Government of Sikkim Department of Tourism and Civil Aviation State Tourism Policy, 2015 Government of Sikkim Table of contents - Message from the Hon’ble CM - Message from the Hon’ble Tourism Minister - Foreword – Tourism Secretary 1. INTRODUCTION 1.1 Global Tourism Scenario 1.2 Tourism in India 2. TOURISM IN MOUNTAIN REGIONS 2.1 Models for promoting sustainable tourism 2.2 Key Considerations 3. TOURISM IN SIKKIM 3.1 State Profile/ Natural Landscape / Culture and People 3.2 Tourism Development in Sikkim 3.3 Tourism in the economy 3.4 Strengths and challenges of tourism in Sikkim 3.5 Need for a tourism policy for Sikkim 3.6 Methodology for Policy Development 4. SIKKIM TOURISM POLICY 4.1 VISION 4.2 GUIDING PRINCIPLES 4.3 GOALS 4.4 Objectives 1. Strengthen/Establish Institutional Structures 2. Promote Standards & Certification 3. Human Resource Development 4. Quality Infrastructure and Transport 5. Regulatory Framework 6. Product Development 7. Marketing and Publicity 8. Enabling Environment 9. Planning and Policy Implementation 5. INTERSECTORAL CONVERGENCE AND COORDINATION Message from Hon’ble Chief Minister Message from Hon’ble Minister Tourism 4 Foreword 5 1. INTRODUCTION 1.1 Global Tourism Scenario Tourism is a socio-cultural and economic phenomenon, which entails the movement of people to countries or places outside of their usual environment for recreational, business, medical, or religious purposes. Tourism also encourages governments to develop and improve local infrastructure, which is equipped to handle tourist influx. Several countries have transformed themselves through tourism and created a global presence in the tourism industry. T ourist movements have spread geographically to reach practically all countries of the globe, becoming for many of them an important economic sector in terms of income generation, foreign exchange earnings and employment creation. As reported by the United Nations World Tourism Organization (UNWTO) Tourism Highlights 2015 Edition, international tourist arrivals grew to 1.1 billion in 2014 from 25 million in 1950. The UNWTO estimates that approximately 1 in 11 persons in the world is employed by the tourism industry. As of 2014, the global tourism industry generated USD 7.6 trillion, constituting 10% of the global GDP. 1.2 Tourism in India In the Indian context, the first public milestone in the history of tourism was the creation of the Indian Tourism Development Corporation (ITDC) in 1966. This organization was established to develop tourist infrastructure and services. Subsequently India developed its first Tourism Policy in 1982, which provided an action plan based on the development of so-called tourism circuits. This interest also resulted in the recognition of tourism as an export industry (including the implied tax exemptions) and the creation of a special public tourism finance corporation (1987). Apart from identifying a few areas for 'integrated tourism development', the purpose of the plan was to achieve an overall growth and improvement of the tourism sector in India through marketing, infrastructure building and human resource development. The importance of domestic tourism was recognized by public policy makers in the 1990s and also in the Tourism Action Plan of 1997. It was decided that domestic tourism would be a state government (policy) issue and the central government would take care of international tourists. In 2002, India came up with a new Tourism Policy, which sought to highlight tourism's contribution to national development and its role as a development tool. A World Travel and Tourism Council (WTTC) report for 2014 states that for India the total contribution of tourism to the GDP is Rs. 7,642.5 billion rupees, approximately 6.7% of the GDP. Between 2002 and 2014, foreign tourist arrivals grew from 2.38 million to 7.70 million, the latter of which accounts for 0.68% of global tourist arrivals. 6 Domestic tourist visits have increased from 270 million in 2002 to 1.14 billion in 2013. This has largely been attributed to the emergence of an urban middle class which looks to tourism for recreational purposes. In 2014, tourism in India earned Rs. 1,200,083 million or 1.58% of global tourism receipts. The Indian tourism industry is responsible for creating 23 million direct jobs (or 5.5% of total jobs in India) and 36.6 million total jobs (or 8.7% of total jobs in India). In 2013, India demonstrated a 4% growth in tourism, or approximately 7 million international arrivals. The WTTC also states that for a period of 2014-2024 international tourist arrivals in India are expected to grow at the rate of 6.4%, whereas global tourism is expected to grow at a rate of 4.5% through 2014 and beyond. 7 2. TOURISM IN MOUNTAIN REGIONS As desired destinations for many tourists, migrants, and pilgrims, tourism in the mountains offers places for rest, solitude, adventure, recreation, as well as scenic beauty. It is estimated that more than 50 million people visit mountains each year (Mountain Partnership 2008). The Food and Agriculture Organization estimates that mountains attract roughly 15 to 20% of the global tourism market. Mountain tourism generation is generally more labour intensive than tourism in the plains, necessitating a greater number of support staff (porters, mountain guides, pack animal owners) to accompany trekking groups or mountaineering expeditions, and to carry supplies up to remote mountain tourism destinations not connected by road or air. While tourism provides considerable economic benefits for many countries, regions and communities, its rapid expansion can also be responsible for adverse environmental (and socio- cultural) impacts. For years, mountains have attracted tourist attention especially because of the cool climate they offer. With temperatures increasing across the plains due to climate change and the extreme summer months, the mountains are a much preferred destination. Visiting spectacular mountainous regions of Central Asia, the Hindu Kush, and the Himalayas also bring with it the attraction of mountain culture and the distinct ethnicity. Cultural identities and diversity in mountain regions, refined over generations by local habitants and the splendid natural heritage have immense value and attract tourists from all over the world. The ever-increasing demand for tourism in mountain areas is expected to grow even further as regional tourism becomes more important. However, it presents tremendous opportunities as well as threats for the Himalayas. The investment, as well as operational and managerial decisions of tour operators, along with other tourism professionals and the wider industry can determine the level of both negative and positive impacts of tourism in the mountain environment. The fact that most tourists chose to maintain their relatively high patterns of consumption (and waste generation) when they reach their destinations is being seen as a serious problem for developing countries, since many of these regions lack the appropriate means for protecting their natural resources and local ecosystems from the pressures of mass tourism. [Frederico Neto, 2002] It is also important to recognize that fragile mountain areas, especially the Himalayas are constantly reeling under the risks of hydro-meteorological and geological disasters. The need for infrastructure augmentation to cater to unregulated tourist influx often results in rampant deforestation and ecological destruction, further increasing this disaster risk. 8 Because environmental conditions are a critical resource for tourism, a wide-range of climate-induced environmental changes will have profound effects on tourism at the destination and regional level. Changes in water availability, biodiversity loss, reduced landscape aesthetic, altered agricultural production, increased natural hazards, landslides and inundation, damage to infrastructure, as well as the increasing incidence of vector-borne diseases will all impact tourism to varying degrees. In contrast to the varied impacts of a changed climate on tourism, the indirect effects of climate induced environmental change are likely to be further on the negative. By planning and developing tourism in mountain areas in a responsible way – ensuring that it is based on integrated concepts and strategies embedded in a wider, pro-poor, sustainable, and inclusive mountain development context – tourism can support mountain communities in the pursuit of new livelihood options that fit naturally with their mountain environment. This would increase their resilience to climate change alongwith other drivers of change that are making traditional livelihoods increasingly unsustainable. 2.1 Models for promoting sustainable tourism To manage the impacts of tourism in fragile mountain areas, and to enhance incentives for local stakeholders to play a role in management and regulation, a number of different approaches have been used in different mountainous regions of the world. Some of these approaches could be relevant to Sikkim, as well. :: Managing tourist numbers in ecologically sensitive areas In the areas that are likely to get negatively impacted (environmentally or socially) by a large numbers of tourists, it is important to regulate numbers from the start. This can be done at the country, regional, or site level and can include a combination of high fees and/or limits on entry. Bhutan’s tourism policy focuses on principles of high income/low volume and tourists need to spend USD 200 -250/day, which limits numbers. In Nepal’s ecologically-fragile