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Fostering Sustainable Tourism In TITLE Smart Cities: Fostering Sustainable Tourism in U.P. YEAR October, 2017 AUTHOR Strategic Government Advisory (SGA), YES BANK No part of this publication may be reproduced in any form by photo, photoprint, microfilm or any other COPYRIGHT means without the written permission of YES BANK LTD. This report is the publication of YES BANK Limited (“YES BANK”) so YES BANK has editorial control over the content, including opinions, advice, statements, services, offers etc. that is represented in this report. However, YES BANK will not be liable for any loss or damage caused by the reader’s reliance on information obtained through this report. This report may contain third party contents and third- party resources. 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All other information, products and services offered through the report are offered by third parties, which are not affiliated in any manner to YES BANK. DISCLAIMER The reader/ buyer hereby disclaims and waives any right and/ or claim, they may have against YES BANK with respect to third party products and services. YES BANK makes no representation or warranty, express or implied, including, but not limited to, warranties of merchantability, fitness for a particular purpose, title or non – infringement. As to documents, content, graphics published in the report, YES BANK makes no representation or warranty that the contents of such documents, articles are free from error or suitable for any purpose; nor that the implementation of such contents will not infringe any third party patents, copyrights, trademarks or other rights. All materials provided in the report are referred from publicly available source. In no event shall YES BANK or its content providers be liable for any damages whatsoever, whether direct, indirect or otherwise, special, consequential and/or incidental, including without limitation, damages arising from loss of data or information, loss of profits, business interruption, or arising from the access and/or use or inability to access and/ or use content and/or any service available in this report, even if YES BANK is advised of the possibility of such loss. Maps (if any) depicted in the report are graphical representation only and do not purport to be the political map of any nation or state and are not drawn to scale. YES BANK Ltd. Northern Regional Office 48, Nyaya Marg, Chanakyapuri New Delhi – 110 021 Tel : +91-11-66560562 Email : [email protected] CONTACTS Website : www.yesbank.in Registered and Head Office 9th Floor, Nehru Centre Dr. Annie Besant Road Worli, Mumbai - 400 018 Tel : +91 22 6669 9000 Fax : +91 22 2497 4088 Foreword Uttar Pradesh, widely acknowledged as one of the leading agrarian and industrial states, is a microcosm of India’s rich cultural and natural diversity. As a significant tourist destination, it also witnesses domestic footfall of 21 crore tourists and attracts 31 lakh foreign tourists annually. The Government’s focus on developing 109 Smart Cities through the Smart Cities Mission presents a unique opportunity for India to emerge as a knowledge-based economy. Developing globally competitive and vibrant Smart Cities in India will uplift the country’s economic prospects and enhance citizens’ quality of life. This huge infrastructure investment will stimulate business generation and youth employment as well as improve urban-rural synergy. Across the world, cities have always played a catalyzing role as engines of growth and innovation. For instance, Bilbao in Spain transformed itself from a decaying industrial town into a modern socio-cultural hub through sustainable urban regeneration, based around tourism development. Similarly, upcoming smart cities in Uttar Pradesh can capitalize on their immense tourism potential by integrating smart city elements such as intelligent traffic management, travel apps, smart cards, safety and security systems, amongst others, while also enhancing governance, service delivery and overall standard of living for its citizens. Development of such smart infrastructure requires private sector participation though PPP as well as sustainable financing mechanisms for large infrastructure projects including riverfront development, conservation of architectural heritage and creation of new recreational and entertainment facilities. I am pleased to present this YES BANK-YES Global Institute knowledge report ‘Smart Cities: Fostering Sustainable Tourism in U.P.’, which provides a strategic roadmap for developing a holistic tourism ecosystem to spur urban revival through job creation and inclusive economic development. I am confident that this knowledge report will be a great value-addition for all stakeholders and promote meaningful dialogue in developing tourism focused smart cities in Uttar Pradesh. Thank You. Sincerely, Rana Kapoor Managing Director & CEO Chairman 6 Smart Cities Fostering Sustainable Tourism in U.P. CONTENTS 1. Introduction 10 1.1 Uttar Pradesh: Smart Cities 10 1.2 Tourism in Smart Cities of UP 13 1.3 Tourism in Cities 14 1.4 Urban Infrastructure: Capturing Spill-Over Effects for Urban Tourism 15 2. Tourism in Smart Cities 18 2.1 The Old City – New City Paradigm 18 2.2 Tourism Overview of Smart Cities 19 2.2.1. Lucknow 19 2.2.2 Agra 19 2.2.3 Kanpur 20 2.2.4 Varanasi 20 2.2.5 Jhansi 20 2.2.6 Allahabad 21 2.2.7 Aligarh 21 2.2.8 Tourism Projects under Smart Cities in UP 22 3. International Case Studies 26 3.1 Bilbao, Spain 26 3.2 Singapore 27 3.3 Amsterdam 29 4. Policy Framework and Financing Mechanism for Tourism Infrastructure 32 4.1 Institutional Infrastructure 32 4.2 Financing Mechanism for Heritage Infrastructure 33 4.2.1 Private Sector Participation 33 4.2.2 TDR for redevelopment of Heritage Precincts 35 4.2.3 Financing Riverfront Development 35 5. Way Forward 38 5.1 Capacity Building 38 5.2 Institutional Infrastructure 39 5.3 Tourism Infrastructure Management Models 39 5.4 Sister Cities: International Collaboration 40 5.5 Branding 41 Conclusion 42 Smart Cites Fostering Sustainable Tourism in U.P. 7 List of Abbreviations GSDP Gross State Domestic Product B&B Bed & Breakfast CTO Chief Technology Officer GIS Geographic Information System HRIDAY Heritage City Development and Augmentation Yojana ICT Information and Communication Technologies ITeS Information Technology Enabled Services NGO Non-Governmental Organization NMT Non-Motorized Transport MoT Ministry of Tourism PPP Public Private Partnership RBI Reserve Bank of India TDR Transferable Development Rights UNESCO United Nations Educational Scientific and Cultural Organization UCCN UNESCO Creative Cities Network 8 Smart Cities Fostering Sustainable Tourism in U.P. Introduction 1 Smart Cites Fostering Sustainable Tourism in U.P. 9 1 | Introduction 1.1 Uttar Pradesh: Smart Cities Uttar Pradesh is one of the leading states of the Indian republic on a wide variety of parameters. It is the most populous state of the country and the fourth largest in terms of area. It is also one of the leading industrial states, offering robust infrastructure, extensive road network, large pool of talent, and various investments and incentives offered by the Government. Owing to its large base of skilled workers, it has emerged as a key hub for IT and ITeS industries, including software, captive business process outsourcing (BPO) and electronics. Home to heritage precincts like the Taj Mahal, Bara Imambara, Ghat at Varanasi and many buddhist sites, Uttar Pradesh is also one of the most favoured destinations for international as well as domestic tourists (figure 1). Figure 1: Tourist Arrivals Domestic Tourist Visits by State – 2015 Others, Tamil Nadu, 16.4% 23.3% Rajasthan, 2.5% Gujarat, 2.5% West Bengal, 4.9% Uttar Pradesh, 14.3% Madhya Pradesh, 5.4% Telengana, 6.6% Andhra Maharashtra, Pradesh, 8.5% 7.2% Karnataka, 8.4% 10 Smart Cities Fostering Sustainable Tourism in U.P. Foreign Tourist Visits by State – 2015 Other, Tamil Nadu, 11.6% 20.1 Goa, 2.3% Karnataka, 2.7% Bihar, 4.0% Kerala, 4.2% Rajasthan, 6.3% Maharashtra, 18.9% West Bengal, 6.4% Delhi, 10.2% Uttar Pradesh, 13.3% Source: Ministry of Tourism 1.2 Tourism in Smart Cities in UP Across the world, increasing migration from rural to urban areas is creating the need for expanding and improving the urban infrastructure to cope up with this shift in rural-urban population balance. It is expected that by 2050, about 70% of the population will be living in cities, and India is no exception. The concept of a ‘Smart City’ envisages creation of urban living spaces that are highly advanced in terms of overall infrastructure, sustainable real estate, communications and market viability using Information Technology as the key enabler to achieve
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