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Tourism industry industrial policy


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Analysis of tourism Industry policies for four different states of India

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Tourism industry industrial policy

  1. 1. Industrial Policy Submitted By 212027 RESHMI RAVEENDRAN
  2. 2. Industrial Policy It covers rules, regulations, principles, policies, & procedures laid down by government for regulating & controlling industrial undertakings in the country. It prescribes the respective roles of the public, private, joint, cooperative large, medium & small scale sectors for the development of industries. It incorporates fiscal & monetary policies, tariff policy, labor policy. 2
  3. 3. Objective To maintain a sustained growth in productivity To enhance gainful employment To prevent undue concentration of economic power To achieve optimal utilization of human resources To attain international competitiveness and To transform India into a major partner and player in the global arena 3
  4. 4. Industrial Policies Industrial Policy Resolution of 1948 Industrial Policy Resolution of 1956 Industrial Policy Resolution of 1973 Industrial Policy Resolution of 1977 Industrial Policy Resolution of 1980 The New Industrial Policy of 1991 4
  5. 5. Industrial Policy 1991 Policy focus: Deregulating Indian industry; Allowing the industry freedom and flexibility in responding to market forces and Providing a policy regime that facilitates and fosters growth of Indian industry. Initiatives: Industrial Licensing Foreign Investment Foreign Technology Agreements Public Sector Policy MRTP Act 5
  6. 6. Project Objective Sectors : Tourism This Sector has been analysed for four different states: Gujarat, Uttar Pradesh, Kerala, West Bengal I have tried to analyse from an Entrepreneurs point of view as to based on the policies which are the most favourable states for each sector. Criteria for selecting the states: -We have decided by analysing the secondary information available. -Also rankings of the states for each sector from the government/ministry portals. 6
  7. 7. Tourism Industry Uttar Pradesh World tourism contribution to GDP is 11% West Bengal Gujarat Indian tourism contribution to GDP is 1.8% Many industries associated Employment generation Kerala 7 Most States has given Tourism “Industry Status” so that hotels can benefit under Industrial Policy
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  9. 9. UP – Domestic (2) , Foreign (4) West Bengal -Domestic (9) , Foreign (6) Kerala – Foreign (8) Gujarat – Domestic (8) 9 Sources :
  10. 10. Challenges Lack of proper infrastructure Human resources Service levels Lack of adequate marketing and promotion Taxation Security Regulatory issues 10 Oppurtunities India’s size and massive natural, geographic, cultural diversity Medical tourism in India Eco-tourism increasing popularity eco-friendly hotels and tour packages India’s greatest adventure tourism assets - Himalayas & its rivers Agri tourism, pilgrimage tourism, heritage tourism, and MICE tourism hold enormous potential.
  11. 11. Tourism Policies in India In the year 2002, the Government of India announced a New Tourism Policy to give boost to the tourism sector. Salient Features NRI investment up to 100% allowed Concession rates on customs duty of 25% for goods required for initial setup. Benefit of 100% investment linked tax deduction on capital expenditure( for building tax incentive & operating new hotel at selctive locations) Kerala, Madhya Pradesh, Orissa and Gujarat have entered star category hotels at into Private Public Partnerships (PPP) 11
  12. 12. Tourist Visa on Arrival schemes ‘Industry status’ to tourism Single-window clearance for new hotel projects Urban infrastructure and facilities such as the area around the Taj Mahal. 100 percent FDI in developing tourism infrastructure in India About 5.92% of the country’s GDP comes from tourism . Tourism has also created a lot of employment (associated industries) Healthcare tourism -can avail private healthcare facilities. “Incredible India”campaign implemented by the GOI -Catalyst in attracting record tourist in India is the first B2C campaign of its kind. Has created a unique brand and identity of India in World Travel & Tourism Incredible IndiaVideo 12
  13. 13. Gujarat Highlights: Heritage, Museums, Achaeological site, Wildlife, Relegious Sites, Fairs Tourism Objective Hospitality Industry Growth Indirect Employment Cultural Development Infrastructure Development Employment Opportunities 90 jobs Per Million Rs. Investment Sustainance of rich Heritage of Art & Craft Strengths Majority of the 2 crore NRIs, are Gujaratis . This untapped resource can be motivated Business friendly environment. Industry friendly State attracting the attention of investors worldwide with its open door policy and liberalized economy 13 Gujarat has a well-spread network of banking and financial institutions
  14. 14. Strategy The policy would aim at overall development of tourism by creating excellent infrastructure, connectivity and providing tourists with good facilities in important tourist and religious places Special thrust to ‘Event (Festival) based Tourism’ eg:events like Navratri, Somnath festival etc The policy also aims to create an image for Gujarat in international arena by developing entertainment theme parks in certain areas, which would be considered as Special Entertainment Zones. Entrepreneurship Government is very keen to promote women entrepreneurs and therefore, will give priority to projects promoted by women Gujarat is the most investor friendly state Sources: 14
  15. 15. West Bengal Highlights: Heritage, Himalayas, Mangrove, Sea Forest, Pilgrimage Tourism Objective To improve the market share of West Bengal in international & domestic tourism market. To develop a portfolio of tourism products Infrastructure Development & Employment Opportunities To facilitate tourism by all segments, particularly the middle and lower income tourists To develop partnership with the govt. and non-govt. agencies including PPP Strengths Has abundant natural resources of minerals West Bengal offers excellent connectivity to rest of India -rail, roadways, airports, ports Geographical advantages Given the variance of the tourism sites in the State, West Bengal has 15 something to offer throughout the year.
  16. 16. Strategy Tourism has been declared as an Industry by the State in 1996. The Government in an effort to a number of schemes to encourage Tourism. The State Scheme of Incentives for Cottage and Small Scale Units, 1993 were made available to the tourism industry. The government will provide exemption on stamp duty, employment generation subsidy, waiver of land conversion fee, tax holiday on VAT returns, etc, to new projects coming up in the state. The policy envisages to promote private sector investment in greenfield / brownfield projects and through Public-PrivatePartnership (PPP) mode. Sources : 16
  17. 17. Uttar Pradesh Highlights: World Heritage – Taj Mahal,Monuments, Pilgrimage, Fairs Tourism Objective To promote tourism development in harmony with local community & Employment. To protect, preserve, and conserve the monuments To promote the highest possible standards of cleanliness, sanitation, and landscaping To promote and develop UP as a prime national and international tourism destination To showcase the values of cultural diversity, harmony and the depth of civilisation that represents the State of U.P. Strengths World tourism destinations - Taj Mahal Religious Sites (Hindu, Islamic, Buddhism, Jain & Christian) Tremendous cultural and architectural diversity all within one state Nationally acclaimed craft centres (e.g.Moradabad-metalware;Lucknow-Chikaan work) 17
  18. 18. Strategy A policy framework /enabling legislation for privatisation of hotel properties for land acquisition from tourism perspective for incentives to promote cleanliness and sanitation drive for adoption and up-keep of monuments by private corporates, institutions and associations of local bodies Entrepreneurship development and self employment programmes to involve the educated youth in providing various tourist facilities and services and thereby creating employment opportunities. Establishing Paryatan Mitra (Friend of Tourism) for assisting entrepreneurs Sources : 18
  19. 19. Kerala Highlights: Eco Tourism, Medical (Ayurveda), Adventure, Wildlife Tourism Objective To promote & market the state as a premium tourism destination in the domestic and international markets To promote and facilitate private investments in tourism , support infrastructure and ensure quality services and facilities To ensure that the local community benefits from tourism, through a new model on PPP To enhance visitor satisfaction in destinations Strengths Well-developed rail, ports and telecom infrastructure covering all parts of the state Good local administration, state govt support to industry & proximity to markets /ports. The state has high levels of literacy and a remarkably stable political situation. Good marketing and information support systems to enhance tourism inflow 19
  20. 20. Strategy 2-year sales tax holiday for self-employment units with turnover below Rs 200,000 Single Window Clearance system- An online system will be introduced to expedite clearances in a time bound manner. Labor Development Offices ensure that work does not suffer due to disputes in new enterprises Approval / Classification of tourism units through Tourism studies and collection of tourism statistics Upgradation and creation of new tourism products Ensuring quality infrastructure at tourist destinations Government promotes entrepreneurial culture among the people of the State in a Mission mode. Sources : 20
  21. 21. Inference Co-operative partnership between government departments, national tourism authorities, international and national trade associations, trade unions and the travel and tourism private sector All stakeholders now need to share the responsibility for travel and tourism’s future and need to deliver the following to ensure its sustainability As an entrepreneuer, we have to evaluate : Tourist traffic, tourist profile, infrastructure, purpose of travel, policies Based on Policies: Gujarat Rank 1 Kerala Rank 2 Uttar Pradesh Rank 3 West Bengal Rank 4 21
  22. 22. THANK YOU 22