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  • 1. 1 Madhya Pradesh Tourism Tourism DESINGED BY Sunil Kumar Research Scholar/ Food Production Faculty Institute of Hotel and Tourism Management, MAHARSHI DAYANAND UNIVERSITY, ROHTAK Haryana- 124001 INDIA Ph. No. 09996000499 email: skihm86@yahoo.com , balhara86@gmail.com linkedin:- in.linkedin.com/in/ihmsunilkumar facebook: www.facebook.com/ihmsunilkumar webpage: chefsunilkumar.tripod.com
  • 2. 2 Overview  MP is the second largest State in the Country stretching over 308,000 sq kms.  The State is blessed with large mineral resources of coal, diamond, limestone, methane etc.  MP is among the top 4 states of the Country for industrial investments.  Per capita GSDP USD 369**  Manufacturing sector USD 8.5 bn** (Registered & Unregistered)  Gross state domestic product (GSDP) USD 23,983.63 Mn**  Average growth rate 5.5% per annum Advantage MP  Total electricity generation capacity 6,449.25 MW*  India’s first greenfield SEZ Indore SEZ  Industrial Centers 8  The State is centrally located  Investor friendly Government policies Madhya Pradesh has one of the upcoming industrial base in India Economic Snapshot Madhya Pradesh is emerging as a key growth center for the Country Madhya Pradesh (MP) – State that means businessOverview  MP is rich in low grade coal suitable for power generation.  Potential of hydro-energy generation.  Installed power capacity (MP’s share)  Hydel Power Generation: 852.7 MW*  Thermal Power Generation: 2,147.5 MW* Power Electricity generation capacity at present is 6,449.25 MW and estimated to rise to a surplus in 2008-09 *Ministry of Power (powermin.nic.in) **Source: Indiastat.com (as on 23 Feb 2006)
  • 3. 3 ROADNETWORKAIRPORTSRAILWAYNETWORK • The State is well connected with the rest of India with almost 425 trains passing through the State on a daily basis. Of these 175 trains pass through the State capital Bhopal alone. • The total length of roads spanning MP is 67,600 kms.** • National highways of 5,200 kms run through the State.* • 18 National highways including trunk routes of Delhi-Mumbai, Delhi-Chennai, Delhi-Bangalore, Delhi- Hyderabad. • The total length of State highways in the State is 9,885 kms.** • Convenient linkages to western ports i.e. Kandla Port, Jawahar Nehru Port Trust. • 25 airstrips.** • Convenient air links from key Indian cities like Delhi & Mumbai to Bhopal, Jabalpur, Gwalior, Indore and Khajuraho. • 5 operational airports. • Indore airport has the capability of handling international cargo. • An international airport proposed in Bhopal. Enabling Infrastructure MP IS CENTRALLY LOCATED AND WELL CONNECTED WITH ALL MAJOR CITIES IN INDIA *Source: Department of Road Transport & Shipping (morth.nic.in) **Source: www.destinationmadhyapradesh.com INDORE BHOPAL JABALPUR GWALIOR KHAJURAHO
  • 4. 4 Third largest producer of cement in India* 12 blocks with reserves totalling 2,585 million tons of coal has been identified Largest producer of pulses and oilseeds in the Country (~75% of soyabean production) 31% of the State under forest cover with a largely unexploited species of rare, valuable medicinal- herbal plants Over 2,000 kms of roads being developed with Private Partnership (BOT) Over 18,000 technical graduates and 230,000 graduates add to workforce each year Over 144 BCM of coal bed methane reserves available Over 100 agricultural farms with an area of over 20,000 acres is available on lease to investor India’s 1st operational Greenfield SEZ at Indore Favourable climatic conditions for cotton and over 40,000 power- looms are driving the textile industry Availability of coal and natural gas (G.A.I.L pipeline) along with support from Government to make investment in Thermal Power Plants lucrative Offers diverse tourists destinations catering to various segments of tourism such as religious (Bhojpur), eco/ adventure (Panchmari), heritage (Sanchi, Khajuraho) tourism etc. Madhya Pradesh: A Preferred Investment Destination Various blocks available for power, cement, iron and steel units *Source: www.mpsidc.org & Brochure: MP Means Business
  • 5. 5 0% 20% 40% 60% 80% 100% Vishakapatnam Chennai Greater Noida Chandigarh Jaipur Indore 0 50 100 150 Mumbai Delhi Bangalore Chennai PuneHyderabad Indore Bhopal Ahemadabad Mumbai (780 Kms) (MPV - 1000) Pune (800 Kms) (MPV - 206.51) Bangalore (1400 Kms) (MPV - 254.52) Chennai (1430 Kms) (MPV - 362.84) Hyderabad (840 Kms) (MPV - 257.9) Delhi (740 Kms) (MPV - 789.5) Ahmedabad (570 Kms) (MPV - 220.63) Kolkata (1350 Kms) (MPV - 613.19) Key Markets (Distance From Bhopal) MPV – Market Potential Value Source: (Reference: RK Swamy) MP: The Right Place with the Right Environment MP is centrally located. The State is at an easy distance from all the key consumer markets in the Country. DESTINATION MADHYA PRADESH - Distances rounded off**Source: India Today (September ‘06 Issue) Fastest mover* in overall performance among the big States in the Country. Fastest mover in agriculture Fastest mover in infrastructure development. Ranks 2nd in terms of governance. Ranks 3rd in terms of law & order Cost of skilled labour is USD 2.4/day vis-a-vis USD 3.5 – USD 4.0/day in metros * Fastest mover is the State where the rate of improvement between 2003 & 2006 was greater than that between 1991 & 2003 Bhopal and Indore have substantial cost advantages, even when compared to other Tier III and IV cities. Savings in Office Space Rates (A comparison of rates in Central Business Districts) The cost of land is one of the lowest in the Country. Even central hubs such as Indore and Bhopal fare well against other cities in terms of low land cost. (Estimated Values for Multi- product SEZs) Savings in Land Cost
  • 6. 6 Industrial Policy: Catalyst for the Investments The Government of MP has devised an investor friendly industrial policy, which is aimed at achieving global competitiveness. The policy emphasizes on industrial growth in the state through adopting cluster approach, establishing specialized infrastructure and offering favourable incentives. The main thrust of this policy is: • Establishment of a Madhya Pradesh Trade and Investment Facilitation Corporation which would take decisions about rationalization of taxes, facilities of mega projects and other related matters. • Enacting an Industrial Facilitation Act and to change the rules of business with a view to make single window system decisive and result oriented. • Developing infrastructure for supporting the identified industrial clusters • Reviving closed down/ sick industrial units by granting special packages. • Attractive incentive schemes. CLUSTER APPROACH • Indore – Pharmaceutical, Textile, Food Processing, IT, Auto Components • Bhopal – Engineering, Biotechnology, Herbal, IT, Food Processing • Jabalpur – Garment, Mineral, Forest & Herbal, Food Processing • Gwalior – Electronics, IT, FMCG, Engineering, Food Processing • Rewa – Refractories, Lime Stone, Forest Based • Sagar – Mineral Processing • Special package for Mega Projects on project basis by apex level investment promotion empowered committee headed by the Chief Minister. • Industrial investment promotion assistance – 50% to 75% of commercial tax for 3-10 years • Concessional registration charges and stamp duty exemption for Term Loans. • Interest subsidy on term loan for 5 – years @ 3% to 5%. • For thrust sector industries, 25% capital subsidy would be provided limiting up to a maximum of USD 56,000 • Land on 75% concessive rate for Mega Projects limited to USD 4.4 million. • Entry tax exemption for 5 years. • 5 years electricity duty exemption on captive power generation • 15% capital subsidy to SSI up to USD 33,000 in backward areas • Infrastructure grant up to USD 0.22 million crore for developing private sector industrial parks • Partial reimbursement for Project report, ISO Certification, Patent and Technology Purchase cost SPECIAL INCENTIVES SPECIALIZEDINFRASTRUCTURE Crystal IT Park Indore Food Parks Mandsaur, Khargone, Chhindwara, Hoshagabad, Mandla and Bhind Stone Park Katni Herbal Park Rewa Granite Park Chhatarpur Life Sciences Project Bhopal Apparel Park Indore (SEZ) Gems & Jewellery Park Indore
  • 7. 7 Area Developed: 2,492 Hectares Allotted: 1431 Hectares Units established: 575 Major Groups: Tata, Ranbaxy, Eicher, Bridgestone, Hindustan Motors, Kinetic, SRF, S Kumars, Gajra, Nicholas Piramal, Indorama, IPCA, Bhilwara Special Infrastructure: SEZ, Crystal IT Park, Food Park, Apparel Park In a bid to build a competitive environment; industries and their ancillaries would be promoted in clusters based on the availability of raw materials, skilled labour and market potential. Under this Industrial Policy through Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd (MPAKVNs) scheme, the State Government, has identified industrial clusters. Many of the industrial giants have their establishments in these areas, however 44% of developed area is still untapped and open for investment. Total developed area 7,147 Hectares Total allotted area 3,089 Hectares Total units established 1,360 Growth centres 19 Doing Business Made Easy Through MPAKVN INDOREAKVN Area Developed: 1,330 Hectares Allotted: 618 Hectares Units established: 286 Major Groups:HEG, Crompton Greaves, P&G, Godrej, Lupin, IFB, Oswal, Nahar Special Infrastructure: ICD, Food Park Area Developed: 2,262 Hectares Allotted: 800 Hectares Units established: 326 Major Groups: JK, Surya Roshini, Godrej, Grasim, Cadbury, Hotline, Crompton Greaves Special Infrastructure: ICD, Food Park Area Developed: 273 Hectares Allotted: 115 Hectares Units established: 121 Major Groups: Birla, Jaypee Special Infrastructure: Integrated infrastructure development centres (IIDC) Area Developed: 790 Hectares Allotted: 125 Hectares Units established: 52 Major Groups: Raymond, Hindustan Petroleum, PBM, Ayur Special Infrastructure: Stone Park, Food Park BHOPALAKVN GWALIORAKVN JABALPURAKVN REWAAKVN Pithampur, Kheda, Dewas, Maksi, Megh Nagar Malanpur, Malanpur Phase II, Banmore, Chainpura, Siddhgawan, Pratappura Rewa, Waidhan Borgaon, Maneri, Purena Mandideep, Pillukhedi, Mandideep Phase II Source: MPSIDC
  • 8. 8 Tourism Industry in Madhya Pradesh
  • 9. 9 Tourism: Mainstay of the Indian Economy MP: Tourism Haven of India MP: The Mixed Bag of Tourism Harnessing the Benefits of Location Advantage of MP M.P.: An Investment Destination Way Forward Sector Profile: Tourism
  • 10. 10 Tourism in India: Mainstay of the Indian Economy  India is known for its mystical attraction in terms of its rich heritage, diverse culture, religion and scenic beauty, which makes it one of the most desirable tourism destinations across the world.  India offers a vast variety in tourism i.e. heritage tourism; religious tourism; adventure tourism; leisure tourism; business tourism; eco-tourism; wildlife tourism, spiritual tourism etc, to cater the diverse interests of the tourists/ visitors.  Tourism is one of the major industries in India with a revenue of USD 32 billion, it contributed 5.3% to the Gross Domestic Product (GDP) of the country in the year 2005-06 and generates highest number of employment in the country. It is estimated country’s tourism economy would grow at 8.8% over the next 10 years.  Tourism is the third largest net earner of foreign exchange for the country recording earnings of USD 5731 million in 2005, a growth of 20.2% over 2004. Inspite of various frictions tourism industry faced, Indian tourism industry has grown by more than 80% in a decade.  India’s tourism destinations such as Kerala, Goa, Rajasthan, Agra etc are already well positioned on the global tourism map. Further Government has identified locations in various states such as Madhya Pradesh, Himachal Pradesh, Gujarat, Maharashtra, Bihar, Karnataka, Andhra Pradesh etc to promote them as tourists hub. India is second of the fastest growing tourism economy in the world today. (Exclusive research by the World Travel and Tourism Council- WTTC) Foreign Tourist Arrivals in India Foreign Exchange Earnings Fact Sheet: Source: World Travel & Tourism Council Report, 2005
  • 11. 11 Tourism in India: Mainstay of the Indian Economy  The recent economic growth in India along with its positioning as an Outsourcing Hub, has further enhanced the country’s infrastructure along with the connectivity of India with other countries. This has led to a tremendous increase in the number of incoming international business travelers in the country.  Various international travel and hospitality companies such as Thomas Cook, Amadeus, Hyatt, Four Seasons, Hilton, Regent, Radisson and Holiday Inn, have acknowledged the tourism potential of the Country and already have their presence here. Besides, their presence has significantly increased the standards of services in hospitality and tourism industry.  India’s cost competitive health care system and skilled human resource has given impetus to the relatively new concept of medical tourism in India and is worth USD 333 million, with about 150,000 foreign patients visiting India annually.  Government has acknowledged the significance of tourism in the Country and the importance of public-private partnership in the growth of the same. Thus, the Ministry of Tourism has announced number of incentives and support to give a fillip to the sector. As per WTTC, India is considered to be the one of the most price competitive countries in terms of Travel & Tourism – that is, based on accommodation prices, they represent the best value for money.  Offer mixed bag of tourist destinations.  Presence of diverse cultures in the Country.  All year round pleasant season.  Stable political situation  Large number of skilled human resource India a favourable tourism destination in the world India- Strategic Advantages Growth Drivers Harmony in these two factor leads to  India coming-up as Outsourcing Hub for various countries  Investor friendly policies  Holistic development of economy i.e. infrastructure, connectivity, hospitality etc  Presence of centre of excellence for tourism & hospitality  Increase in domestic travelers Opportunities:
  • 12. 12 And the list goes on…  Kanha is the largest Wildlife Sanctuary in Asia  Kahjuraho has some of the most famous Sculptures in the world  Bhimbeteka is the oldest Cave Paintings in the world  Sanchi houses the oldest Buddhist Stupa in the world  9 national parks and 25 game sanctuaries out of which four are major tiger reserves.  Sacred rivers of Narmada, Tapti, Son and Kshipra have a string of religious places located on their banks.  Pachmarhi one of the most beautiful hill stations.  Tourist festivals displaying variety of folk and performing arts at Khajuraho, Orchha, Pachmarhi, Indore-Ujjain (Malwa) and Bhopal. MP: Tourism Haven of India Kanha National Park Bhimbeteka Amarkantak Khajuraho Sanchi Pachmarhi
  • 13. 13 MP: Tourism Haven of India  MP has a rich cultural heritage, various religious spots along with the vast forest area and other scenic places makes it an ideal tourist destination that could cater to various interests of tourists.  The tourism sector in MP is gradually gaining grounds and has been identified as one of the Growth Engines of MP by the State Government.  Heritage sites such as Sanchi Stupa and Bhimbeteka are included in Unesco’s World Heritage Sites.  MP’s tourism sector is dominated by the domestic tourism with approximately 8 million tourists arrival in 2005-06 and is ranked among top ten States for domestic tourist visits. The foreign tourist arrivals was relatively less amounting to mere 0.16 million.  However, the trend in tourism industry of the State is positive and the sector is observing year on year growth in both domestic as well as foreign tourist arrivals.  Pilgrim centres account for the major portion of the domestic tourist traffic whereas places such as Khajuraho, Orchha and Gwalior attract a maximum number of foreign tourists.  In an effort to boost tourism sector in MP, the State Government has sanctioned USD 12.2 million for development of 17 tourist spots across the State. Further, the Government is also making efforts to improve air connectivity to other states.  The State has taken initiatives to promote Eco & Adventure Tourism and is keen on promoting Medical/ Herbal tourism in association with private parties. Domestic Tourists Arrival in MP Foreign Tourists Arrival in MP (In ‘000) Very high increase due to Maha Kumbh Mela (once in 3 years) Source: MP Tourism Development Corporation Overview:
  • 14. 14 MP: Tourism Haven of India  The State had more than 50 grade hotels and approximately 2100 hotel rooms available as on 2004 year-end.  Apart from this there are several hotels/ lodges/ accommodation facilities run and maintained by MP Tourism Development Corporation.  Since the State houses various heritage building and bungalows , several of these have been converted into Heritage hotels.  The Government has acknowledged the need of more 5, 4 and 3 star hotels and is inviting private players to invest in the State. Further, there are various heritage properties which government is keen on converting into Heritage Hotels with the association of private parties. Number of Hotel Rooms Available in MP (2004) Category-wise Hotels in MP (2004) Source: Crisinfac Report * 5D: 5 Star Deluxe CA: Classification Awaited Hospitality Sector:
  • 15. 15 MP: The Mixed Bag of Tourism The uniqueness of MP lies in the fact that it has something to offer to all kind of tourists Tourism Destinations Heritage Tourism Gwalior, Orchha, Khajuraho, Sanchi, Mandu,Datia, Burhanpur etc Pilgrim Tourism Ujjain, Maheshwar, Omkareshwar, Chitrakoot, Amarkantak, Sanchi, Orchha, Amarkantak etc. Eco & Adventure Tourism Pachmarhi, Kanha, Bandhavgarh, Panna, Satpura, Pench Valley National Parks, Tigra Lake (Gwalior), Upper Lake (Bhopal), Gandhi Sagar (Mandsaur) etc Leisure & Business Tourism Pachmarhi, Khajuraho, Bhopal, Gwalior, Indore, Mainpat, Tamia, Jabalpur etc. Major Tourist Circuits On the basis of the proximity of destinations and linkages between them, State Government has identified 4 major tourist circuits in the State:  Gwalior - Shivpuri - Orchha - Khajuraho  Indore - Ujjain - Maheshwar - Omkareshware - Mandu  Jabalpur - Bhedaghat - Mandla - Kanha - Bandhavgarh  Bhopal -Sanchi - Bhojpur - Bhimbetka - Panchmarhi Tourist Destinations & Circuits in MP
  • 16. 16 Harnessing the Benefits of Location Advantage of MP *1 km= 0.6 miles  MP is centrally located and is in proximity to various other states. Further the State is well-connected to other cities through road, rail and air.  MP is well connected with the major ports of entry in the Country with high foreign tourist inflow such as Delhi, Maharashtra, West Bengal, Rajasthan, Uttar Pradesh, Karnataka etc.  Bhopal (capital of MP) could reached from these places in duration of approximately 8 to 15 hours through road and rail.  The proposed international airport along with the improvement in the air- connectivity of the State would increase the tourist (especially foreign tourists) traffic into the State from these tourists generating points. Other Growth Drivers  With corporates such as Genpact, Reliance Infocom, Force, Eicher etc planning to set-up their centres in MP (Bhopal), the number of business travellers is going to increase in the State.  The State Government’s initiatives to develop integrated infrastructure in terms of connectivity, accommodation, and focus on private investors in tourism would develop an overall infrastructure to support the tourism growth in MP.  Presence of Centre of Excellence such as Institute of Hotel Managemet, Bhopal and Indian Institute of Tourism and Travel Management, Gwalior, offers skilled resources in the State.
  • 17. 17 Various initiatives are undertaken by the Government of MP for the overall development of the tourism infrastructure in the State which will instigate the momentum of the industry thereby positioning it as one of the most desirable tourism destination of India Key Approach Increase Private Participation Tourism Circuit Development Holistic Approach for Integrated Development • Improve air connectivity to other cities • Establishment of international airport in Bhopal • Improve the intra State roads and National Highways present in the State Accommodation • Set-up Heritage Hotels • Lodges, 2 & 3 star hotels in the upcoming tourist destinations • 5 star and business class hotels in commercial cities Proper Waste Management • Efficient waste management and supply of potable/ clean water in the cities and especially in rural areas to promote rural tourism Centre of Excellence • Set-up new Centre of Excellence apart from existing ones to ensure the availability of skilled human resource to support growth in tourism and hospitality industry in the State State Government will be the Facilitator Various direct & indirect opportunities for the Private investors Supported by Investor Friendly Policies Upgrade air & road connectivity MP: An Investment Destination
  • 18. 18 MP: An Investment Destination  Government land will be offered with the approval of the Empowered Committee as equity participation on behalf of the Government at current market value for setting up Joint Ventures.  New projects shall be exempt from Luxury Tax for ten years from the date of commencement of commercial operations.  New projects shall be exempt from Sales Tax for ten years from the date of commencement of commercial operations.  Entertainment Centres will be exempt from Entertainment Tax for ten years from the date of commencement of commercial operations. The State Government is giving several incentives to the private investors. It has laid down specific policies for Eco & Adventure Tourism  The vehicles mentioned in the project report submitted by interested party for transporting tourists to visit the identified location shall enjoy an exemption from transport taxes for a period of 5years.This will be considered to be a 'sunset facility‘ and it will expire automatically after 5 years.  To operate liquor shops in the identified location, the following concessions shall be given in FL 3 license fee:-  No concessions for location within a radius of 5km from the outer limit of municipal areas with population of 0.3 million & above. In areas other than above, discount on license fee ranges from 10-50% based on the category of areas.  The current norm of having a minimum of ten rooms for guests in a hotel and certain other conditions applicable for FL 3 license shall be relaxed. Incentives for Tourism Industry Incentives for Eco/ Adventure TourismEco & Adventure Tourism in MP Rock Climbing Raisen fort Gwalior fort Narwar fort Asirgarh fort Parasailing Pachmarhi Escarpment Tamia to Patalkot Mandu Wanchu Point Raisen Fort Canoeing/ River rafting River Narmada River Tons River Chambal River Ken River Son Jungle Safari National parks of- Kanha Satpura Panna Pench Water Sports Project such as: Tawa, Hoshangabad Kaliaspot & Halali, Bhopal Barna, Raisan Gandhi Sagar, Mandsaur Tigra & Harsi, Gwalior Mohini Sagar, Shivpuri etc
  • 19. 19 MP: An Investment Destination  Concessions in taxes shall be given to any heritage hotel project regardless of quantum of investment.  Full exemption from Luxury Tax  Full exemption from Entertainment Tax  Either 20% of total project cost or USD 44,444 which ever is less would be given as capital investment subsidy for conversion of a heritage property into a heritage hotel.  Interest subsidy shall be given in favour of the owner of heritage hotel for the loan obtained for the development of the heritage hotel.  5% for projects upto USD 0.33 mn  3% for the projects between USD 0.33 to USD 1.11 mn  Investments proposed for creating captive energy sources including non-conventional energy sources, sanctioned by the financial institutions as part of the overall project outlay shall be eligible for capital investment subsidy of 20%.  Heritage hotels established in rural areas shall get 50% exemption in stipulated license fee for F.L.-3 license for selling Indian Manufactured Foreign Liquor within their premises.  Full exemption in transport tax shall be given for five years to the vehicles used by the heritage hotel for providing transfer services.  Concession in stamp duty for purchase of land and building for development of heritage hotel would be given within the following limits.  50% exemption in urban areas  100% exemption in rural areas Special policies and incentives are offered for promoting Heritage Tourism. Incentives for Heritage Tourism Conversion of heritage wealth of MP to generate economic benefit Heritage Hotels Heritage Village  Forts  Palaces  Havelis/ Kothis  Villages earmarked with the potential of tourism
  • 20. 20 The Way Forward… The tourism sector in MP offers a wide range of opportunities to the private investor. Several tourism destinations in the State still lies unexploited which could be developed to offer world-class tourism experience to the visitors.  Tour operators  A/c Luxury coaches (Volvo buses)  A/c Mini buses  Imported limousines Tour Operations Accommod- ation Entertainment Experience  5D and other star hotels  Heritage hotels  Motels and lodges  Theme/ Concept/ Boutique hotels  Convention centre  Multiplexes  Entertainment zones  Recreation centre  Restaurants  Theme parks  Golf course  Health farms  Herbal/ Ayurveda village  Camping, Trekking, Angling  Water sports, Canoeing  Jungle safari, Cycle safari  Rock climbing, mountaineering  Para sailing, Para gliding Opportunities For Private Investors at Every Step
  • 21. 21 Department of Tourism, Govt. of M.P. Madhya Pradesh State Industrial Development Corporation Madhya Pradesh Tourism Development Corporation Ltd. http:// www. madhyapradeshtourism.gov.in/ http://www.mpsidc.org http://www.mptourism.com Connecting Further Investors Guide To Tourism – Madhya Pradesh Book By Madhya Pradesh State Tourism Development Corporation Ltd.
  • 22. 22 DESINGED BY Sunil Kumar Research Scholar/ Food Production Faculty Institute of Hotel and Tourism Management, MAHARSHI DAYANAND UNIVERSITY, ROHTAK Haryana- 124001 INDIA Ph. No. 09996000499 email: skihm86@yahoo.com , balhara86@gmail.com linkedin:- in.linkedin.com/in/ihmsunilkumar facebook: www.facebook.com/ihmsunilkumar webpage: chefsunilkumar.tripod.com