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Tourism Infrastructure Unleashing the Growth Potential

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Tourism Infrastructure Unleashing the Growth Potential Knowledge Partner Investment in Tourism Infrastructure Unleashing the Growth Potential TITLE Investment in Tourism Infrastructure: Unleashing the Growth Potential YEAR July, 2016 AUTHORS Strategic Government Advisory (SGA), YES BANK Ltd. No part of this publication may be reproduced in any form by photo, photoprint, microfilm or any COPYRIGHT other means without the written permission of YES BANK Ltd. or FICCI This report is the publication of YES BANK Limited (“YES BANK”) and FICCI so YES BANK and FICCI have editorial control over the content, including opinions, advice, statements, services, offers etc. that is represented in this report. However, YES BANK, FICCI will not be liable for any loss or damage caused by the reader’s reliance on information obtained through this report. This report may contain third party contents and third-party resources. YES BANK and/or FICCI take no responsibility for third party content, advertisements or third party applications that are printed on or through this report, nor does it take any responsibility for the goods or services provided by its advertisers or for any error, omission, deletion, defect, theft or destruction or unauthorized access to, or alteration of, any user communication. Further, YES BANK and FICCI do not assume any responsibility or liability for any loss or damage, including personal injury or death, resulting from use of this report or from any content for communications or materials available on this report. The contents are provided for your reference only. The reader/ buyer understands that except for the information, products and services clearly identified as being supplied by YES BANK and FICCI do not operate, control or endorse any other information, products, or services appearing in the report in any way. All other information, products and services offered through the report are offered by third parties, which are not affiliated in any manner to YES BANK or FICCI. DISCLAIMER The reader/ buyer hereby disclaims and waives any right and/ or claim, they may have against YES BANK or FICCI with respect to third party products and services. YES BANK and FICCI make no representation or warranty, express or implied, including, but not limited to, warranties of merchantability, fitness for a particular purpose, title or non – infringement. As to documents, content, graphics published in the report, YES BANK and FICCI make no representation or warranty that the contents of such documents, articles are free from error or suitable for any purpose; nor that the implementation of such contents will not infringe any third party patents, copyrights, trademarks or other rights. All materials provided in the report are referred from publicly available source In no event shall YES BANK and FICCI or its content providers be liable for any damages whatsoever, whether direct, indirect, special, consequential and/or incidental, including without limitation, damages arising from loss of data or information, loss of profits, business interruption, or arising from the access and/or use or inability to access and/or use content and/or any service available in this report, even if YES BANK and FICCI are 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. FICCI Nikhil Sahni Rahul Chakravarty Senior President Director Government Banking & Tourism Strategic Government Advisory Northern Regional Office Federation House, Tansen Marg New Delhi 110 001 48, Nyaya Marg, Chanakyapuri New Delhi – 110 021 Tel : +91-11-2331 1720 CONTACTS Fax : +91-11-2376 5333 Tel : +91-11-66560562 Email : [email protected] Email : [email protected] Website : www.ficci.in 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 Tourism offers enormous growth potential for India, opening it up for business, trade and capital investment, boosting job creation and entrepreneurship, as well as protecting and promoting our rich heritage and cultural values. With investments expected to rise by 4.8% in 2016 and by 6.3% p.a. thereafter till 2026, the tourism industry will create a multiplier effect on other sectors of the economy, thus truly adding ‘Inclusiveness’ to Incredible India. With 10 bio-geographical zones and 32 world heritage sites, unchallenged geographical advantage and a diverse portfolio of niche tourism products including adventure, medical, wellness and sports among others, India remains the hotspot for global tourists. However, while the Government has invested over INR 1,500 Crores in 2015 and significantly increased allocation in the Union Budget for 2016-17, it is important that a conducive ecosystem is created for investors as well as tourists through collaborated efforts of the Government, policy makers, industry and institutions. Steps such as improving infrastructure and connectivity, tourist assistance facilities, safety and regulatory framework, as well as ensuring convenient visa, immigration and customs procedures, will be pivotal for leveraging the full potential of this sector. Further, policy reforms for rationalization of land procurement costs and single-window clearance systems will significantly boost investments in the sector. I am pleased to present the FICCI - YES BANK Knowledge Report ‘Investment in Tourism Infrastructure: Unleashing the Growth Potential’ which highlights potential areas of development, recent initiatives of the Government and key recommendations for establishing India as the world’s most preferred travel destination. I am confident that the contents of this report will be useful reference for all stakeholders and will provide further impetus to development of the Tourism sector in India. Thank You. Sincerely, Rana Kapoor Managing Director & CEO Chairman FOREWORD Tourism sector makes a significant impact on the economy of our country. World Travel and Tourism Council Report 2016 reveals that the travel and tourism sector contributed `8309.4 Billion to the country’s GDP which supported around 37 Million jobs in 2015. Tourism is thus a priority area for the Government due to its important contribution to job creation and bring much needed economic stimulus. The Central Government plays an important role in developing a strong visitor economy which is evident from the fact that the Ministry of Tourism got 70% hike in the Union Budget 2016-17 with an allocation of `1590 crore to focus on infrastructure development and promotional initiatives. The Ministry of Tourism has also undertaken a slew of initiatives such as extending e-tourist Visas to 150 countries, releasing M-Visa and promoting different tourism products amongst others that have fuelled impressive tourism growth. India’s appeal in the global tourism market is determined by its capacity to offer world class infrastructure facilities. The critical infrastructure required for comfortable experience to tourists includes connectivity, tourists’ facilities, maintenance and management of tourist attractions. Government recognizes this need and has introduced series of schemes such as PRASAD, HRIDAY and Swadesh Darshan amongst others to improve linkages between key tourist locations which shall certainly provide much needed impetus to the tourism infrastructure of the country. Looking ahead, the challenge lies in building the world class infrastructure, rationalize cost of land procurement and simplify licenses of land towards creating ‘Brand India’. In order to achieve this, Government, Industry and Institutions must make collaborative efforts to create a supportive ecosystem for tourism. I am pleased to present the FICCI - YES BANK Knowledge Report ‘Investment in Tourism Infrastructure: Unleashing the Growth Potential’ which captures the present tourism scenario, potential areas of development and proposes key interventions for India to secure a leading place on the global tourism map. I am confident that this document will facilitate a better understanding of the opportunities both by the government and private sector and will be instrumental in designing their interventions therein. Sincerely, Dr. Jyotsna Suri Immediate Past President, FICCI Chairperson, FICCI Tourism Committee and Chairperson & Managing Director, Lalit Suri Hospitality Group Contents 1. Travel & Tourism - A Socio-Economic Perspective 29 1.1. Global Tourism Industry 30 1.2. Domestic Tourism: Current Scenario 31 2. Central Government Initiatives-Shaping the Tourism Growth Curve 35 2.1. Ministry of Tourism 36 2.2. Ministry of Civil Aviation 38 2.3. Ministry of Railways 39 2.4. Ministry of Shipping 41 2.5. Ministry of Road Transport & Highways 43 2.6. Ministry of Environment, Forest & Climate Change 45 2.7. Ministry of External Affairs 46 3. Tourism Outlook in Key States 47 3.1. Madhya Pradesh 48 3.2. Rajasthan 52 3.3. Chhattisgarh 56 3.4. Punjab 59 3.5. Delhi 62 3.6. Karnataka 65 3.7. Telangana 69 3.8. Andhra Pradesh 72 4. Way Forward-Action Steps 77 List of Figures Figure 1.1: Direct Contribution of Tourism to GDP (Real 2015 prices) 31 Figure 1.2: Total Contribution of Tourism to GDP 31 Figure 1.3: Tourist Footfall (2015) 32 Figure 1.4: Domestic Tourist Visits 32 Figure 1.5: Domestic Tourist Visits (DTVs) growth rate in % 32 Figure 1.6: Foreign Tourist Arrivals (FTAs) growth rate in % 33 Figure 1 7: Percentage Share: Domestic vs Foreign 33
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