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Investment in Tourism Infrastruc TITLE Investment in Tourism Infrastructure: Igniting India’s Growth Engine YEAR July, 2017 AUTHORS STRATEGIC GOVERNMENT ADVISORY (SGA), YES Global Institute, YES BANK No part of this publication may be reproduced in any form by photo, photoprint, microfilm or any COPYRIGHT other means without the written permission of YES BANK Ltd. & FICCI. This report is the publication of YES BANK Limited (“YES BANK”) & FICCI and so YES BANK & FICCI have editorial control over the content, including opinions, advice, Statements, services, offers etc. that is represented in this report. However, YES BANK & FICCI will not be liable for any loss or damage caused by the reader’s reliance on information obtained through this report. This report may contain third party contents and third-party resources. YES BANK & FICCI take no responsibility for third party content, advertisements or third party applications that are printed on or through this report, nor does it take any responsibility for the goods or services provided by its advertisers or for any error, omission, deletion, defect, theft or destruction or unauthorized access to, or alteration of, any user communication. Further, YES BANK & FICCI do not assume any responsibility or liability for any loss or damage, including personal injury or death, resulting from use of this report or from any content for communications or materials available on this report. The contents are provided for your reference only. The reader/ buyer understands that except for the information, products and services clearly identified as being supplied by YES BANK & FICCI, it does not operate, control or endorse any information, products, or services appearing in the report in any way. All other information, products and services offered through the report are offered by third parties, which are not affiliated in any manner to YES BANK & DISCLAIMER FICCI. The reader/ buyer hereby disclaims and waives any right and/ or claim, they may have against YES BANK & FICCI with respect to third party products and services. All materials provided in the report is provided on “As is” basis and YES BANK & FICCI make no representation or warranty, express or implied, including, but not limited to, warranties of merchantability, fitness for a particular purpose, title or non – infringement. As to documents, content, graphics published in the report, YES BANK & FICCI make no representation or warranty that the contents of such documents, articles are free from error or suitable for any purpose; nor that the implementation of such contents will not infringe any third party patents, copyrights, trademarks or other rights. In no event shall YES BANK & FICCI or its content providers be liable for any damages whatsoever, whether direct, indirect, special, consequential and/or incidental, including without limitation, damages arising from loss of data or information, loss of profits, business interruption, or arising from the access and/or use or inability to access and/or use content and/or any service available in this report, even if YES BANK & FICCI are advised of the possibility of such loss. Maps (if any) depicted in this report are pictorial representation only and do not purport to be the political map of any nation or State and are not drawn to scale YES BANK Ltd. FICCI Nikhil Sahni Rahul Chakravarty Group President Consultant Government Banking and Manish Ahuja National Head – Branch Banking Team Lead Northern Regional Office Tourism – FICCI 48, Nyaya Marg, Chanakyapuri Federation House, Tansen Marg New Delhi – 110 021 New Delhi – 110 001 CONTACTS Tel : +91-11-66560562 Tel : +91-11-2331 1720 Email : [email protected] Fax : +91-11-2376 5333 Website : www.yesbank.in Email : [email protected] [email protected] Registered and Head Office Website : www.ficci.in 9th Floor, Nehru Centre Dr. Annie Besant Road Worli, Mumbai - 400 018 Tel : +91 22 6669 9000 Fax : +91 22 2497 4088 FOREWORD India’s Travel & Tourism industry is the 7th largest in the world, contributing to nearly 9.6% of India’s GDP and further estimated to grow by 6.9% p.a. during 2017-27, to become the 4th largest globally. The industry is also a major generator of employment and livelihood in India – accounting for 9.3% of total employment in 2016 and expected to generate nearly 50 million jobs by 2027. Further, India has climbed 12 places to 40th rank globally in the World Economic Forum - Travel and Tourism Competitiveness Index 2017, with 55.3% increase in e-tourist visas and 19.5% growth in Foreign Tourist Arrivals in May 2017. I believe these are very positive developments, triggered by emergence of new tourism products and avenues, key policy initiatives by the Government such as extension of e-Visa to 161 countries, simplification of immigration and customs procedures and creation of Special Tourism Zones, amongst others. Innovative schemes such as PRASAD, HRIDAY and Swadesh Darshan are expected to lead next generation tourism infrastructure development through theme-based circuits and linkages between major tourist destinations. However, to unleash full potential of the sector and lead the next phase of accelerated growth, it is vital to ensure robust on-ground execution of these schemes and initiatives. The significant increase of over 15% in budget allocation for the Ministry of Tourism in FY18, must be accompanied by focused and sustained efforts towards fast-tracking development of world class tourism infrastructure. I am pleased to present this FICCI - YES BANK Knowledge Report ‘Investment in Tourism Infrastructure: Igniting India’s Growth Engine’ which highlights the phenomenal growth potential of the sector and provides key recommendations towards establishing India as a global leader in Travel & Tourism. I am confident that this publication will encourage productive dialogue amongst all stakeholders in the Travel & Tourism value- chain and contribute towards making Tourism a key driver of India’s growth story. Rana Kapoor Managing Director & CEO Chairman FOREWORD Tourism sector makes a significant impact on the economy of our country. World Travel and Tourism Council Report 2017 reveals that the total contribution of travel and tourism sector to the country’s GDP was almost ` 14,018.5 Billion, supporting around 40.73 Million jobs in 2016. Further, as per latest Travel and Tourism Competitiveness Index (TTCI) Global ranking published by World Economic Forum (WEF), India is one of the most improved nations retrospectively, gaining 12 places to reach the 40th position globally. Tourism industry thus, today has turned into a key driver of socio- economic progress paving the way for a more sustainable and inclusive future. The Union Government of India realizes the potential of tourism industry in India which is evident from the fact that the Ministry of Tourism has undertaken a slew of initiatives such as extending e-tourist Visas to 161 countries, releasing M-Visa, launch of marketing initiatives like Incredible India 2.0, Swach Paryatan Mobile app, 24*7 Multi-lingual Tourist Helpline among others that have fuelled impressive tourism growth. Going ahead, the challenge lies in creating world class infrastructure to significantly increase tourist arrivals and create a strong, unequivocal ‘Brand India’. The Government and Industry need to join hands to jointly create a policy landscape that can spur the growth momentum. I am pleased to present the FICCI - YES BANK Knowledge Report ‘Investment in Tourism Infrastructure: Igniting India’s Growth Engine’ which highlights the current tourism landscape, potential areas of development and key initiatives for India to rise on the global tourism map. Sincerely, Dr. Jyotsna Suri Past President, FICCI Chairperson FICCI Tourism Committee and Chairperson & Managing Director - Lalit Suri Hospitality Group Investment in Tourism Infrastructure 8 Igniting India’s Growth Engine Table of Contents Executive Summary 1 1. Travel & Tourism Outlook 15 1.1. Global Tourism Scenario 16 1.2. Indian Tourism Scenario 18 2. Key Government Initiatives to boost Tourism Infrastructure in India 23 2.1. Ministry of Tourism 24 2.2. Ministry of Civil Aviation 25 2.3. Ministry of Shipping 26 2.4. Ministry of Road Transport & Highways 28 2.5. Ministry of Railways 29 2.6. Ministry of Environment, Forest & Climate Change 31 2.7. Ministry of External Affairs 32 2.8. Ministry of Culture 32 3. Key Initiatives of leading States in promoting Tourism 35 3.1 Madhya Pradesh 36 3.2 Andhra Pradesh 42 3.3 Uttarakhand 45 3.4 Rajasthan 49 3.5 Odisha 54 3.6 Karnataka 57 3.7 Telangana 62 3.8 Maharashtra 65 3.9 Arunachal Pradesh 67 3.10 Himachal Pradesh 70 3.11 Gujarat 73 3.12 West Bengal 76 4. Way Forward - Unleashing Tourism Development 82 through Sustainable Infrastructure Development Investment in Tourism Infrastructure Igniting India’s Growth Engine 9 Investment in Tourism Infrastructure 10 Igniting India’s Growth Engine Executive Summary Investment in Tourism Infrastructure Igniting India’s Growth Engine 1 Executive Summary Background Globally, the Tourism industry has increasingly been recognized for its important contributions to economic growth and development as well as social, cultural, environmental, and heritage value, with significant contributions being witnessed in recent decades. The United Nations has designated the year 2017 as the International Year of Sustainable Tourism for Development. While enhancing participation of communities and improving penetration of economic benefits to the last mile remain important considerations
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