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March 2003 Drshti Strategic Research Services Pvt. Ltd GOVERNMENT OF INDIA MINISTRY OF TOURISM AND CULTURE DEPARTMENT OF TOURISM MARKET RESEARCH DIVISION Final report on 20-YEAR PERSPECTIVE PLAN FOR SUSTAINABLE TOURISM DEVELOPMENT IN HIMACHAL PRADESH PART I March 2003 Drshti Strategic Research Services Pvt. Ltd. MoTAC – Department of Tourism Drshti Draft Report on Perspective Plan for Tourism in Himachal PART I Chapter No. CONTENTS Page No. 1. INTRODUCTION 1.1 Background To The Study 2-17 1.2 Deliverables For The Study: 3-17 1.3 Methodology For The Study 4-17 1.4 Analysis Of Tourism Potential In The State 15-17 1.5 Strategic Action Plan For Sustainable Tourism Development 15-17 1.6 Limitations Of The Study 15-17 1.7 Structure Of The Report 17-17 2 EXECUTIVE SUMMARY 2.1 Overview 2-49 2.2 Objectives Of The Tourism Policy In Himachal Pradesh 2-49 2.3 Major Tourist Destinations In Himachal (Circuits And 3-49 Standalone Destinations) 2.4 Dot Circuits 4-49 2.5 Tourist Inflows 6-49 2.6 Demand Supply Gap – Beds: Dynamic Projections 14-49 2.7 The Tourist Perspective 17-49 2.8 Ongoing Projects – Summary 21-49 2.9 New Projects – Infrastructure 31-49 2.10 New Circuits 32-49 2.11 New Projects Employment Potential 33-49 2.12 Sources Of Funding 34-49 2.13 The Strategic Action Plan 38-49 2.14 Institutional Framework For Tourism Development 48-49 ______________________________________________________________________________ Drshti Strategic Research Services Pvt. Ltd MoTAC – Department of Tourism Drshti Draft Report on Perspective Plan for Tourism in Himachal Chapter No. CONTENTS Page No. 3. OVERVIEW OF THE STATE OF HIMACHAL PRADESH 3.1 Overview 2-63 3.2 Census Statistics 3-63 3.3 Economy Of Himachal Pradesh 6-63 3.4 Industrial Scenario 7-63 3.5 Forest Cover 11-63 3.6 Infrastructure In Himachal Pradesh 15-63 3.7 Districts Of Himachal Pradesh 30-63 4. EXISTING TOURISM SCENARIO IN HIMACHAL PRADESH 4.0 Tourism In India 2-49 4.1 Overview Of Tourism In Himachal Pradesh 2-49 4.2 Tourist Arrivals In Himachal Pradesh 3-49 4.3 Comparison With Other States 4-49 4.4 Objectives Of The Tourism Policy In Himachal Pradesh 9-49 4.5 DoT’ Circuits 11-49 4.6 Analysis Of The Circuits 18-49 4.7 Tourism Related Infrastructure 23-49 4.8 Direct Tourism Infrastructure 29-49 4.9 Recreation 36-49 4.10 Tourist Information Centres 41-49 4.11 Ayurveda 42-49 4.12 Rural Tourism 44-49 4.13 Wall Paintings In The Temples Of Himachal 47-49 4.14 Gaps 49-49 4.15 Solutions 49-49 ______________________________________________________________________________ Drshti Strategic Research Services Pvt. Ltd MoTAC – Department of Tourism Drshti Draft Report on Perspective Plan for Tourism in Himachal Chapter No. CONTENTS Page No. 5. MAJOR PLANS AND SCHEMES 5.1 State Government Initiatives To Promote Tourism 2- 29 5.2 Summary Of Ongoing Projects In Himachal Pradesh 11-29 5.3 Major State Government Plans And Incentives For 20-29 Tourism Chapter No. CONTENTS Page No. 6. OPINION SURVEY 6.1 Opinion Survey 2-46 6.2 Views Of Corporates 3-46 6.3 Domestic Tourist Outside Himachal Pradesh 6-46 6.4 Views Of Domestic Tourist In Himachal 12-46 6.5 Views Of Foreign Tourist In Himachal Pradesh 18-46 6.6 Hotel Managers Views And Problems 26-46 6.7 Views Of Tour Operators 29-46 6.8 Views Of Non-Governmental Organisations 31-46 6.9 Views Of Government Departments 35-46 6.10 Views Of Locals 44-46 6.11 Views Of Film Makers 46-46 ______________________________________________________________________________ Drshti Strategic Research Services Pvt. Ltd GOVERNMENT OF INDIA MINISTRY OF TOURISM AND CULTURE DEPARTMENT OF TOURISM MARKET RESEARCH DIVISION Final report on 20-YEAR PERSPECTIVE PLAN FOR SUSTAINABLE TOURISM DEVELOPMENT IN HIMACHAL PRADESH PART II March 2003 Drshti Strategic Research Services Pvt. Ltd. MoTAC – Department of Tourism Drshti Draft Report on Perspective Plan for Tourism in Himachal PART II Chapter No. CONTENTS Page No. 7. KEY DESTINATIONS IN DISTRICTS 7.1 District Chamba 2-134 7.2 District Solan 12-134 7.3 District Hamirpur 18-134 7.4 District Una 24-134 7.5 District Lahaul And Spiti 30-134 7.6 District Mandi 37-134 7.7 District Kinnaur 44-134 7.8 District Shimla 57-134 7.9 District Sirmaur 85-134 7.10 District Kangra 91-134 7.11 District Kullu 99-134 7.12 District Bilaspur 129-134 8. FORECAST OF FUTURE TOURIST TRAFFIC AND BED 8.0 Introduction 2-65 8.1 Tourist Traffic Trends: Global Scenario 2-65 8.2 Tourist Traffic Trends: Indian Scenario 3-65 8.3 Regional Scenario: Himachal Pradesh 6-65 8.4 Forecasts 9-65 8.5 Static Forecasting: Forecasting Using Time Series 9-65 8.6 Forecasting Of Bed Requirements 13-65 8.7 DYNAMIC FORECASTING: Based District Wise Activity Plan And 18-65 Marketing Effort 8.8 Bed Requirements By Forecasting Based On Marketing Effort 61-65 (Method 2) ______________________________________________________________________________ Drshti Strategic Research Services Pvt. Ltd MoTAC – Department of Tourism Drshti Draft Report on Perspective Plan for Tourism in Himachal Chapter No. CONTENTS Page No. 9. PROPOSED TOURISM PROJECTS 9.0 Tourism Projects 2-94 9.1 Chamba District 26-94 9.2 Solan District 43-94 9.3 Hamirpur District 47-94 9.4 District Una 51-94 9.5 District Lahaul & Spiti 53-94 9.6 District Mandi 55-94 9.7 District Kinnaur 61-94 9.8 District Shimla 66-94 9.9 District Sirmour 71-94 9.10 District Kangra 74-94 9.11 District Kullu 81-94 9.12 District Bilaspur 92-94 Chapter 9 – Appendices – Projects and costs i-xxix 10. EMPLOYMENT OPPORTUNITIES AND ENVIRONMENTAL ISSUES 10.1 Tourism Related Employment Opportunities 2-20 10.2 Tourism And Associated Environmental Issues 9-20 11. FUNDING OF TOURISM PROJECTS 11.1 Sources Of Funding 2-19 11.2 Incentives For Tourism Industry In Himachal Pradesh 4-19 11.3 Funding Agencies 14-19 ______________________________________________________________________________ Drshti Strategic Research Services Pvt. Ltd MoTAC – Department of Tourism Drshti Draft Report on Perspective Plan for Tourism in Himachal Chapter No. CONTENTS Page No. 12. INSTITUTIONAL FRAMEWORK FOR TOURISM DEVELOPMENT 12.1 Existing Institutional Framework 2-11 12.2 Institutional Framework: Recent Initiatives 5-11 12.3 Suggested Focus Areas For Implementation 6-11 13. STRATEGIC ACTION PLAN 13.0 The Strategic Action Plan Has Been Developed Using The Following 2-16 Construct 13.1 Demand Side Understanding 3-16 13.2 Gaps 6-16 14. SUMMARY OF RECOMMENDED INITIATIVES, INVESTMENTS AND POTENTIAL FUNDING 14.0 Background 2-20 14.1 Product Development Plans 2-20 14.2 Communication And Marketing 6-20 14.3 Costs Of Marketing And Communication 10-20 14.4 Human Resource Development 13-20 14.5 Summary Of Investments Required 16-20 14.6 Funding Options 18-20 15. ANNEXURES Discussion Guidelines and Questionnaires Administered 2-29 ______________________________________________________________________________ Drshti Strategic Research Services Pvt. Ltd CHAPTER 1: INTRODUCTION MoTaC – Department of Tourism Drshti Final Report on Perspective Plan for Tourism in Himachal_______________________________ Drshti Strategic Services Pvt Ltd had been commissioned to conduct a study aimed at “Preparation of 20 years Perspective Plan for the tourism sector in Himachal” by the Ministry of Tourism, Govt. of India. This report is the final report based on the findings of the study. 1.1 BACKGROUND TO THE STUDY Department of Tourism (DoT) wished to create a 20 year Tourism development plan for Himachal, to be implemented in conjunction with the state government. DOT felt that tourist destinations may have remained unexploited due to: • Lack of infrastructure support • Socio-cultural controversies • Improper management of resources Further, it also felt that there were some unexplored destinations, which needed to be exploited with proper long term as well as short term plans. Drshti Strategic Services Pvt Ltd were invited, by the Ministry of Tourism and Culture, Department of Tourism, to assess the tourism scenario in Himachal and to suggest appropriate tourism projects and roles of various parties in implementing the same. ______________________________________________________________________________ Drshti Strategic Research Services Pvt. Ltd Page 2 of 17 Chapter 1 MoTaC – Department of Tourism Drshti Final Report on Perspective Plan for Tourism in Himachal_______________________________ 1.2 DELIVERABLES FOR THE STUDY: • To list and evaluate existing tourist destinations in Himachal. • Categorization of tourist destinations This would include the classification of tourist destinations as stand alone and / or as a part of a circuit. • To assess and evaluate the facilities available at various tourist destinations. This would include the evaluation of the current facilities available at the tourist destinations including lodging facilities, quality of road, transportation facilities, civic amenities etc. • To assess the status of existing infrastructure. • To identify likely infrastructure requirements. • To analyse current traffic flow to major destinations This includes both foreign and domestic tourists. This would also include assessment of traffic flow taking into consideration past growth trends. • To review the existing developmental and investment plans This includes plans for all existing and potential tourist centers. • Identification of new destinations and projects including projects for up gradation and expansion. • Financial Planning This would include the evaluation of the cost of infrastructure buildup. • Employment generation This would include the analysis of project wise employment generation capability, specifically for women. • Impact on environment This would include the analysis of the impact tourism and tourism related projects have on the environment. ______________________________________________________________________________ Drshti Strategic Research Services Pvt. Ltd Page 3 of 17 Chapter 1 MoTaC – Department of Tourism Drshti Final Report on Perspective Plan for Tourism in Himachal_______________________________ 1.3 METHODOLOGY FOR THE STUDY The study was based upon the analysis of primary data being collected through structured questionnaires, qualitative depth interviews, observations, as well as already available secondary data.
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