Background note on Ministry of Tourism on the occasion of Economic Editors’ Conference
General Overview Of Tourism Sector
1. During the period 2002 to 2008, India witnessed an increase in the Foreign Tourist Arrivals (FTAs) from 2.38 million to 5.37 million resulting in the average annual increase of about 14.5%. Due to global slowdown, terrorist activities, H1N1 influenza pandemic, etc., growth rate in FTAs during 2008 was only 5.6%. However, the growth rate for India was higher than that observed for the world (2.0%). The growth rate in FTAs during January to October, 2009 was (-) 0.9% over the corresponding period of 2008 which is an improvement over the decline of 8.06% in August, 09 and 4.1% in September, 09.
2. Another important indicator to judge the performance of tourism sector is the Foreign Exchange Earning (FEE) from tourism. FEE from tourism increased from Rs. 15064 crore in 2002 to Rs. 50730 crore in 2008, registering an average annual growth rate of 22.4%. The growth rate for FEE from tourism in Rupee terms, during January-October, 2009 was 4.1% over the corresponding period of previous year. The total Foreign Exchange Earnings during this period were Rs.42,395 crore or US$ 8.7 billion.
3. Domestic tourism is also very vital for the overall development of tourism in the country. The number of domestic tourist visits increased from 270 million in 2002 to 563 million in 2008. Growth rate in domestic tourist visits in 2008 over 2007 was 6.9%.
4. The contribution of tourism in the country’s GDP and total jobs was 5.92% and 9.24% during 2007-08. Total number of tourism jobs in the country during 2007-08 were 49.8 million.
Initiatives
Infrastructure Augmentation
5. The Ministry sanctioned 346 infrastructure projects for Rs. 1531.35 crore during the first two years of Eleventh Five Year Plan. During the current financial year 92 infrastructure projects for Rs. 358.71 crore have been sanctioned up-to September, 2009. The new infrastructure products which have been sanctioned during the current financial year include heliports for promotion of tourism in hilly and remote areas and convention centres for promotion of Meetings, Incentives, Conferences and Exhibitions (MICE).
6. The Ministry organized a Conference on world class infrastructure on August 19, 2009. Representatives of State Governments/U.T. Administrations, reputed Architects and other stakeholders attended the Conference. The recommendations of the conference for building world class tourism infrastructure are being processed for implementation.
7. The Ministry has identified 29 Mega Destinations/Circuits so far on the basis of footfalls and future potential. Tourism projects for 21 of these destinations and circuits have already been sanctioned. These destinations/circuits are being developed by bringing synergy with development plans of other Ministries like Ministry of Urban Development, Ministry of Civil Aviation, Ministry of Road Transport and Highways, Ministry of Railways and Ministry of Food Processing Industries. Now some of these destinations are proposed to be developed as slum free destinations under Rajiv Gandhi Avas Yojna of Ministry of Housing and Urban Poverty Alleviation
8. The Government of India has entered into a Loan Agreement with the Japan International Cooperation Agency (JICA) for loan assistance to the tune of 9495 million Japanese Yen (Rs. 395.63 crore approximately) for Uttar Pradesh Buddhist Circuit Development Project. This project includes development of Buddhist centres situated at Sarnath, Kushinagar, Kapilvastu, Sravasti and Sankisa. This project inter-alia includes improvement of nearly 74 km. of roads, improvement of storm water drainage system in the area, improvement of archaelogical sites signages and site attractions enhancement. The project also includes programmes on community participation, tourism promotion and education and training.
Accommodation
9. The requirement of hotel accommodation in the country is estimated at 240 thousand rooms against availability of around 90 thousand rooms. The following initiatives have been taken to bridge this gap.
10. In the budget of 2008-09, five year tax holiday has been provided for two, three and four-star hotels coming up in destinations having UNESCO declared World Heritage Sites. In addition, in view of the Commonwealth Games-2010 tax holiday has also been extended to 2, 3 an 4 star hotels that come up before 31.3.2010 in the NCR region. Due to the efforts of the Ministry of Tourism, Reserve Bank of India (RBI) has de-linked credit for hotel projects from commercial real estate, thereby enabling hotel projects to avail credit at relaxed norms and reduced interest rates. In addition, the External Commercial Borrowing (ECB) norms have been relaxed by Ministry of Finance to solve the problem of liquidity being faced by the hotel industry due to economic slow down.
Initiatives related to Commonwealth Games 2010
11.. The XIX Commonwealth Games are scheduled to be held in Delhi during 3rd to 14th October 2010. It is expected that around 100 thousand persons would be visiting during the Games.
The following initiatives have been taken by the Ministry to use this opportunity and showcase India as a unique and hospitable tourism destination:
Accommodation:
i. It is estimated that there will be a requirement of additional 30,000 hotel rooms. The Ministry of Tourism is therefore actively involved in monitoring the creation of additional accommodation for the games. A Task Force constituted for this purpose monitors the additional new hotel accommodation coming up in the Delhi NCR by holding regular meetings with all concerned land owning authorities , concerned Ministries / Departments. The latest review held on 21.10.2009 indicated the availability of 10,268 rooms under the ‘definite’ and 1,757 rooms under the ‘likely’ category. Further, 5,500 housing flats of DDA located at Vasant Kunj and Jasola will be upgraded / furnished and operated by ITDC for the Games as alternate accommodation of three star standards. It is also proposed to utilize the services of around 11000 rooms available from the licenced guest houses and around 3,000 Bed & Breakfast units for the Games.
India Tourism Development Corporation:
(ii) Hotel Ashok, Samrat and Janpath under the ITDC have been declared as the Official Hotels for the Games. While The Ashok & Samrat would be the
Games Family Hotels, Janpath would be for Press and Media. These hotels have undertaken a major renovation work to prepare them for the event.
(iii). Manpower & Volunteer Development
Providing more than 3000 volunteers, trained in hospitality sector, for the games under the “Earn While You Learn” scheme.
Training more than 3000 taxi/coach and auto rickshaw drivers with an objective of making them more tourist friendly and stress free.
Training of owners and service staff of the approved guests house in Delhi so that there is a quality improvement in the services being provided.
(iv). Promotion & Publicity: An additional allocation of Rs.50 crore to be given at Revised Estimates Stage has been committed to Ministry of Tourism for Publicity & Promotion of Commonwealth Games. Accordingly, an action Plan for the same has been prepared and a comprehensive promotional campaign has been launched with print and outdoor media in the city of London to coincide with the starting of the Queen’s Baton Relay (QBR). The campaign will continue along with the QBR in those Commonwealth countries, which are key source markets for India.
Manpower Development
12. Keeping in view the acute shortage of trained manpower MOT has decided to support additional Institutes of Hotel Management (IHM) in States. New Food Crafts Institutes (FCI) are also being set up. MOT has also been providing financial assistance for modernization and capacity enhancement of IHMs and FCIs. A Scheme of Capacity Building for Service Providers is being implemented to impart hospitality training to those employed in this sector.
13. As a part of 100 days of the Government, Ministry has taken following initiatives to provide skilled manpower in hospitality sector:
i. Skill training of youth in Hospitality sector (Hunar Se Rojgar Tak): The Institutes of Hotel Management (IHMs) have initiated a six to eight week fast track skill training programme for youth under twenty five years of age in food production and food and beverage services and around 5000 youths will be trained in the year.
ii. Skill Certification: The service providers, who are working in the hospitality sector, would undertake a five day orientation programme followed by test that would be based on practical and viva voce. Thereafter, the participant would be provided a skill certificate, which will enhance the employability in the market. Around 5000 existing service providers would be certified in the year.
iii. Broad basing of Hospitality Education: The CCEA has approved the scheme of broad basing of hospitality education under which Ministry can sanction financial grant to Universities, Colleges, Polytechnics, ITIs and Schools to start new hospitality related vocational courses.
Publicity and Promotion in Domestic Markets
14. Recognition of exemplary contribution to Tourism
On the occasion of the National Tourism Awards 2007-08 organised in February 2009 the Ministry of Tourism had announced a new award.
Athithi Devo Bhava- Pride of India Award
This award is to be given to an individual/Institute for exemplary dedication to the cause of tourism going beyond the call of duty based on nominations received from the stakeholders of the tourism industry.
This year nominations have been invited from tourists to recognise exemplary contributions going beyond the call of duty to the cause of tourism by any service provider.
The Ministry of Tourism has now introduced one new category of Awards for:-
Best maintained City/Town/Village/Municipal/Civic body
To encourage maintenance and upkeep of parks, tourist sites etc nominations are being invited from State Tourism Departments to recognise contributions of civic bodies, village panchayats etc who exhibit the highest standards of civic maintenance which directly enhances the tourism experience at these destinations/sites. This is the only award wherein the Ministry of Tourism will organize a Fam trip of the winning Municipal Authority to an ASEAN Country in partnership with local tourism board so as to provide exposure to the best practices and to replicate the same.
The Incredible India film shown globally in the potential tourist generating markets has won a number of prestigious international awards:-
- March 2009
- 2.Preis Das Goldene Stadttor. Int, Touristik Filmwettbewerb ITB Berlin 2009
- June 2009
- International Tourfilm festival Plock, 2009, Plock/Poland
- FIMAC- International Festival of Corporates AV Media
- July 2009
- Document.Art - The International Festival of Documentary Films, 2009, Campulung Muscel/Romania
- September 2009
Art&Tur - International Tourism Film Festival, 2009, Barcelos/ Portugal
- October 2009
- Tourfilm Karlovy Vary, 2009, Karlovy Vary/Czech Republic
The latest being the Grand Prix Award - organized by Comite International Des Festivals Du film Touristique(CIFFT) in which the Hon’ble Minister for Tourism will be receiving the award in Vienna on 13th November 2009.
Publicity and Promotion in Overseas Markets:
15. The Ministry of Tourism has organized a series of Road Shows in key source markets overseas for promoting the varied tourism products of the country. Road Shows, in collaboration with the PATA India Chapter were organized in Scandinavia (Helsinki, Stockholm and Oslo) in August 2009. Adventure Tourism Road Shows, in collaboration with the Adventure Tour Operators Association of India were organized in Australia and New Zealand (Adelaide, Brisbane, Melbourne, Sydney, Wellington & Auckland) in September 2009 and Road Shows focusing on Wellness and Medical Tourism were organized in West Asia (Dubai, Riyadh, Kuwait and Doha) in October 2009.
As part of the celebration of the “Year of India in Russia” mega promotional events
2009. The Ministry of Tourism supported a major India promotional event “India Calling” organized by the National Geographic Society at Hollywood Bowl and California Plaza in Los Angeles in September 2009.
India Tourism Development Corporation (ITDC)
16. The present network of ITDC consists of 8 Ashok Group of Hotels, 7 Joint Venture Hotels including one yet to be completed hotel, 3 Restaurants (including One Airport Restaurant), 11
Transport Units, 1 Tourist Service Station, Duty Free Shops at Goa Airport, 1 Tax Free Outlet, 1 Sound & Light Show and 4 Catering Outlets.
17. DIVIDEND
ITDC has paid dividend @ 20% on paid up equity capital for the years 2006-07 and 2007-08. Kumarakrupa Frontier Hotels has also paid dividend of Rs. 4.39 crore for the year 2006-07.
FINANCIAL PERFORMANCE
18. The net profit of ITDC (before tax) which was Rs. 31.16 crore during 2004-05 increased to Rs. 51.57 crore (2005-06), Rs. 68.77 crore (2006-07), Rs. 69.41 crore (2007-08). The net profit (before tax) however came down to Rs. 27.11 crore during 2008-09.
General Overview Of Tourism Sector
1. During the period 2002 to 2008, India witnessed an increase in the Foreign Tourist Arrivals (FTAs) from 2.38 million to 5.37 million resulting in the average annual increase of about 14.5%. Due to global slowdown, terrorist activities, H1N1 influenza pandemic, etc., growth rate in FTAs during 2008 was only 5.6%. However, the growth rate for India was higher than that observed for the world (2.0%). The growth rate in FTAs during January to October, 2009 was (-) 0.9% over the corresponding period of 2008 which is an improvement over the decline of 8.06% in August, 09 and 4.1% in September, 09.
2. Another important indicator to judge the performance of tourism sector is the Foreign Exchange Earning (FEE) from tourism. FEE from tourism increased from Rs. 15064 crore in 2002 to Rs. 50730 crore in 2008, registering an average annual growth rate of 22.4%. The growth rate for FEE from tourism in Rupee terms, during January-October, 2009 was 4.1% over the corresponding period of previous year. The total Foreign Exchange Earnings during this period were Rs.42,395 crore or US$ 8.7 billion.
3. Domestic tourism is also very vital for the overall development of tourism in the country. The number of domestic tourist visits increased from 270 million in 2002 to 563 million in 2008. Growth rate in domestic tourist visits in 2008 over 2007 was 6.9%.
4. The contribution of tourism in the country’s GDP and total jobs was 5.92% and 9.24% during 2007-08. Total number of tourism jobs in the country during 2007-08 were 49.8 million.
Initiatives
Infrastructure Augmentation
5. The Ministry sanctioned 346 infrastructure projects for Rs. 1531.35 crore during the first two years of Eleventh Five Year Plan. During the current financial year 92 infrastructure projects for Rs. 358.71 crore have been sanctioned up-to September, 2009. The new infrastructure products which have been sanctioned during the current financial year include heliports for promotion of tourism in hilly and remote areas and convention centres for promotion of Meetings, Incentives, Conferences and Exhibitions (MICE).
6. The Ministry organized a Conference on world class infrastructure on August 19, 2009. Representatives of State Governments/U.T. Administrations, reputed Architects and other stakeholders attended the Conference. The recommendations of the conference for building world class tourism infrastructure are being processed for implementation.
7. The Ministry has identified 29 Mega Destinations/Circuits so far on the basis of footfalls and future potential. Tourism projects for 21 of these destinations and circuits have already been sanctioned. These destinations/circuits are being developed by bringing synergy with development plans of other Ministries like Ministry of Urban Development, Ministry of Civil Aviation, Ministry of Road Transport and Highways, Ministry of Railways and Ministry of Food Processing Industries. Now some of these destinations are proposed to be developed as slum free destinations under Rajiv Gandhi Avas Yojna of Ministry of Housing and Urban Poverty Alleviation
8. The Government of India has entered into a Loan Agreement with the Japan International Cooperation Agency (JICA) for loan assistance to the tune of 9495 million Japanese Yen (Rs. 395.63 crore approximately) for Uttar Pradesh Buddhist Circuit Development Project. This project includes development of Buddhist centres situated at Sarnath, Kushinagar, Kapilvastu, Sravasti and Sankisa. This project inter-alia includes improvement of nearly 74 km. of roads, improvement of storm water drainage system in the area, improvement of archaelogical sites signages and site attractions enhancement. The project also includes programmes on community participation, tourism promotion and education and training.
Accommodation
9. The requirement of hotel accommodation in the country is estimated at 240 thousand rooms against availability of around 90 thousand rooms. The following initiatives have been taken to bridge this gap.
10. In the budget of 2008-09, five year tax holiday has been provided for two, three and four-star hotels coming up in destinations having UNESCO declared World Heritage Sites. In addition, in view of the Commonwealth Games-2010 tax holiday has also been extended to 2, 3 an 4 star hotels that come up before 31.3.2010 in the NCR region. Due to the efforts of the Ministry of Tourism, Reserve Bank of India (RBI) has de-linked credit for hotel projects from commercial real estate, thereby enabling hotel projects to avail credit at relaxed norms and reduced interest rates. In addition, the External Commercial Borrowing (ECB) norms have been relaxed by Ministry of Finance to solve the problem of liquidity being faced by the hotel industry due to economic slow down.
Initiatives related to Commonwealth Games 2010
11.. The XIX Commonwealth Games are scheduled to be held in Delhi during 3rd to 14th October 2010. It is expected that around 100 thousand persons would be visiting during the Games.
The following initiatives have been taken by the Ministry to use this opportunity and showcase India as a unique and hospitable tourism destination:
Accommodation:
i. It is estimated that there will be a requirement of additional 30,000 hotel rooms. The Ministry of Tourism is therefore actively involved in monitoring the creation of additional accommodation for the games. A Task Force constituted for this purpose monitors the additional new hotel accommodation coming up in the Delhi NCR by holding regular meetings with all concerned land owning authorities , concerned Ministries / Departments. The latest review held on 21.10.2009 indicated the availability of 10,268 rooms under the ‘definite’ and 1,757 rooms under the ‘likely’ category. Further, 5,500 housing flats of DDA located at Vasant Kunj and Jasola will be upgraded / furnished and operated by ITDC for the Games as alternate accommodation of three star standards. It is also proposed to utilize the services of around 11000 rooms available from the licenced guest houses and around 3,000 Bed & Breakfast units for the Games.
India Tourism Development Corporation:
(ii) Hotel Ashok, Samrat and Janpath under the ITDC have been declared as the Official Hotels for the Games. While The Ashok & Samrat would be the
Games Family Hotels, Janpath would be for Press and Media. These hotels have undertaken a major renovation work to prepare them for the event.
(iii). Manpower & Volunteer Development
Providing more than 3000 volunteers, trained in hospitality sector, for the games under the “Earn While You Learn” scheme.
Training more than 3000 taxi/coach and auto rickshaw drivers with an objective of making them more tourist friendly and stress free.
Training of owners and service staff of the approved guests house in Delhi so that there is a quality improvement in the services being provided.
(iv). Promotion & Publicity: An additional allocation of Rs.50 crore to be given at Revised Estimates Stage has been committed to Ministry of Tourism for Publicity & Promotion of Commonwealth Games. Accordingly, an action Plan for the same has been prepared and a comprehensive promotional campaign has been launched with print and outdoor media in the city of London to coincide with the starting of the Queen’s Baton Relay (QBR). The campaign will continue along with the QBR in those Commonwealth countries, which are key source markets for India.
Manpower Development
12. Keeping in view the acute shortage of trained manpower MOT has decided to support additional Institutes of Hotel Management (IHM) in States. New Food Crafts Institutes (FCI) are also being set up. MOT has also been providing financial assistance for modernization and capacity enhancement of IHMs and FCIs. A Scheme of Capacity Building for Service Providers is being implemented to impart hospitality training to those employed in this sector.
13. As a part of 100 days of the Government, Ministry has taken following initiatives to provide skilled manpower in hospitality sector:
i. Skill training of youth in Hospitality sector (Hunar Se Rojgar Tak): The Institutes of Hotel Management (IHMs) have initiated a six to eight week fast track skill training programme for youth under twenty five years of age in food production and food and beverage services and around 5000 youths will be trained in the year.
ii. Skill Certification: The service providers, who are working in the hospitality sector, would undertake a five day orientation programme followed by test that would be based on practical and viva voce. Thereafter, the participant would be provided a skill certificate, which will enhance the employability in the market. Around 5000 existing service providers would be certified in the year.
iii. Broad basing of Hospitality Education: The CCEA has approved the scheme of broad basing of hospitality education under which Ministry can sanction financial grant to Universities, Colleges, Polytechnics, ITIs and Schools to start new hospitality related vocational courses.
Publicity and Promotion in Domestic Markets
14. Recognition of exemplary contribution to Tourism
On the occasion of the National Tourism Awards 2007-08 organised in February 2009 the Ministry of Tourism had announced a new award.
Athithi Devo Bhava- Pride of India Award
This award is to be given to an individual/Institute for exemplary dedication to the cause of tourism going beyond the call of duty based on nominations received from the stakeholders of the tourism industry.
This year nominations have been invited from tourists to recognise exemplary contributions going beyond the call of duty to the cause of tourism by any service provider.
The Ministry of Tourism has now introduced one new category of Awards for:-
Best maintained City/Town/Village/Municipal/Civic body
To encourage maintenance and upkeep of parks, tourist sites etc nominations are being invited from State Tourism Departments to recognise contributions of civic bodies, village panchayats etc who exhibit the highest standards of civic maintenance which directly enhances the tourism experience at these destinations/sites. This is the only award wherein the Ministry of Tourism will organize a Fam trip of the winning Municipal Authority to an ASEAN Country in partnership with local tourism board so as to provide exposure to the best practices and to replicate the same.
The Incredible India film shown globally in the potential tourist generating markets has won a number of prestigious international awards:-
- March 2009
- 2.Preis Das Goldene Stadttor. Int, Touristik Filmwettbewerb ITB Berlin 2009
- June 2009
- International Tourfilm festival Plock, 2009, Plock/Poland
- FIMAC- International Festival of Corporates AV Media
- July 2009
- Document.Art - The International Festival of Documentary Films, 2009, Campulung Muscel/Romania
- September 2009
Art&Tur - International Tourism Film Festival, 2009, Barcelos/ Portugal
- October 2009
- Tourfilm Karlovy Vary, 2009, Karlovy Vary/Czech Republic
The latest being the Grand Prix Award - organized by Comite International Des Festivals Du film Touristique(CIFFT) in which the Hon’ble Minister for Tourism will be receiving the award in Vienna on 13th November 2009.
Publicity and Promotion in Overseas Markets:
15. The Ministry of Tourism has organized a series of Road Shows in key source markets overseas for promoting the varied tourism products of the country. Road Shows, in collaboration with the PATA India Chapter were organized in Scandinavia (Helsinki, Stockholm and Oslo) in August 2009. Adventure Tourism Road Shows, in collaboration with the Adventure Tour Operators Association of India were organized in Australia and New Zealand (Adelaide, Brisbane, Melbourne, Sydney, Wellington & Auckland) in September 2009 and Road Shows focusing on Wellness and Medical Tourism were organized in West Asia (Dubai, Riyadh, Kuwait and Doha) in October 2009.
As part of the celebration of the “Year of India in Russia” mega promotional events
2009. The Ministry of Tourism supported a major India promotional event “India Calling” organized by the National Geographic Society at Hollywood Bowl and California Plaza in Los Angeles in September 2009.
India Tourism Development Corporation (ITDC)
16. The present network of ITDC consists of 8 Ashok Group of Hotels, 7 Joint Venture Hotels including one yet to be completed hotel, 3 Restaurants (including One Airport Restaurant), 11
Transport Units, 1 Tourist Service Station, Duty Free Shops at Goa Airport, 1 Tax Free Outlet, 1 Sound & Light Show and 4 Catering Outlets.
17. DIVIDEND
ITDC has paid dividend @ 20% on paid up equity capital for the years 2006-07 and 2007-08. Kumarakrupa Frontier Hotels has also paid dividend of Rs. 4.39 crore for the year 2006-07.
FINANCIAL PERFORMANCE
18. The net profit of ITDC (before tax) which was Rs. 31.16 crore during 2004-05 increased to Rs. 51.57 crore (2005-06), Rs. 68.77 crore (2006-07), Rs. 69.41 crore (2007-08). The net profit (before tax) however came down to Rs. 27.11 crore during 2008-09.
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