PARLIAMENT of INDIA RAJYA SABHA Potential of Tourist Spots In

Home , Bharat Parv, Chhedi Paswan, Darshan (actor), Goddeti Madhavi, Guwahati Railway Station, Incredible India

REPORT NO. 295 _

PARLIAMENT OF INDIA RAJYA SABHA

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

TWO HUNDRED NINETY FIFTH REPORT Potential of Tourist Spots in the country - Connectivity and Outreach

(Presented to the Rajya Sabha on 27th July, 2021) (Laid on the Table of Lok Sabha on 27th July, 2021)

Rajya Sabha Secretariat, New Delhi July, 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 FIFTH REPORT Potential of Tourist Spots in the country - Connectivity and Outreach

(Presented to the Rajya Sabha on 27th July, 2021) (Laid on the Table of Lok Sabha on 27th July, 2021)

RAJYA SABHA SECRETARIAT NEW DELHI

July, 2021/ Sravana, 1943 (Saka)

C O N T E N T S

P AGES

1. COMPOSITION OF THE COMMITTEE (i)-(iii) 2. INTRODUCTION (iv) 3. ACRONYMS (v)-(viii) 4. REPORT 1 - 54 5. RECOMMENDATIONS/OBSERVATIONS-AT A GLANCE 55 - 74 6. *MINUTES 7. ANNEXURES 75 - 96

______

*To be appended

COMPOSITION OF THE COMMITTEE

(2019-20) (Constituted on 13th September, 2019)

1. Shri T.G. Venkatesh - Chairman

Rajya Sabha s 2. Shri Prasanna Acharya 3. Shri Raj Babbar 4. Shri Sambhaji Chhatrapati 5. Dr. Sonal Mansingh 6. Shri Derek O’Brien 7. *Kumari Selja 8. **Shri Tiruchi Siva 9. ***Shri K.C.Venugopal 9. Shri Dharmapuri Srinivas 10. Shri Vinay Dinu Tendulkar

Lok Sabha

11. Shrimati Sumalatha Ambareesh 12. Shri Anto Antony 13. Shrimati Veena Devi 14. Shri Tapir Gao 15. Shri Rahul Kaswan 16. Shri Saumitra Khan 17. Ms. Goddeti Madhavi 18. Shri Ramesh Chandra Majhi 19. Shri Sunil Baburao Mendhe 20. Shri K. Muraleedharan 21. Shri S.S. Palanimanickam 22. Shri Chhedi Paswan 23. Shri Kamlesh Paswan 24. Shri Tirath Singh Rawat 25. Shrimati Mala Roy 26. Shri Rajiv Pratap Rudy 27. Shri Rajbahadur Singh 28. Shri Dushyant Singh 29. Shri Ramdas Chandrabhanji Tadas 30. Shri Krupal Balaji Tumane 31. Shri Dinesh Chandra Yadav

______*Kumari Selja ceased to be Member w.e.f. 10th April, 2020 **Shri Tiruchi Siva ceased to be Member w.e.f. 3rd April, 2020 and re-nominated as Member w.e.f. 22nd July, 2020 ***Shri K.C. Venugopal nominated as Member w.e.f. 22nd July, 2020

(i) 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 Raj Babbar 4. Shri Sambhaji Chhatrapati 5. Dr. Sonal Mansingh 6. Shri Derek O’Brien 7. Shri Tiruchi Siva 8. Shri Dharmapuri Srinivas 9. Shri Vinay Dinu Tendulkar 10. Shri K.C.Venugopal 11. **Shri Sushil Kumar Modi

Lok Sabha 12. Shri Anto Antony 13. Shri Margani Bharat 14. Shri Tapir Gao 15. Shri Rahul Kaswan 16. Shri Ramesh Chandra Majhi 17. Shri Sunil Baburao Mendhe 18. Shri K. Muraleedharan 19. Shri S.S. Palanimanickam 20. Shri Chhedi Paswan 21. Shri Kamlesh Paswan 22. Shri Sunil Kumar Pintu 23. Shri Prince Raj 24. Shri Tirath Singh Rawat 25. Shrimati Mala Roy 26. Shri Rajiv Pratap Rudy 27. Shri Dushyant Singh 28. Shri Rajbahadur Singh 29. Shri Ramdas Chandrabhanji Tadas 30. Shri Manoj Tiwari 31. Shri Krupal Balaji Tumane 32. Shri Dinesh Chandra Yadav

______

*Shri Raj Babbar ceased to be a Member w.e.f. 25th November, 2020 **Shri Sushil Kumar Modi was nominated to be a Member w.e.f. 23rd December, 2020

(ii)

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

(iii)

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 Fifth Report on 'Potential of Tourist Spots in the country - Connectivity and Outreach'.

2. The Committee heard the views of the Association of Domestic Tour Operators of India, Indian Association of Tour Operators, Indian Tourist Transporters Association and Federation of Association in Indian Tourism & Hospitality on the subject on 13th October, 2020. The Committee heard the views of the officials of Ministry of Tourism, ITDC, State Government of Andhra Pradesh, Tourism Police, Travel & Tour operators, Hoteliers etc. on the subject at Visakhapatnam on 7th January, 2020. The Committee heard the views of the officials of Ministry of Tourism, ITDC, State Government of Maharashtra, Tourism Police, Travel & Tour operators, Hoteliers etc. on the subject at Mumbai on 9th January, 2020. The Committee heard the views of the officials of Ministry of Tourism on the subject during the onboard Cruise Ship from Mumbai to Goa on 10th January, 2020. The Committee heard the views of the officials of Ministry of Tourism; UT Government of Jammu & Kashmir; J&K Police; Institute of Hotel Management, Srinagar; Indian Institute of Skiing & Mountaineering, Gulmarg; and various stakeholders of Tourism sector on the subject at Gulmarg on 22nd January, 2021. The Committee heard the views of officials of Ministry of Tourism on 19th April, 2021. 3. The Committee wishes to express its thanks to the officers of Tourism; ITDC; State Governments of Andhra Pradesh and Maharashtra; UT Government of Jammu & Kashmir; J&K Police; Tourism Police; Travel & Tour operators; Hoteliers; and other private stakeholders for placing before the Committee, the material and information desired in connection with the subject and for clarifying the points raised by the Members.

4. The Committee considered and adopted the Report in its meeting held on the 25th June, 2021.

(T.G. Venkatesh) NEW DELHI; Chairman, June 25 , 2021 Department-related Parliamentary Standing 4 Ashadha, 1943 (Saka) Committee on Transport, Tourism and Culture, Rajya Sabha

(iv)

ACRONYMS

AICTE All India Council for Technical Education ALM Asset and Liability Management ASI Archaeological Survey of India ATOAI Adventure Tour Operators Association of India B&B Bed and Breakfast BE Budget Estimates BOQs Bill of Quantities BSF Border Security Force CBEC Central Board of Excise and Customs CBSP Capacity Building for Service Providers CC Cash Credit CCTV Closed Circuit Television 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

(v) EFC Expenditure Finance Committee EPCG Export Promotion Capital Goods EPF Employee Provident Fund EPFO Employees' Provident Fund Organization FB Funds Book FCI Food Craft Institute 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 IC Independent Charge ICI Indian Culinary Institute 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 ITC Input Tax Credit ITDC India Tourism Development Corporation ITM International Tourism Mart IWAI Inland Waterways Authority of India IWT Inland Water Transport J&K Jammu and Kashmir JMVP Jal Marg Vikas Project MbPT Mumbai Port Trust

(vi) 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 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 NIDHI National Integrated Database of Hospitality Industry NITI National Institute for Transforming India NIWS National Institute of Water Sports NMPT New Mangalore Port Trust NPA Non Performing Asset NRI Non- Resident Indian 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 OTM Outbound Travel Mart OTR One Time Restructuring PPP Public- Private Partnership PRASHAD Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation RBI Reserve Bank of India

(vii) 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 SMS Short Message Service 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

(viii) REPORT

India is one of the popular tourist destinations in Asia. India has fascinated people from all over the world with her secularism and her culture. Bounded by the Himalayan ranges in the north and surrounded on three sides by sea Arabian sea, Bay of Bengal and Indian Ocean, India offers a wide array of places to see and things to do. The enchanting backwaters, hill stations and landscapes make India a beautiful country with a huge tourism potential. There are historical monuments, beaches, places of religious interests, hill resorts, etc. that attract tourists. Every region is identified with its handicraft, fairs, folk dances, music and its people. Hence, India is a country with a great potential for tourism. The tourism industry employs a large number of people, both skilled and unskilled. It promotes national integration and international brotherhood. Tourism is highly labour intensive industry of a unique type. It provides different services needed as well as expected by the incoming tourists. At the world level, it is one of the largest in terms of money spent by tourists in the countries they visit. The Indian hotel industry particularly, expects a major part of their income from tourists. There is no other country in the world which offers such wide choice of destination like India. The services rendered to foreign tourists visiting India are the invisible products of tourism industry. These products, i.e., hospitality services of all sorts for tourists turn into invisible exports because these are included in this category. More the foreign exchange earnings, greater is the gain. In the same manner more the number of visitors from foreign countries, more is our foreign exchange earnings. It is in this backdrop that the Department-related Parliamentary Standing Committee on Transport, Tourism and Culture decided to take up the subject ―Potential of Tourist Spots in the Country- Connectivity and Outreach‖ for examination and Report thereon.

2. In this connection, the Committee heard the views of the Secretary, Ministry of Tourism; Additional Secretary and Financial Adviser, Ministry of Tourism; Director-General, Ministry of Tourism; and Chairman & Managing Director, ITDC; on 23rd October, 2019 and 18th March, 2020 and 16th February, 2021. The Committee heard the Secretary, Ministry of Tourism in its meetings held on 18th March, 2020 and 19th April, 2021. The Committee also heard the stakeholders of the Tourism industry on 13th October, 2020. The Department-related Parliamentary Standing Committee on Transport, Tourism and Culture undertook a study visit to Visakhapatnam, Mumbai and Goa from 7th to 12th January, 2020; and a study visit to Srinagar and Gulmarg from 21st to 23rd January, 2021and interacted with the Secretary, Ministry of Tourism, State Government/ UT representatives and various stakeholders of the

1 tourism industry on different subjects and also undertook on-the-spot study. A questionnaire on the subject was forwarded to Ministry of Tourism and written replies were obtained on various aspects of the Ministry and on its efforts and progress to harness the potential of Tourist spots in the country.

3. Some of the major points discussed during the deliberations of the Committee are:

(i) Development of Tourism Infrastructure under Swadesh Darshan and PRASHAD Scheme;

(ii) Assistance to Central Agencies;

(iii) Connectivity Related Issues;

(iv) Digital Connectivity and Outreach;

(v) Domestic Promotion and Publicity;

(vi) Overseas Promotion and Publicity;

(vii) Development of Adventure Tourism;

(viii) Safety and Security of Tourists;

(ix) Development of Cruise Tourism;

(x) Training and Skill development; and

(xi) Impact of Covid-19 pandemic on Travel and Hospitality Sector.

Development of Tourism Infrastructure

(a) Swadesh Darshan Scheme

4. One of the issues which was at the centre stage of the deliberations of the Committee was to provide better connectivity to the sites identified for development under thematic circuits of Swadesh Darshan Scheme (SDS) (Integrated Development of Theme-Based Tourist Circuits), launched in January 2015. Under SDS, fifteen thematic circuits identified for development are: North-East India Circuit, Buddhist Circuit, Himalayan Circuit, Coastal Circuit, Krishna Circuit, Desert Circuit, Tribal Circuit, Eco Circuit, Wildlife Circuit, Rural Circuit, Spiritual Circuit, Ramayana Circuit, Heritage Circuit, Tirthankar Circuit and Sufi Circuit. 2

5. In reply to a question, the Committee has been informed that the Ministry of Tourism has identified 15 themes under the Swadesh Darshan Scheme for the development of theme based circuits. As on date, Ministry of Tourism has sanctioned 75 projects across 31 States/Union Territories for an amount of Rs.5865 Crore under the Swadesh Darshan Scheme of which an amount of Rs.3877 Crore has been released for implementing the projects. The detailed status of projects sanctioned under 15 thematic circuits is as under:

Sl. Name of the Theme No. of Amount Amount Physical No Projects Sanctioned Released Progress sanctioned (INR in Cr.) (INR in Cr.) % 1 Buddhist 5 355 222 62% 2 Coastal 10 767 509 71% 3 Desert 1 64 51 100% 4 Eco 7 585 419 71% 5 Heritage 10 837 508 62% 6 Himalayan 7 639 411 57% 7 Krishna 2 189 124 90% 8 North East 9 761 518 67% 9 Ramayana 2 203 155 83% 10 Rural 2 125 45 16% 11 Spiritual 12 700 425 54% 12 Sufi - - - - 13 Tirthankar 1 52 26 72% 14 Tribal 4 380 302 82% 15 Wildlife 2 188 150 89% Sub Scheme Way-side 1 18 11 52% TOTAL 75 5865 3877

6. In its written reply, the Ministry has apprised the Committee that the guidelines for development of tourism infrastructure under the SDS and PRASHAD schemes have been developed with the following objectives:

• Community-based development through ‗Pro-Poor‘ tourism concept and ‗responsible tourism‘ initiatives.

• Active involvement of local communities.

• Creating awareness among the local communities about the importance of tourism for them in terms of increase in sources of income, improved living standards and overall development of the area.

• Promote heritage in the form of heritage structures especially under integrated tourism development of heritage city, local arts, culture, handicrafts, cuisine, etc., to generate livelihood in the identified places.

• Generate sufficient job opportunities for locals as part of the execution and after completion of the projects.

7. The Committee is constrained to note that despite the SDS being launched way back in January, 2015, only one of the 15 thematic circuits under the Scheme has been completed and the physical progress in respect of the remaining 14 circuits ranges from 16 percent to 90 percent which is far from being satisfactory. The Committee recommends the Ministry that all the destination points covered under the thematic Ramayana circuit, Buddhist circuit and Himalayan circuit have high tourist value and mythological significance, will go a long way in promoting cultural and heritage value of the country besides earning valuable foreign exchange income. Even in important thematic circuits that have potential of attracting both international and domestic tourists, the physical progress and development of amenities in these circuits from 2015 is less than 70%. Therefore, we can not give impetus to tourism without providing an integrated approach where apart from good stay arrangements, multimodal connectivity and wayside amenities should also be developed. Hence the potential of many tourist sites under these identified circuits is still untapped. Since the creation of good tourism infrastructure is a pre-requisite towards attracting more tourist, both domestic and international, to the tourist destinations and also has had its multiplier effect in terms of employment generation and increased National and State revenues apart from improving the country‘s tourism productive capacity, the Committee recommends that the Government must take stringent measures for expediting the completion of remaining 14 thematic circuits in a time bound manner.

7.1. According to a Report by NITI Aayog on ‗Sustainable Tourism in the Indian Himalayan Region‘, the Indian Himalayan Region (IHR) tourism has experienced a continued growth and increasing diversification over the last few decades and is 4

expected to grow at an average annual rate of 7.9% from 2013 to 2023. Keeping in view the tourist potential of this area, the Committee recommends that tourist sites under the Himalayan circuit of Swadesh Darshan Scheme should be developed on priority basis with modern infrastructure and air connectivity to boost both domestic and international tourism.

7.2. Buddhism is not limited to India only but is also followed in countries such as Cambodia, Thailand, Myanmar, Bhutan, Sri Lanka, Singapore, Vietnam and Japan. The Committee is also aware of the potential of Buddhism tourist sites in India especially in the North-Eastern region. The Ministry had already identified Buddhism and North-East circuit among the 15 thematic circuits of Swadesh Darshan Scheme. The Committee would, therefore, recommend that sites under these two circuits should be developed on priority in an integrated manner to attract tourists from the abovementioned countries which would not only boost foreign exchange earnings but will also generate employment opportunities in the country.

8. The Committee observes that rural tourism is one of the few emerging dimensions of the Tourism industry, but is very less emphasized upon. Till date, only two projects have been approved under the rural circuit of SDS and funds were released only for the one. India being rich in tradition of arts, crafts and culture, rural tourism, if exploited intelligently in a sustainable manner has the potential to provide sustainable livelihood to rural communities. Rural areas especially in the States of Himachal Pradesh, Uttarakhand, Odisha, Kerala, North-east region etc. are still unexplored and needs to be focused upon. The Ministry should develop schemes/ programmes that showcase the rural life, art, culture and heritage at rural locations, thus benefiting the local community economically and socially by enabling interactions between the tourists and the locals for a more enriching tourism experience. The Committee simultaneously recommends that the Government should adopt a proactive interventionist approach to ensure that the pro-poor tourism approach leads to redistribution of resources and opportunities to the poor and marginalized and addresses the larger picture of poverty reduction because a well coordinated programme for tourism infrastructure development can give significant returns and can create sustainable livelihood in the rural areas. The Committee, therefore, recommends that more rural areas should be included in tourism circuits in the country so that connectivity to these areas is boosted

5 with infrastructure development for ease of travel and the goal of pro-poor tourism i.e., to bring out benefit to the poor and marginalized through tourism activities is realized.

9. The Committee has also been informed that the Ministry is focusing on improving connectivity to the 19 identified Iconic Sites as well as to important Buddhist sites in the country. On being asked about the outlay for development of the Iconic Sites for 2020-21 and the forward movement made in the implementation, the Committee has been informed that Ministry of Tourism has submitted the EFC Note to the MoF in October, 2019 for approval of the scheme for the Development of Iconic Tourist Sites. The EFC meeting regarding the same is yet to be held. Funds will be allocated for the scheme after the same is approved. In the meantime, the consultants appointed by the Ministry have formulated the draft master plans and identified shelf of projects for all the 19 identified Iconic sites based on consultations held with stakeholders both at the Centre and the State level which includes Central Ministries and Departments, respective State Governments and Departments, local communities, travel and trade associations, etc. 10. The Ministry had identified 19 Iconic tourist sites such as Taj Mahal and Fatehpur Sikri (Uttar Pradesh); Ajanta & Ellora (Maharashtra); Humayun‘s Tomb, Red Fort and Qutub Minar (Delhi); Colva (Goa); Amer Fort (Rajasthan); Somnath and Dholavira (Gujarat); Khajuraho (Madhya Pradesh); Hampi and Mysore (Karnataka); Mahabalipuram (Tamil Nadu); Kaziranga (Assam); Kumarakom (Kerala); Konark (Odisha); and Mahabodhi Temple (Bihar). The Committee would recommend that development of these sites should be taken up in a prioritized manner and each target should be fixed and a clear project implementation timeline should be created for completion of the projects as all these sites have the potential to attract both international and domestic tourists. 10.1. The Committee notes that pursuant to the Budget announcement of 2020-21, the Ministry of Tourism has identified 19 Iconic sites for development as world class tourist destinations. Since the project involves various central Ministries, State Governments/ Union Territories and other stakeholders, the Committee recommends that a robust coordination mechanism of the concerned Central Ministries, State Governments/ Union Territories and other stakeholders be put in place for prompt resolution of issues/ bottlenecks. 10.2. The Committee notes that the Ministry had identified 19 Iconic tourist sites for tourism infrastructure development in the country. Since most of these tourist sites are hugely popular among international tourists, these sites should have proper air 6 connectivity. The Committee would, therefore, recommend to the Ministry that the Iconic tourist sites that have domestic airports only, their status should be converted to that of an international airport on priority basis for ease of traveling of international travelers. Further, the Iconic tourist sites which do not have direct air connectivity, a proposal for development of Greenfield Airports should be initiated at such tourist sites in order to boost both domestic and international tourism.

11. The Committee also notes that availability of land free from all encumbrances is the responsibility of the respective State Governments/ Union Territories. The Committee would like to be apprised of the progress made in this regard.

12. The Committee has been informed that one of the major objectives of the tourism infrastructure development schemes including the PRASHAD scheme is to generate employment through active involvement of local communities. The development under the scheme is focused on community based development with pro-poor tourism approach. It is expected that projects sanctioned under the scheme during its execution and after completion will be able to generate sufficient job opportunities for the locals.

13. The Ministry has also informed that the lockdown due to COVID-19 has affected the implementation of the projects. The State Governments have informed that the work on most of the sites has stopped due to non-availability of the workers. Ministry of Tourism has agreed for extension of completion of the projects timelines, whenever a request is received from the State Government/implementing agency regarding the same. In addition, Ministry of Tourism has revised the guidelines for the Swadesh Darshan Scheme as per which 4th installment amounting to 15% of the sanctioned project cost is released in advance on receipt of Utilization Certificate in respect of funds released earlier to provide additional liquidity to the states for completing the sanctioned projects.

14. To a query regarding the impact of development of tourism infrastructure under the SDS and PRASHAD Schemes on livelihood benefits to locals and promotion of pro-poor tourism, the Ministry has informed that the guidelines of the Swadesh Darshan and PRASHAD schemes have been developed with the following objectives:

• Community-based development through ‗Pro-Poor‘ tourism concept and ‗responsible tourism‘ initiatives. • Active involvement of local communities. • Creating awareness among the local communities about the importance of tourism for them in terms of increase in sources of income, improved living standards and overall development of the area. • Promote heritage in the form heritage structures especially under integrated tourism development of heritage city, local arts, culture, handicrafts, cuisine, etc., to generate livelihood in the identified places. • Generate sufficient job opportunities for locals as part of the execution and after completion of the projects.

15. Shedding light on the funding pattern of the SDS and PRASHAD Schemes, the Ministry has furnished the following information: 15.1. Under the Swadesh Darshan Scheme, two funding patterns are being followed: I. Funding pattern for projects sanctioned upto October, 2017 Sl. Instalment Amount to be released Condition No 1. 1st 20% of the sanctioned On sanction of the project cost of the project 2. 2nd 30% of the sanctioned After utilization of minimum 75% of the cost of the project minus first instalment and submission of UC in unutilized amount of 1st the prescribed format instalment 3. 3rd 30% of the sanctioned After utilization of 100% of 1st cost of the project minus instalment and minimum 75% of the unutilized amount of 2nd second instalment and submission of UC instalment in the prescribed format 4. 4th 15% of the sanctioned After utilization of 100% of 1st and 2nd cost of the project minus instalment and minimum 75% of the unutilized amount of 3rd third instalment and submission of UC instalment in the prescribed format 5 Physical No release of funds. Certificate of 100% physical completion

Completion Milestone for 100% of the project from Implementing of the physical completion of Agency countersigned by Project the project Administrative Secretary. UC of the amount released so far to be submitted in the prescribed format. Final Project Cost to be frozen. Excess amount, if any, to be refunded to the Ministry. 6. 5th 5% of the sanctioned cost After successful O&M of Toilet TFC, Cafeteria facilities for one year as certified by an independent agency. 7. Final No release of funds. Final Utilization Certificate of funds Closure of Milestone for final released to the Implementing Agency to the Project closure of the project be submitted and project closed by the Ministry

II. Funding pattern for projects sanctioned after November, 2017 Sl. Instalment Amount to be released No 1. 1st 30% of the project cost on submission of work orders, Good for construction DPR with GFC statuary approvals from respective agencies for construction initiation and detailed BOQs 2. 2nd 30% of the project cost after receipt of utilization certificate for the first instalment 3. 3rd 25% of the project cost after receipt of utilization certificate for the second instalment 4. 4th 10% of the project cost on completion of the work and receipt of utilization certificate 5 5th 5% of the project cost after successful O&M of Toilet, TFC, Cafeteria facilities for one year as certified by an independent agency

15.2. Implementing agencies can approach the Ministry of Tourism for release of next installment of funds after submission of UC for 75% of released funds. 9

16. The objective of the Swadesh Darshan Scheme is to develop basic infrastructure and other enabling facilities at the destinations to attract the Private Investors to develop products needed by the tourists and are revenue earning in nature such as Resorts, Hotels, Amusement Parks, Convention Centers, etc. under PPP model. The PRASHAD and Swadesh Darshan Schemes also have a provision to explore for PPP partner for operation, maintenance and sustenance of the facilities created.

17. The Public-Private Partnership (PPP) model has been explored in number of projects under the Swadesh Darshan Scheme. Various State Governments have started to take initiatives in leveraging the assets developed under Swadesh Darshan Scheme to attract private investors in developing products such as resorts, hotels, amusement parks, convention centers, etc. under PPP model. One such example is of Odisha, wherein at Gopalpur various components developed under Swadesh Darshan Scheme are being leveraged by the State Government to develop additional land of 28 acres by way of setting up of Wellness resort and Hotel under PPP mode. The Swadesh Darshan and PRASHAD Schemes also have a provision to explore for PPP partner for operation, maintenance and sustenance of the facilities created. 18. Informing the Committee about the improvement in connectivity due to infrastructure development under SDS and PRASHAD Schemes, it has been stated that the Ministry of Tourism under the Swadesh Darshan and PRASHAD Schemes is providing last mile connectivity to improve accessibility to the destinations/ facilities being created as part of the projects sanctioned under the above schemes which include developing/improving approach road, nature trails, construction of helipads, river cruises, jetties, ropeways, passenger sheds, illumination, etc. Out of the 75 Projects sanctioned under the Swadesh Darshan Scheme, a total of Rs. 22,471 Lakh has been provided for the improvement of accessibility at 177 sites across the country. Under the PRASHAD Scheme, last mile connectivity has been provided in all the 30 projects sanctioned under the scheme. The details of the State-wise sanctioned amount for improving connectivity are given below: Sl. State Road Air Rail Total No 1 Arunachal Pradesh 336 179 - 516 2 Assam 827 - - 827 3 Bihar 406 - - 406 10

4 Chhattisgarh 364 - - 364 5 Goa 273 344 - 617 6 Gujarat 426 - - 426 7 Himachal Pradesh - 300 - 300 8 Jammu & Kashmir 725 24 - 749 9 Kerala 2,737 - - 2,737 10 Madhya Pradesh 1,762 - - 1,762 11 Maharashtra 664 - - 664 12 Meghalaya 2,855 - - 2,855 13 Mizoram 258 - - 258 14 Nagaland 981 - - 981 15 Odisha 714 - - 714 16 Puducherry 230 - - 230 17 Punjab 633 - - 633 18 Rajasthan 340 - 1,937 2,277 19 Sikkim 649 - - 649 20 Telangana 486 - - 486 21 Tripura 188 - - 188 22 Uttar Pradesh 2,129 374 - 2,503 23 Uttarakhand 973 - - 973 24 West Bengal 361 - - 361 Total 19,314 1,221 1,937 22,471

19. The Committee notes that the objectives of the SDS and PRASHAD Schemes inter-alia include pro-poor tourism concept, active involvement of local communities and generation of sufficient job opportunities for locals as part of the execution and after completion of the projects. The Committee observes that it has often been seen that the local people do not benefit from new tourism business due to multiple factors like capacity constraints, inadequate financial resources for enterprises, lack of business opportunities, etc. and also because the poor and marginalized communities do not have the avenues to negotiate with tourism companies. The Committee, therefore, recommends that the Government must adopt a proactive interventionist approach to effectively implement the SDS and PRASHAD Schemes in line with pro-poor principles.

The Committee also recommends that the Ministry in close coordination with State Governments/ Union Territories should create robust and clear policies that cater for the needs of locals, expand business and employment policies for the poor through capacity building and enterprise support and contribute to local livelihoods. The Ministry must also focus on skill development to enable local community to take up skilled jobs during the execution and after the completion of projects under the SDS and PRASHAD Schemes.

(b) PRASHAD Scheme

20. The Ministry in its background note informed the Committee that the PRASHAD (Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive) scheme launched in January, 2015 with the objective of integrated development of pilgrimage destinations in a planned, prioritized and sustainable manner to provide complete religious tourism experience, provide better connectivity to the destinations identified for development. Under the scheme 51 destinations have been identified in 28 States for development.

21. While replying to a query, the Secretary apprised the Committee that Ministry of Tourism has sanctioned 30 projects in 19 States for an amount of Rs.916.56 Crore of which a total amount of Rs. 542.12 Crore has been released for these projects. Out of these 30 approved projects 9 have been completed and 7 more projects are likely to be completed shortly. While replying to a specific query on funding pattern of the projects under PRASHAD Scheme, it was informed that the following two funding patterns are being followed:

(A) For the pre-October, 2017 approved projects: Funds released in advance upto first three installments of 20%, 30% and 30% each. Last installment of 20% is to be released as re- imbursement to the State/UT only after completion of the project in all respects.

(B) For the projects approved in October, 2017 or thereafter: Funds released in advance upto first three installments of 30%, 30% and 25% each. Fourth installment of 10% of project cost to be released as re-imbursement to the State/UT only after completion of the project in all respects. Fifth and the last installment of 5% to be released after completion of one year by the State/UT for the facilities created under the project.

22. The Committee was informed by the Ministry that since the inception of PRASHAD Scheme in 2014-15, total 30 projects in 19 States have been sanctioned under it, out of which 7 projects are complete in all respects and 11 more projects are likely to be

12 completed by December, 2020. The Committee, during its interactions with the officials of Ministry of Tourism was also informed that there is no cost overrun in the projects but time overruns have been observed and major reasons for delay is land availability, statutory clearances and slow tendering by the implementing agencies.

23. The Committee feels that the progress of implementation of sites under PRASHAD Scheme needs to be monitored regularly through a dedicated mechanism to ensure that there is no time overrun and cost escalation. The Committee notes that the lockdown due to Covid-19 pandemic hampered the construction activities under the SDS and PRASHAD schemes. The Committee observes that development of tourism infrastructure under the above flagship schemes of the Ministry will not only act as a catalyst to economic development of the country but also promote more inclusive growth. The Committee, therefore, recommends that the Ministry should re-orient its strategy to mitigate the impact of the pandemic on implementation of projects under the above schemes so that the targets set out are achieved in a specified time-frame. The Committee desires to be kept apprised of the policy measures initiated to accelerate the pace of implementation of projects and effectiveness thereof.

24. The Committee takes note of the submission of the Ministry that the Public- Private Partnership (PPP) model has been explored for certain components of projects under the Swadesh Darshan Scheme and PRASHASD Schemes also have a provision to explore for PPP partner for operation, maintenance and sustenance of the facilities created. The Committee observes that creation of quality infrastructure for developing tourist products and for providing better services to both domestic and international tourists is a pre-requisite not only to generate employment and achieve broad based and inclusive growth of the economy on a sustained basis, but also to have a favourable impact on the preservation of art, culture and heritage. However, projects like the SDS and PRASHAD have high social but an unacceptable commercial rate of return and are generally characterised by long gestation periods, substantial investments, fixed returns due to which they require financial support from the Government through appropriate financial investments and incentives. Since the development of tourism infrastructure requires very large investments and cannot be undertaken out of public financing alone, the engagement of the private sector in provisioning of tourism infrastructure under the SDS and PRASHAD is warranted. The Committee is of the firm view that the involvement of the private sector will not only bring in the efficiencies of the private

sector and commercial enterprise but will also go a long way in supplementing the scarce public sector resources vis-à-vis the requirements of bridging the infrastructure deficit. The Committee, therefore, recommends that in order to meet the funding gap, make SDS and PRASHAD commercially viable and facilitate private sector efficiencies in the development of tourism infrastructure under the SDS and PRASHAD, the Ministry should formulate a transparent policy framework for participation of private operators in developing products such as hotels, resorts, convention centres, tourist trains, etc., with the Government acting as a facilitator and catalyst and also set up a Viability Gap Funding window for tourism infrastructure development under the SDS and PRASHAD.

Assistance to Central Agencies 25. As per the written reply furnished by the Ministry of Tourism, the details of the financial assistance given to Central Agencies for projects pertaining to tourism infrastructure development during the last three years is given below:

Year States / Name of Projects Implementing Amount Amount UTs Agency Sanctioned Released (Rs. in lakhs) (Rs. in lakhs) 2017- Uttar Illumination of three CPWD 293.55 234.84 18 Pradesh monuments in Varanasi, Uttar Pradesh- 1. Dashashwamedh Ghat to Darbanga Ghat (stretch of 300 m) 2. Tulsi Manas Mandir 3. Sarnath Museum Punjab Project for Infrastructural BSF 1312.00 1029.59 Development at JCP Attari Haryana Sound and Light Show at ITDC 600 300.00 Yadavindra Gardens, Pinjore, Haryana. Andhdra Sound and Light Show at ITDC 708.67 354.33

Pradesh Puttaparthy, Andhra Pradesh Delhi Sound and Light Show at ITDC 1370.00 685.00 Red Fort, Delhi (Purana Quila) Maharashtra Up- Mumbai Port 1250.00 1250.00 gradation/modernization to Trust International Cruise terminal at Indira Dock, Mumbai. 2018- Goa Improvement of Mormugao Port 1316.40 658.20 19 immigration facility and Trust deepening of existing cruise berth at Mormougao Kerala Developing infrastructure Cochin Port 120. 79 60.39 at Cochin Port Cruise Trust Terminal. Kerala Creation of additional Cochin Port 466.47 233.23 tourism facilities at the Trust Cochin Port Trust Walkway Andhra Construction of Cruise- Visakhapatnam 3850.00 1925.00 Pradesh cum-Coastal Cargo Port Trust Terminal at Channel berth area in Outer Harbour of Visakhapatnam Port Punjab Letter of Authorization ASI 2302.00 2037.00 (LOA) for Restoration/ Renovation of ‗Jallianwala Bagh Memorial‘ & Additional work to be taken at Jallianwala Bagh National Memorial at

Amritsar, Punjab. 2019- Delhi CFA for Development & National 4373.00 2186.00 20 renovation of selected Council of facilities of National Science Museum Museums (NCSM) Delhi CFA for Illumination of National 380.00 190.00 Building of National Council of Gallery of Modern Art- Science 2019-20. Museums (NCSM) Kerala CFA for Development of Cochin Port 1029.70 514.85 Additional infrastructure in Trust the new Cochin Port Trust Terminal -- CFA for Development of IWAI 2803.05 700.76 Jetties at nine (09) main points of embarkation/ disembarkation of River Cruise on National Water ways No. 1& 2

26. The scrutiny of the above table reveals significant shortfall in release of funds as compared to the sanctioned funds in respect of several schemes of tourism infrastructure development. For example, the shortfall witnessed in the amount released vis-à-vis the amount sanctioned in 2017-18 in respect of Sound and Light Show Project at Yadavindra Gradens, Pinjore, Haryana; Light and Sound Show Project at Puttaparthy, Andhra Pradesh; and Light and Sound Show Project at Red Fort and Purana Quila, Delhi is to be the tune of Rs 300.00 lakhs, Rs. 354.34 lakhs and Rs 685.00 lakhs respectively. No reasons have been adduced by the Ministry for the shortfall. Since the above projects have been conceived with the aim of developing and improving tourism infrastructure, the Committee expects the Ministry to urgently address the pending issues pertaining to the above projects to avoid delays and cost escalation in their

16 implementation. The Committee expects to be apprised of the action taken to address the recurrent problem of delays and cost overrun in implementation of projects.

27. The details of railway projects sanctioned to Ministry of Railways under the Assistance to Central Agencies Scheme during the last three years (2017-18, 2018-19 and 2019-20) are given below: Sl. State Name of the Project Amount Amount No. Sanctioned Released (MoT share) Rs. (Cr) FY-2017-18 1. Tamil Nadu Rameshwaram Railway Station 4.70 2.35 2. Maharashtra Aurangabad Railway Station 5.71 2.85 3. West Bengal Rampurhat Railway Station 3.48 1.74 4. West Bengal Tarakeshwar Railway Station 3.87 1.93 Total 17.76 8.87

FY- 2018-19 5. Tamil Nadu Madurai Railway Station 4.48 2.24 6. Assam Kamakhya Railway Station 4.96 3.97 7. Assam Guwahati Railway Station 4.99 3.98 Total 14.43 10.19

FY -2019-20 8. West Bengal New Jalpaiguri Railway Station 4.55 2.27 9. Rajasthan Chittorgarh Railway Station 4.99 2.50 Total 9.54 4.77

Other Railway Projects Sanctioned under the Scheme ―Assistance to Central Agencies‖ Sl. No State Name of the Project Amount Amount Sanctioned Released till (MoT share date. in Rs.(Cr) FY-2017-18

1. Goa CFA to Konkan Railway Corporation Ltd. for development of 25.00 12.50 Madgaon, Thivim and Karmali.( Fully Funded)

28. The Committee notes that for all the projects that have been sanctioned since the year 2017, only 50 percent of the sanctioned amount was released so far. The Committee, therefore, recommends the Ministry to adopt strategies for speedy completion of the stalled projects. The Committee is of the view that this will also help in effective utilization of funds and skilled manpower to the maximum possible extent.

29. The Committee recommends that an audit of the expenditure incurred under the Scheme of ‗Assistance to Central Agencies for Tourism Infrastructure Development‘ should also be conducted, the details of which should be uploaded on a web based platform for effective monitoring of the progress of the implementation.

30. To a question regarding the roadmap for development of tourism infrastructure in the country for the next five years, the Ministry has stated that the Government has articulated a vision of India becoming a $5 Trillion Economy by 2024-25 to give a sharper focus to higher economic growth. The SGoS Group 7 on Economy which is represented by 12 Ministries/Departments including Ministry of Tourism has adopted the above vision and has formulated development plans for different sectors including tourism. The SGoS Tourism Sectoral Plan aims at several interventions over a period of 5 years to enhance the visitor experience for increasing the number of foreign and domestic tourists and includes the following action points: i. Developing Buddhist Tourist Circuit ii. Tented accommodation at Buddhist sites (CSSS-Tourism & Hospitality Services) iii. Development of Iconic Tourist Sites iv. Development of infrastructure at Buddhist sites attempt to link Buddhist Circuit with Golf Tourism v. Promote Buddhist heritage in Far East and South East Asian Markets Launch of localised campaigns across platforms for promotion of Buddhist sites (CSSS-Tourism & Hospitality Services) vi. Information related to various places, tourist packages and activities of interest to

tourists on Incredible India Website vii. Effective use of TV and Social Media to promote tourism viii. Develop and promote lesser known tourist spots ix. Identify countries from which not a single tourist is coming to India x. Organize various events and programmes involving foreign participation at Statue of Unity xi. Development of wayside amenities xii. Incentive to foreign tour operators (CSSS-Tourism & Hospitality Services) xiii. Incentives for improving Air Connectivity (CSSS -Tourism & Hospitality Services) xiv. Improving the Benchmark of India in the Global Competitive Index as a Tourism Destination xv. Development of Cruise Tourism along the coast and particularly Andaman & Nicobar and Lakshadweep xvi. Tourism for different segments e.g. beach, medical, wedding tourism etc. xvii. Development of Infrastructure-Artha Ganga xviii. Rail connectivity- Introduction of tourist trains connecting pilgrimage sites and upgradation of railway stations within the pilgrimage circuits. xix. Air Connectivity-  Development of airport at 20 tourist destinations  International air connectivity to Buddhist Circuit and North East from South East Asia.  Introduction of flights to Buddhist sites under UDAN scheme  Helicopter services to hilly areas and destinations in North East Region.  Air connectivity to underused and unused airports to take tourism to the remotest corners of the country.  Customs/Immigration facilities to enable greater presence of international flights at airports located in tourist destinations. xx. Skill Development –  Destination Level Skill Development  Tourist Facilitator Certification (TFC) Programme xxi. A facility of GST card to lessen the burden of GST to attract tourists

31. The Committee observes that the tourism sector not only provides employment to wide spectrum of job seekers from the unskilled to the specialized but also makes significant contribution to the national economy by stimulating other economic factors through its backward and forward linkages. Since tourism is multi-sectoral activity and the related sector includes airlines, surface transport, hotels, basic infrastructure, etc, the growth of the sector cannot be attained unless issues related to all these sectors are addressed simultaneously. The Committee notes from the information furnished by the Ministry that with a view to make India a 5 trillion dollar economy by 2024-25, the SGoS Tourism Sector Plan aims at implementation of 21 tourism development projects over the next five years. The Committee is of the considered view that if the goal of becoming a 5 trillion dollar economy is to be achieved, the Government needs to fastrack the development of these 21 tourism infrastructure projects in collaboration with all the Ministries/ entities concerned. The Committee, therefore, recommends that convergence and synergy be created across programmes of Ministries/ Departments so that the implementation of these 21 tourism development projects could be expedited and an integrated development of enabling infrastructure through partnerships with all the stakeholders could be accomplished. The Committee desires to be kept apprised of the strategies adopted in this regard.

Connectivity Related Issues

32. To a question regarding connectivity requirements to tourist destinations and measures taken to improve connectivity to existing and potential tourist destinations, it has been informed that the Ministry of Tourism, in consultation with stakeholders had forwarded a list of important tourist destinations, to the Ministry of Civil Aviation for augmenting air connectivity. The Ministry of Civil Aviation has approved 46 tourism routes for inclusion under RCS-UDAN-3. Out of these 46 routes, 16 routes have been made operational. List of the 46 Tourism Routes approved and the routes operationalized is at Annexure-A.

33. The Committee is of the view that air connectivity is key to unlocking India‘s tourism potential and proper steps must be taken to operationalize the remaining routes under RCS- UDAN-3 to meet the emerging demand of tourism industry in the region of North-East, Jammu and Kashmir, Uttarakhand, Himachal Pradesh etc.

34. The Committee recommends that the Ministry should also ensure that these projects are completed within the designated timeline and the approved cost so that

20 proper air connectivity is established between the less connected regions with high tourism potential at affordable prices which would provide a boost to tourism industry leading to higher employment and greater revenues.

35. The Ministry of Tourism has also submitted a list of 50 tourism destinations to the Ministry of Road Transport & Highways for improvement of road connectivity in the first phase (Annexure B). In addition, MoRTH has also been requested for setting up of wayside amenities, prominent signages and beautification of the area, at a distance of 15-20 km. on either side of the tourist destination where good road connectivity already exists. The States/Union Territories have been requested to identify important tourism destinations requiring improved and efficient road connectivity or development of wayside amenities for taking up with the Ministry of Road Transport and Highways in the second phase.

36. It was brought to the notice of the Committee that the Ministry of Tourism under the Swadesh Darshan Scheme has signed a MoU with the Ministry of Road Transport and Highways (MoRTH) for development of wayside amenities. As part of MoU, the land is provided by MoRTH and Ministry of Tourism develops the facilities. As part of the above, Ministry is developing wayside amenities in Uttar Pradesh and Bihar at Varanasi-Gaya; Lucknow-Ayodhya-Lucknow; Gorakhpur-Kushinagar; and Kushinagar-Gaya-Kushinagar. The project at above sites is under implementation.

37. In regard to the above, the 1st virtual meetings of the Task Force constituted vide MoT Order No. TT/16/2020-TT dated 18.03.2020 and 07.08.2020 respectively to look into issues related to connectivity was held on 01.09.2020 under the chairmanship of Secretary (Tourism), Government of India. The issue related to connectivity was deliberated with the Ministry of Civil Aviation, Ministry of Railways and IRCTC. Record of discussion with the M/o Civil Aviation  MoCA to share the details of 100 airports which they have finalized to be developed so that these could be prioritized in consultation with MoT.  International connectivity to Buddhist Sector to be given priority: MoCA informed that these are done on the basis of market forces of demand for air traffic.  MoCA had shared list of 78 routes identified for RCS-UDAN 4, which mainly include routes for the North Eastern Region.  Increasing connectivity of Leh to other major source destinations such Mumbai/ Ahmedabad and commencing of helicopter services for Kargil and Nubra valley was also

21 discussed. MoCA conveyed that Helicopter service is expensive and hence it should be first promoted with the help of big tour operators and they should be invited for this purpose.  In regard to easing of the Charter policy and removal of emergency clause from the existing policy, J.S. (MoCA) informed that these aspects are being reviewed keeping in view the interest of both the parties (operators and travelers) involved.  It was suggested that the stakeholders of tourism and airlines should have closer interaction and they should be informed about the new tourism products/destinations and road- shows.  It was also agreed that there should be one to one meetings between the senior officers of both the Ministries to have greater synergy and coordination for sorting out the issues related to connectivity and for promotion of destinations. Record of discussion with the M/o Railways/ IRCTC  The issue of connectivity to pilgrimage sites and running pilgrimage trains was deliberated during the meeting. IRCTC informed that they already have a number of trains under operation dedicated to pilgrimage theme.  It was pointed out by Secretary (T) that M/o Railways have identified 500 railway stations for development and upliftment of traveler‘s amenities. However, the representative of M/o Railways expressed that she was not aware of the fact and would revert on this.  The issue of development of tourist amenities at 26 identified railway stations under the ongoing project of joint development by M/o Railways and M/o Tourism, was also taken up. It was opined that the projects which are nearing completion should be focused on and they should be completed at the earliest.

38. During its study visit, the Members of the Committee raised the issue of development of basic tourism amenities. In this regard, the Ministry furnished details of the Last Mile Connectivity for developing tourism facilities like Public Conveniences, Helipads, Tourist Facilitation Centres, Interpretation Centres, Exhibition Halls, CCTVs, Wi-Fi, Sitting Spaces, Parkings etc. With a view to enhance air connectivity to selected tourist destinations, 46 tourism routes have been included under the RCS-UDAN (Regional Connectivity Scheme), an initiative of the Ministry of Civil Aviation. Further, to enhance connectivity through inland waterways, a country wide waterways network as an economical, environment friendly supplementary mode to transport for rail and road was also declared. 39. The Committee observes that despite the fact that easy access to the wayside facilities is a pre-requisite for the development of tourism, there is an appalling lack of

22 wayside amenities for long distance travelers. It is in this context that the development of wayside amenities at Varanasi-Gaya; Lucknow-Ayodhya-Lucknow; Gorakhpur- Kushinagar; and Kushinagar-Gaya-Kushinagar assume added significance. The Committee recommends that the Government must ensure that the implementation of above projects also enables local artisans and local craftsmen to sell their products to commuters during their journey and generates employment opportunities for local youths and farmers. The Committee also recommends that the wayside amenities should be integrally planned and developed alongwith the highways and expressways.

40. The Committee observes that despite India being endowed with nature‘s bounty and being a land of great tourism potential, its share in International Tourist Arrivals is a meager 1.23% (Source- India Tourism Statistics at a Glance 2020). Poor connectivity, especially air connectivity remains one of the biggest hurdles and is impacting the growth of the Indian tourism sector in general, and that of International Tourist Arrivals in particular. The issue related to connectivity was deliberated with the Ministry of Civil Aviation on 01-09-2020 wherein details pertaining to development of 100 airports and 78 routes approved under the fourth round of Regional Connectivity Scheme were inter-alia shared. Since the all round department of the tourism sector has the potential to act as the key driver of inclusive growth and unless air connectivity improves, the number of high-end tourists is not going to increase, the Committee recommends that at least 19 Iconic spots should be taken on priority and suitable mechanism be developed to get the above projects implemented within a designated time-frame.

41. The Committee takes note of the fact that during the Secretary (Tourism)‘s interaction with the representative of the Ministry of Railways, development and upliftment of traveler‘s amenities found mention and the representatives of Ministry of Railways has assured to ascertain the factual position in this regard and report back. The Committee desires to be kept apprised of the factual position in this regard.

42. The Committee observes that the availability of hotel rooms in India is limited because of acute shortage of land in cities due to land market distortions and there is a need to significantly augment hotel room capacity. In order to meet the requirement of

23 accommodation, the Committee recommends that the surplus railway land at railway stations may be utilized for constructing budget hotels.

43. The Committee observes that Vande Bharat trains have been introduced for some important tourist destinations. The Committee is of the opinion that some more Vande Bharat trains should be introduced on routes such as Jaisalmer-Jodhpur, Jaipur- Agra, Mumbai- Nagpur, Howrah-Patna-Varanasi, Chennai- Trichy-Madurai- Kanyakumari- Thiruvananthapuram and Varanasi-Chitrakoot-Satna-Jabalpur. These are the key places where maximum tourist travels and these trains can really mobilize more trains.

44. The Committee is of the view that in the States of North-East, Uttarakhand and Himachal Pradesh, most tourist destinations are reachable by road and entail long travel time between the destinations. There is also a lack of roadside amenities including affordable stay-homes, toilets, and cafeterias in the routes. Also, there is lack of proper intra-State rail connectivity. The Committee would, therefore, desire that the Ministry of Tourism should focus on tackling the above issues and apprise the Committee of the hurdles being faced in the implementation of the road and rail connectivity projects alongwith the steps taken to deal with these issues.

45. As per the details furnished by the Ministry of Tourism in its Background Note, the list of operational National Waterways connecting tourist destinations is given below:

 NW 1 (Allahabad-Haldia Stretch of the Ganga—Bhagirathi-Hooghly Rivers) - Prominent Tourist Location – Varanasi.

 NW 2 (Sadiya-Dhubri stretch of Brahmaputra River) - Prominent Tourist Location – Majuli Island.

 NW 3 (Kollam-Kozhikode Stretch of West Coast Canal) -Prominent Tourist Locations – Vembanad Lake, Alappuzha backwaters.

 NW 4 (River Godavari and River Krishna) -Prominent Tourist Locations – Cruise Service from Telangana to Andhra Pradesh, Bhwani Island, Durga Ghat, Amaravathi and Vedadri on river Krishna, Bhadrachalan and Papi Hills on river Godavari.

 NW 5 (river Brahmani) -Prominent Tourist Locations – Rengali Dam, Kamakhya forest range, Kapilash Sanctuary, Kapilash Temple, Bhitarkanika National Park.

 NW 8 (Alappuzha-Changanassery Canal) -Prominent Tourist Location – Alappuzha backwaters.

 Waterways of Goa namely, NW 25 (Chapora River), NW-27 (Cumberjua river), NW-68 (Mandovi river), NW-111 (Zuari river) -Prominent Tourist Locations – Morjim Beach, river walk, Dr. Salim Ali Bird Sanctuary, Crocodile trip on Mandovi, Aguada fort etc.

 NW 28 (Dhabol Creek Vashishti River) - Prominent Tourist Location – Gopalgad Fort.

 NW-64 (river Mahanadi) -Mahanadi river Sunset view point, Odisha State Maritime Museum etc.

 NW 89 (Bankot Creek Savitri River) - Prominent Tourist Locations – Harihareshwar Temple and Beach, Bankot Fort.

 NW 97 (Sunderban Waterways) -Prominent Tourist Locations – Cruise Service from Kolkata to Sunderbans.

46. The challenges in the development of inland waterways in India such as varying and limited depths during lean season due to the excessive upstream withdrawal/ utilization resulting in meandering and braiding of alluvial rivers, erosion of their banks causing excessive siltation, lack of cargo earmarked for IWT and non mechanized navigation lock systems, were also highlighted in the Background Note.

47. In reply to a question regarding setting up of dedicated terminals for the tourists at the Ports both Major and Minor, the Committee was also apprised of the Jal Marg Vikas Project (JMVP) for capacity augmentation of navigation on NW-1 on the Haldia-Varanasi stretch of Ganga-Bhagirathi-Hooghly River System with the technical and financial assistance of the World Bank. The traffic handled on inland waterways in 2017-18 was approx. 55 MT and was increased to 72 MT in 2018-19, registering an increase of 31 %.

48. Cruise tourism in India is still a nascent industry, though we have a huge opportunity to capture the market because geographically, India is strategically located between Western Europe and Asia and every ship to Europe has to pass through it. The

Committee, therefore, 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.

49. 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.

Digital Connectivity and Outreach 50. The Ministry has informed that with the growing need for expanding the user base to viewers from countries which drive majority of tourist footfall in our country, Incredible India website and mobile app has been launched in March, 2020 in the following international languages: Chinese, Arabic and Spanish.

51. It was further informed that the website is further being translated into five other prominent international languages: Japanese, Russian, French, German and Korean. The Incredible India website has been provisioned with information around popular tourist destinations and attractions along with a variety of content around experiences across the country. Also, the information is being continuously updated and theme-based content is regularly featured on the website. The Incredible India mobile app also offers on-the-go digital content to tourists with a plethora of information around tourist destinations including event calendars, integrated maps, tourism experiences, attractions, etc.

52. The officials of the Ministry, during their deposition before the Committee apprised the Committee about advancement in digital connectivity, proliferation of social media and the growing ease with which services can be availed online.

53. Advances in technology are spurring innovations and redefining notions of travel altogether. However, about 70% of the tourism units in India come under the category of MSMEs who often lack the necessary technical measures in their workforce to fully reap the budget of digital potentials. The Committee, therefore, recommends that the Government should chalk out a programme for providing technical assistance to MSMEs so that they could digitize their operations.

54. With increasing variations in demand of tourism, the Committee feels that creative ways of digitally showcasing the different facets of our Heritage needs to be explored and this would require a paradigm shift in understanding customer‘s travel interests and focus on developing alternative attractions.

55. The Committee desires the Ministry of Tourism to target foreign tourists, Indians living abroad, foreign universities etc. digitally to market the country‘s brand image as one of the popular tourist destinations globally and develop special travel packages covering three to four prominent destinations of every region in the country.

Domestic Promotion and Publicity

56. As per its written reply, the Ministry of Tourism has commissioned a Third Party Evaluation of the Domestic Promotion and Publicity Including Hospitality (DPPH) Scheme in 2019. This study report has indicated effectiveness of advertising in different media viz., Television, Print, Digital, Social Media, Outdoor, Radio, SMS, Airline Boarding Passes, Railway Tickets, etc., for developing awareness about various tourist locales, culture, regional cuisines, and places of religious importance etc., among the domestic tourists. Regional campaigns undertaken to promote tourism particularly to North-East Region and Jammu & Kashmir had great impact on tourist footfalls.

57. Officials of the Ministry of Tourism had also apprised the Committee that events such as Bharat Parv and Paryatan Parv are being organized in this regard and participation in tourism related exhibitions through India tourism domestic offices is being done to create awareness about tourism destinations within the country. The details of the domestic campaigns and the Bharat Parv and Paryatan Parv events organized by the Ministry of Tourism during the years 2018-19 and 2019-20 for promoting domestic tourism is given below:

2018-19

 TV Campaigns were released on Doordarshan and on private channels in the country to promote tourism to the North-East region and to the State of Jammu & Kashmir. Various TV campaigns were also released in these channels on various subjects like yoga, identified Iconic sites, Swachhta at tourist sites, Statue of Unity.

 Online Campaign on Swachhta at tourist sites, for promoting tourism to the North East Region, promoting and publicising the Statue of Unity

 Campaign in Cinema Houses to promote niche products like Yoga and to promote and publicise the Statue of Unity

 Radio and SMS Campaign and Print Advertisements for promoting Bharat Parv and Paryatan Parv.

 Advertisement on airline boarding passes and on railway tickets to publicise the Statue of Unity.

 ―Do You Know‖ Campaign released on Doordarshan to coincide with Paryatan Parv.

 Photo Contest – ‗Musafir Hoon Yaaron!‘ undertaken on Doordarshan to coincide with Paryatan Parv.

 Wide publicity with live feeds to events organized by the Ministry, viz., Bharat Parv, Paryatan Parv, International Buddhist Conclave, International Tourism Mart, ITM – North East, etc.

 Extensive promotion of Statue of Unity undertaken on Social Media accounts

 The Ministry of Tourism participated in various tourism related exhibitions such as SATTE, OTM, GITB etc.

 Paryatan Parv was organized from 16th to 27th September, 2018; at National Level during which more than 3150 activities across all States /UTs were held through various Central Ministries, India Tourism Offices, Institutes of Hotel Management, State Governments / Union Territory Administrations etc.

 Bharat Parv was organized from 26th to 31st January, 2019 at Red Fort Lawns to coincide with the Republic Day celebrations. The theme of Bharat Parv was-, ‗150 years of celebrating the Mahatma‘. In addition, the idea of ‗Ek Bharat Shreshth Bharat‘ was also publicized during the event.

2019-20

 Radio Campaign for promoting Bharat Parv.

 SMS Campaign for promoting Bharat Parv.

 Print Advertisements released in major newspapers for promoting and Publicising Bharat Parv.

 Advertising on Airline Boarding Passes and Railway Tickets to promote Statue of Unity.

 TV Campaign on Yoga released on Doordarshan and Private Channels in June, 2019, to coincide with International Day of Yoga.

 TV Campaign on ―Swachhta‖ released on Doordarshan and on Private Channels.

 Web Campaign on Swachhta.

 Organized Paryatan Parv, Bharat Parv etc. during the financial year 2019-20, with the objective to promote and spread the message of Dekho Apna Desh, Ek Bharat - Shreshth Bharat‘ and ‗Tourism for All‘ etc. and to create interest amongst general people about various tourism destinations and products of the country. The Domestic Tourist Visits during 2018 were 1854.93 Million.

58. The growth in Indian travel and tourism sector has largely been driven by domestic tourism. As per the information furnished in the Annual Report 2019-20 of the Ministry, there were 1854.93 Million domestic tourist visits during the year 2018. However, in the aftermath of Covid-19 pandemic and the enforcement of lockdown, tourists are hesitant about travelling due to the fear of Covid-19 and the tourism sector has been among the worst-hit areas. Since revival of international tourism would take some time, domestic tourism would play an important role in reviving the economy. The Committee, therefore, recommends that the Government must focus on promoting domestic tourism and adopt aggressive online and other marketing strategies to advertise domestic destinations in a big way so that tourist footfall could be increased.

59. The Committee is of the view that many advertisement agencies often intend to increase their revenue by promoting their services, but fail to connect to their target audience. The Committee, therefore, recommends that advertisements should be designed in such a way that they connect to their target audience by even reaching to the remotest part of the country and by showcasing its rich heritage and culture.

60. The Committee notes that the Scheme of Domestic Promotion and Publicity including Market Development Assistance was launched with the major objective of creating a general awareness amongst the domestic population about the tourist destinations and to develop tourist market within the country. The Committee desires that the Ministry should pay attention to how people search for traveling options, how they reach out to travelers at the right time and in what way they embrace Facebook/ Twitter/ Instagram advertisements.

61. In reply to a question, the Ministry has informed about the main activities undertaken for Domestic Promotion & Publicity include Media Campaigns in the different domestic media including Electronic (Television, Radio and other), Print (Newspapers, magazines, including ad-hoc advertisements in publication), Online/digital/Social Media, outdoor and other Media such as railway tickets, airline boarding passes, support for organizing Events/ Fairs & festivals and Niche Tourism etc.

62. The Committee understands that under the scheme of Domestic Promotion and Publicity, as per the guidelines, Ministry of Tourism is recognizing the need of the State Governments/UTs to produce quality promotional material and is supporting State Governments/ UTs and private stakeholders jointly, with financial assistance including Films/TVCs. The Ministry, in this regard, had produced Films/TVC on various Niche Tourism Products such as Yoga, Wellness etc, various tourist destinations of India including North- East, State of Jammu and Kashmir and Iconic sites of India etc.

63. Responding to queries raised during the course of oral evidence about the promotion of tourism in region of North-East, Jammu & Kashmir, Ladakh, it was informed that in addition to its regular holistic promotion, new campaigns are proposed to be undertaken to improve connectivity and digital outreach in the regions of Jammu and Kashmir, North East, Ladakh, Statue of Unity etc. Further, as per vision of Hon‘ble Prime Minister, promotion of domestic tourism under the theme of Dekho Apna Desh and Ek Bharat Shrestha Bharat would also be undertaken in these areas.

64. The Committee takes note of the submission that new campaigns are proposed to be undertaken to improve connectivity and digital outreach in the regions of Jammu and Kashmir, North-East, Ladakh etc. While appreciating the proposed campaigns, the Committee observes that the North-East region is most enticing part of our country and a 30 veritable delight to the tourists. However, due to various factors, the tourism potential of the North-Eastern region has not been properly showcased. The Committee, therefore, recommends that the Ministry should formulate a media strategy for giving wide publicity about the North-Eastern region as a tourist destination and its cultural uniqueness in both print and electronic media. The Ministry should also organize cultural activities, fairs, seminars and workshops aimed at showcasing the varied society of the North-Eastern region so that the inherent tourism potential of the region could be fully tapped and utilized.

65. Another concern of the Committee is regarding promotion of tourist sites such as Jim Corbett National Park (Nainital, Uttarakhand), Daman and Diu, Rameswaram (Tamil Nadu). Shirdi and Lonar Crater Lake (Maharashtra), Jammu and Kashmir, North Eastern States, Ladakh region. The Ministry should chalk out ways to promote the abovementioned tourist sites digitally so that there is increase in tourist footfall in these regions. This would not only help in modernization of tourism infrastructure but also lead to employment and revenue generation.

Overseas Promotion and Publicity 66. The Committee understands the significance of the Foreign Tourist Arrivals (FTAs) in the country in terms of employment and revenue generation. The Committee, in this regard has been apprised of the launch of ―Incredible India 2.0 Campaign‖ in the year 2017, which marks a shift from generic promotion of market specific promotional plans and product specific content creation. As a sequel to this, Global Campaigns were released in the electronic, online and print media.

67. While appreciating the shift from generic promotion to more focused and niche products of the country under the Incredible India 2.0 campaign, the Committee recommends that Ministry should commission surveys for an impact analysis of the campaigns in key source markets overseas.

68. As per the background Note, the Ministry, through its India Tourism Offices overseas, endeavors to position India as a proposed tourist destination in tourism generating markets to promote various tourism products and destinations and to increase India‘s share in the global tourism market. The objectives are met through an integrated marketing and

31 promotional strategy and a synergized campaign in association with the Travel Trade, State Governments and Indian Missions overseas. India tourism offices overseas participated in the major international Travel Fairs and Exhibitions in important tourist generating markets the world over as well as in emerging and potential markets to showcase and promote the tourism products of the country.

69. In reply to a question regarding the financial performance of the Scheme – Overseas Promotion and Publicity including Market Development Assistance, the Ministry has informed that funds allocated under the Scheme for the year 2018-19 and 2019-20 have been spent judiciously and optimally based on the Annual Action Plan of the India Tourism Offices overseas approved by the Ministry towards undertaking promotional activities such as participation in Travel Fairs and Exhibitions; advertising in the local print, electronic and outdoor media; organizing Road Shows, India Evenings, Seminars & workshops; organizing and supporting Indian Food Festivals and cultural festivals; offering brochure support to tour operators, and joint advertising/joint promotions with airlines, tour operators and other organizations etc.

70. The objective of Overseas Promotion and Publicity including Marketing Development Assistance Scheme is to position India as a favoured tourism destination in the tourism generating markets overseas and to increase India‘s share of the global tourism market. As per information given in the Annual Report (2019-20) of the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) were 10.89 Million during 2019 and International Tourist Arrivals (ITAs) (which include both FTAs and arrivals of NRIs) were 17.82 Million in the year 2018. As a result of the Covid-19 pandemic, tourism has been hit hard and the growth of International Tourist Arrivals to India has declined sharply. The Committee desires to be apprised of the extent to which ITAs are expected to drop as compared to the original 2020 forecast and whether any targeted marketing strategy has been adopted to revive the growth of ITAs to India. The Committee also takes note of the submission that in order to promote and market brand India and promote India‘s share in global tourist arrivals, a synergized campaign in association with the Travel Trade, State Governments and Indian Missions overseas has been launched. Since the abrupt fall in ITAs and the resultant plunge in the tourism sector has wiped out many small and medium sized firms that had catered to tourists

32 overseas, the Committee recommends that financial assistance be provided to approved tourism service providers for undertaking the tourism promotional activities overseas.

71. Foreign Tourist footfall is one of the key aspects of emerging tourism industry. The Committee in this regard, would like the Ministry to follow the strategy given below, point-wise, to advertise country‘s image as one of the prominent tourist attractions globally:-  Highlighting the main tourist attractions.  Identification of target visitors.  Obtain and utilize data to get to know your visitors.  Focus on Branding country‘s rich heritage and culture.  Seek Public Private Partnerships.  Create a compelling destination website.  Engagement Marketing.  Training and Skill development programme for professionals.  Giving visitors an immersive experience.  Using Social Media platforms.  Attracting Influencers/ travel operators.  Exploring various online advertising methods.  Creating offline overseas marketing strategies.

72. The Committee also recommends that in order to achieve higher international visitor levels, country-wise targets of Foreign Tourist Arrivals (FTAs) should be worked out and the Ministry should focus on diversification of source markets so that countries which offer high growth potential but from where present level of tourist is low could be covered.

Development of Adventure Tourism 73. Adventure tourism tends to be associated with high levels of activity by the participant, most of it outdoors. It expects Adventure travelers to experience various levels of risks, excitements and encourage explorers/ travelers to travel to unspoiled and unexplored tourist places in and around the world. The Ministry of Tourism in this regard, in the year 2018, introduced ‗Adventure Tourism Guidelines' covering 29 land, air and water-based activities detailing out the role of a guide, important equipment required, operating

33 instructions, risk mitigation, medical safety etc. According to the Ministry of Tourism, these guidelines on 'Safety and Quality Norms for Adventure Tourism in India' were formulated in coordination with the Adventure Tour Operators Association of India (ATOAI), in an effort to make adventure sports safer. The detailed guidelines educate tour operators and other concerned agencies about important safety requirements and less known dangers. The guidelines also emphasized upon the creation of strong foothold in the field of adventure sports.

74. During the study visit of the Committee, the representatives of the State Government of Goa mentioned about the wide range of tourist attractions across the State in the form of beautiful churches, mighty sea forts, beach tourism, State festivals etc. The Committee was briefed about the features of spice plantation, the festivals and nightlife, food and shopping counters in Goa, alongwith adventure tourism. New tourism related services such as e-bikes tour, hop on hop off bus and hot air balloon rides, as also the safety and security aspects of tourists were also highlighted. 75. Despite its unique endowments of biodiversity and having unparalleled natural resources and 73 percent of the diverse Himalayan range for exploration, adventure tourism in India is at a nascent stage and the country is yet to exploit the immense potential of adventure tourism which can make India a round the year destination. The Committee, therefore, recommends that the Ministry 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 exploit the adventure tourism.

76. The Committee is aware that in order to boost and regulate adventure tourism in India, the Ministry of Tourism had issued guidelines for Adventure Tourism in the year 2018. The Committee would like to know whether all the States adopted and implemented the guidelines. The Committee would like the Ministry to ensure that the adventure tourism guidelines are followed by all the States/ UTs as it would go a long way in promoting inbound adventure tourism. The Committee also recommends a dedicated promotional campaign be launched to promote India as a adventure tourism destination.

77. The Committee noticed that inbound adventure tourism in India is growing by 5-7 percent annually and domestic adventure tourism is growing by 20-25 per cent (as per the Survey Report of the Indian Tourism and Hospitality Industry). According to market research experts, over one billion travelers experienced adventure tourism globally and India attracted just over 3.4 Million adventure tourists in 2015 as compared to Western nations which attracted relatively higher numbers. The Committee, therefore, recommends that the Ministry should apprise it of the reasons for the slow growth of adventure tourism industry and why is there a lack of clear cut policy instance on it.

78. Indian Association of Amusement Parks and Industries, in its written submissions, inter alia stated that the Ministry of Tourism in association with State Governments should promote amusement parks and that GST rates which is 18% at present, should be reduced to single digit rates.

79. Since India is a highly populated country, amusement parks sector has a very high growth potential in the country. The Committee is therefore, of the considered view that promotion of amusement parks will boost tourism, social infrastructure and revenue generation. The Committee, therefore, recommends that the Ministry of Tourism in close coordination with the States/ UTs should chalk out a roadmap for promotion of the amusement parks sector and also explore the possibility of lowering the GST.

80. The Committee would like the Ministry to focus on developing adventure tourism activities given below and apprise the Committee of the steps being taken for the same:  Chadar Trek in Ladakh  White River Rafting in Rishikesh  Jim Corbett Safari- Uttarakhand  Scuba Diving in Andaman Island, Malvan Island and Goa.  Roopkund Trek- Uttarakhand  Manali to Leh Bike/ Jeep Trip  Caving in Meghalaya  Skiing in Gulmarg and Manali

 Bungee Jumping in Rishikesh  River Rafting in Tons Valley- Uttarakhand  Hot Air Ballooning in Jaipur and Solang Valley  Dune Bashing in Jaisalmer  Paragliding in Bir-Billing- Himachal Pradesh  White Water River Rafting in Kullu  Water sports at affordable prices in Goa  Skydiving in Mysore  Flying Fox Adventure in Neemrana- Rajasthan  Rock Climbing in Satpura  Sandakphu Trek-West Bengal  Wildlife Safari in Gir National Park- Gujarat  Dudhsagar Trek in Goa  Kayaking in Aguada River- Goa  Skiing in Kufri  Cycling in Munnar  Camping in Coorg  Tiger Safari in Bandhavgarh National Park- Madhya Pradesh  Giant Swing in Rishikesh  Gulmarg-Gondola Ride  Microlight Flying in Bangalore

Safety and Security of Tourists 81. As per the information furnished, the Ministry of Tourism had issued a letter on 10.8.2016 to all State Governments/ UTs with the advice to take following measures that could go a long way in avoiding any mishappenings:- (1) Identification of all such tourist spots which are prone to accidents. (2) Erection of signage warning visitors of the danger involved in taking selfies at such locations. (3) Posting of volunteers/ tourist police at such identified places, if feasible. (4) Sensitization through Public Address system. (5) Spreading awareness through social and other media campaigns. (6) Barricading areas, wherever possible danger is identified.

82. The Committee has been informed that the Ministry has also taken up the matter with all State Governments/ UTs for setting up of a dedicated Tourism Police. With the efforts of Ministry of Tourism, the State Governments /UTs of Andhra Pradesh, Delhi, Goa, Karnataka, Kerala, Maharashtra, Himachal Pradesh, Jammu and Kashmir, Madhya Pradesh, Odisha, Punjab, Rajasthan, Sikkim and Uttar Pradesh have deployed Tourist Police in one form or the other.

83. In one of the deliberations during the study visit of the Committee, the representatives of the Ministry of Tourism apprised the Committee that a 24x7 Toll-Free Multi-Lingual Tourist Helpline has been launched in 12 International Languages. Various initiatives such as launch of e- Visa facility in 4 sub-categories i.e., e-Tourist visa, e-Business Visa, e-Medical Visa and e- Medical Attendant Visa were also highlighted.

84. Poor experiences with regard to safety and security of tourists lead to a negative image of tourist site/ country in the mind of tourist, whether domestic or international. The Committee recommends that in the light of the security concerns at tourist destinations, watchful tourist police and other law and order force supported by smart intelligence should be introduced with efficient communication systems at airports, Ports, railway/ bus stations etc. 85. As regards the issue of safety/ security in cruise tourism, the Committee recommends that operating agencies should have a detailed operational procedure and only trained and skill tested personnel should be allowed to handle tourists at risk-prone sea/ river areas. Further, the landings should have facilities of speedboats, trained divers and security people lighting facilities, generators and vessel communication systems.

Development of Cruise Tourism 86. The Ministry has informed the Committee that to harness the potential of cruise tourism in the country, a Task Force had been constituted with the Secretary (Tourism) as the Chairman and Secretary (Shipping) as the co-Chairman. On the recommendations of Task Force, the following measures were taken for the development of cruise tourism:-  Standard Operating Procedures (SOPs) have been formulated to be followed by the various agencies for handling cruise ships.  The facility of e-tourist visa has been extended to passengers arriving at the ports of Mumbai, Mormugao, Mangalore, Kochi and Chennai.

 The Ministry of Home Affairs has waived off biometric requirements for cruise passengers arriving on e-via for a period of three years, i.e., upto 31.12.2020.  To address manpower, co-ordination and logistical issues for handling cruise vessels at ports, ―Port Level Facilitation Committees‖ have been formed under the respective Chairman of the Major Ports to facilitate seamless handling of cruise ships and passengers.  Foreign flag vessels carrying passengers have been allowed to call at Indian Ports without obtaining license from Director General of Shipping. 87. The Committee takes note of the measures taken for the development of cruise tourism but would like to be apprised of the efficacy of the above measures in promoting India as a cruise tourism destination.

88. On being asked as to why the Ministry has not utilized any other waterways, except for National Waterway 1 and National Waterway 2, for developing cruise circuits in the country and what are the difficulties faced by the Ministry in developing cruise tourism projects in Andaman and Nicobar Islands, the Ministry has stated the following:

(a) The mandate of Inland Waterways Authority of India (IWAI) is to develop and regulate National Waterways for cargo shipping & navigation.

(b) The infrastructure developed for transportation on National Waterways by IWAI including fairway, terminals, jetties, navigation aids etc. are used by the river cruise tourism operators. IWAI plays the role of a technical facilitator for river cruise tourism on National Waterways.

(c) River cruise tourism has been a regular feature on National Waterway (NW)-1(Ganga- Bhagirathi-Hooghly river system) and NW-2 (river Brahmaputra) since several years. Various cruise operators viz., M/s Heritage River Cruises Pvt. Ltd., M/s Vivada Inland Waterways and M/s Assam Bengal Navigation Company operate their cruise vessels on NW-1, NW-2 and Sunderbans waterways.

(d) National Waterway (NW) -1 (Ganga - Bhagirathi-Hooghly river system from Allahabad to Haldia), NW – 2 (River Brahmaputra from Dhubri to Sadiya), NW -3

(West Coast Canal from Kottapuram to Kollam along with Udyogmandal and Champakara Canals) have already been developed with fairway navigational aids, jetties and terminals with mechanized equipment handling facilities for loading and unloading of cargo.

(e) In addition to NW-1 & NW-2; NW-3 Kerala is a world renowned tourist destination for domestic and foreign tourists where house boat tourism with food and accommodation facilities are available. The area of operation of these boats include Vembnad lake of Alapuzha, Kuttanad area and Astamudi lake of Kollam area.

89. In the background Note furnished by the Ministry, the Committee was apprised about the number of domestic and international cruise ships with passengers being handled now-a- days in Indian ports alongwith the current and proposed domestic and international routes, with new destinations being developed in Maharashtra, Kerala, Gujarat and Lakshadweep islands. The representatives of the Ministry elaborated upon the First International Cruise Ship Home in India, First Domestic Cruise Liner with Indian Flag and about the arrival of the First Domestic Luxury Cruise Liner in India.

90. In one of the meetings of the Committee, the representatives of the Ministry mentioned about the initiatives taken by the Government of India in cruise shipping such as E-visa with exemption of biometrics, Single e-Landing card and volume discount in Port Tariff. The official of the Ministry of Tourism recognized Cruise Tourism as a ‗Niche‘ tourism product in order to promote India as a 365 days‘ destination and attract tourists with specific interest.

91. It was informed that a task force on cruise tourism has been formed jointly by the Ministry of Tourism and Ministry of Shipping with the representatives of all major stakeholders. The Committee was apprised that the five Major Ports of the country viz., Mumbai Port Trust (MbPT), Mormugao Port Trust (MoPT), New Mangalore Port Trust (NMPT), Cochin Port Trust (CoPT) and Chennai Port Trust (ChPT) have been developed to attract cruise ships with dedicated terminals and other related infrastructure for berthing of cruise vessels and embarking and disembarking of cruise passengers.

92. Cruise tourism in India is still in its nascent stage but India has an immense potential to emerge as a leading destination for cruise tourism in Asia. In recent years, India has witnessed increase in the number of calls made by cruise ships. However, the Covid-19 pandemic and enforcement of the lockdown in its wake has had a catastrophic impact on cruise tourism in the country. Since cruise industry supports multiple shore side businesses, the Committee would like the Ministry to make an assessment of the overall damage caused to cruise tourism due to the Covid-19 pandemic-induced lockdown and take remedial measures to mitigate its massive cascading effect on the overall travel and hospitality industry.

93. The Committee is also of the opinion that establishing a 24-hour tourist service center, providing a complete cruise logistics service, inviting foreign cruise operators to inspect special resources in India, cooperating with Taiwan, Japan and South-East Asian countries for promotion of cruise tourism and setting up a special Government unit for the purpose would boost India‘s cruise industry.

94. The Committee takes note of the fact that the five Major Ports at Mumbai, Goa, Mangalore, Cochin and Chennai have been developed to be cruise destinations with dedicated terminals. The Committee desires to know whether the cruise terminals at the above Ports have produced the desired results. The Committee also desires to be apprised whether the present structure of levy of taxes needs any changes/ modifications to tap the tremendous potential of cruise tourism in India.

Training and Skill development

95. As per the background Note furnished by the Ministry of Tourism, the Scheme of ―Capacity Building for Service Providers‖ (CBSP) of the Ministry aims to provide education, training and certification to the tourism service providers at every level with its main objectives being to train and up-grade manpower at every stratum of service in order to (i) capitalize on the vast tourism potential of the country to the fullest, and (ii) provide professional expertise to the local populace as well as create fresh opportunities for employment generation in the tourism sector both in urban as well as rural areas. These trained service providers could be engaged in providing service directly to the tourist or involved in the important task of teaching, administering or planning.

96. CBSP Scheme is implemented by the Ministry through Institutes of Hotel Management and Food Craft Institutes including such institutes approved by the AICTE, Indian Institute of Tourism & Travel Management, NCHMCT, Tourism Departments of State / UT Governments, State Tourism Development Corporations, India Tourism Development Corporation (ITDC), State/Central Training/academic Institutions and the specialized academic training institutes in the private sector engaged in giving training in the hospitality sector. The following programmes were conducted under the CBSP Scheme:- (a) Hunar Se Rozgar Tak- The total achievement under this Programme is that 11624 persons were trained against the target of 19250. There were 3533 persons under training at the end of F.Y 2018-19. In reply to a question the Ministry has informed 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 3 months of completion of the courses. Though the necessity to provide for compulsory placement within 3 months has helped, the implementing agencies needed time to adjust to this new provision. (b) Skill Testing and Certification -Under this Programme, 5015 persons have been certified upto 30.11.2019. (c) Entrepreneurship Programme- Under this, 1076 persons have been trained and 347 trainees were under training upto 30.11.2019. (d) Tourism Adventure Courses- A total of 55 trainees have been trained and certified during 2019-20. (e) Linguistic Tourist Facilitation-225 persons were trained during 2019-20.

97. Tourism is a multi-sectoral activity characterized by multiple services and therefore, the tourism industry is one of the largest generators of employment across the world and has the potential to emerge as a key economic driver. Servicing the sector with skilled manpower is therefore of utmost importance. The Committee takes note of the fact that the scheme of ―Capacity Building for Service Providers‖ aims to train and upgrade manpower at every stratum of service. The Committee also notes that under the Hunar se Rozgar Tak programme, 11,624 persons have been trained against the target of 19,250 during 2018-19 and observes that the tourism sector‘s annual requirement of skilled manpower is much more than the supply from educational and

skill training institutions which also gets reduced due to attrition. The Committee, therefore, expresses its displeasure at the shortfall in the target of trained persons under the Hunar se Rozgar Tak programme and recommends that the Ministry should formulate a robust strategy to meet the problem of trained manpower gap.

98. The Ministry has informed that based on the interaction with the stakeholders in the Tourism sector, the Ministry took various steps in terms of following new initiatives:- i. Destination Based Training Programmes:-In order to scale-up in a big way, the Ministry of Tourism has initiated the Destination Based Skill Development training programme at various Iconic Sites i.e. Tajmahal at Agra, Humayun Tomb, Red Fort, Qutab Minar at Delhi, Mahabodhi Temple at Bihar, Kolva Beach at Goa and Kanziranga at Assam. To begin with, the pilot of the destination-based training programmes has been rolled out from 13 Institutes. It is proposed to expand the programmes to 150 tourist destinations during the year 2020-21. ii. Entrepreneurship Programme:-The objective of this programme is to facilitate micro and small business start-ups under the scheme of ‗Capacity Building for Service providers‘. To begin with, 150-hour courses are being offered in the five trades of (i) Cook – Tandoor (ii) Barman (iii) Baker (iv) Homestay (Multi-Skilled Caretaker) and (v) Halwai – Indian Sweets under this Programme. iii. Online Incredible India Tourist Facilitator (IITF):- The Ministry of Tourism has also initiated Incredible India Tourist Facilitator (IITF) Certification Programme. The objective of the Programme is to provide online training and accreditation of the Tour Facilitators through a centralized PAN India e-learning module. The institution of tourist facilitators would be a basic component of the infrastructural requirement both for International and Domestic tourism.

99. While dwelling upon the need to increase the quality of training and skill development in the tourism sector, the Ministry, in its written reply informed the Committee of the extension of Central Financial Assistance to expand and upgrade existing Institutes of Hotel Managements (IHMs), Food Craft Institutes (FCIs), Indian Institutes of Tourism and Travel Management (IITTM), National Council of Hotel Management and Catering Technology (NCHMCT), National Institute of Water Sports (NIWS) and also to set up new

42 institutes such as Institute of Hotel Management (IHM) and Food Craft Institute (FCI) so as to meet the requirements of trained manpower in the tourism industry.

100. The Committee is of the view that the realization of the country‘s tourism potential cannot be tapped without addressing the issue of capacity constraints. The Committee, therefore, recommends that the Ministry should conduct a tourism industry training provider assessment and review available data from previous assessment; work with industry to develop a survey instrument that assesses current and projected workforce needs in different tourism domains and occupations (e.g., hotels and lodging, travel and transportation, etc.); focus the assessment on entry-level; and entrepreneurial occupations that can be filled by vulnerable populations such as youth.

101. The Committee also desires that the Ministry of Tourism should identify occupational needs in different sectors of the tourism industry and develop an approach to provide needed skills/ training/ job placement services to youth who want to pursue these occupations and careers in tourism. The aim of the scheme so designed should be to address the labor market needs of the tourism industry; provide a targeted program of technical assistance and training including revising curriculum and producing educational materials; and to improve education and training provider quality.

Impact of Covid-19 pandemic on Travel and Hospitality Sector

102. The Committee in Paras 44 to Para 77 of its 288th Report on Demands for Grants (2021-22) of Ministry of Tourism, presented to the Parliament on the 9th March, 2021 has done a rigorous analysis of the impact of Covid-19 pandemic on Tourism, Travel and Hospitality sector and covered the gamut of issues arising therefrom and made substantive recommendations thereon. The Committee, therefore does not consider it necessary to repeat the details contained in its 288th Report in this Report. The Ministry may refer to Para 44-77 of the 288th Report and take appropriate remedial measures. (Para 44 to 77 are given in Annexure-C for ready reference)

103. However, the issue of lending to Travel, Tourism and Hospitality sector was not comprehensively covered in the 288th Report on Demands for Grants (2021-22). The Committee therefore called for a Background Note from the Ministry on the issue. The Ministry in its Background Note furnished in the month of January, 2021 inter alia made following submissions.

104. Tourism and Hospitality Sector is one of the worst hit sectors during COVID-19 pandemic since March, 2020 on account of nationwide lockdown imposed, which had disruptive impact on the entire travel and tourism ecosystem directly impacting the hospitality industry. While all the States have permitted resumption of major activities in the sector viz. hotels, restaurants, resorts, etc, due to continued fear of COVID-19 pandemic, there has been low level of bookings in hotels and resorts.

I. Credit Advances to Services-Tourism, Hotel and Restaurants Outstanding (O/S) advances to Tourism, Hotel and Restaurants year-wise for Scheduled Commercial Banks (SCBs) are summarized below:

(Amount in Rs crores)

31-03-2018 31-03-2019 31-03-2020 31-09-2020 Particular Total Advances Total Advances Total Advances Total Advances s (o/s-Funded) (o/s-Funded) (o/s-Funded) (o/s-Funded) SCBs 52,095 56,194 60,039 62,313 Source: RBI

II. Various Challenges being faced by Banks in lending to Tourism, Hotel and Restaurants are - (a) High fixed operating cost structure with expenses like power and staff cost. Staff cost are the largest cost components in Indian hotels and account for around 35% of total cost. Fixed cost varies depending upon geography, type (rented/ owned) & star category and are an average of 50% of total cost.

(b) Grounding of international flight has significantly impacted the inbound travel by foreigners (leisure and corporate). Even as borders open up, recession across economics and universal vaccination is also expected to have a bearing on demand from this segment.

(c) Social distancing norms and restrictions over allowable capacity has lead to deferral of Meetings, Incentives, Conventions and Exhibitions (MICE) activities, barring small events.

(d) With corporates moving into work from home mode and digital interface replacing face-to-face interactions, corporate demand is muted as companies continue to extend travel advisories for work-related travel. (e) Increasing incidences of Covid cases and travel curbs has also led to domestic leisure coming to standstill in the first half (but leisure demand has since picked up on account of revenge travel).This sector particularly Hotels, which operate on a Asset Heavy Model (requiring huge capital expenditure) are facing liquidity issues due to unstable cash flows and blockage of working capital, thereby impacting the lending decisions of Banks/FIs.

105. As informed by the Banks and Stakeholders/Associations, a stimulus package may be considered by the Ministry of Tourism for hospitality sector to cater the following issues:- 1) Establishment cost such as electricity bill, water bill, rent , property tax which still stand are payable.

2) Lease rentals/ License fee payable by hotels to various Government authorities 3) GST rules on hospitality

4) TCS under GST payable pay Online Travel Aggregators (OTA)

5) Bailout packages to fund and support the salaries

6) Subsidies of heat- light- power costs.

106. It was further informed that the Department of Financials Services (DFS) /Reserve Bank of India (RBI) and Ministry of Corporate Affairs has taken following measures under the Atma Nirbhar Bharat package to mitigate the impact of COVID -19 on this sector:- (a) RBI has permitted a term - loan moratorium and working capital interest deferment w.e.f. 1.3.2020 to 31.8.2020 along with an asset classification standstill for this period and other measures to enhance liquidity.

(b) In addition to above, RBI on 06.08.2020 has also provided a window under the "Prudential Framework on Resolution of Stressed Assets dated 7th June, 2019" to enable leaders to implement a resolution plan in respect of eligible corporate exposures exceeding Rs. 25 crore, including those in the Tourism, Hotels and Restaurants, which were not more than 30 days past due as on 01.03.2020 and where the stress is on account of COVID-19 pandemic, to be invoked not later than 31st December, 2020 and implemented within 180 days thereafter.

(c) As part of the Aatma Nirbhar Bharat Abhiyaan, Emergency Credit Line Guarantee Scheme (ECLGS 1.0) was launched on 23.05.2020. Under the scheme fully guaranteed and collateral- free Guaranteed Emergency Credit Line (GECL) from Member Landing Institutions is provided to eligible MSME units, business enterprises, individual loans for business purpose and interested MUDRA borrowers. The amount of GECL funding under the scheme to the eligible borrowers are up to 20 percent of their outstanding credit up to Rs. 50 crore as on 29.2.2020, subject to the account being less than 60 days past due as on that date . The loans provided under ECLGS 1.0 have a 4 year tenor, with a 12 month moratorium on repayment of principal. There is a cap on interest rate and 100% credit guarantee by NCGTC. Tourism, Hotels and Restaurants meeting the eligibility criteria would also be eligible under scheme.

(d) ECLGS has been extended through ECLGS 2.0 to the 26 sectors identified by the Kamath Committee on Resolution Framework vide its Report dated 04.09.2020 and the Health Care sector. Tourism, Hotels and Restaurants is also one of the 26 sector identified by the Kamath Committee and covered under ECLGS 2.0. Under the Scheme, entities with total outstanding credit above Rs 50 crore and upto Rs 500 Crore as on 29.02.2020, which were less than or equal to 30 days past due as on 29.02.2020 are eligible under ECLGS 2.0 for additional funding up to 20% (which could be fund based or non fund based or both) of their entire outstanding credit (fund based only) as a collateral free GECL, which would be fully guaranteed by NCGTC. The loans provided under will have a five-year tenor with the 12- month Moratorium on repayment of principal.

(e) Under ECLGS Scheme, as informed by NCGTC, for Tourism, Hotels and Restaurant sector, 98737 guarantees towards a loan amount of Rs 5034 crore have been executed as on 10.01.2021.

(f) Rs 15000 crore Special Refinancing Facility for Small Industries Development Bank of India (SIDBI)for on-lending/ refinancing purposes. SIDBI has also announced schemes for special liquidity through which it will provide support to NBFCs Micro Finance Institutions and banks through term loan of up to one year for on lending to MSMEs across all sectors.

(g) RBI had permitted a one-time restructuring of GST- registered MSME accounts that have become stressed, on 1.1.2019, which have an aggregate exposure of up to Rs. 25 crore. These loan accounts can be classified as 'standard ' without a downgrade in the asset classification, subject to certain conditions, with the implementation of the restructuring to be 46 completed before 31.03.2020. On 11.02.2020, RBI extended the scheme till 31.12.2020 for entities that were in default but 'standard ' as on 01.01.2020. Further on 06.08.2020, RBI extended the scheme till 31.03.2021 to support viable MSME entities on account of the fallout of Covid -19 that were 'standard ' as on 01.03.2020.

(h) On 24.03.2020, vide Gazette notification issued by Ministry of Corporate Affairs, threshold of default under Section 4 of the IBC has been increased from Rs 1 Lakh to Rs 1 crore with the intention to prevent triggering of insolvency proceedings against small borrowers. Further, no insolvency proceedings can be initiated against any borrower for defaults arising on or after 25.03.2020 under IBC till 25.03.2021.

107. During their depositions, the representatives of the Public Sector Banks have made following submissions while apprising the Committee of the difficulties faced by them in lending to Travel, Tourism and Hospitality sector, in the aftermath of Covid-19 pandemic.

108. The Committee observes that the tourism and hospitality industry is reeling under the impact of Covid-19 pandemic. With business coming almost to a standstill, the unprecedented crisis has shaken the very foundation of this vibrant sector. Hospitality and tourism sector is a very important component of our economy as it has the potential to stimulate other economic sectors through its backward and forward linkages and contributes significantly to the national economy as well as the creation of jobs in the country. It also earns huge foreign exchange for the country. The Committee is, therefore, of the considered view that this sector which right now is in huge distress needs strong liquidity and policy support from the Government/ Financial Institutions/ Banks to bounce back. The Committee notes from the information made available to it that as part of Atma Nirbhar Bharat Package, RBI had permitted a term-loan moratorium and working capital interest deferment w.e.f. 01.03.2020 to 31.08.2020 alongwith an asset classification standstill for that period and other measures to enhance liquidity. In view of the fact that the situation continues to be dire and due to stagnation of cash flows in the wake of Covid-19 pandemic, the tourism and hospitality sector stakeholders are unable to repay existing dues as per their existing repayment tenor, the Committee recommends that the moratorium on all working capital, principal, interest payments, loans and overdrafts may be further extended, bringing in liquidity and allowing for business continuity without categorising the companies as NPAs. The Committee is of the firm view that such a moratorium will go a long way in salvaging the entire tourism and hospitality industry. 47

109. The Committee also invited representatives of some Public Sector Banks to throw light on the subject ‗Lending to Travel, Tourism and hospitality sector‘ in the aftermath of Covid-19 pandemic. During their depositions, the representatives of Public Sector Banks have made the following submissions.

110. The MD & CEO, Punjab National Bank while deposing before the Committee on the subject ‗Lending aspects of Road and Hospitality sector‘, stated that: “With respect to hospitality or hotel industry, they have been doing well. Pre- pandemic, there was no issue. On the contrary, it was one of the sunrise industries where bankers were also funding to them. However, the pandemic has impacted it very badly because it is impacting the human behaviour in terms of how they can go while it has impacted the airline industry also. So, what we are seeing is that in the current phase, many of the projects have got impacted even though they were running well prior to pandemic. Now, in terms of the window opened by Reserve Bank of India with respect to the restructuring profile, the work is in progress. Many of the requests have been invoked by all the banks in undertaking the restructuring so that we can give them a window”.

111. The MD & CEO, Punjab National Bank, while replying to a query regarding major issues being faced by the Bank while lending to Hospitality Sector, informed that as per RBI guidelines on Harmonized Master List of Infrastructure Sub-sectors, Hotels with three-star or higher category located outside cities with population of more than 1 million is classified as Tourism Infrastructure. Thus, the scope of coverage of Hotels under Infrastructure sector is very limited. Considering this, the benefit of larger extension in DCCO as available to infrastructure sector is not available to Hotels. As such, scope for coverage of Hotels under Infrastructure need to be reviewed. Further, Hotel Industry is capital intensive in nature, as such the payback period for the industry is also very high. This has resulted in longer gestation period & longer repayment periods in case of financing to Hotel projects. It was further informed that Post the revision of GST rates, hotels with room rates above Rs.7500/- are taxed at 18% and those with room rates Rs.2501 – Rs.7500/- are taxed at 12%. Further there is no tax on rooms priced at rates below Rs.1000/-. The tax rates for many cities as compared their pre-GST levels have come down and is a positive sign for the industry going forward.

112. The General Manager, Canara Bank apprised the Committee that on account of stagnation of cash-flows due to Covid-19 pandemic, the tourism sector stakeholders are unable to repay existing dues as per existing repayment tenor. As per CRISIL Research Report for March 2020, Tourism Sector is rated ―Unfavourable‖. The performance of the industry has gone downhill on account of the Covid-19 outbreak and subsequent lockdown and suspension of all modes of travel, thereby affecting repayment capacity of the existing borrowers pertaining to the sector. Further, Government has also introduced and implemented Guaranteed Emergency Credit Line loans to support such units adversely affected by the pandemic, the beneficiaries of which also include those pertaining to Hotels and Tourism Sectors. Bank has extended support to eligible units under the scheme. Bank has sanctioned around 7905 accounts under Tourism, Hotel and Restaurants sector, amounting to around Rs. 518 Crores till 19.02.2021 in FY 2020-21.

113. The MD & CEO, Central Bank, apprised the Committee of the following major issues being faced by the Bank while lending to Hospitality Sector :

1. Generation of lower revenue than expected. 2. Longer gestation period to obtain approvals and implementing the project. 3. Availability of skilled human resources 4. Cost of Land – high compared to other countries.

114. The MD & CEO, Central Bank further informed that as on 31.12.2020, there are 18 accounts with FB outstanding of Rs 221.92 crore in NPA category in Hospitality Sector. The total FB outstanding is Rs 607.78 crore (69 accounts). Thus the NPA constitute 36.51 % of the FB outstanding and 26.09% in number of the total accounts in the sector. The COVID 19 pandemic has affected this sector in a big way and most of the projects are facing high liquidity issues. Out of 51 standard accounts with FB outstanding of Rs 385.86 crores, 19 accounts with FB outstanding of Rs 181.40 crore (47%) are in SMA category. Bank has already provided additional support / restructuring under RBI framework (wherever eligible and requested). The sector is on a recovery path. Being a huge capital intensive sector, it will take time for revival. Bank has already classified this sector as ‗stressed sector‘ and providing accelerated provision of 1% in standard accounts. In order to help the hospitality sector sustain the tough times in view of COVID-19 pandemic, he emphasized upon certain schemes such as: 1. CGECL

2. COVID-19 Sahayata Scheme 3. One Time Restructuring (OTR) to support the stressed sectors. 4. Additional funding for delay on case to case basis. 5. Six months moratorium to repayment of installment and servicing of interest is being allowed.

115. The representatives of Indian Bank apprised the Committee of the following major issues being faced by the Bank in the Hospitality Sector such as:

 High Land prices especially across major business destinations like Mumbai, NCR, Bengaluru, Pune etc has impacted development costs for hotel projects.  Increase in cost of construction due to which payback period has increased.  Increase in operating costs like employee costs, power and fuel costs and other operating costs.  Decreasing ARPU affecting the repayment capacity  High end projects require long gestation resulting in mismatch in ALM.  Requirement of constant maintenance and upgradtion of the standards increases the project cost.  Competition among players.  COVID scenario affecting demand  Irregular income level from a project resulting in default.  Withdrawal of tie up arrangements by the hotel chains resulting in reduced customer inflow and income.

116. While replying to a query regarding not offering to the hospitality sector, the CC limit opportunity for growth for 2022 when the planning should be done in 2021, the representatives of Indian Bank informed that banks have not put any freeze on lending to hospitality sector. Bank has been supporting the industry keeping in view the adverse impact of the pandemic on this sector by extending facilities under GECLS 1.0 and 2.0 and also extending restructuring of loan facilities. Bank is also extending loan for renovation / refurbishing of the properties wherever necessary and also offering CC limits in deserving cases and not to make money as stated in the questionnaire. The Banks has to make profit to give good return to the investors and also to the depositors.

117. While replying to a query regarding the steps taken to address the problems being faced by the tourism industry because of the pandemic situation in this country, the Chief General Manger, IDBI, apprised the Committee that banks might consider lending to hotels with large scale operations (4 to 5 star hotels) which generally have substantial high value fixed assets. Banks can consider fresh lending to companies having a satisfactory track record and good fixed asset coverage ratio. Loans can be extended initially for a period of 5 years with 2 years of moratorium with takeout finance options to help the liquidity constraints. Such lending by banks can be guaranteed by GOI so that the risk on banks is mitigated.

118. The Chairman, SBI, apprised the Committee of the following challenges

a) Elongation in payback period as initial occupancy would be on a lower side.

b) Hotel Industry has higher Fixed Operating Cost Structure. Thus, they have normally higher break-even levels.

c) Covid-19 have impacted the sector, resulting in further challenges to the sector like reduction in profitability, loss of Revenues, lower Occupancy rates etc. Due to Lower Occupancies, along with higher fixed cost structure, breakeven levels are difficult to achieve.

d) It is expected that Pre-Covid levels for Hospitality Industry may not come before FY2023. In such scenario, high stress may come from the Industry.

119. The Chairman, SBI, further informed that a new Ad-hoc facility by way of ‗Emergency Credit Line‘ was extended to all eligible borrowers whereby, additional loan facility to the tune of up to 10% of the existing fund based working capital limits with a cap of Rs.200.00 crore was extended to enable borrowers to manage their reduced cash flows during the pandemic period. The loan was repayable in 24 months with a moratorium of 6 months. Additionally, as part of the Resolution Framework for COVID-19 related stress, borrowers in the hospitality industry have been extended relief as per Kamath Committee recommendations by way of moratorium of up to 2 years in repayment of installments of principal and consequential extension of tenor of loan by up to 2 years. Interest moratorium of up to 6 months is also permitted in accounts.

120. The Committee is aware that in view of the uncertainties created by the resurgence of Covid-19 Pandemic, the RBI on 5th May, 2021 has announced Resolution Framework 2.0 for Covid-related stressed assets of individual borrowers and small businesses. Restructuring under the Resolution Framework 2.0 can be invoked upto 30th September, 2021. Borrowers having aggregate exposure of upto Rs. 25.00 crores and who have not availed restructuring under any other scheme and who are classified as ―standard‖ as on 31st March, 2021 are eligible for the window of resolution under Resolution Framework 2.0. Tourism entities, hotels and restaurants meeting the criteria are also eligible under the Scheme. In respect of individual borrowers and small businesses who have availed restructuring of their loans and where the resolution plan permitted a moratorium of less than two years, financial institutions have been permitted to use Resolution Framework 2.0 to modify such plan to the extent of increasing the period of the moratorium or extending the residual tenure upto a total of two years. Considering the fact that the Covid-19 induced crisis has led to a shut-down of the Travel and Tourism industry, it may take 2-3 years for the tourism and hospitality industry to see a return to some semblance of normalcy in its operations. The Committee therefore recommends that the period for restructuring for this Sector be extended up to March, 2023.

121. The Committee simultaneously recommends that the Government/ financial institutions should put in place a robust mechanism to prevent abuse of the restructuring route for ever greening of faulty loans prior to impact of Covid-19 pandemic.

122. The Committee notes that under Emergency Credit Line Guarantee Scheme (ECLGS) 2.0 entities, subject to certain conditions, are eligible for additional funding as a collateral free Guaranteed Emergency Credit Line (GECL). The loans provided under ECLGS 2.0 have a 5- year tenor with a 12 month moratorium on repayment of principal. Given the fact that the Covid-19 pandemic has had a debilitating impact on hospitality sector, the Committee recommends that the repayment period for the hospitality industry under ECLGS 2.0 be extended up to 10 years.

Miscellaneous

123. The Committee reiterates the recommendations made in Para 177 to Para 179 of its 288th Report on Demands for Grants (2021-22) of Ministry of Tourism, presented to the Parliament on the 9th March, 2021.

―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.‖ ―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.‖ ―The Central Road and Infrastructure Fund (CRIF) 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.‖

124. In order to make our country a 365 days tourist destination, connectivity by all the modes of transportation is extremely important. The Committee finds absence of proper mode of transportation to reach even the most visited tourist destinations like Agra, Tirupati, etc. If our country has to be made a major Tourism Hub, the destinations should be well connected. The Committee, therefore, desires that a Master Plan should be prepared and shared among the Ministries for achieving better connectivity.

125. Religious Tourism in India is one of the key dimensions to boost tourism and to attract both domestic and international tourists. India is already blessed with a large number of religious tourism places for every sect of religion. Places such as Madurai, Tirupati, Shirdi and Sabarimala are few amongst them. The Committee, therefore, recommends to the Ministry that these tourist places should have proper and frequent air connectivity. Further, for sites without airport, the Ministry of Tourism should coordinate with the Ministry of Civil Aviation on priority basis for development of airports, as these tourist places are mostly visited by elderly tourists.

126. The Committee is of the view that India has a huge potential of religious tourism which would enhance India‘s soft power projection in Southeast Asia, which is already emerging as a new tourism hub for international tourists across the world. The Committee would like the Ministry to embrace the opportunities presented by the North-South Economic Corridor in order to encourage travelers from the north of Myanmar and to Southern China alongwith South- East Asian countries, which in turn, may lead to more interest in India‘s religious tourism spots and would definitely boost foreign exchange earnings of India.

***

RECOMMENDATIONS/OBSERVATIONS — AT A GLANCE

Development of Tourism Infrastructure

The Committee is constrained to note that despite the SDS being launched way back in January, 2015, only one of the 15 thematic circuits under the Scheme has been completed and the physical progress in respect of the remaining 14 circuits ranges from 16 percent to 90 percent which is far from being satisfactory. The Committee recommends the Ministry that all the destination points covered under the thematic Ramayana circuit, Buddhist circuit and Himalayan circuit have high tourist value and mythological significance, will go a long way in promoting cultural and heritage value of the country besides earning valuable foreign exchange income. Even in important thematic circuits that have potential of attracting both international and domestic tourists, the physical progress and development of amenities in these circuits from 2015 is less than 70%. Therefore, we can not give impetus to tourism without providing an integrated approach where apart from good stay arrangements, multimodal connectivity and wayside amenities should also be developed. Hence the potential of many tourist sites under these identified circuits is still untapped. Since the creation of good tourism infrastructure is a pre-requisite towards attracting more tourist, both domestic and international, to the tourist destinations and also has had its multiplier effect in terms of employment generation and increased National and State revenues apart from improving the country‘s tourism productive capacity, the Committee recommends that the Government must take stringent measures for expediting the completion of remaining 14 thematic circuits in a time bound manner. (Para: 7)

According to a Report by NITI Aayog on ‗Sustainable Tourism in the Indian Himalayan Region‘, the Indian Himalayan Region (IHR) tourism has experienced a continued growth and increasing diversification over the last few decades and is expected to grow at an average annual rate of 7.9% from 2013 to 2023. Keeping in view the tourist potential of this area, the Committee recommends that tourist sites under the Himalayan circuit of Swadesh Darshan Scheme should be developed on priority basis with modern infrastructure and air connectivity to boost both domestic and

55 international tourism. (Para: 7.1)

Buddhism is not limited to India only but is also followed in countries such as Cambodia, Thailand, Myanmar, Bhutan, Sri Lanka, Singapore, Vietnam and Japan. The Committee is also aware of the potential of Buddhism tourist sites in India especially in the North-Eastern region. The Ministry had already identified Buddhism and North-East circuit among the 15 thematic circuits of Swadesh Darshan Scheme. The Committee would, therefore, recommend that sites under these two circuits should be developed on priority in an integrated manner to attract tourists from the abovementioned countries which would not only boost foreign exchange earnings but will also generate employment opportunities in the country. (Para: 7.2)

The Committee observes that rural tourism is one of the few emerging dimensions of the Tourism industry, but is very less emphasized upon. Till date, only two projects have been approved under the rural circuit of SDS and funds were released only for the one. India being rich in tradition of arts, crafts and culture, rural tourism, if exploited intelligently in a sustainable manner has the potential to provide sustainable livelihood to rural communities. Rural areas especially in the States of Himachal Pradesh, Uttarakhand, Odisha, Kerala, North-east region etc. are still unexplored and needs to be focused upon. The Ministry should develop schemes/ programmes that showcase the rural life, art, culture and heritage at rural locations, thus benefiting the local community economically and socially by enabling interactions between the tourists and the locals for a more enriching tourism experience. The Committee simultaneously recommends that the Government should adopt a proactive interventionist approach to ensure that the pro-poor tourism approach leads to redistribution of resources and opportunities to the poor and marginalized and addresses the larger picture of poverty reduction because a well coordinated programme for tourism infrastructure development can give significant returns and can create sustainable livelihood in the rural areas. The Committee, therefore, recommends that more rural areas should be included in tourism circuits in the country so that connectivity to these areas is boosted with infrastructure development for ease of travel and the goal of pro-poor tourism i.e., to bring out benefit to the poor and marginalized through tourism activities is realized. (Para: 8)

The Ministry had identified 19 Iconic tourist sites such as Taj Mahal and Fatehpur Sikri (Uttar Pradesh); Ajanta & Ellora (Maharashtra); Humayun‘s Tomb, Red Fort and Qutub Minar (Delhi); Colva (Goa); Amer Fort (Rajasthan); Somnath and Dholavira (Gujarat); Khajuraho (Madhya Pradesh); Hampi and Mysore (Karnataka); Mahabalipuram (Tamil Nadu); Kaziranga (Assam); Kumarakom (Kerala); Konark (Odisha); and Mahabodhi Temple (Bihar). The Committee would recommend that development of these sites should be taken up in a prioritized manner and each target should be fixed and a clear project implementation timeline should be created for completion of the projects as all these sites have the potential to attract both international and domestic tourists. (Para: 10)

The Committee notes that pursuant to the Budget announcement of 2020-21, the Ministry of Tourism has identified 19 Iconic sites for development as world class tourist destinations. Since the project involves various central Ministries, State Governments/ Union Territories and other stakeholders, the Committee recommends that a robust coordination mechanism of the concerned Central Ministries, State Governments/ Union Territories and other stakeholders be put in place for prompt resolution of issues/ bottlenecks. (Para: 10.1)

The Committee notes that the Ministry had identified 19 Iconic tourist sites for tourism infrastructure development in the country. Since most of these tourist sites are hugely popular among international tourists, these sites should have proper air connectivity. The Committee would, therefore, recommend to the Ministry that the Iconic tourist sites that have domestic airports only, their status should be converted to that of an international airport on priority basis for ease of traveling of international travelers. Further, the Iconic tourist sites which do not have direct air connectivity, a proposal for development of Greenfield Airports should be initiated at such tourist sites in order to boost both domestic and international tourism. (Para: 10.2)

The Committee also notes that availability of land free from all encumbrances is the responsibility of the respective State Governments/ Union Territories. The Committee would like to be apprised of the progress made in this regard. (Para: 11)

The Committee notes that the objectives of the SDS and PRASHAD Schemes inter-alia include pro-poor tourism concept, active involvement of local communities and generation of sufficient job opportunities for locals as part of the execution and

after completion of the projects. The Committee observes that it has often been seen that the local people do not benefit from new tourism business due to multiple factors like capacity constraints, inadequate financial resources for enterprises, lack of business opportunities, etc. and also because the poor and marginalized communities do not have the avenues to negotiate with tourism companies. The Committee, therefore, recommends that the Government must adopt a proactive interventionist approach to effectively implement the SDS and PRASHAD Schemes in line with pro-poor principles. The Committee also recommends that the Ministry in close coordination with State Governments/ Union Territories should create robust and clear policies that cater for the needs of locals, expand business and employment policies for the poor through capacity building and enterprise support and contribute to local livelihoods. The Ministry must also focus on skill development to enable local community to take up skilled jobs during the execution and after the completion of projects under the SDS and PRASHAD Schemes. (Para: 19)

(d) PRASHAD Scheme

The Committee feels that the progress of implementation of sites under PRASHAD Scheme needs to be monitored regularly through a dedicated mechanism to ensure that there is no time overrun and cost escalation. The Committee notes that the lockdown due to Covid-19 pandemic hampered the construction activities under the SDS and PRASHAD schemes. The Committee observes that development of tourism infrastructure under the above flagship schemes of the Ministry will not only act as a catalyst to economic development of the country but also promote more inclusive growth. The Committee, therefore, recommends that the Ministry should re-orient its strategy to mitigate the impact of the pandemic on implementation of projects under the above schemes so that the targets set out are achieved in a specified time-frame. The Committee desires to be kept apprised of the policy measures initiated to accelerate the pace of implementation of projects and effectiveness thereof. (Para: 23)

The Committee takes note of the submission of the Ministry that the Public- Private Partnership (PPP) model has been explored for certain components of projects under the Swadesh Darshan Scheme and PRASHASD Schemes also have a provision to explore for PPP partner for operation, maintenance and sustenance of the facilities created. The Committee observes that creation of quality infrastructure for developing tourist products and for providing better services to both domestic and international 58

tourists is a pre-requisite not only to generate employment and achieve broad based and inclusive growth of the economy on a sustained basis, but also to have a favourable impact on the preservation of art, culture and heritage. However, projects like the SDS and PRASHAD have high social but an unacceptable commercial rate of return and are generally characterised by long gestation periods, substantial investments, fixed returns due to which they require financial support from the Government through appropriate financial investments and incentives. Since the development of tourism infrastructure requires very large investments and cannot be undertaken out of public financing alone, the engagement of the private sector in provisioning of tourism infrastructure under the SDS and PRASHAD is warranted. The Committee is of the firm view that the involvement of the private sector will not only bring in the efficiencies of the private sector and commercial enterprise but will also go a long way in supplementing the scarce public sector resources vis-à-vis the requirements of bridging the infrastructure deficit. The Committee, therefore, recommends that in order to meet the funding gap, make SDS and PRASHAD commercially viable and facilitate private sector efficiencies in the development of tourism infrastructure under the SDS and PRASHAD, the Ministry should formulate a transparent policy framework for participation of private operators in developing products such as hotels, resorts, convention centres, tourist trains, etc., with the Government acting as a facilitator and catalyst and also set up a Viability Gap Funding window for tourism infrastructure development under the SDS and PRASHAD. (Para: 24)

Assistance to Central Agencies

The scrutiny of the above table reveals significant shortfall in release of funds as compared to the sanctioned funds in respect of several schemes of tourism infrastructure development. For example, the shortfall witnessed in the amount released vis-à-vis the amount sanctioned in 2017-18 in respect of Sound and Light Show Project at Yadavindra Gradens, Pinjore, Haryana; Light and Sound Show Project at Puttaparthy, Andhra Pradesh; and Light and Sound Show Project at Red Fort and Purana Quila, Delhi is to be the tune of Rs 300.00 lakhs, Rs. 354.34 lakhs and Rs 685.00 lakhs respectively. No reasons have been adduced by the Ministry for the shortfall. Since the above projects have been conceived with the aim of developing and improving tourism infrastructure, the Committee expects the Ministry to urgently address the pending 59 issues pertaining to the above projects to avoid delays and cost escalation in their implementation. The Committee expects to be apprised of the action taken to address the recurrent problem of delays and cost overrun in implementation of projects. (Para: 26)

The Committee notes that for all the projects that have been sanctioned since the year 2017, only 50 percent of the sanctioned amount was released so far. The Committee, therefore, recommends the Ministry to adopt strategies for speedy completion of the stalled projects. The Committee is of the view that this will also help in effective utilization of funds and skilled manpower to the maximum possible extent. (Para: 28)

The Committee recommends that an audit of the expenditure incurred under the Scheme of ‗Assistance to Central Agencies for Tourism Infrastructure Development‘ should also be conducted, the details of which should be uploaded on a web based platform for effective monitoring of the progress of the implementation. (Para: 29)

The Committee observes that the tourism sector not only provides employment to wide spectrum of job seekers from the unskilled to the specialized but also makes significant contribution to the national economy by stimulating other economic factors through its backward and forward linkages. Since tourism is multi-sectoral activity and the related sector includes airlines, surface transport, hotels, basic infrastructure, etc, the growth of the sector cannot be attained unless issues related to all these sectors are addressed simultaneously. The Committee notes from the information furnished by the Ministry that with a view to make India a 5 trillion dollar economy by 2024-25, the SGoS Tourism Sector Plan aims at implementation of 21 tourism development projects over the next five years. The Committee is of the considered view that if the goal of becoming a 5 trillion dollar economy is to be achieved, the Government needs to fastrack the development of these 21 tourism infrastructure projects in collaboration with all the Ministries/ entities concerned. The Committee, therefore, recommends that convergence and synergy be created across programmes of Ministries/ Departments so that the implementation of these 21 tourism development projects could be expedited and an integrated development of enabling infrastructure through partnerships with all the stakeholders could be accomplished. The Committee desires to be kept apprised of the strategies adopted in this regard. (Para: 31)

Connectivity Related Issues 60

The Committee is of the view that air connectivity is key to unlocking India‘s tourism potential and proper steps must be taken to operationalize the remaining routes under RCS- UDAN-3 to meet the emerging demand of tourism industry in the region of North-East, Jammu and Kashmir, Uttarakhand, Himachal Pradesh etc. (Para: 33)

The Committee recommends that the Ministry should also ensure that these projects are completed within the designated timeline and the approved cost so that proper air connectivity is established between the less connected regions with high tourism potential at affordable prices which would provide a boost to tourism industry leading to higher employment and greater revenues. (Para: 34)

The Committee observes that despite the fact that easy access to the wayside facilities is a pre-requisite for the development of tourism, there is an appalling lack of wayside amenities for long distance travelers. It is in this context that the development of wayside amenities at Varanasi-Gaya; Lucknow-Ayodhya-Lucknow; Gorakhpur- Kushinagar; and Kushinagar-Gaya-Kushinagar assume added significance. The Committee recommends that the Government must ensure that the implementation of above projects also enables local artisans and local craftsmen to sell their products to commuters during their journey and generates employment opportunities for local youths and farmers. The Committee also recommends that the wayside amenities should be integrally planned and developed alongwith the highways and expressways. (Para: 39)

The Committee observes that despite India being endowed with nature‘s bounty and being a land of great tourism potential, its share in International Tourist Arrivals is a meager 1.23% (Source- India Tourism Statistics at a Glance 2020). Poor connectivity, especially air connectivity remains one of the biggest hurdles and is impacting the growth of the Indian tourism sector in general and that of International Tourist Arrivals in particular. The issue related to connectivity was deliberated with the Ministry of Civil Aviation on 01-09-2020 wherein details pertaining to development of 100 airports and 78 routes approved under the fourth round of Regional Connectivity Scheme were inter-alia shared. Since the all round department of the tourism sector has the potential to act as the key driver of inclusive growth and unless air connectivity improves, the number of high-end tourists is not going to increase, the Committee recommends that at least 19 Iconic spots should be taken on priority and suitable

61 mechanism be developed to get the above projects implemented within a designated time-frame. (Para: 40)

The Committee takes note of the fact that during the Secretary (Tourism)‘s interaction with the representative of the Ministry of Railways, development and upliftment of traveler‘s amenities found mention and the representatives of Ministry of Railways has assured to ascertain the factual position in this regard and report back. The Committee desires to be kept apprised of the factual position in this regard. (Para: 41)

The Committee observes that the availability of hotel rooms in India is limited because of acute shortage of land in cities due to land market distortions and there is a need to significantly augment hotel room capacity. In order to meet the requirement of accommodation, the Committee recommends that the surplus railway land at railway stations may be utilized for constructing budget hotels. (Para: 42)

The Committee observes that Vande Bharat trains have been introduced for some important tourist destinations. The Committee is of the opinion that some more Vande Bharat trains should be introduced on routes such as Jaisalmer-Jodhpur, Jaipur- Agra, Mumbai- Nagpur, Howrah-Patna-Varanasi, Chennai- Trichy-Madurai- Kanyakumari- Thiruvananthapuram and Varanasi-Chitrakoot-Satna-Jabalpur. These are the key places where maximum tourist travels and these trains can really mobilize more trains. (Para: 43)

The Committee is of the view that in the States of North-East, Uttarakhand and Himachal Pradesh, most tourist destinations are reachable by road and entail long travel time between the destinations. There is also a lack of roadside amenities including affordable stay-homes, toilets, and cafeterias in the routes. Also, there is lack of proper intra-State rail connectivity. The Committee would, therefore, desire that the Ministry of Tourism should focus on tackling the above issues and apprise the Committee of the hurdles being faced in the implementation of the road and rail connectivity projects alongwith the steps taken to deal with these issues. (Para: 44)

Cruise tourism in India is still a nascent industry, though we have a huge opportunity to capture the market because geographically, India is strategically located between Western Europe and Asia and every ship to Europe has to pass through it. The Committee, therefore, 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. (Para: 48)

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: 49)

Digital Connectivity and Outreach

Advances in technology are spurring innovations and redefining notions of travel altogether. However, about 70% of the tourism units in India come under the category of MSMEs who often lack the necessary technical measures in their workforce to fully reap the budget of digital potentials. The Committee, therefore, recommends that the Government should chalk out a programme for providing technical assistance to MSMEs so that they could digitize their operations. (Para: 53)

With increasing variations in demand of tourism, the Committee feels that creative ways of digitally showcasing the different facets of our Heritage needs to be explored and this would require a paradigm shift in understanding customer‘s travel interests and focus on developing alternative attractions. (Para: 54)

The Committee desires the Ministry of Tourism to target foreign tourists, Indians living abroad, foreign universities etc. digitally to market the country‘s brand image as one of the popular tourist destinations globally and develop special travel packages covering three to four prominent destinations of every region in the country. (Para: 55) Domestic Promotion and Publicity

The growth in Indian travel and tourism sector has largely been driven by domestic tourism. As per the information furnished in the Annual Report 2019-20 of the

Ministry, there were 1854.93 Million domestic tourist visits during the year 2018. However, in the aftermath of Covid-19 pandemic and the enforcement of lockdown, tourists are hesitant about travelling due to the fear of Covid-19 and the tourism sector has been among the worst-hit areas. Since revival of international tourism would take some time, domestic tourism would play an important role in reviving the economy. The Committee, therefore, recommends that the Government must focus on promoting domestic tourism and adopt aggressive online and other marketing strategies to advertise domestic destinations in a big way so that tourist footfall could be increased. (Para: 58)

The Committee is of the view that many advertisement agencies often intend to increase their revenue by promoting their services, but fail to connect to their target audience. The Committee, therefore, recommends that advertisements should be designed in such a way that they connect to their target audience by even reaching to the remotest part of the country and by showcasing its rich heritage and culture. (Para: 59)

The Committee notes that the Scheme of Domestic Promotion and Publicity including Market Development Assistance was launched with the major objective of creating a general awareness amongst the domestic population about the tourist destinations and to develop tourist market within the country. The Committee desires that the Ministry should pay attention to how people search for traveling options, how they reach out to travelers at the right time and in what way they embrace Facebook / Twitter / Instagram advertisements. (Para: 60)

The Committee takes note of the submission that new campaigns are proposed to be undertaken to improve connectivity and digital outreach in the regions of Jammu and Kashmir, North-East, Ladakh etc. While appreciating the proposed campaigns, the Committee observes that the North-East region is most enticing part of our country and a veritable delight to the tourists. However, due to various factors, the tourism potential of the North-Eastern region has not been properly showcased. The Committee, therefore, recommends that the Ministry should formulate a media strategy for giving wide publicity about the North-Eastern region as a tourist destination and its cultural uniqueness in both print and electronic media. The Ministry should also organize cultural activities, fairs, seminars and workshops aimed at showcasing the varied society

64 of the North-Eastern region so that the inherent tourism potential of the region could be fully tapped and utilized. (Para: 64)

Another concern of the Committee is regarding promotion of tourist sites such as Jim Corbett National Park (Nainital, Uttarakhand), Daman and Diu, Rameswaram (Tamil Nadu), Shirdi and Lonar Crater Lake (Maharashtra), Jammu and Kashmir, North Eastern States, Ladakh region. The Ministry should chalk out ways to promote the abovementioned tourist sites digitally so that there is increase in tourist footfall in these regions. This would not only help in modernization of tourism infrastructure but also lead to employment and revenue generation. (Para: 65)

Overseas Promotion and Publicity

While appreciating the shift from generic promotion to more focused and niche products of the country under the Incredible India 2.0 campaign, the Committee recommends that Ministry should commission surveys for an impact analysis of the campaigns in key source markets overseas. (Para: 67)

The objective of Overseas Promotion and Publicity including Marketing Development Assistance Scheme is to position India as a favoured tourism destination in the tourism generating markets overseas and to increase India‘s share of the global tourism market. As per information given in the Annual Report (2019-20) of the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) were 10.89 Million during 2019 and International Tourist Arrivals (ITAs) (which include both FTAs and arrivals of NRIs) were 17.82 Million in the year 2018. As a result of the Covid-19 pandemic, tourism has been hit hard and the growth of International Tourist Arrivals to India has declined sharply. The Committee desires to be apprised of the extent to which ITAs are expected to drop as compared to the original 2020 forecast and whether any targeted marketing strategy has been adopted to revive the growth of ITAs to India. The Committee also takes note of the submission that in order to promote and market brand India and promote India‘s share in global tourist arrivals, a synergized campaign in association with the Travel Trade, State Governments and Indian Missions overseas has been launched. Since the abrupt fall in ITAs and the resultant plunge in the tourism sector has wiped out many small and medium sized firms that had catered to tourists

65 overseas, the Committee recommends that financial assistance be provided to approved tourism service providers for undertaking the tourism promotional activities overseas. (Para: 70)

Foreign Tourist footfall is one of the key aspects of emerging tourism industry. The Committee in this regard, would like the Ministry to follow the strategy given below, point-wise, to advertise country‘s image as one of the prominent tourist attractions globally:-  Highlighting the main tourist attractions.  Identification of target visitors.  Obtain and utilize data to get to know your visitors.  Focus on Branding country‘s rich heritage and culture.  Seek Public Private Partnerships.  Create a compelling destination website.  Engagement Marketing.  Training and Skill development programme for professionals.  Giving visitors an immersive experience.  Using Social Media platforms.  Attracting Influencers/ travel operators.  Exploring various online advertising methods.  Creating offline overseas marketing strategies. (Para: 71)

The Committee also recommends that in order to achieve higher international visitor levels, country-wise targets of Foreign Tourist Arrivals (FTAs) should be worked out and the Ministry should focus on diversification of source markets so that countries which offer high growth potential but from where present level of tourist is low could be covered. (Para: 72)

Development of Adventure Tourism

Despite its unique endowments of biodiversity and having unparalleled natural resources and 73 percent of the diverse Himalayan range for exploration, adventure tourism in India is at a nascent stage and the country is yet to exploit the immense potential of adventure tourism which can make India a round the year destination. The

Committee, therefore, recommends that the Ministry 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 exploit the adventure tourism. (Para: 75)

The Committee is aware that in order to boost and regulate adventure tourism in India, the Ministry of Tourism had issued guidelines for Adventure Tourism in the year 2018. The Committee would like to know whether all the States adopted and implemented the guidelines. The Committee would like the Ministry to ensure that the adventure tourism guidelines are followed by all the States/ UTs as it would go a long way in promoting inbound adventure tourism. The Committee also recommends a dedicated promotional campaign be launched to promote India as an adventure tourism destination. (Para: 76)

The Committee noticed that inbound adventure tourism in India is growing by 5-7 percent annually and domestic adventure tourism is growing by 20-25 per cent (as per the Survey Report of the Indian Tourism and Hospitality Industry). According to market research experts, over one billion travelers experienced adventure tourism globally and India attracted just over 3.4 Million adventure tourists in 2015 as compared to Western nations which attracted relatively higher numbers. The Committee, therefore, recommends that the Ministry should apprise it of the reasons for the slow growth of adventure tourism industry and why is there a lack of clear cut policy instance on it. (Para: 77)

Since India is a highly populated country, amusement parks sector has a very high growth potential in the country. The Committee is therefore, of the considered view that promotion of amusement parks will boost tourism, social infrastructure and revenue generation. The Committee, therefore, recommends that the Ministry of Tourism in close coordination with the States/ UTs should chalk out a roadmap for promotion of the amusement parks sector and also explore the possibility of lowering the GST. (Para: 79)

The Committee would like the Ministry to focus on developing adventure tourism activities given below and apprise the Committee of the steps being taken for the same:  Chadar Trek in Ladakh  White River Rafting in Rishikesh  Jim Corbett Safari- Uttarakhand  Scuba Diving in Andaman Island, Malvan Island and Goa.  Roopkund Trek- Uttarakhand  Manali to Leh Bike/ Jeep Trip  Caving in Meghalaya  Skiing in Gulmarg and Manali  Bungee Jumping in Rishikesh  River Rafting in Tons Valley- Uttarakhand  Hot Air Ballooning in Jaipur and Solang Valley  Dune Bashing in Jaisalmer  Paragliding in Bir-Billing- Himachal Pradesh  White Water River Rafting in Kullu  Water sports at affordable prices in Goa  Skydiving in Mysore  Flying Fox Adventure in Neemrana- Rajasthan  Rock Climbing in Satpura  Sandakphu Trek-West Bengal  Wildlife Safari in Gir National Park- Gujarat  Dudhsagar Trek in Goa  Kayaking in Aguada River- Goa  Skiing in Kufri  Cycling in Munnar  Camping in Coorg  Tiger Safari in Bandhavgarh National Park- Madhya Pradesh  Giant Swing in Rishikesh  Gulmarg-Gondola Ride  Microlight Flying in Bangalore (Para: 80)

Safety and Security of Tourists

Poor experiences with regard to safety and security of tourists lead to a negative image of tourist site/ country in the mind of tourist, whether domestic or international. The Committee recommends that in the light of the security concerns at tourist destinations, watchful tourist police and other law and order force supported by smart intelligence should be introduced with efficient communication systems at airports, Ports, railway/ bus stations etc. (Para: 84)

As regards the issue of safety/ security in cruise tourism, the Committee recommends that operating agencies should have a detailed operational procedure and only trained and skill tested personnel should be allowed to handle tourists at risk-prone sea/ river areas. Further, the landings should have facilities of speedboats, trained divers and security people lighting facilities, generators and vessel communication systems. (Para: 85)

Development of Cruise Tourism

The Committee takes note of the measures taken for the development of cruise tourism but would like to be apprised of the efficacy of the above measures in promoting India as a cruise tourism destination. (Para: 87)

Cruise tourism in India is still in its nascent stage but India has an immense potential to emerge as a leading destination for cruise tourism in Asia. In recent years, India has witnessed increase in the number of calls made by cruise ships. However, the Covid-19 pandemic and enforcement of the lockdown in its wake has had a catastrophic impact on cruise tourism in the country. Since cruise industry supports multiple shore side businesses, the Committee would like the Ministry to make an assessment of the overall damage caused to cruise tourism due to the Covid-19 pandemic-induced lockdown and take remedial measures to mitigate its massive cascading effect on the overall travel and hospitality industry. (Para: 92)

The Committee is also of the opinion that establishing a 24-hour tourist service center, providing a complete cruise logistics service, inviting foreign cruise operators to inspect special resources in India, cooperating with Taiwan, Japan and South-East

Asian countries for promotion of cruise tourism and setting up a special Government unit for the purpose would boost India‘s cruise industry. (Para: 93)

The Committee takes note of the fact that the five Major Ports at Mumbai, Goa, Mangalore, Cochin and Chennai have been developed to be cruise destinations with dedicated terminals. The Committee desires to know whether the cruise terminals at the above Ports have produced the desired results. The Committee also desires to be apprised whether the present structure of levy of taxes needs any changes/ modifications to tap the tremendous potential of cruise tourism in India. (Para: 94)

Training and Skill development

Tourism is a multi-sectoral activity characterized by multiple services and therefore, the tourism industry is one of the largest generators of employment across the world and has the potential to emerge as a key economic driver. Servicing the sector with skilled manpower is therefore of utmost importance. The Committee takes note of the fact that the scheme of ―Capacity Building for Service Providers‖ aims to train and upgrade manpower at every stratum of service. The Committee also notes that under the Hunar se Rozgar Tak programme, 11,624 persons have been trained against the target of 19,250 during 2018-19 and observes that the tourism sector‘s annual requirement of skilled manpower is much more than the supply from educational and skill training institutions which also gets reduced due to attrition. The Committee, therefore, expresses its displeasure at the shortfall in the target of trained persons under the Hunar se Rozgar Tak programme and recommends that the Ministry should formulate a robust strategy to meet the problem of trained manpower gap. (Para: 97)

The Committee is of the view that the realization of the country‘s tourism potential cannot be tapped without addressing the issue of capacity constraints. The Committee, therefore, recommends that the Ministry should conduct a tourism industry training provider assessment and review available data from previous assessment; work with industry to develop a survey instrument that assesses current and projected workforce needs in different tourism domains and occupations (e.g., hotels and lodging, travel and transportation, etc.); focus the assessment on entry-level; and entrepreneurial occupations that can be filled by vulnerable populations such as youth. (Para: 100)

The Committee also desires that the Ministry of Tourism should identify occupational needs in different sectors of the tourism industry and develop an approach to provide needed skills/ training/ job placement services to youth who want to pursue these occupations and careers in tourism. The aim of the scheme so designed should be to address the labor market needs of the tourism industry; provide a targeted program of technical assistance and training including revising curriculum and producing educational materials; and to improve education and training provider quality. (Para: 101)

Impact of Covid-19 pandemic on Travel and Hospitality Sector

The Committee in Paras 44 to Para 77 of its 288th Report on Demands for Grants (2021-22) of Ministry of Tourism, presented to the Parliament on the 9th March, 2021 has done a rigorous analysis of the impact of Covid-19 pandemic on Tourism, Travel and Hospitality sector and covered the gamut of issues arising therefrom and made substantive recommendations thereon. The Committee, therefore does not consider it necessary to repeat the details contained in its 288th Report in this Report. The Ministry may refer to Para 44-77 of the 288th Report and take appropriate remedial measures. (Para 44 to 77 are given in Annexure-C for ready reference) (Para: 102)

The Committee observes that the tourism and hospitality industry is reeling under the impact of Covid-19 pandemic. With business coming almost to a standstill, the unprecedented crisis has shaken the very foundation of this vibrant sector. Hospitality and tourism sector is a very important component of our economy as it has the potential to stimulate other economic sectors through its backward and forward linkages and contributes significantly to the national economy as well as the creation of jobs in the country. It also earns huge foreign exchange for the country. The Committee is, therefore, of the considered view that this sector which right now is in huge distress needs strong liquidity and policy support from the Government/ Financial Institutions/ Banks to bounce back. The Committee notes from the information made available to it that as part of Atma Nirbhar Bharat Package, RBI had permitted a term-loan moratorium and working capital interest deferment w.e.f. 01.03.2020 to 31.08.2020 alongwith an asset classification standstill for that period and other measures to enhance liquidity. In view of the fact that the situation continues to be dire and due to stagnation of cash flows in the wake of Covid-19 pandemic, the tourism and hospitality

71 sector stakeholders are unable to repay existing dues as per their existing repayment tenor, the Committee recommends that the moratorium on all working capital, principal, interest payments, loans and overdrafts may be further extended, bringing in liquidity and allowing for business continuity without categorising the companies as NPAs. The Committee is of the firm view that such a moratorium will go a long way in salvaging the entire tourism and hospitality industry. (Para: 108)

The Committee is aware that in view of the uncertainties created by the resurgence of Covid-19 Pandemic, the RBI on 5th May, 2021 has announced Resolution Framework 2.0 for Covid-related stressed assets of individual borrowers and small businesses. Restructuring under the Resolution Framework 2.0 can be invoked upto 30th September, 2021. Borrowers having aggregate exposure of upto Rs. 25.00 crores and who have not availed restructuring under any other scheme and who are classified as ―standard‖ as on 31st March, 2021 are eligible for the window of resolution under Resolution Framework 2.0. Tourism entities, hotels and restaurants meeting the criteria are also eligible under the Scheme. In respect of individual borrowers and small businesses who have availed restructuring of their loans and where the resolution plan permitted a moratorium of less than two years, financial institutions have been permitted to use Resolution Framework 2.0 to modify such plan to the extent of increasing the period of the moratorium or extending the residual tenure upto a total of two years. Considering the fact that the Covid-19 induced crisis has led to a shut-down of the Travel and Tourism industry, it may take 2-3 years for the tourism and hospitality industry to see a return to some semblance of normalcy in its operations. The Committee therefore recommends that the period for restructuring for this Sector be extended up to March, 2023. (Para: 120)

The Committee simultaneously recommends that the Government/ financial institutions should put in place a robust mechanism to prevent abuse of the restructuring route for ever greening of faulty loans prior to impact of Covid-19 pandemic. (Para: 121)

The Committee notes that under Emergency Credit Line Guarantee Scheme (ECLGS) 2.0 entities, subject to certain conditions, are eligible for additional funding as a collateral free Guaranteed Emergency Credit Line (GECL). The loans provided under ECLGS 2.0 have a 5- year tenor with a 12 month moratorium on repayment of

72 principal. Given the fact that the Covid-19 pandemic has had a debilitating impact on hospitality sector, the Committee recommends that the repayment period for the hospitality industry under ECLGS 2.0 be extended up to 10 years. (Para: 122)

Miscellaneous

The Committee reiterates the recommendations made in Para 177 to Para 179 of its 288th Report on Demands for Grants (2021-22) of Ministry of Tourism, presented to the Parliament on the 9th March, 2021.

―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.‖

―The Central Road and Infrastructure Fund (CIRF) is earmarked for various infrastructure sectors. The Committee 73

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: 123)

In order to make our country a 365 days tourist destination, connectivity by all the modes of transportation is extremely important. The Committee finds absence of proper mode of transportation to reach even the most visited tourist destinations like Agra, Tirupati, etc. If our country has to be made a major Tourism Hub, the destinations should be well connected. The Committee, therefore, desires that a Master Plan should be prepared and shared among the Ministries for achieving better connectivity. (Para: 124)

Religious Tourism in India is one of the key dimensions to boost tourism and to attract both domestic and international tourists. India is already blessed with a large number of religious tourism places for every sect of religion. Places such as Madurai, Tirupati, Shirdi and Sabarimala are few amongst them. The Committee, therefore, recommends to the Ministry that these tourist places should have proper and frequent air connectivity. Further, for sites without airport, the Ministry of Tourism should coordinate with the Ministry of Civil Aviation on priority basis for development of airports, as these tourist places are mostly visited by elderly tourists. (Para: 125)

The Committee is of the view that India has a huge potential of religious tourism which would enhance India‘s soft power projection in Southeast Asia, which is already emerging as a new tourism hub for international tourists across the world. The Committee would like the Ministry to embrace the opportunities presented by the North-South Economic Corridor in order to encourage travelers from the north of Myanmar and to Southern China alongwith South- East Asian countries, which in turn, may lead to more interest in India‘s religious tourism spots and would definitely boost foreign exchange earnings of India. (Para: 126)

***

Annexure-A State-wise sanctioned amount on improvement of connectivity (Rs. in Lakh) Sl. State Road Air Rail Total No 1 Arunachal Pradesh 336 179 - 516 2 Assam 827 - - 827 3 Bihar 406 - - 406 4 Chhattisgarh 364 - - 364 5 Goa 273 344 - 617 6 Gujarat 426 - - 426 7 Himachal Pradesh - 300 - 300 8 Jammu & Kashmir 725 24 - 749 9 Kerala 2,737 - - 2,737 10 Madhya Pradesh 1,762 - - 1,762 11 Maharashtra 664 - - 664 12 Meghalaya 2,855 - - 2,855 13 Mizoram 258 - - 258 14 Nagaland 981 - - 981 15 Odisha 714 - - 714 16 Puducherry 230 - - 230 17 Punjab 633 - - 633 18 Rajasthan 340 - 1,937 2,277 19 Sikkim 649 - - 649 20 Telangana 486 - - 486 21 Tripura 188 - - 188 22 Uttar Pradesh 2,129 374 - 2,503 23 Uttarakhand 973 - - 973 24 West Bengal 361 - - 361 Total 19,314 1,221 1,937 22,471

46 Tourism Routes awarded by MoCA under RCS-UDAN 3 Sl. No. Route Status 1) 1 Agra to Bhopal 2) 2 Bhopal to Agra 3) 3 Agra to Indore 4) 4 Indore to Agra 5) 5 Bengaluru to Mysuru 6) 6 Mysuru to Bengaluru 7) 7 Dibrugarh to Dimapur 8) 8 Dimapur to Dibrugarh 9) 9 Dimapur to Imphal Operationalised 10) 10 Imphal to Dimapur 11) 11 Gaya to Kushinagar 12) 12 Kushinagar to Gaya 13) 13 Lucknow to Saharanpur (Sarsawa) 14) 14 Saharanpur (Sarsawa) to Lucknow 15) 15 Port Blair to Shibpur (Diglipur) 16) 16 Shibpur (Diglipur) to Port Blair 17) 17 Shimla to Kullu 18) 18 Agartala to Aizawl 19) 19 Aizawl to Agartala 20) 20 Ahmedabad to Udaipur Operationalised 21) 21 Udaipur to Ahmedabad 22) 22 Amritsar to Jaipur Operationalised 23) 23 Jaipur to Amritsar 24) 24 Amritsar to Kolkata Operationalised 25) 25 Kolkata to Amritsar 26) 26 Amritsar to Patna 27) 27 Patna to Amritsar 28) 28 Aurangabad to Udaipur 29) 29 Udaipur to Aurangabad 30) 30 Bhopal to Udaipur Operationalised 31) 31 Udaipur to Bhopal

32) 32 Bhubaneshwar to Varanasi Operationalised 33) 33 Varanasi to Bhubaneshwar 34) 34 Bikaner to Jaisalmer 35) 35 Jaisalmer to Bikaner 36) 36 Delhi to Calicut (Kozhikode) 37) 37 Calicut (Kozhikode) to Delhi 38) 38 Delhi to Khajuraho 39) 39 Khajuraho to Delhi 40) 40 Dibrugarh to Imphal 41) 41 Imphal to Dibrugarh 42) 42 Jodhpur to Udaipur 43) 43 Udaipur to Jodhpur 44) 44 Rajamundhry to Vishakapatnam Operationalised 45) 45 Vishakapatnam to Rajamundhry 46) 46 Varanasi to Patna *******

Annexure-B LIST OF TOURIST DESTINATIONS FOR IMPROVING CONNECTIVITY Sl. No. Tourist Destination State / UT 1. Lepakshi Andhra Pradesh 2. Vizag Andhra Pradesh 3. Itanagar Arunachal Pradesh 4. Kaziranga National Park Assam 5. Nalanda Bihar 6. Bodhgaya Bihar 7. Chandigarh Chandigarh 8. Raipur Chhattisgarh 9. Diu Fort UT of Daman & Diu 10. Colva Beach Goa 11. Champaner-Pavagadh Archaeological Park Gujarat 12. Rani-ki-Vav, Patan Gujarat 13. Somnath Gujarat 14. Kurukshetra Haryana 15. Shimla Himachal Pradesh 16. Gulmarg J&K 17. Patnitop J&K 18. Hampi Karnataka 19. Pattadakal Karnataka 20. Kumarakom Kerala 21. Bekal Fort Kerala 22. Pangong Lake Ladakh 23. Kargil Ladakh 24. Bhimbetka Madhya Pradesh 25. Jabalpur Madhya Pradesh 26. Khajuraho Madhya Pradesh 27. Sanchi Madhya Pradesh

28. Ajanta Caves Maharashtra 29. Ellora Caves Maharashtra 30. Loktak Lake Manipur 31. Shillong Meghalaya 32. Aizawl Mizoram 33. Dimapur Nagaland 34. Chilika Lake Odisha 35. Konarak Odisha 36. Patiala Punjab 37. Chittorgarh Fort Rajasthan 38. Kumbhalgarh Fort Rajasthan 39. Amer Fort Rajasthan 40. Gangtok Sikkim 41. Mahabalipuram Tamil Nadu 42. Thanjavur Tamil Nadu 43. Warangal Fort Telangana 44. Agartala Tripura 45. Sarnath Uttar Pradesh 46. Shravasti Uttar Pradesh 47. Kushinagar Uttar Pradesh 48. Rishikesh Uttarakhand 49. Bishnupur West Bengal 50. Shantiniketan West Bengal ***

Annexure-C Paras 44—77 of the 288th Report on Demands for Grants (2021-22) of Ministry of Tourism

44. The Committee notes 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

45. 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

80 initiated in this regard.

46. The Committee observes that though tourism contributes significantly to the GDP as well as job creation, the quality of data on different sectors of tourism leaves much to be desired. Though the Ministry of Tourism has got prepared, through National Council of Applied Economic Research, three Tourism Satellite Surveys of India, for assessing the contribution of tourism in GDP, there are still serious data gaps in tourism sector. Even the basic statistics of the accommodation units, expenditure incurred by foreign and domestic tourists, impact of the marketing strategies and publicity campaigns are not available. Similarly, though the actual implementation of tourism projects takes place at State/UT level, most of the States/UTs don‘t have proper mechanisms for collection of accurate tourism statistics. The Committee, therefore, recommends that under the Scheme of Market Research for which an allocation of Rs. 20 crores has been made in BE 2021-22, a proper mechanism be developed for collection of robust data on different aspects of tourism. II) IMPACT OF COVID-19 PANDEMIC ON TOURISM, TRAVEL AND HOSPITALITY SECTOR

47. The unprecedented COVID-19 induced crisis has led to a shutdown of the Travel and Tourism industry. In reply to a question regarding steps taken to bailout various stakeholders related to the tourism sector which have been hit hard by the COVID-19 Pandemic, the Ministry has informed the Committee that Government of India provided a number of fiscal and regulatory relief measures for survival of businesses. A major policy decision under this package was the change of the definition of MSMEs by doing away with the distinction of services and manufacturing MSME and introduction of the additional criteria of turnover. About 70% of the tourism units come under the category of MSMEs and are expected to be benefited under these provisions. In addition, provisions were made regarding collateral free automatic loan for businesses and reduction of PF contribution of both

81 employer and employee. Other demands of the industry including status as industry, status as infrastructure projects, withdrawal of tax collection at source for outbound booking etc. have been taken up with the Ministry of Finance. 48. In reply to a question regarding the magnitude of financial loss to the tourism sector, and steps taken to revive the sector in the aftermath of COVID-19 pandemic, the Ministry has stated that since the situation is still evolving, the final impact in numerical terms can only be ascertained in due course. However, the Ministry has held several rounds of discussions and brainstorming sessions with industry stakeholders to access the impact on the segment and has recently engaged National Council for Applied Economic Research (NCAER) to conduct study on ―India and the Coronavirus Pandemic: Economic Losses for

Households Engaged in Tourism and Policies for Recovery.‖ The objectives of the study includes following:

1. Quantifying 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

2. Propose policy measures appropriate to provide relief to the tourism sector, in general, and households involved in tourism related activities, in particular, based on feedback received from various stakeholders. 49. The Committee has been informed that FTAs during 2020 were 24.62 million (Jan-Nov) (Provisional) with a growth of -74.6% over same period of the previous year. India‘s share in global international tourist arrivals was 1.23% in 2019 as against the target of 3% set by NITI Aayog. 50. FEEs (i.e. Foreign Exchange Earnings) during the January 2020 – March 2020 were Rs. 44203 crores (provisional estimates) with a growth of – 15.6% over the same period of the previous year.

51. Apprising the Committee of the support provided in the wake of

82 the COVID- 19 pandemic, the Ministry has informed that with a view to facilitating and extending support to foreign tourists who were stranded in the country the Ministry had set up a portal „Stranded in India‟ to disseminate information regarding the services that could be availed by them. The portal helped tourists get information/details of State / UT Tourism Departments and Regional offices of Ministry of Tourism. The site also provided Helpline numbers of the Ministry of Health & Family Welfare, Bureau of Immigration, Ministry of Tourism and Ministry of External Affairs. The 24x7 Tourist Info-Helpline of the Ministry had also received calls related to COVID 19 and responded to them based on the advisories / guidelines issued by the Ministry of Health & Family Welfare and other Ministries / Authorities.

52. The Committee has been informed that with a view to preparing for a post- COVID 19 revival, the Ministry of Tourism formulated Operational Recommendations for different segments of Tourism Service Providers in the Travel sector for facilitating smooth and safe resumption of business. Such recommendations have been issued for Travel Agents, Tour Operators, Tourist Transport Operators, Tourist Guides and Facilitators. They were formulated in consultation with State Governments and tourism / hospitality stakeholders and in keeping with the overall guidelines issued from time to time by the Ministry of Health.

53. On 8th December, 2020 the Ministry of Tourism has issued modified guidelines for Recognition of Tourism Service Providers dated 08.12.2020 which would be effective from January, 2021. As per the modified guidelines, Category of Greenshoot / Start-up- Agencies is being introduced for the first time. This is in keeping with the policy of the Govt. of India for encouraging Start-Ups and will also further the cause of ‗Atmanirbhar India‘. There will be no requirement of minimum Annual Turnover and Previous Experience for this category. These provisions are in line with the Startup policy of the Govt. of India. The requirement of Paid Up Capital and number of

83 staff will also be less than for other categories. 54. The Committee has also been informed that Ministry of Tourism had given an opportunity to the tourism stakeholders to put forward queries and make representations on issues regarding GST on Tourism. The representations received by the Ministry were taken up with CBEC and corrective notifications/advance press releases have been issued on the following: i. The threshold limit for applicability of 28% GST to hotels has been raised from Rs.5000/- to Rs.7500/- per room per day. ii. All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% without Input Tax Credit (ITC). Food parcels (or takeaways) will also attract 5% GST without ITC. Earlier, the rates were 12% and 18%. iii. Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC. iv. Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC. v. GST on services by way of admission to "protected monuments" will be exempted.

55. The Ministry has stated that the issue of high GST rates in tourism-related services impacting India‘s position adversely in International Tourism has been shared with CBEC. The Pre-Budget recommendations given by the Ministry mentioned that the tax bracket of 12% to 28% may negatively impact tourism sector due to high rate of GST. The negative impact of high GST rates on MICE Tourism had also been highlighted in the recommendations. In view of the foregoing, Ministry of Tourism had requested MoF to consider bringing down GST rates for tourism related services and to give incentives on GST for Tourism at a rate which is comparable and competitive with peer countries to maintain India‘s competitiveness as a tourist destination in the International Market.

56. Further, the Ministry of Tourism has created the National

Integrated Database of Hospitality Industry (NIDHI). The objective is to create a comprehensive national database, which will help the State and Central Governments in creating policies and strategies for promotion and development of tourism, assessing the carrying capacity of various destinations, assessing requirements for skilled human resources and formulating disaster management plans in case of disasters like the COVID pandemic. It will serve as a common repository of data from Ministry of Tourism, State Departments of Tourism and Industry and enable the Central and State Governments to deliver better support and services including policies and strategies.

57. The Ministry has informed that the following steps were taken to revamp the tourism sector in the aftermath of Covid-19 pandemic : i. Detailed operational guidelines for Covid safety and hygiene for hotels, restaurants, B&Bs/Home stays and Tourism Service Providers have been formulated and issued on 08.06.2020 to facilitate smooth resumption of business.

ii. Validity of approval or certifications of hotels and other accommodation units whose project approval/re-approval and classification/re-classification have expired / were likely to expire, has been extended upto 30th April, 2021. iii. Operational Recommendations for safe resumption of business with easing of lockdown restrictions have been issued for various segments of the travel and hospitality industry and circulated amongst all stakeholders. iv. Recognition of Travel Agents, Tour Operators, Tourist Transport Operators by the Ministry of Tourism has been extended automatically by six months. Those who have submitted applications for recognition by the Ministry have been given provisional recognition for six months, pending completion of required procedures.

v. In addition to the above steps taken by Ministry of Tourism, other agencies/Ministries of Government of India have declared stimulus packages like loan moratorium, waived off PF contribution, deferment of TCS up to

October 2020, collateral free automatic loan under Atamnirbhar Bharat package etc. to revive the economy and industry including units of the hospitality industry. 58. On being asked whether Tourism Export should be treated at par with other exports and services, the Ministry has submitted that the subject of Tourism Export under Service Export from India Scheme (SEIS), which aims to promote export of services from India by providing 5 or 7 % Incentive on Net foreign income in the form of duty credit scrips for eligible exports, has been taken up by the Ministry with Ministry of Commerce and Ministry of Finance.

59. To a query regarding Service Exports from India Scheme, the Ministry has informed the Committee that the matter regarding hiking the rate of rewards to 10% for the Tourism, Travel & Hospitality industry for the FY 2019-20 and 2020-21 has been taken up with the Ministry of Commerce & Industry, as this would provide some relief during the liquidity crunch triggered by COVID-19 pandemic. 60. The Ministry of Tourism has also taken up the GST taxation slabs with the Ministry of Finance, Government of India, from time to time, as a result of which the following changes have been effected in GST rate slabs with respect to tourism products and services: i. GST (Goods and Services Tax) Council announced a cut in the tax rate on hotel room tariffs, a move aimed at giving a boost to the hospitality sector. The GST rate on hotel rooms with tariffs of up to Rs 7,500 per night has been cut to 12% from the existing 18%. Similarly, the tax on room tariff of above Rs 7,500 has been slashed to 18% from the existing 28%. There will be no GST on room tariffs of below Rs 1,000 per night. ii. GST on restaurants eateries has been brought down to 5% irrespective of whether they are air-conditioned or not. If a restaurant is located within the premises of hotels, inns, guest houses, club or any commercial place meant for residential or lodging purposes with a daily tariff of Rs.7500 per day per unit or above, the tax will be 18%.

86 iii. The basis for determination of the applicable rate has been changed from declared tariff to actual tariff.

61. In reply to a question regarding declaring hotels as infrastructure status, the Ministry has submitted that Three Star and higher category classified hotels located outside cities with population of more than one million was granted infrastructure status by its inclusion in the Harmonised Master List of Infrastructure Sub-Sectors (HML). All Star rated hotels with a project cost of over 200 Crore were also included in the Harmonised Master List vide Gazette Notification No. 13/6/2009-INF dated 07.10.2013, which lapsed 3 years after notification via sunset clause. The Ministry of Tourism moved a proposal for grant of Infrastructure Status to investment in hotel industry of over Rs. 50 crore and in towns less than 5 lakh population, to accelerate creation of additional hotel rooms and help generate both direct and indirect jobs. However, the Department of Economic affairs (DEA) turned down the proposal vide their letter dated 12.05.2020, citing the reason that it will crowd out the flow of credit to the other core infrastructure sectors. Ministry of Tourism, as part of its tourism sector revival plan post Covid 19 pandemic, requested Ministry of Finance to consider grant of infrastructure status to lower investment hotel projects i.e. hotel capex above INR 25 Cr. capex (excluding land) to bring the mid- segment properties under the ambit of Infrastructure to give a boost to investment in the accommodation sector. However, no response has been received from the Department of Economic Affairs.

62. The industry stakeholders have requested Ministry of Tourism to take up several additional issues with the concerned Ministries for the revival of the sector. Hon‘ble Minister(IC) for Tourism has taken up the following issues with the Ministry of Finance and Ministry of Commerce and Industry: (i) Moratorium on loans may be extended and making loans more accessible

(ii) TCS exemption under GST

(iii) Rolling back of TCS on sale of Overseas Tour Packages

(iv) Rolling back of TDS by Travel agents/ Tour Operators/OTAs under Income Tax

(v) Refund of GST to international travellers

(vi) Declare hotels capex above INR 25Crs. capex (excluding land) as infrastructure

(vii) Incentivising domestic tourism and MICE

(viii) Waiver /relaxation of Annual average conditions for hotels under EPCG Scheme

(ix) enhanced benefits (10%) under SEIS

63. To a question regarding the adequacy of financial parameters as specified in the RBI‟s ―Resolution Framework for COVID-19‖ Related Stress‖ and the Expert Committee Report to assist the tourism and hospitality sector, the Ministry has submitted that the KV Kamath Committee appointed by the Reserve Bank of India has listed tourism among the 26 sectors that require financial restructuring in the aftermath of the COVID-19 crisis. The committee has recommended five financial parameters or ratios with sector- specific thresholds that lending institutions can factor in as part of a graded approach to restructuring or finalising a resolution plan for a borrower. The five parameters for each sector are as below: (1) Total outstanding liability to adjusted net worth

(2) Total debt to EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) (3) Debt Service Coverage Ratio (DSCR) (4) Average DSCR (5) Current Ratio 64. While the tourism industry has welcomed the recommendations of the Kamath Committee, industry players think it may be difficult for some to meet the parameters. Especially, larger players in hospitality with higher debt

88 levels may face challenge in meeting the parameter criteria. 65. The travel and Tourism sector does not feature in the Centre, State or Concurrent Lists. On being asked whether this has affected the growth of tourism in the country, the Ministry has submitted that 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. It may be mentioned that the tourism sector has been showing growth 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. 66. The Ministry has also taken up with State Governments the issues covering various relief measures such as excise fees, electricity and water tariff, property tax etc. The Ministry of Tourism has issued an advisory to all the Principal Secretaries/Secretaries (Tourism) State Governments/UT Administrations to address the requests for refund/waiver in the outbreak of COVID 19 in coordination with all travel & hospitality related associations and establishments under its control. The request of financial support/relief measures received from Tourist Guide Federation of India (TGFI)/Regional Level Guides (including State/Local Level Guides) has also been referred to the Chief Labour Commissioner(C), M/o Labour & Employment, New Delhi, for favourable consideration treating them as a category of the unorganized work force in the country. 67. As regards the impact of fiscal and relief measures taken by the Government and RBI on tourism industry, the Government announced following fiscal and relief measures under the Atmanirbhar Bharat package.

The definition of MSMEs has become inclusive by doing away with the distinction of services and manufacturing MSME and introduction of the additional criteria of turnover. Rs 20,000 crore subordinate debt will be provided for stressed MSMEs

which would benefit 2 lakh such businesses. Rs 3 lakh crore collateral free automatic loan for businesses, including MSMEs. The loan will have 4 year tenure and will have 12 month moratorium. PF contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for the next three months Govt of India will pay the Employees' Provident Fund (EPF) contribution, both of employer and employee for next 3 months for those establishments which have upto 100 employees and 90% of them earn less than Rs15,000. 68. The Ministry of Tourism has not instituted any study on the impact of financial and relief measures announced by the Government. The impact of these measures on units can be ascertained only after travel for tourism takes off. 69. 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

90 support, etc. The Committee has been informed that governments across the world are 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 factors into account, the Committee is of the considered view that since the COVID-19 pandemic and the consequent lockdowns have 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. 70. 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. 71. 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.

72. 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-thrillion dollar GDP target by focusing 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 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

92 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. 73. The Committee observes that the hospitality industry is in huge distress under the impact of the COVID-19pandemic 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 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 intensiveand 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 is of the considered view that there is an imperative need to accord

93 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.

74. 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,

94 property tax could be extended to hotels and taxes levied on hotels are rationalized and made globally competitive.

75. 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.

76. 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.

77. 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

95 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. ***