Sustainable Livelihood Poverty Alleviation Uplift of Rural Artists Uplift of Rural Artisans Empowerment of Women Improvement in Urban and Rural Infrastructure Better Image, Quality of Life and Attitude of People Revival of Traditional Crafts Heritage Conservation Conservation of Natural Resources

2. Why Rural Tourism
•
Sustainable Livelihood
•
Poverty Alleviation
•
Uplift of Rural Artists
•
Uplift of Rural Artisans
•
Empowerment of Women
•
Improvement in Urban and Rural Infrastructure
•
Better Image, Quality of Life and Attitude of People
•
Revival of Traditional Crafts
•
Heritage Conservation
•
Conservation of Natural Resources

3. Significant multiplier effect on the economy
 Every dollar spent by a tourist changes hands 13 times
 Every hotel room generates direct employment to 3 and
indirect employment to 8 persons

4. FAMINE-PROOFING
 Reducing absolute dependence on agriculture:
 Revival of traditional arts & crafts, building art, etc.
 Providing ready marketing opportunities for rural artisans
 Employment generation during entire year
 About half a million of artisans employed in Handicraft sector in
only one State of Rajasthan
 Handicraft Exports from one of the States, Rajasthan:

1991-92
Rs. 2800 mn.

2000-01
Rs.43,000 mn.

2004-03
Rs. 100,000 mn.

5. TOURISM creates:
a.
Jobs in situ-wild life sanctuaries, historical places, beaches,
mountains etc. Does not result in migration
b.
Creates a large number of semi-skilled jobs for local population
c.
Contributes to overall economic development of areas that would
otherwise be deprived

6. EMPLOYMENT
Every Rs.1 million ($25,000) invested creates…
 Tourism (directly)
47.5 Jobs
 Tourism (indirectly)
89 Jobs
(sub-sector of hotels and restaurants, transportation etc.)
 Agriculture
44.6 Jobs
 Manufacturing
12.6 Jobs

7. TOURISM THIRD-LARGEST NET FOREX EARNER (2001-02)
 Gem & Jewelry
US$ 7.40 Bn.

Readymade Garments
US$ 5.50 Bn.

Tourism
US$ 3.30 Bn.
COMPARATIVE FOREX INFLOW (2000-01)

FDI
$ 2.4 bn

Tourism
$ 2.9 bn
*2001-02 & 2003-03 figures are not used due to the effect of Sept 11 2001

8.  Image/Visibility
 Infrastructure
 Tourism enabled services
 Heritage conservation and management
 Tourism friendly environment (non-intrusive, facilitating, safe
and secure…)
 Tourism products
 Deepening tourist experience (repeat visits/longer stay)

9.  Integrated
 Tourist, the focal point
 Circuit development involves creating a circular route to be taken by
tourists
 Based on features of tourist interest throughout the circuit route
 Driven by infrastructure development
 FDI can play a major role in inducting capital, technology, managerial
skills and marketing

10. Foreign Direct Investment (FDI):
 Augments investible resources
 Improves technological standards
 Improves efficiency of the domestic industry
 Increases competitiveness
 Introduces ‘latest’ technology
 Improves allocative efficiency
 Introduces higher level of technical or ‘X’ efficiency
 Results in diffusion of technology and knowledge to local firms
 Leads to labor turnover or ‘reverse engineering’
 Results in income ‘multiplying’ effect

11.  Could result in cutting into the market of local firms (reduce productivity)
 Could result in ‘financial leakages’
 Repatriation of profits
 Direct channeling of tourists’ expenditure to the home country
 Remittances by expatriate workers
 Imports on account of weak host country supply chain
 In international tourism, cross-border anti-competitive practices may adversely
affect smaller tourism service suppliers from developing and least developed
countries particularly vulnerable to anti-competitive policies
 Employment opportunities may not increase for local population because of
absence of skilled manpower

12.  Policy/Regulatory Framework
 Facilitating Institutions
 Decision-support structure
 Facilitating organizations
 HRD institutions
 Infrastructure:
 Physical
 Social
 Investment Products (Opportunities)
 Public Private Partnership mode

13. Mission for Tourism
Development









Efforts to raise tourist arrivals
Aggressive domestic and international
marketing
Organizing international tourism
events
Awareness about and professional
management of heritage and raising
resources for it
Ensuring hassle-free and pleasant stay
of tourists
Tourism promotion through Internet
Encourage Public Private Partnerships
Rural tourism for generating
employment in rural areas
Eco-tourism












Tourism Policy
Comprehensive Tourism Master Plan
Promoting Private sector investment
Enhancing quality and diversifying
tourism products
Development of tourism
infrastructure
Aggressive marketing & publicity
Tourism as ‘Industry’
Tourism Trade Regulation Act – to
prevent possible exploitation of
tourists
HRD for Tourism Sector
Upgrading Tourism Support Services
Improved Connectivity
Preservation of historical and cultural
heritage and promoting Heritage
Tourism
Promoting Adventure, Wildlife, EcoTourism (as applicable)

14. OBJECTIVES
PROVISIONS
To make the country/region “Tourist
Friendly”:

Definitions

Regulatory

Anti-begging

Special attention to tourists by Police

Voluntary Adoption of law

Bench-marking

Certification

Security for tourist, i.e.

Not to be mobbed by beggars,
touts, taxi drivers etc.

Not to be cheated-cost / quality

Accessible/reliable Information

Third Party Inspections

Good amenities & reliable services

Penalties

Cleanliness & hygiene

Exit Clause


Heritage conservation
Heritage

Declaring building/area/township
protected heritage

Construction to be strictly regulated

15. Single Window Clearance System
 A. Investment Proposals
 B. Visa applications
 C. Concessions to commercially use state assets
 D.
Licenses
to
(recurring)
operate
tourism
related
activities

16.  Tourism Advisory Council
 Top political and bureaucratic executives
 Membership to include tourism trade and industry representatives,
experts…
 To deliberates upon policy initiatives, demands of the industry,
problems with the government institutions, development plans
 Tourism Regulatory Authority
 Accreditation
 Benchmarking services
 Grievance redress
 Adjudication

17. 
Institute of Crafts for the handicrafts sector


Professional degree/diploma in craft & design-techno-design managers

Facilitating marketing and marketing linkage intervention

Technology intervention and product and process standardization

Capacity building at artisan level

Documentation and resource centre


Design input
IPR issues related to the handicrafts sector
Entrepreneurship Management Institutes

Entrepreneurship development for SMEs

Tourism specific entrepreneurship programmers for tourism enabled
services

18.  Institutes of Hotel Management
 HRD in hospitality industry
 Managerial level courses
 Language skills
 Food Crafts Institutes
 Shop floor level skill development courses
 Language skills
 Centre for Heritage Management
 Capacity building amongst officials in the local governments, town
planners, urban and civic bodies, government functionaries about
heritage conservation and management issues

19. INVESTMENT
Public
Highways,
Airports, Urban
Infrastructure,
Power
Private
Hotels, Travel
Agencies, Tour
Operators, Dealers,
Handicraft Stores
P-P Partnership
BOT Roads, Airports,
Resorts, Heritage
Properties, Circuit
development, Webportals

20. 
Several key sectors like water supply, sewerage, roads, capacity building and
public awareness, and heritage conservation can be covered - assistance from
multilateral and bilateral funding agencies

Separate budgetary provisions for tourism related activities in Forest, PWD and
other related departments

Public finance and assistance from organizations such as the UNESCO and the
World Monument Watch for restoration of heritage monuments
TOURISM Infrastructure (Illustrative)

Civil Aviation (Airports)

Roads Up-gradation Project

Urban Infrastructure

Public facilities

Information Kiosks

21. OUTPUT
I
Detailed Feasibility
Report
II
Risk Management
Plan
CONTENT
To assess the feasibility and to recommend a suitable institutional and financial
plan for the project
To assess the major areas of vulnerability underlying the assumptions,
forecast cash flows and profitability of the project
To assist in the development of suitable strategies to limiting such effects
To ensure the equitable sharing and allocation of project risk
To reflect the differing perspectives of the consortium, contractors,
Government, lender, etc, on the project and to assess the balancing of
interests achieved
III
Environment and
Social Assessment
Report
To assess the environment and social impact of the project and to incorporate
appropriate mitigation measures
IV
Contractual
framework
Documentation
To develop the contractual framework of the project and to provide the draft
agreements to be entered into by the principal stakeholders to the project, such
as Government, Operators, Lenders, etc.
V
Procurement
To provide a blue print to achieving technical close for the project, including
selection and award of the contract to successful bidders.

22. 
Rural Tourism is the main driver of economic growth/employment generation in
more than 80 countries

It has the potential of addressing issues such as rural poverty, empowerment of
women, strengthening the economic status of the rural artisans, earning forex etc.

It is necessary to create the right environment to attract FDI by establishing
progressive legal-institutional framework and facilitating organizations

Circuit development approach yields fastest results

HR is the key

Presenting bankable projects to the investors not only increases the possibility of
attracting forex but also establishes benchmarks for the future

23. Baramati
A
n
d
r
a

24. Village in Kochi
Ganjam, Srirangapattna
Janapada Loka
Ganjam, Srirangapattna

25. Rural Sports Panjab
Mysore Dasara
Turuvekere
Belur , Hassan
Sravanabelagula, Hassan