme.org, E-mail: [email protected]; [email protected]

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