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Manipur to promote tourism to improve economy

IMPHAL: The government of insurgency hit Manipur has decided to implement schemes to promote tourism in the state to improve its sagging economy.

As a part of the plan, the government would set up a hotel management institute, the first of its kind in the state, at Nungsai Chiru in Bishenpur district with the Centre's help, Tourism Minister T N Haokip said.

Pointing out that Manipur has potential for development of tourism industry, Haokip said he has submitted 17 projects to the Union tourism minister Ambika Soni recently.

The Centre has agreed to sanction Rs 10 crore for the hotel management institute during 2008-09, he said.

Haokip said an area of five acres of land has been acquired at Nungsai Chiru at the trijunction of three districts of Bishenpur, Senapati and Churachandpur.

Haokip said the process for formation of a society to run the institute was also on.

Official sources said foreign tourists needed permission from Union Home Ministry for entering Manipur as per provisions of the Restricted Area Permit system.

They said the state government had earlier urged the Centre to lift this RAP system so that foreign tourists could visit Manipur freely and if this happened, the state's economy would improve.


Frome : http://articles.economictimes.indiatimes.com

RTDC, TCGL sign MoU on tourism

in order to promote tourism activities in their states, rajasthan tourism development corporation and tourism corporation of gujarat have signed a memorandum of understanding at a function held here on friday. according to an official release, the salient features of the mou include reservation of hotels, conducting inter-state package tours, taking up joint publicity and marketing campaign for the activities of both the corporations. both the corporations can now display on their respective letter heads, tariffs and other publicity materials and logos as an authorised marketing agent. these corporations have agreed to maintain proper accounts.

Frome : http://articles.economictimes.indiatimes.com

Social media helps advance tourism studies

WASHINGTON: Scientists have used social media - vacation photos from Flickr - to study how people use natural areas for tourism and recreation.

Researchers affiliated with the Natural Capital Project atStanford University have found a way to use photo-sharing site Flickr to measure where and when people are using natural areas for recreation and tourism.

Tourism is a big industry, contributing $6 billion a year to the world economy, and it's expected to grow to $10 billion over the next 10 years, researchers said.

While a great deal is known about how man-made tourist destinations, such as Disneyland, contribute to local economies, it has been hard to figure out the contribution of natural areas such as parks and beaches, they added.

Tapping into the big data collected by social media sites, researchers at the Natural Capital Project utilised information from 1.4 million geo-tagged images in Flickr, and the user profiles associated with them, to see where people were going and where they were coming from.

Comparing this information to data from on-site surveys at 836 recreational sites around the world, they found that the information from Flickr can serve as a reliable indicator of how many people visit a tourist attraction each year and when they are visiting.

The research shows how "information from crowd-sourced social media is revolutionising the way we study people and understand their choices," said lead author Spencer Wood.

"No one has been able to crack the problem of figuring out visitation rates and values for tourism and recreation without on-site studies until now," said Anne Guerry, lead scientist at the Natural Capital Project.

Until now, researchers had to rely on local surveys and head counts to get this type of visitation information. Using social media to get ideas of where people are visiting, and where they are coming from, is faster, less expensive and better for looking at changes over time and space.

This new approach provides the chance to clarify what attracts people to natural areas, and to determine if changes in ecosystems lead to changes in visitation rates.

The study was published in journal Scientific Reports.


Frome : http://articles.economictimes.indiatimes.com

Textile tourism planned in Tirupur

COIMBATORE: For those planning a trip to Kerala or Ooty via NH 47, there would soon be an interesting tourist spot enroute. Like the popular wine tourism in Europe, the district administration of India's hosiery hub Tirupur is envisaging 'textile tourism' to promote the knitwear industry in the newly formed district in Tamil Nadu.

"We are looking to project the uniqueness of this place, which is cotton knitwear industry in the form of textile tourism," Tirupur district collector C Samayamoorthy told ET. He said, the project is still in the nascent stages, but would soon be implemented with support from both the state government and Tirupur exporters.

His plan includes showing tourists glimpses of the total textile value chain — from cotton to yarn to cloth. Visitors can also witness all stages of production starting with processing to final product manufacturing of knitwear products, all at one place.

The district administration and the Tirupur Exporters' Association (TEA) have zeroed in on the Nethaji Apparel Park (NAP) on NH 47 for showcasing the exclusivity of Tirupur. "We are looking to put up some sort of a mall inside the apparel park for the visitors to shop. Like wine tasting, they can also check on the latest fashion and products available in Tirupur," Mr Samayamoorthy added.

NAP has more than 50 companies manufacturing knitwear for exports. "It would be an ideal place to show all stages of textile manufacturing at one place," said TEA president A Sakthivel. He added the exporters are looking forward to the promotion of textile tourism, since it would help spread the Tirupur brand all across the world.

Tirupur, which has been attracting lot of foreign exchange in the last few years, accounts for nearly 90% of India's cotton knitwear exports. In 2006-07, exports from the region crossed Rs 11,000 crore, but is on a downslide for the last two years.

"US and Europe are our traditional markets and whenever there is a problem there, the effects are felt here," said TEA secretary general G Karthikeyan. He added the promotion of Tirupur in the form of textile tourism will help them reach newer markets in Asia, Africa and South America. Nearly 2000 foreign buyers visit Tirupur every year and a

minimum of 150 North Indians call on the knitwear manufacturers per day.

T-shirts, polo-shirts, sweat-shirts, banians, pyjamas and night dresses on various fabrics like single jersey, interlock, fleece, polar fleece, pique jersey, pointelle jersey and drop needle are specialty products from Tirupur. The region is also known for cotton undergarments.

So with the development of textiles tourism, which will put the city on the tourist map of India and also the world, the exporters believe it can add value to the place and also improve business connections.


Frome : http://articles.economictimes.indiatimes.com

Jamborees galore as tourism sinks

The ratio of tourism-related associations (16 at the last count) and trade shows to dwindling business, is scathing. In an industry that was slated to be competing for the top position in foreign exchange earnings in our country four years ago, the present and, one suspects, the future, is terrifying.

And when at trade shows — five of them were held within a fortnight of each other — tourism products are flaunted with no customers to buy them, even a travel agent will think that somewhere something is not quite right.

In a country that continues to seek role models and somebody to extol, China gets an honourable mention at every travel seminar. But then India, sadly, is not China and the two can hardly be compared.

China has an infrastructure geared for tourism, its hotels do not require 42 clearances before the first brick is laid and its strategic marketing focuses on its target markets.

Take India, where its civil aviation minister does not find the need for an aviation policy, where airports are opened at random as potential vote banks, where foreign junkets by government officials in the name of tourism are not evaluated given that tourism figures fall as "sales missions" increase and where the word "crisis management" is not mentioned for fear heads might roll.

Over a visitor-starved year has gone by and India continues to talk about an e-campaign to be launched in long-haul markets, even as pundits tell us short-haul travel is the current trend keeping 'security-comforts' in mind. As a delegate at the summit on tourism organised in the Capital by the Confederation of Indian Industry (CII) remarked: "Instead of throwing your apples around mindlessly, target them", referring to focussing on target markets.

India's presence at the world's biggest travel show, the World Travel Market (WTM) London, is the largest every year with state tourism organisations hogging an over 60% presence, a time for fun, frolic, wasting of time and effort. The result of this excessive exercise? A reduction in visitors every year.

India has everything to lose if it ignores tourism. Large investments in hospitality (of up to Rs 16,000 crore) have been made and today the returns are below par. Already, one fears, companies are getting shy of investing further. Indian chains such as the Oberoi, Taj and many others are instead looking at properties in Mauritius, the Maldives, South Africa and even Europe. And why not, the migraines in these destinations are fewer and the returns close to guaranteed.

The department of tourism called the industry's bluff recently by throwing open its overseas offices "to be run by the trade." These are brave words. Surely the department knows that in an industry wrought with internal bickerings and where egos are higher than the tallest mountain, this will never come to being.

Besides, nowhere in the world does the private sector run the tourist office of a country as vast and complicated as India is. It certainly may help to have a professional international public relations agency with a proven record to work on India's image.

This is an accepted practice around the world and one has only to check with neighbouring Sri Lanka to see the benefits that result from it.

The time has come to stop playing games and do some serious thinking with a commitment in mind. It might do good to consider one travel mart for India once in two years instead of dissipating energies in numerous small ones.

It is time India was showcased with airlines, hotels and the industry all pitching in to make it an effective marketing tool. It is surprising to see that the government, in a mart supported by it, also support the section on outbound tourism inviting tourism boards from other countries to target Indians. This defeats the very idea of putting in money and getting buyers from the world over to buy India.

At the recent CII summit mentioned earlier, it was shockingly pointed out that of India's much extolled 2.5 million annual visitors, only 500,000 were "real" tourists, the rest came under various other categories like returning businessmen, students and workers, to mention only a few.

If this shocking truth is not enough to wake up the government to the reality, nothing will.

(The author is a writer, analyst and researcher on tourism and aviation for Indian and international publications)
Frome : http://articles.economictimes.indiatimes.com

Double whammy for Rajasthan tourism

JAIPUR: It's a double blow for the tourism industry in Rajasthan. While the state is yet to recover from the serial bomb blast that had rocked Jaipur earlier this month, road blocks and quota clashes have further cast a shadow over the tourism activities.

Traffic on Jaipur-Agra highway is completely blocked by the Gurjar protesters who are demanding their inclusion in the Scheduled Tribes list. Any tourist movement has been ruled out on the highway while tension runs high on Jaipur-Delhi highway and other state highways where Gurjars are high on concentration.

Thousands of tourists are left stranded on railway stations and bus stands who cannot afford a flight. Tourists who had plans to visit Agra and Delhi on their way to cover the golden triangle (Delhi-Jaipur-Agra) have also been left stranded at Jaipur. Apart from disturbing the itinerary of tourists, it has also affected the state revenue generated through tourism.

According to the state tourism department, the tourist influx as well as outflow has been affected badly. On an average 2,000-2,500 tourists hit Jaipur in the month of May. Daily spend of a tourist is estimated to be Rs 1,200. Due to the quota violence, not more than 200-250 tourists have arrived on Sunday that too from routes other than Jaipur-Agra.

People who had confirmed reservations in hotels are reported to have cancelled it. Even tourist places like City Palace, Museum and Amer fort are wearing a deserted look. The tourism industry must have lost on a business of around Rs 250 crore a day due to this unfortunate incident, an official said.

The hospitality industry is also in a tizzy. The prevailing tension and growing security concerns after bomb blast is not only affecting the current off season business, it is also badly affecting the season's bookings. During off season, the occupancy generally is not more than 30%. And in this year most of the hotels are wearing deserted looks with a mere 10-15% bookings.
Frome : http://articles.economictimes.indiatimes.com

Reviving tourism the British way

There continues to be a pessimism surrounding the Indian travel industry with prospects for the last quarter of 2002 not looking heartening. A year of earthquakes, falling stocks, threat of war and September 11 is now behind us. In a way, India shares a lot with UK as just a year ago, holidaymakers crossed Britain off their travel plans, put off by images of animal pyres ablaze on once-tranquil green pastures. Even as Indian travel continues to sniffle, there are already clear signs that business in Britain is picking up. Significant initiatives from a wide range of bodies and commercial interests is helping to rebuild traveller confidence worldwide. In India, however, we continue to stuff the need for improving our badly hurt image under a carpet of excuses and indifference. Rising collectively to the challenges of 2002, the recent British Trade Fair was itself an indication of the industry's determination to fight back as it positioned itself as "a forum for the regeneration of British tourism". New low prices for first-time exhibitors (77 of 450) and a host of other innovations proved a support mechanism for industry action. Hopefully, the Pacific Asia Travel Association (PATA) international conference held in Delhi has taken a cue from this. With delegate fees amounting to $550 (reduced from $700), the domestic travel trade, struck by economic woes would find it difficult to attend the conference. Major initiatives, both by tourism marketing bodies and individual commercial concerns promise to maintain a momentum that has been set in UK. Major events such as the Queen's Golden Jubilee and the staging of the commonwealth games will inevitably provide a significant and timely lift for UK's profile around the world. Indeed, these events will form an integral part of the British Tourist Authority's (BTA) massive international marketing campaign starting next month, thanks in part to unprecedented financial support from the government which has pledged to match, pound for pound, up to £20 million raised by the industry. Unlike India that continues to have no focussed marketing policy with its tardy budgets, Britain's £40 million campaign will target visitors from seven key countries using high impact TV advertising, supplemented by an increasing number of special offers from many of the biggest players in tourism. The aim is to win back one million visitors, spending £500 million. In fact, BTA had already started to fight back at the end of January with the launch of the UK OK initiative in its key markets. The TV advertising campaign, which launches in April, will build on the success of UK OK, in the same markets. Already, there is optimism that the sharp decline in tourism may have 'bottomed out'. Figures show visitors are coming back to Britain — according to official estimates foreign visitors in December 2001 rose 26 per cent to 727,000 from November's 576,000. BTA has woven into its strategy the fundamental yet vital components of the importance of information and data research, quality, skills of people in the industry and marketing. All this is supported by a risk management strategy on how to react should the unexpected happen again in future. Has India's tourism even remotely considered this? If not, it is time it does. Not resting on its short-found laurels, BTA chief executive Jeff Hamblin said humbly: "The key lesson is about resilience. In crisis, we need to go back to key customers. It is all about opportunity, not tourism." It's also all about getting rid of narrow-minded parochialism, partnerships between tourism and the private sector and establishing a revitalised brand, one that screams quality. Hopefully our industry will wake up to these facts soon.

Frome : http://articles.economictimes.indiatimes.com

Wanna embark on 'dark' tourism?

NEW DELHI: For most Americans the Ground Zero is a constant reminder of the fateful day of terror attack on the World Trade Centre, but for millions of backpackers who troop down to visit the site and similar places hit by tragedy, poverty and catastrophe, its a wish to experience the 'dark'.

Dark or phoenix tourism has arrived globally.

No sooner did the US relax its travel norms after the 9/11 attacks, visitors poured in at the Ground Zero with loaded film rolls to capture the smoking remains of the WTC. Souveneers sold like hot cakes and an estimated 2.2 million people in 2002 took back home memories of one of history's worst terror attacks.

Tour operators say the newest phenomenon in travel involves guided rounds of the sites of historical significance, mostly those which have witnessed death, destruction and tragical drama of some sort. And a preoccupation with such dark experiences have given this form of tourism its name.

Closer home the notorious Jallianwala Bagh site draws in steady trickle of visitors, on a tour of the site that saw one of the worst carnages by the British in the year 1919. A 'Martyrs' Gallery' is also maintained at the site for people to pay their homage to those persecuted. 

However, unlike developed countries like America and those of Europe, the trend is yet to spread its wings in the Indian sub-continent, experts say, mostly due to the fact that "specialised travel" requires the mind-set and economy that Indians are still striving to achieve.

"India, as a developing nation has still bigger problems to deal with. People hardly have the requisite finances for its domestic and foreign tourism, let alone such specialised form of tourism, which is a rising trend in other countries," says Chairman of the Travel Federation of India, Vipul Singhal.

However, even if internal trends of domestic tourism are plotted, famous burial shrines and mausoleums have always been tourist hubs, attracting visitors seeking spiritual solace from all across the country.

"The Taj Mahal is one such timeless tomb which has attracted millions of 'dark' tourists over years," Anil Bhandari, Chairman, Tourism and Civil Aviation Committee, PHD Chamber of Commerce and Industry. 

According to media estimates over three million tourists visited the Taj in 2003.

"Rajghat, the Samadhi of Mahatma Gandhi attract both domestic and foreign tourists," he says.

However active promotion for this "morbid" form of touris is not yet undertaken by foreign tour operators keeping in mind the "taste" of Indian tourists.

"We have not yet promoted such specialised request from any domestic or outbound tourist," Bhandari says. "We have to keep in mind the taste of our Indian customers," he says.

However, keeping in mind the 15 per cent annual growth in tourism sector and the 330 million outbound tourists, experts say people "exploring" such "dark" sites are bound to be on the rise.
Frome : http://articles.economictimes.indiatimes.com

Tourism Ministry to get Rs 600 crore for two new schemes

NEW DELHI: Government has proposed to allocate Rs 600 crore for development of tourism circuits and pilgrimage centres, the Lok Sabha was told today.

Tourism Ministry is formulating schemes for improvement of existing tourist products and to develop new tourist circuits to international standards, Tourism Minister Shripad Naiksaid in a written answer.

He said it has been proposed to allocate Rs 600 crore for two new schemes for development of tourism circuits and a national mission for infrastructure improvement of pilgrimage centres in the budget 2014-15 of the ministry.

As per the budget proposal, Rs 500 crore has been proposed for development of five tourism circuits and Rs 100 crore for a scheme called the National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive.
Frome : http://articles.economictimes.indiatimes.com

Increase in foreign exchange earnings from tourism

NEW DELHI: The Foreign Exchange Earnings (FEEs) from tourism in the country have registered a positive growth over the years, the government said today.

From January to July in 2013, the FEEs stand at Rs 50,448 crore while the earnings have grown from estimated Rs 64,889 crore in 2010 to Rs 94,487 crore in 2012, the minister said.

The number of foreign tourist arrivals and Indian nationals travelling abroad have registered a positive growth during 2010-12, said the minister.

The House was also informed that the media campaigns have resulted in increase of tourist arrivals to India.

Tourist arrivals increased from 2.38 million in 2002, when the 'Incredible India' campaign was launched to 6.58 million in 2012, the minister said.
Frome : http://articles.economictimes.indiatimes.com

Twin air disasters threaten Malaysian tourism push

KUALA LUMPUR: An unprecedented second major aviation disaster in four months could further associate Malaysia with calamity in the eyes of travellers, observers warn, putting the tropical destination's vital tourism sector at risk.

Even before Malaysia Airlines flight MH17 was shot down on Thursday over rebel-held eastern Ukraine in an apparent missile strike, killing all 298 people on board, Malaysian tourism was under a cloud following the MH370 debacle.

Malaysia's March 8 loss of a jumbo jet with 239 people aboard and its widely mocked response hurt the country's image worldwide.

With most of the passengers on MH370 Chinese, tourist arrivals from China -- a key source of visitors on which Malaysia has pinned much of its hopes for further development of the sector -- dropped in the aftermath.

While the circumstances of the two disasters are markedly distinct, perception is key in branding, and the latest tragedy is expected to complicate efforts to repair Brand Malaysia's image.

"Malaysia's competency and governance are not under the spotlight to the same degree as in MH370," Bridget Welsh, a Malaysia researcher at National Taiwan University, told AFP.

"This said, Malaysia Airlines and travel to Malaysia will be affected outside of Malaysia. The effects will not be as serious as MH370 but overall negative."

Some in the tourism sector, however, say any impact may be short-lived as discerning travellers will continue to be drawn by Malaysia's pristine rainforests and beaches, vibrant multi-culturalism and food scene and an overall safe and friendly environment.

Malaysia drew 25 million visitors in 2013 and 65 billion ringgit ($20 billion) in tourism receipts, according to official data.

Hopes were high for 2014, which the government declared "Visit Malaysia Year" with plans to ramp up international promotional efforts centring on its years-long "Malaysia: Truly Asia" campaign familiar to many in the region.

Goals of 28 million visitors and 76 billion ringgit in receipts were set.

Most visitors are day-trippers from neighbouring Singapore but Malaysia is targeting bigger-spending arrivals from the Middle East, Europe and particularly China.

Chinese arrivals have soared, hitting nearly 2 million last year -- seven percent of the total.

But Chinese anger over MH370 caused arrivals from the country to drop 20 percent in April, according to the latest Malaysian figures.

The China Business News reported Monday that concern over travelling on Malaysia Airlines, a major feeder of visitors to the country, has crimped arrivals by more than 40 percent since MH370, citing figures collected from Chinese travel agencies.

"The crash of the Malaysia Airlines flight (MH17)... has deepened consumers' concerns over the carrier," the report cited an official with China Environment International Travel Service as saying.

The official added that MH17 had led to a "large number" of new Malaysia travel cancellations "because a lot of tourists no longer trust Malaysia Airlines' safety".

Malaysia's tourism ministry said in a statement it is "monitoring the market situation closely".

"International tourists are definitely going to be thinking twice, thrice about flying on Malaysia Airlines," said Jonathan Galaviz, a partner with the US-based travel and tourism consultancy Global Market Advisors.

Malaysia's image has not been helped by a wave of kidnappings and other deadly violence on the coast of Malaysian Borneo, normally popular for scuba-diving and nature enthusiasts. Bandits from the nearby Philippines are blamed.

While the country's flag carrier has taken a beating Tan Kok Liang, the vice-president of the Malaysian Association of Tour and Travel Agents, said agencies are hoping tourists will continue to visit the country on different airlines.

"Our outlook is that the average tourist will still want to come to Malaysia. The latest incident has got nothing to do with the safety of Malaysia and there is no reason why people will stay away," he said.

That seems to bear out with foreign travellers arriving at Kuala Lumpur International Airport after the latest incident, with most saying they were mostly unperturbed.

"Sadly there is a lot of scepticism about coming to Malaysia ... This is my first time. I came because I am attracted to its multi-cultural society," Alfred McDonnell, a 60-year-old American teacher, told AFP.

Frome : http://articles.economictimes.indiatimes.com

Karnataka bets big on tourism

MUMBAI: "There is more to Karnataka than Bangalore", is the message Karnataka tourism authorities are sending out. The state is being re-packaged with the tag-line 'India's Theatre of Inspiration.'

On the roadshow in Mumbai to sell Karnataka today was the state's minister for tourism and information technology DB Inamdar with a high ranking team including the state tourism secretary and a group of 35 tourism trade partners.

The state is trying to market itself by showcasing its forests, beaches, heritage sites, religious places and romantic spots dovetailed with the pub culture of Bangalore.

Tourism is now a thrust area and it has launched a worldwide campaign in March, positioning itself to receive a share of the world tourist market.

Negotiations are currently on with the Taj and the Leela group for setting up hotels at tourism hot-spots in the state. "Several sites have been identified by the government for hotels and the government has offered land to these groups," the state tourism commissioner IM Vittalamurthy said.
Frome : http://articles.economictimes.indiatimes.com

Ogilvy & Mather to do branding campaign for Diu & Daman tourism

AHMEDABAD: Diu & Daman, the Union territory located near Gujarat's coastline, will promote itself astourism destination through a branding blitz to be led by O&M (Ogilvy & Mather). The Centre has raised the budget allocation from Rs 550 crore, two years ago, to Rs 1,460 crore.

"In the first week of August, we will unveil a logo for Diu & Daman Union Territory" said Bhupinder S Bhalla, Administrator, UT of Daman & Diu. The union territory is mainly flocked by tourists from dry Gujarat looking for liquor. The new plan will have other tourists interests too.

"We will release the Vision 2020 document for Dadra & Nagar Haveli," said Mr Bhalla, who was on a visit to Ahmedabad to unveil its first dedicated cycle track in Diu. Already 4.2 km has been build and 7 Km would be completed by 2014 with an estimated cost of Rs 37 crore that would provide connectivity between almost all parts of the city. Similar kinds of projects for Daman and Silvassa have also been planned.

Mr Bhalla, who took charge as Administrator of both the Union Territories in September 2012 and approximately around the same year, when the Union Government increased its annual budget allocation from Rs 550 crore to Rs 1460 crore, he aggressively pursued to increase the infrastructure quality of the U.T areas in Daman and Diu and Dadar Nagar Haveli (DNH).

He said that about Rs 400-500 crore has been spend on islands infrastructure up-gradation in last two years that includes old & new roads, bridges and other infra projects. While he had awarded long term (10 to 20 years) solid waste management collection contracts to private players in DNH, while the tendering process of Diu and Daman islands would soon get completed.

Modern underground sewage system and solid waste management system will be implemented to develop the region. Silvassa, the capital city of Dadra and Nagar Haveli (DNH), has seen Rs 200-crore investments for tourism projects that include Rs 100 crore for a river front project on Daman Ganga.

"I have to struggle to make others identify the island. Most of them believe that it's near to Goa, while the reality is that it's near to Gujarat" said Mr Bhalla. He further adds that Daman & Diu and Silvassa did not do much for developing tourism, but it developed on its own as a tourist destination mainly for the local population from Gujarat.

"But now we intend to make a serious attempt to develop it as a tourist destination that matches global standards" he said adding that the purpose of having a tourism promotion campaign and branding is to increase the average number of days stay from 1.7 days to 3 days for the tourist, but that can be achieved only if the infrastructure facilities are better in the island.

Daman & Diu and Dadra & Nagar Haveli were under Portuguese rule till 1961.


Frome : http://articles.economictimes.indiatimes.com

Worst ever budget for tourism

The tourism industry's jubilant reaction that the budget was the first ever tourism-friendly one was based on a misconception. No one had read the small print.

All that the industry saw was that the government had removed the 10% hotel expenditure tax. No one realised, at the time, that the government had imposed an 8% service tax on the foreign exchange billing of tour operators.

The total cost that a foreign tourist pays for a visit to India, or the package cost, consists of hotel accommodation cost, transport cost, miscellaneous costs which include guides, entrance fees, train fares, portages, etc., besides the domestic airfare costs. Previously, expenditure tax of 10% was levied on the hotel component alone of the tour package cost.

Now an 8% service tax will be levied on the entire cost of the package. This pushes up costs dramatically. It is estimated that a single foreign tourist with a itinerary of 10 nights covering Delhi-Jaipur-Agra-Gwalior-Khajuraho-Varanasi-Delhi would have to spend almost two and a half times what he would otherwise have spent, thanks to the service tax.

Given the eagerness to extend the coverage of service tax, the kindest interpretation one can make is that the consequences of levying the tax on tour operators were not fully understood. When a tourist abroad wants to purchase a tour package to India, he typically approaches a travel agent or hunts for a package on the net. In both cases, the service provider is the tour operator in India. The foreign travel agent usually makes contact directly or through an intermediary with a tour operator in India.

India already suffers from lack of cost competitiveness vis-à-vis its south-east Asian neighbours. The incidence of all state and central taxes in India on a tour package is as high as 40% compared to a mere 10% in the case of India's south-east Asian neighbours. The removal of hotel expenditure tax was meant to rectify this problem to some extent. The levy of service tax, however, has compounded and multiplied the problem and made India a far worse destination in terms of cost than it was before.

Few know that tourism is India's second largest net foreign exchange earner after gems and jewellery and that the revenues from tourism last year (post 9/11!) were $2.8 billion. Till 2001, tourism brought in more foreign exchange than foreign direct investment (excluding foreign institutional investment). Whereas tourism brought in $3 billion plus consistently, FDI hovered between $2 to 3 billion. Till recently, the mandarins in the finance ministry usually thought fit to make a great song and dance about FDI and ignore tourism completely. Sadly, no one realised that FDI entailed dividend and other outward remittances whereas tourism was pure revenue or income along with its accompanying multiplier effect.

Few realise that for every Rs 10 lakh invested in tourism, on an average 47.5 jobs are created directly. In the hotel and restaurant sub-sector of tourism, the number of jobs created is even higher: 89. The corresponding figures for manufacturing is only 12.6 jobs and for agriculture 44.6 jobs. Tourism creates more jobs than even agriculture! Few also realise that the employment:output ratio for tourism is the highest at 71, followed by leather at 51 and textiles at 27. From a GDP multiplier point of view and from an employment generation point of view, tourism tops the list.

The social benefits of tourism are equally important. Tourism promotes national and international integration, encourages preservation of monuments, heritage properties and eco-sanctuaries, helps the survival of traditional art forms, crafts and culture and promotes international understanding.

Some of our neighbouring countries were quicker to recognise these facts. China receives 35 million plus visitors a year, Hong Kong: 15 million plus, Malaysia: 12 million plus, Thailand: 11 million plus, Singapore: 9 million plus and so on. But India receives only 2.5 million visitors a year.

At another level, tourism results when a destination is friendly, developed, clean, cost-effective and a pleasure to be in. Tourism requires the hospitality of the recipient population, their nurturing and understanding of the visitors and their clear desire to welcome and help them. Thus tourism requires education, health, sanitation, good roads and a host of other civic amenities that come about only with economic development. Will the budget kick-start an ailing economy and bring about a higher rate of economic growth? Unlikely.

The finance minister thought he was giving us was very significant and very exceptional measures to promote the tourism industry. But what he has given us, intentionally or otherwise, is the worst-ever budget for tourism.

(The author is chairman, Tourism & Civil Aviation Committee, PHD Chamber of Commerce and Industry)


Frome : http://articles.economictimes.indiatimes.com

India, Australian State of Victoria to strengthen tourism ties

NEW DELHI: India and Australian State of Victoria here today held a bilateral meeting to discuss ways to further strengthen cultural and tourism relations between the two sides.

During the 40-minute meeting, the Indian side was led by Tourism Minister Shripad Naik while Minster for Arts, Women's Affairs and Consumer Affairs for Victoria Heidi Victoria led the visiting delegation.

Both sides agreed to constitute a Joint Forum of tour operators to encourage and increase in people-to-people contact. They also agreed to expedite the signing of MoU between the two sides to further strengthen cooperation in the tourism sector, according to a release.

Naik noted with satisfaction that since the introduction of Dreamliner flight from India to Australia, both connectivity and tourists flow has increased between the two countries.

He invited investors from Victoria to India in the field of hotel industry, tourism and infrastructural development. He conveyed to the visiting delegation that India allows 100 percent FDI in hotel on automated basis.

Victoria offered collaboration between the two countries in museum, galleries and teaching institutions.

It was agreed during the meeting that both sides exchange details of training facilities available in the field of tourism, hotel management, catering technology etc.

Australia is one of top 10 tourist generating markets for India as far as inbound tourism is concerned.

There were 14,907 Australian tourists who came to India in 2009, while their number rose to 2,19,867 in 2013.

In 2009, there were 12,488 Indians who travelled to Australia and their number increased to 1,59,279 in 2013.


Frome : http://articles.economictimes.indiatimes.com

Global tourism eyes green makeover

BANGKOK: Citing green hotels, coconut oil fuel for airlines and even recyclable golf tees, executives of the world's largest industry say they are urgently trying to shrink tourism's oversized environmental footprint. But with global travel projected to keep soaring, and those very leaders still eager to expand their own ventures, some doubt such efforts can significantly lessen global warming and other ecological woes.

"It's a conundrum. There are no simple solutions," Anna Pollack, head of a British tourism consultancy, told a two-day conference ending Wednesday. "Tourism is both a victim of and a contributor to climate change."

More than 230 tourism executives, government officials and analysts attended the Pacific Asia Travel Association meeting on Tuesday and Wednesday, billed as the region's first to seek practical solutions to climate change.

Pollack, CEO of DestiCorp, urged delegates to face the hard realities of tourism's impacts. Based on UN World Tourism Organization data, she estimated that international travel will spawn 2.5 billion tonne of carbon dioxide, the main greenhouse gas, in 2020 from 506 million tonne in 1990 — a 2 billion tonne increase the industry would be hard-pressed to offset.

Most of the greenhouses gases trapped in the atmosphere are due to the burning of fuel to run airplanes, vehicles and ships. International travellers numbered 898 million last year and are projected to skyrocket to 1.6 billion in 2020, according to the WTO.

With travellers abroad spending more than $2 billion a day, tourism is regarded as the world's no 1 industry.

Panellists outlined steps taken to stem or offset emissions from their enterprises, although at the same time laying out plans for more hotels, travel promotions and airline routes. Six Senses Resorts and Spa, an international luxury chain, has added a 2% carbon tax to its bills while the Britain-based TUI Travel asks clients to donate £1, which it matches, and then funnels into projects which offset emissions.

Edwin Fuller, who heads the international division of Marriott Hotels and Resorts, said all the 50 million pens yearly used by the group are recyclable while testing is under way on bamboo tees to be used on its courses. Marriott, he said, tries to persuade owners of every property it manages to build all new hotels "green from the ground up."

A representative of Virgin Air noted that in February one of its aircraft was the first to fly mostly on biofuel — a mixture of coconut and babassu nut oils — while Richard Branson has pledged that all transport companies in his Virgin conglomerate would donate their next decade's profits in a search for renewable fuels.

"It's not a gimmick. We want to make sure our overseas visitors don't feel any travel guilt because we are offsetting their carbon emissions," said Renton de Alvis, chairman of the Sri Lanka Tourism Board which has started publishing figures of emissions generated by incoming tourists, broken down by nationalities. These, he said, have been partially offset by the planting of 73,000 trees and other projects as part of a 10-year "carbon clean Sri Lanka" campaign.
Frome : http://articles.economictimes.indiatimes.com

Kerala Tourism signs historic agreement with UNESCO

KOCHI: Kerala Tourism has signed an agreement withUNESCO to begin a historic cooperation between the state and the world's foremost cultural organisation in promoting and protecting the ancient Spice Route heritage.

The Memorandum of Understanding (MoU) was signed between Kerala Tourism Secretary, Suman Billa, and UNESCO Director and Representative to India, Shigeru Aoyagi, in the presence of State Tourism Minister A P Anil Kumar and K M Chandrasekhar, Vice Chairman, Kerala State Planning Board.

The MoU signed yesterday seeks to formalise a framework of cooperation in the areas of cultural heritage protection and promotion in the state.

"The Spice Route project is a new milestone in the growth of tourism in Kerala. It is a revival of the ancient spice route that connected 31 countries," Anil Kumar said.

"For the project to be successful, it needs the support from all the 31 countries. That is why we have sought the cooperation of UNESCO," he said.

Under the agreement, the Spice Route Initiative of the state government will form the bedrock of the cooperation and partnership between the two sides along with protection of promotion of historical areas of Kerala.

Several historical areas of Kerala linked with the ancient Spice Route, including urban areas, will be developed under the agreement to promote the aim of heritage building.
Frome : http://articles.economictimes.indiatimes.com