Market Survey

By: Dr Bh. Venkateswara Rao

TOURISM IN : POTENTIAL UNTAPPED Andhra Pradesh, with its diverse attractions ranging from beautiful beaches and wildlife sanc- tuaries, as well as heritage sites in and around Hyderabad that hark back to the opulent life- styles of the Nizams, has the scope to attract more than just the pilgrims who visit Tirupathi.

This is illustrated by the fact that during 2010-11, India as a whole earned in excess of $20 billion from tourists. Further, tourism has the highest employment potential as it can generate 78 jobs for an invest- ment of Rs 1 million, while the ag- riculture and manufacturing sectors generate only 45 and 18 jobs, respec- tively, for the same investment. The industry also helps in the growth of other sectors as diverse as horticul- ture, handicrafts, agriculture, con- struction and even poultry. Andhra Pradesh is a tourist par- adise, promoted by the state’s tour- ism department. It is rich in culture and heritage. There is a wide array of ancient sculptured temples, scenic hill ranges, unexplored forests and endless beaches. The wild life, caves ourism has become the knowledges that tourism is the fast- and museums continue to fascinate world’s largest indus- est growing economic sector, bring- visitors over the years. With more try, generating wealth ing foreign exchange earnings to than 500 tourist locations, the sec- and employment while countries and creating jobs. ond largest coastline in the country, opening the minds of The Indian tourism industry, in historical locations that date back Tboth visitors and the visited to dif- tandem with global trends, is expe- over a 1000 years, and pilgrimage ferent ways of life. Worldwide, the riencing a period of strong growth, centres of every religion of India, industry employs around 200 mil- driven by the burgeoning Indian Andhra Pradesh is the top tourist lion people. Tourism as an instru- middle class, growth in high-spend- destination in the country, followed ment of economic development will ing foreign tourists, and coordinated by Uttar Pradesh and Tamil Nadu. have even greater importance in the government campaigns to promote Among the most favoured tour- future. There are grounds for opti- ‘Incredible India.’ The industry is ist destinations in Andhra Pradesh mism about what tourism can mean substantial and vibrant, and it is are Tirupathi for devotees of Lord for poor nations in the 21st century. credited with contributing substan- Venkateshwara, Visakhapatnam for The World Tourism Organisation ac- tial foreign exchange to the nation. its natural scenic beauty, and Hy-

May 2013 • FACTS FOR YOU 11 Market Survey derabad for medical and heritage tourism.

Pilgrimage tourism

Andhra Pradesh is home to many pilgrim centres. Among the tourists who visit the state, a major chunk head to Tirupathi for darshan of Lord Venkateshwara. Other Hindu pilgrim spots include the Sri Kala- hasti temple, an ancient site of re- ligious significance; the Ramappa temple and the thousand-pillared temple in Warangal, which are fa- mous for their temple carvings; the Srirama temple in Bhadrachalam; the Kanaka Durga temple in Vi- jayawada; the Satyanarayana Swa- my temple in Annavaram; and the Mallikarjuna Swamy, the Mahanan- Borra caves lingam, Andhra Pradesh di, and temples located within the dense Nallamala forest in marvelous geological formations in The Charminar offers a panoramic . Asia. The Indira Gandhi zoological view of the city from its four (Char) The state has numerous Buddhist park in Hyderabad, with 700 ani- minarets that are about 49 metres centres at Amaravathi, Bhattiprole mals belonging to 89 species, is a ma- high. Golconda, on the outskirts of and Nagarjuna Konda in Guntur jor tourist haunt. The Maredumilli Hyderabad city, is where the price- district; Phanigiri and Kolanpaka and Rampachodavaram hill stations, less Kohinoor diamond was found. It in Nalgonda district; Ghantasala in and the Coringa and the Papikon- has a well-preserved fort which is a Krishna district, and Nelakondapalli dalu forests in East Godavari dis- traveller’s delight. The fort is known in Khammam district. The Mecca trict are also favourite hotspots of for the acoustics of its palaces, an Masjid in Hyderabad, the Durgah tourists. Papikondalu, in particular, ingenious water supply system, and in Kadapa as well as the Mary Ma- can rival Kerala if house boats are the famous Fateh Rahben Gun—one tha Church in Vijayawada, and the pressed into service, as the area is no of the cannons used in the last seige Fatima church in Kazipet are the less picturesque in comparison. of Golconda by Aurangazeb. well-known Muslim and Christian The Ali Sagar deer park, flanked Hyderabad’s Falaknuma palace pilgrim centres in the state. by natural hillocks with attractive is designed in the shape of a scor- flower gardens, the Eturunagaram pion by an Italian architect. It is a Nature tourism wildlife sanctuary in Warangal Dis- majestic palace which served as the trict, and the nearby Kinnerasani imperial guest house for the rulers of Wildlife is an integral part of wildlife sanctuary in the Danda- Hyderabad. The Salarjung museum Andhra Pradesh’s tourist pack- karanya forest of Khammam district is a treasure house of antiques like age. Visakhapatnam district in AP are also popular. the sword of Aurangazeb, the gem- is nestled among the hills of the studded daggers of the emperors of and faces the Bay of Heritage tourism the Moghul dynasty, and thousands Bengal. The journey to Araku from of other artefacts from all over the Visakhapatnam through the ghats, Andhra Pradesh is known for world. with dense forest on either side, is its historical monuments and Hy- picturesque. The scenic Araku val- derabad is one of the most vis- Medical tourism ley has breathtaking waterfalls and ited historical cities. It houses the the tribal arts enthrall the tourists. Charminar, an Islamic structure, India has emerged as a destina- Borra caves, the one-million-old rock which is built upon four grand arch- tion for medical tourism as foreign formations, are considered the most es facing north, south, east and west. and domestic patients prefer the

12 FACTS FOR YOU • May 2013 Market Survey more economical and effective al- ternatives in New Delhi, Mumbai, Bengaluru and Hyderabad. Medical treatment costs in India are a frac- tion of the costs in the UK, Europe, East Asia or North America. As such, the 25 million Indians who live abroad, and also many foreigners, are keen on visiting India, especially New Delhi and Hyderabad, for the world-class and inexpensive treat- ment offered by the hospitals located here. The number of foreign patients seeking treatment in Hyderabad has soared, as medical treatment costs are lower by at least 60-80 per cent than similar procedures in North America and the UK. West Asians, for example, avoid the US and Eu- rope for medical treatment after Charminar, Hyderabad the 9/11 terrorist attacks, opting for India instead. Also, value-added unexplored forests, wildlife sanctu- excess of Rs 1 billion. Mahalakshmi services such as transfers from the aries, ancient sculptured temples Indus-Parks Ltd has made a pro- airport, special food for foreigners, and Buddhist centres. posal for an eco-tourism project near and translators for patients who The state is also lagging behind Vikarabad with an investment of Rs cannot speak English have buoyed when it comes to attracting tour- 3.68 billion. Vaishnavi Infraventures medical tourism. Hospital groups ists from abroad and the foreign and Resorts has proposed setting up in Hyderabad should lay emphasis exchange they bring, compared to of a mythology-based theme park at on the ‘treatment plus vacation’ other states like Gujarat, Rajasthan a project cost of Rs 3.65 billion, near concept, just like their counterparts and the neighbouring Tamil Nadu. Tirupathi, while Varsha Hill Fort in New Delhi do, to promote their Around 700,000 foreign tourists Palace has proposed setting up of a business. visit the state annually, bringing in Rs 3 billion hotel project in the city. a meager $30 million in foreign ex- The government also plans to de- Tourism potential change, while the country as a whole velop ten irrigation projects at loca- earns in excess of $20 billion. This tions such as Dindi, Gundlakamma Andhra Pradesh is the fifth larg- shows that immense potential exists and Yeleru in coastal AP; at Jurala, est state in India, but ranks first for tourism in Andhra Pradesh. Kaddam, Sri Ram sagar, Cheeta Kod- in attracting tourists. The state at- uru and Aswaraopalli in the Telanga- tracts as many as 127 million of the Government initiatives na region; and at Brahma sagar and 527 million domestic tourists every the Velligallu reservoirs in the Ray- year, though the majority of the The Government of Andhra alaseema region, as part of new tour- tourists to the state visit the Tiru- Pradesh has adopted a multi- ism policy. Already the AP Tourism pathi temple in Chittoor district. pronged approach for promotion of Development Corporation (APTDC) Hyderabad, the state capital, is the tourism, which includes attracting has provided a 22-seat deluxe boat second most-visited destination ow- investments for new tourism pro- for trips in the Paddagadda reservoir ing to its IT establishment, conven- jects, developing irrigation projects at Parvatipuram in Srikakulam dis- tion facilities, heritage and medical as tourist spots, identifying and de- trict. A project worth another Rs 500 tourism. Less than 20 per cent of the veloping new tourism projects, etc. million, including the Buddhavanam domestic tourists visit other tourist The government has succeeded in project near Nagarjuna Sagar, is in destinations in the state despite the attracting investments worth Rs 17 the pipeline. The government has fascinating attractions like endless billion for 12 projects, including five also identified 21 new places for de- beaches, picturesque hill stations, major ones, involving investments in velopment of tourism including five

May 2013 • FACTS FOR YOU 13 Market Survey

in giving the incentive to their staff, which, in turn, will give a fillip to do- mestic tourism. Besides these initiatives, new tourism circuits are to be developed on a war footing. The CII, after a thor- ough study of the tourism potential in Andhra Pradesh, felt the need for the development of certain tourism circuits such as Vizag-Bhimili-Araku- Borra Caves; Hyderabad-Nagarjuna sagar-Srisailam; Vijayawada-Amar- avathi-Chirala; and Rajahmundry- Papikondalu-Bhadrachalam, in view of their potential to attract signifi- cantly higher number of tourists. Above all, the AP Tourism Develop- ment Corporation, in coordination with the state government, has to Chandragiri fort, Andhra Pradesh organise travel and tourism expos in different parts of the country to in East Godavari district. As part of ing expressed about whether these create awareness among the general this, APTDC has proposed to devel- projects would take off at all, since public about the various tourist des- op eco-tourism at the Coringa forest granting of the infrastructure status tinations in AP. area with an estimated cost of Rs 62.5 to the tourism sector is still pending. The state prides itself on being million, wherein the central govern- The industry needs infrastructure one of the sought after destinations ment’s contribution would to Rs 52.5 status without which the new tour- for IT and other high-technology million, with Rs 10 million from the ism projects mentioned earlier can- areas like biotechnology. It, how- AP government. not be taken up. This is because the ever, is faced with a paradox when Proposals have also been made tourism industry is treated on par it comes to tourism, where most for the development of a ‘Fun City’ with real estate, constraining banks visitors head only to Tirupathi. In at the old airport in Hyderabad, as from giving loans beyond a certain order to tap the huge tourism po- it will add to the entertainment fa- limit. If the government grants in- tential in AP, the government has to cilities at the High-Tech, Bio-tech frastructure status, it will enable lay emphasis on the following areas: and Knowledge City ventures in faster financial closure of the pro- large-scale involvement of the pri- that area. The department is confi- jects and will enable developers to vate sector at the strategic planning dent of making rapid strides in the get smoother access to loans from stage along with the public-sector sector, going by the projects it has financial institutions, and banks in and government bodies; large-scale taken up. With all these measures, particular. The entrepreneurs who investment in infrastructure; grant- the Andhra Pradesh Tourism De- venture into the sector can avail ing infrastructure status to tourism velopment Corporation has targeted certain tax benefits along the lines sector, and human resource develop- a turnover of Rs 1.50 billion during of those extended to infrastructure ment programmes through active 2011-12 against the Rs 1.25 billion in projects. The Confederation of In- participation of the private sector. the previous year. dian Industry (CII) is pursuing the Implementation of these measures issue with the central government, will help in generating employment What the industry needs as it is imperative to give a fillip opportunities besides increasing the to the tourism sector, which is the revenue to the state government Though the government has highest employment generator. The considerably. The tourism tagline for initiated a slew of measures to pro- CII is also pressurising the central Andhra Pradesh is, “The Essence of mote tourism, fate of some of the government to make the leave travel Incredible India.” multi-million tourism projects is in concessions given to employees as  limbo according to certain indus- tax deductible. This will ensure that The author is principal, Visakha Institute try sources. Apprehensions are be- corporate houses will be more liberal of Management Science, Visakhapatnam

14 FACTS FOR YOU • May 2013