MDTC Asset Monetization

July 2015
Business Enhancement Through
Asset Monetization

1
There are 9 pillars to the project
Creating framework for
asset monetization (SPV
creation)
1
Developing 20 niche
locations through
partnerships
2
Developing innovative
tourism packages for
generating near-term
revenues
3
Assist MTDC to obtain
technical and financial
assistance
4
Support in building tourism
linked human resource in
Maharashtra
5
Assisting MTDC in setting of
customer service cell
6
Support in incentivization of
tourism related investments
7
Planning for ensuring tourist
security against unforeseen
disasters
8
Project management office
for driving implementation
9

2
Topics for asset monetization
Examples of structures from other states &
other sectors
Proposed structure for MTDC & next steps
Potential MTDC properties for monetization &
attracting tourism capital

3
We have conducted detailed studies for selection of properties for asset
monetization
Discussion
with MTDC
officials
1. Land & Estate Department
2. MTDC regional managers from fall 7 regions
3. Resort manager from owned and leased assets
Survey on
locations
We have surveyed MTDC resorts locations to understand
1. Location connectivity (Road and Rail)
2. Tourism infrastructure (tourist facilities, guides,
information signage's etc.)
3. Competitors profiling
Discussion
with industry
1. Vikram Oberoi & Jaideep Dang (SVP, Development)
from The Oberoi Group
2. Patu Keswani (CEO) from Lemon Tree hotels
3. John Clifton from Bonnington Hotel & Residence
(Dubai, London)
Studied
other States
model
1. Taj + Kerala tourism SPV model
2. Gateway Hotel participation in Gujrat Tourism
3. Private participation in Daman tourism through OIDC
4. Taj participation in NDMC (Taj Mansingh)

4
We have spoken to different travel intermediaries and industry leaders
 Federation of Hotel and Restaurant
Associations of India
 Indian Association of Tour
Operators
 Federation of Associations in Indian
Tourism & Hospitality
 World Travel Tourism Council India
Initiative
Travel intermediaries and
associations
Industry leaders

5
Currently MTDC has 148 assets across 4 categories
148
Assets for
monetization
53
Short lease
32
Resorts
25
Long lease
38
Land banks
 18 operational
 14 under repair/not operational
 Long lease up to 30 years1
 Open land + constructed properties
 30 Short leases (resorts) – Less than
10 years
 15 restaurants
 8 shops
 MTDC owned land2
1 lease extendable for another 30 years
2 data for 4 land bank is still awaiting
SOURCE: MTDC

6
MTDC can lease 63 assets through SPV to different private players
▪ 9 assets for which lease expires
in next two years – can be
considered for SPV
▪ 2 health SPA removed (Karla +
Mahableshwar)
June 2015
148
25
21
23
8 63
Long lease
> 30 years
Total assets
for SPV
Land not
immediately
available for
construction
8
Leased
shops +
restaurants
Short lease
expiring after
two years
Total assets
Source: Land & Estate Department, MTDC
land under
construction
▪ AEDP land in Aurangabad
(Fardapur, Thane,
Pimaldari, Vemul)
▪ Court matter (Gorai 1,2,
Manori 1, 2)
Can be
potentially
considered as
there may be a
case for closing
out the lease

7
MTDC assets are categorized in three types for leasing out to
different players
Budget
(1-3 star)
1 ▪ ~ ₹ 30 lakh per room capex for up gradation
(total capex ₹ 80 crores)
▪ 37 properties
– 8 existing operations for up gradation
– 14 non operational for up gradation
– 7 leased assets for up gradation
– 6 land banks to be converted into resorts
Mid to
high
scale
(3-4 star)
▪ ~ ₹ 70 lakhs per room capex for up gradation
(total capex ₹250 crores)
▪ 8 existing resorts (Ganpatiphule, Tarkarli, Karla,
Matheran, Malshej Ghat, Mahableshwar, Shirdi
Pilgrim Inn and Bhandardara)
2
Premium
luxury
(5-star
and
above)
▪ ~ ₹ 2 crores per room capex (total capex of ~
₹600 crores)
▪ 4 properties (Kashid, Tadoba, Toranmal and
Sillary)
3
Description Potential players
Source: Federation of Hotel and Restaurant Association of India,

8
Budget category will have maximum properties for leasing out
Source: MTDC
Note: 1 Includes both operational and non operational
Criteria for selection of properties
 Size of the land available
 Macro demand – demand at the city (both touristic, religious and business demand)
 Micro level demand – specific location and its potential for budget, mid scale and premium
Resorts1 Leased assets Land banks
Total number of
properties
Budget
(1-2 star)
366921
Mid
scale
(3-4 star)
2315-8
Premium
luxury
(5 star)
44--

9
Assets prioritised for budget type hotels
Sr. No. Destination Issues Type Area (In Sq meter)
1 Fardapur No land issue Resort 21,200
2 Velneshwar No land issue Resort 156,780
3 Chikhaldara No land issue Resort 30,400
4 Panshet No land issue Resort 16,400
5 Tuljapur No land issue Resort 24,000
6 Harihareshwar No land issue Resort 50,000
7 Ajanta T Junction Comes under AEDP Resort 8,794
8 Titwala No land issue Resort 48,600
9 Riddhapur No land issue Resort 2,520
10 Gazipur No land issue Resort 12,100
11 Fardapur No land issue Resort 21,200
12 Anudhya-nagnath No land issue Resort 8,094
13 Narsi Namdev No land issue Resort 8,094
14 Dajipur No land issue Resort 63,300
15 Gaganbawda No land issue Resort 54,800
16 Akloli No land issue Resort 9,410
17 Bordi No land issue Resort 4,550
18 Harihareshwar No land issue Resort 9,800
19 Khopoli No land issue Resort 14,079
20 Manor No land issue Resort 27,950
21 Elephanta Heritage land Resort 354,900
22 Aurangabad Resort Comes under AEDP Leased assets 14459
23 Sillari Pench Resort No land issue Leased assets 4000
24 Bor Dam Resort No land issue Leased assets 20800
25 Khindsey- Meghdoot No land issue Leased assets 23500
26 Shegaon Resort No land issue Leased assets 12100
27 Washim Resort No land issue Leased assets 62600
28 Panhala fort resort No land issue Leased assets 12748
29 Diveagar resort No land issue Leased assets 25000
30 Trumbakeshwar resort No land issue Leased assets 47700
31 Salbardi No land issue Land banks 6,000
32 Mithbav 3 Land issues- Local encroachment Land banks 3,300
33 Kunkeshwar No land issue Land banks 5,000
34 Tarkarli 2 Comes under CRZ Land banks 5,420
35 Gondiya Land ownership not transferred Land banks 3,000
36 Alibaug 2 No land issue Land banks 5,020
Resort
Leased assets
Land banks

10
Sr. No. Destination Issues Type Area (In Sq meter)
1 Bhandardara No land issue Resort 64,800
2 Ganpatipule No land issue Resort 190,450
3 Karla No land issue Resort 153,400
4 Shirdi Pilgrim Inn No land issue Resort 4,900
5 Malshej Ghat No land issue Resort 50,000
6 Matheran No land issue Resort 14,570
7 Mahableshwar No land issue Resort 60,703
8 Katwaneshwar 1 No land issue Land banks 48,580
10 Tarkarli 3 No land issue Land banks 13,890
12 Pimpaldari No land issue Land banks 20,000
13 Ramtek 3 No land issue Land banks 12,100
14 Mahur 3 No land issue Land banks 4,000
15 Mahur 1 No land issue Land banks 12,100
16 Akkalpada No land issue Land banks 8,000
17 Bordi 2 No land issue Land banks 9,800
18 Kasid * No land issue Land banks 8,000
19 Akaluj* No land issue Land banks 18,500
20 Kaundinyapur * No land issue Land banks 8,100
21 Lonar - II * No land issue Land banks 20,000
22 Jawhar No land issue Land banks 20,002
Source: MTDC
Assets prioritised for mid-scale hotels (3-4 star type)
Resort
Leased assets
Land banks
Potential for high end
property

11
Assets identified for premium resorts
Sr.
No.
Destination Issues Type Area (In Sq meter)
1 Toranmal No land issue Premium resort 115,000
2 Tadoba No land issue Premium resort 30,000
3 Kashid Comes under CRZ Premium resort 8,000
4 Sillari No land issue Premium resort 1,900
Source: MTDC
Small premium
resort of 20-25
rooms

12
other sectors

13
There are two types of models – lease model with
revenue sharing is the preferred model Recommended option
More preferred
Description
Creation of lease model with
revenue sharing
▪ 30 year lease extendable to
60 years
▪ Revenue sharing
▪ Capex borne by private party
Examples
Taj Hotels, Gir forests in
Gujarat, Tajmansingh, Port
sector, Kerala tourism
Investment of Taj in Kerala
tourism
▪ Private party and MTDC
have an equity sharing
arrangement
▪ Profit sharing
▪ Capex to be borne by both
parties
Constant annuity model with
equity risk
Performance
management
 
Potential to
attract credible
bidders



Ability to raise
capital  
Ring-fencing of
operations
 


14
State and other properties list
Gujrat Tourism: SPV with IL&FS and Taj
Gateway investment in Gir forest
2
Kerala Tourism: Partnership with Taj and Oberoi
group. Lease out 9 assets to other credible layers.
1
Port Model: Mormugao port lease model for
private participation
3
Delhi Municipal Corporation: Taj Mansingh,
Delhi
4

15
Kerala has strategically developed resort properties to attract tourists
▪ Total footfall: Kerala has received
126 lakhs tourist in 2014
(Maharashtra received 80 lakh
tourist footfalls)
▪ 7% of total footfall is foreign
▪ For KTDC, Of the 42 properties, 20
resorts under 3 star/4 star category
and rest are under budget hotel
category
▪ Of the 42 resorts - 33 resorts
managed by own, while 9 resorts
are leased out
▪ Resort have been strategically
developed to attract tourism across
all segments
▪ Now proposing setting up Tourism
Investment Promotion Board
Key tourism statistics in Kerala
Kasaragod
Kannur
Wayanad
Kozhikode
Malappuram
Palakkad
Thrissur
Ernakulam
Idukki
Kottayam
Pathanamthitta
Kollam
Thiruvananthapuram
Alappuzha
Location of Kerala tourism resorts
Tamarind KTDC
easy hotels
Motels
Budget Hotels
Premium property
Premium heritage
property
SOURCE: KTDC, TKRL

16
Kerala has created multiple partnerships with private players to
reach its potential
Description
▪ 42 properties, ranging from five-star resorts and heritage hotels to budget
accommodation
▪ KTDC fully owns 33 properties. 20 of the 33 properties are under the two
brands:
‒ Tamarind Easy Hotel
‒ Aaram Motel
Kerala Tourism
Development
Corporations
(KTDC)
Kerala Tourism
▪ Indian Hotels Company (IHCL), owned by Tata Groups, operates and
manages all 5 hotels.
▪ Profitable since 2006
▪ SPV with TKRL (33%), Tata (28.3%) and other private players. TKRL is wholly
owned by Kerala Government.
▪ Total investment of Rs. 60 crores- Taj Hotel (Rs.11 crores), TRKL (Rs.5.5
crores)
Taj Kerala
Resorts and
Hotels Private
Limited (TRKL)
▪ Joint venture between the Oberoi Group and TRKL
▪ Operates luxury cruise on the Kerala backwaters, complemented by cultural
performances and events on board
▪ 80% owned by Oberoi Group and 20% by Kerala Government
▪ Total investment of Rs. 2.22 crores- Oberoi (Rs.1.77 crores), TRKL (Rs. 0.44
crores)
Source: KTDC, TKRL, TATA Group
Oberoi Kerala
Hotels & Resorts
Limited India
1
Kerala tourism

17
Kerala tourism resort properties caters to a variety of customers
SOURCE: KTDC, Taj Palaces and Hotels, Average occupancy and number of employees is based on interview with manager
Total number of rooms 30
Average tariff per suite
(Rs. per night, double
occupancy)
12,000 – 16,000
Average occupancy (%) 78
Number of employees 81
TAJ Garden Retreat Varkala
High end
resorts
(5 star
properties)
Mid and low
end resorts
(3 - 4 star
properties)
Tamarind Easy Hotel
Average tariff per suite
(Rs. per night, double
occupancy)
1,000 – 1,200
Average occupancy (%) 86
1
Kerala tourism

18
A stark difference exists in hotel offerings across different segments
The Taj Gateway Hotel - Marine Drive Ernakulam
Super structure Executive suite Restaurant Pool and lounging area
5 star category hotel
Super structure Executive room Restaurant Common area
Akshay Beach ResortBudget category hotel
SOURCE: KTDC
1
Kerala tourism

19
The Gateway Hotels (Taj Group) at Gir forest is one of the well known
resorts
SOURCE: The Gateway hotel Gujrat, Average occupancy is based on manager discussion, Booking.com
▪ Located at the edge of the world-renowned Gir
Forest. Surrounded by jungles and hotel faces
the Hiran River
▪ 28 rooms - 26 Standard Rooms, 1 Deluxe Suite
and 1 Executive Suite, with views of the forest
and river. Banquet halls, swimming pool,
fitness centre and spa
▪ 160 Kms from Rajkot airport- 3 hours
▪ Average 9/10 positive rating from customers
Overview of hotel
Average tariff per standard
room (Rs per night, double
occupancy)
~ 21,500 – 22,500
Average occupancy (%) 70%
Key metrics
2
Gujrat tourism

20
Gujarat has created SPV with ‘IL&FS’ for tourism development
TCGL was established in 1978 to
facilitate tourism. Gujarat is expected
to receive more than 3 crore foreign
and domestic tourists in 2015
▪ SPV between IL&FS and Gujarat Tourism
Opportunity Limited (GUJTOP)
‒ This initiative is set to upgrade areas across
Gujarat’s extensive coastline, as well as ecological
areas such as Saputara and Sasan Gir forest
‒ Facilitate project identification and conceptualization,
land identification and greenfield development,
project structuring, funding planning and bid process
management (finalization of operator)
‒ To undertake 50 tourism projects across Gujarat to
be developed on PPP format
‒ The ‘Moti Rudrani’ rural site is particularly notable,
with a total project area of 21.6 hectares
▪ Leased asset to TATA Group: TCGL has also leased
the ‘Gir Lodge’ property to the Tata Group (for a period
of 33 years), which is now a leading luxury eco-resort
▪ Tie- up with IBM through PPP: ‘Little Africa’ is an
initiative with the multinational corporation IBM. The
cultural project is spread over an area of 25 acres and
elicited total costs of Rs. 10 Crore
Public private participation initiatives
SOURCE: APTDC, The Hindu
2
Gujrat tourism

21
Mormugao port has followed lease model for private participation
1 Revenue share model: Lease out for 30 years to Gammon Infrastructure projects Ltd
2
Bidding Process: Gammon Infrastructure projects ltd. has won by giving highest revenue share
price bid of 33.66% as compare with JSW Infrastructures bid of 27%
3
CAPEX: Gammon Infrastructure has to invest about ₹300 crore (Capex) to install equipment at
berth 11
4
Operations: Cost borne by port authority- Capital cost related to dredging, vessel related
operational cost. Repair expenses are borne by private party and should also maintain the
environmental norms
Revenue
shared
Capex ₹300
crores
RevenueOperational
expenses
Quote- 33.7% of
revenue share
MURMOGAO PORT TRUST (BERTH 11)
Government
Source: Mormugao port, Gammon India, JSW
3
Mormugao port model

22
Why this private participation model is different as compare with
other model
Capex
▪ Capital expenses are borne by private player
▪ No capital expenditure for Government
▪ Immovable assets are transfer to port authority after
the completion of concession period
Revenue risks
▪ Revenue risk are borne by both the parties because of
revenue share model
▪ For example delays in land acquisition, financing risk,
design risk, traffic risk etc.
Monitoring
authority
▪ Private party monitors - Environmental, ISO standards
▪ Government monitors - Operational, maintenance &
repair activities
3
Mormugao port model

23
Private participation in Government owned hotel
▪ The term given to IHC was for 33 years.
▪ This JV agreement:
▪ License deed for land area (3.78 acres)
License fee:
‒ 10.5% of gross receipts or 15% of NDMC investments in
hotel building (₹ 6.26 crores) whichever is higher.
‒ Along with ₹12 lacs per annum & ₹ 2.29 lacs per annum
towards house tax & ground rent respectively.
▪ Collaboration agreement: Total investments by:
‒ NDMC: ₹ 626 lacs
‒ IHCL: ₹ 550 lacs
▪ Supplementary agreement
‒ Capturing final investments of NDMC of ₹ 626 lacs including
construction of the hotel building with fixtures & fittings, cost
of land & construction supervision.
License fee and revenue sharing model
Taj Mansingh, Delhi
IHC is Indian Hotel Company
NDMC is New Delhi Municipal Corporation
SOURCE: NDMC, IHC
Allotted land &
financed the
construction of the
building.
License fee & it also
looked after the
technical services.
Indian Hotel
Company (IHC)
New Delhi
Municipal Corp.
(NDMC)
4
Delhi municipal

24
License fee to be paid by IHC to NDMC
Duration Minimum License Fee
License fee as share in
gross turnover
First ten years 21 crores per annum 17.25% of gross turnover
Second ten years 25 crores per annum 18.25% of gross turnover
Last ten years 30 crores per annum 19.25% of gross turnover
SOURCE: NDMC
NDMC could vary the % revenue sharing based on gross receipts of the
hotel, so as to get an amount equivalent to the fair market value
Delhi municipal

25
other sectors

26
Star categorization of hotels with their specifications
Description Players
5 Star
▪ Offer high degree of personal service
▪ Min room size- 400 sq feet
▪ Degree in hospitality- 80% staff
▪ Room to staff ratio- 1:2.0
▪ Average rental rate- 7000 onwards
▪ Services offered- Business centre, valley parking, golf
courses etc.
3 & 4
Star
▪ Offers above average service
▪ Degree in hospitality- 40-60% staff
▪ Min air conditioned room- 100%
▪ Average rental rate- 3000 to 7000
▪ Services offered- Fitness center & spa
1 & 2
Star
▪ Offers basic comfort and hospitality
▪ Degree in hospitality- 20% staff
▪ Min air conditioned room- 25%
▪ Average rental rate- 1500 to 3000
Source: Department of tourism (Government of India), Federation of Hotel and Restaurant Association of India, HVS

27
Swiss Challenge : A viable model to develop unsolicited proposal
Positives
Swiss
challenge
2
▪ Innovative ideas
▪ Reduced burden on
Government
▪ Cost effective
▪ Augments public private
partnerships
▪ Limited transparency
▪ Other participants lack a
chance to win
Limitations
Conventional
tender
1
▪ Value for money
▪ Avoids favoritism
▪ Lower cost
▪ Focus only on a least-cost
solution
▪ Quality is compromised
▪ Suppresses innovation
EoI13
▪ Competition is confined to few
players
▪ Avoids clutter
▪ Comparatively lengthy
process
SOURCE: Infrastructure Bulletin
1 EoI : Expression of Interest

28
Swiss Challenge Model
Swiss Challenge Model
1 Suo motu : on its own motion
Key steps
Submission of Suo moto
proposal1 to concerned
authority, authority to provide
approval after examination of
the proposal
1
Open bidding will be done by
the concerned authority
inviting bids from other
private players
2
If competing bidder provides
the best financial offer,
proponent is given chance to
match the offer
3
Proponent
Concerned Authority
Other private players
Right of
first
refusal
Will
modify
the
tender as
per the
best bid
The
project
will be
given to
the next
bidder
Yes No
1 3
2

29
Supreme court gives nod to Swiss Challenge method
SOURCE : Supremecourtcases

30
▪ Initiation in spotting an unidentified need and provide
solution
▪ Bring in technology, finance & expertise in execution
▪ Encourage induction of technology and promotion of
unique solutions
▪ Invite private capital & efficiency by having open and
transparent process
▪ Provide financially sustainable solutions
▪ Augment public private partnerships in sectors/projects
which are not covered under current PPP framework
Why Swiss Challenge Method?

31
Swiss Challenge Method : Prominent projects proposed/ongoing
Karnataka:
(Monorail project,
Bengaluru)
▪ Project proponent: Consortium of IL&FS, Scomi
Geodesic
▪ Stretch will be 16km
▪ Approximate project cost: ₹2,200 to ₹2,400 crores
Punjab:
(Personal rapid
transit system,
Amritsar)
▪ Project proponent: Fairwood
▪ Stretch will be 3.3 km connecting Golden temple
with 3 destinations
▪ Estimated cost: ₹500 crores
Madhya Pradesh:
(IT cloud
computing, Rural
BPO)
▪ 15 new centres in 3 years
▪ Total investment : ₹143 crores
▪ Total youth to be employed: 200 youth per centre
Kerala:
(500 MW
petroleum coke
based power
project, Kochi)
▪ Project proponent: Infrastructures Kerala Ltd. (Inkel)
▪ After expansion 1.5 mn tonnes of fuel will be
available
▪ Estimated cost : ₹12,000 crores
SOURCE : The Hindu, Infrastructure bulletin

32
Lease model in an new property
Benefit that can be achieved
Potential revenue
Key demands from potential
private players
₹32 cr
Participation through
greenfield / brownfield
route
1
Lease extendable to 60
years to make investment
financially viable
2
Potential to develop eco-
tourism and target
adventure loving middle tier
crowd
3
Toranmal
Before starting the
bidding process,
MTDC can transfer
the assets to a
100% MTDC
owned SPV
Capex requirement of ₹ 75
Cr, area of 1.15 Lacs sq
meter, potential for 100
rooms
1
Obtain all necessary
approvals
2
Finalize revenue sharing
model and governance
mechanism
3
Initiate bidding process
through symposium to start
private participation
4
Finalize tender document5
Complete bidding process
by awarding the project to
the highest bidder
6

33
Lease model in an existing property
Benefit that can be achieved
Current revenue
Potential revenue
Key demands from potential
private players
₹1.9 cr
₹9.8 cr
Lease of 30 years
extendable by another
30 years
1
Operational flexibility in
running day to day
operations
2
Subsidized room rates for
20% rooms for existing
MTDC customers
3
Tarkarli
Before issuing
the RFP, MTDC
has the option of
transferring the
property to a
100% MTDC
owned SPV
Total capex requirement of
₹27 Cr to add 10 new
rooms and upgrade current
30 rooms, area of 53,500
sq meter
1
Evaluate and obtain all
necessary approvals
2
Issues RFP to attract
private players to the
project
3
Conduct and manage the
bid process
4
Award the project to the
best private player
5

34
▪ Keen on high end luxury segment
(group has no midscale segment)
▪ Participation through
greenfield/brownfield route
▪ Successfully executed private/public
partnership through Shimla White
flower property
▪ Access to airport is key for investment
▪ Very Keen on Tadoba region for
development of five star luxury resort
on the lines of Taj Gateway, Gir forest
▪ Also discussed with Cyrus Madan
(Vice President - Development and
Feasibility)
▪ Lease period of 60 years to make
investment financially viable
▪ Minimum 60 rooms inventory for up
gradation of MTDC properties
▪ Keen on Mahableshwar, Ganpatiphule,
Aurangabad, Nagpur etc. for
investment
▪ Keen for discussion for greenfield
investments on MTDC land provided
30+30 years lease
Key points made by a luxury property chain and middle income
hospitality group
Vikram Oberoi(Vice President)
Patu Keswani (Chairman and
Managing Director)

35
Key benefits of having an SPV
▪ Help attract credible
private players - both
domestic players and
international players
3 3
▪ Ring-fence resort
operations,
performance and cash
flows
2 1
▪ Legally compliant
structure to follow
5 5
▪ Significant degree of
control on resort
operation, while bringing
professional
management and private
sector involvement
1 1
▪ Provides MTDC the
option of equity
dilution in future(a ring
fenced SPV can become
a platform for private
investment under PPP
mode in future leading to
reduced capital burden
on the state)
4 3

36
Four key steps for completion of asset monetization
Finalize assets for
monetization
 Include final list
of assets to be
leased out
 Include land cost
in SPV
1
Finalize
revenue
sharing
 To lease out
assets for 30
years
 MTDC will
receive rental
income and
share of revenue
2
Finalize
governance
mechanism
 Finalize corporate
governance
structure for MTDC
 Finalize committee
for performance
monitoring
 MTDC to monitor
performance of
assets on timely
basis
3
Initiate bidding
process &
finalize the
partner
 Conduct symposium
to kick start private
participation
 Finalize tender
document
 Complete bidding
process by awarding
to highest bidder
 Agreement signing
with the final vendor
4
Source: Team analysis
Creation of SPV can accomplish above steps (100% owned by MTDC with initial capital of
Rs. 3 crores)
36 Budget, 23 mid-
scale, 4 premium
luxury
Finalise through
bidding process –
approx. 30 to 45%
Separate
committee for
overseeing the
monetisation
Large credible
payer to fund the
capital investment

37
Budget hotel: There will be 3 variants of budget category for MTDC assets
Key Parameters
Bed &
Breakfast
1 ▪ Providing basic, reasonably comfortable
accommodation should be their aim
▪ The price range can be from ₹999 to
₹2499 depending upon the locality
▪ Standard budgeted hotels with free Wi-fi
& breakfast
▪Narsi – Namdev
▪Aundha – Nagnath
▪Fardapur
▪Akloli
▪Titwala
▪Manor
Business
3 ▪ Location can be tier 3 & tier 4 cities
▪ Should have all the amenities for a business
meeting like a conference hall, video calling,
High speed internet access etc.
▪Locations with some
industrial base
Eco
tourism
2 ▪ Theme destinations where flora, fauna,
and cultural heritage are the primary
attractions.
▪ Cater to some theme destinations
▪ Price should start from ₹2,000 up to ₹
7,000
▪ Example : Anegundi (Ecological village )
▪ Kaama Kethna (Ecological village )
▪ Agrotourism
▪Velneshwar
▪Chikhaldara
▪Harihareshwar
▪Ajanta T junction
▪Ridhapur
▪Gazipur
▪Fardapur
▪Dajipur
▪Gaganwada
▪Bordi
▪Elephanta
MTDC Properties Potential Players
SOURCE: MTDC

38
There are multiple interventions required for budget hotels before they are
leased out (1/2)
Sr. No. Asset name Category Capex (In crores) Total rooms Property Type
1 Fardapur Operational 10.0 29 Eco tourism resort
2 Velneshwar Operational 5.0 15 Eco tourism resort
3 Chikhaldara Operational 4.0 11 Eco tourism resort
4 Panshet Operational 3.0 9 Business tourism resort
5 Tuljapur Operational 3.0 9 Business tourism resort
6 Harihareshwar operational 2.5 8 Eco tourism resort
7 Ajanta T Junction operational 2.0 5 Eco tourism resort
8 Ridhapur not operational 2.0 4 Eco tourism resort
9 Gazipur not operational 1.8 5 Eco tourism resort
10 Fardapur (T) not operational 1.1 3 Bed & Breakfast
11 Aundhya-Nagnath not operational 2.1 6 Bed & Breakfast
12 Narsi-Namdev not operational 0.7 2 Bed & Breakfast
13 Dajipur not operational 1.0 3 Eco tourism resort
14 Gaganbawda not operational 3.5 10 Eco tourism resort
15 Akloli not operational 1.8 5 Bed & Breakfast
16 Bordi not operational 5.3 15 Eco tourism resort
17 Harihareshwar not operational 1.8 5 Eco tourism resort
18 Khopoli not operational 1.0 3 Business tourism resort
19 Titwala not operational 2.8 8 Bed & Breakfast
20 Manor not operational 3.5 10 Bed & Breakfast
21 Elephanta not operational 0.7 2 Eco tourism resort
Source: MTDC

39
Sr. No. Asset name Category Capex (In crores)
Total
rooms Property type
22 Gondiya Open land 2.0 8 Bed & Breakfast
23 Sindhudurg Open land 2.0 8 Eco tourism resort
24 Nanded Open land 2.6 10 Bed & Breakfast
25 Sindhudurg Open land 3.1 12 Eco tourism resort
26 Raigad Open land 3.1 12 Eco tourism resort
27 Amravati Open land 3.1 12 Bed & Breakfast resort
28 Aurangabad Resort Lease 23.8 68 Business resort
29 Diveagar Resort Lease 4.2 12 Eco tourism resort
30 Sillari Pench Resort Lease 5.3 15 Eco tourism resort
31 Bor Dam Resort Lease 3.5 10 Others
32 Khindsey - Meghdoot Lease 4.9 14 Eco tourism resort
33
Trimbakeshwar
Resort
Lease 1.8 5 Others
34 Panhala Fort Resort Lease 2.1 6 Eco tourism resort
35 Shegaon Resort Lease 3.5 10 Others
36 Washim Lease 1.1 3 Bed & Breakfast resort
TOTAL 238.0
There are multiple interventions required for budget hotels before they are
leased out (2/2)
Source: MTDC

40
8 Existing MTDC assets can be upgraded to four star category with a
capex of approx. Rs. 250 crores
Sr.
No. Asset name Category Capex (In Core) Total rooms Property type
1 Bhandardara Operational 19.5 34 Eco tourism resort
2 Ganpatipule
Operational
52.0 80 Others
3 Karla
Operational
39.0 60
Eco tourism resort
4
Shirdi Pilgrim
Inn
Operational
32.5 50 Others
5 Malshej Ghat
Operational
26.0 40 Eco tourism resort
6 Matheran
Operational
7 Mahableshwar
Operational
8 Tarkarli
Operational
26.0 40 Others
Total 247.0 384
Source: MTDC
Note: Others include Adventures sports, Cultural tourism etc.

41
Proposed 5 star hotel in Kashid, Raigad will be one of the largest beach
properties in Maharashtra
SOURCE: MTDC, city-of-hotels, hospitalityindia, Federation of Hotel and Restaurant Association of India
Overview of hotel
Connectivity
 Nearest metro is Mumbai which is 140km
 To be built on the lines of Sandals Negril
Beach Resort (Jamaica)
 Available land- 8000 sq feet
Capex
 ₹150 crores (New Property)
‒ Structure (30%)
‒ Internal fit out (10%)
‒ Building services (25%)
‒ FF&E (20%)
‒ Other cost (15%)
Rooms
 Proposed no of rooms - 100
 Occupancy- 80% in steady state
 Tariff from Rs. 8k-20k per night
Revenue
 Expected revenue - ₹62 Crores
 Activities- Ballroom, conference facility, 3
restaurants, 1 bar, night entertainment,
water sports activities etc
Kashid

42
MTDC Kashid property can be developed on the lines of Sandals Negril Beach
resort (Jamaica)
▪ Well known beach resort property
▪ Located at Norman Manley Blvd, Negril,
Jamaica
▪ Montego Bay is approx 1 hour 15 minutes
from Negril and is the closest airport
▪ Average 4.5/5 positive rating from
customers
Overview of hotel
Key metrics for Jamaica – Sandals resort
▪ Total number of rooms 181
▪ Average tariff per standard
room (₹ per night, double
occupancy)
70k- 90k
▪ Average occupancy
(Percentage)
~ 70
▪ Number of employees 362
SOURCE: Sandals Negril Resort

43
Tiger park along with 5-star hotel spread across 30,000 sq meter in Tadoba
SOURCE: MTDC, Federation of Hotel and Restaurant Association of India
Sriracha Tiger Zoo (Pataya)
Tadoba ▪ Nearest Metro - Nagpur is 140km, nearest railway
station Chandrapur 35 km
▪ Inspired by Sriracha Tiger Zoo (Pataya)
▪ Available land- 30,000 sq meter
▪ Proposed number of rooms – 60
▪ Tariff will be 10k-20k per night
▪ Expected occupancy - 80% in steady state
▪ Potential revenue- 39 crores
▪ Capex require (New Construction) – 120 crores
▪ Revenue activities - Tiger safari, Wild bird aviary,
Tropical jungle trail etc
Key points of proposed property
▪ Since opened in 1997, the Zoo
has welcomed more than 10
million visitors, Having more
than 200 animals
▪ The visitors can hold the
tigercub in their arm, feeding
milkand take a memorable
picture

44
Proposed 5 star hotel in Toranmal, Nandurbar inspired by Islands of Adventure
(United States)
Toranmal
Island of Adventure (USA)
▪ Nearest Metro Mumbai 461 km, nearest airport is
Aurangabad 290 km
▪ Islands of Adventure (United States)- ideal location for eco
tourism activities.
▪ Available land- 1.15 Lacs sq meter
▪ Tariff 12k-20k per night
▪ Expected occupancy - 80% in steady state
▪ Potential revenue- 48 Crores
▪ Capex require (New construction) – 190 Crores
▪ Revenue activities - River Adventure, Storm Force
Accelatron, Dragon Challenge etc
▪ Universal's Islands of Adventure is
a theme park in Orlando, Florida & it
opened on May 28, 1999.
▪ Average footfall in Islands of adventure is
around 8.1 million per year.
▪ This can work best for Toranmal because it
is best spot for eco-tourism & the scenic
beauty of the place will make it worthwhile.

45
5 star hotel in Sillari, Nagpur to capture Wildlife (Tiger) Tourism
Sillari
Connectivity
 Nagpur is the nearest airport
approximately 70 km away, nearest
railway station Nagpur is 70 km
 Located near Pench national park –
Pench National Park attract 6.8 lacs
tourist per annum
 No five star category resort nearby
 Bhander Range Forest - eco tourism spot
& it is one of the four prime areas in
Maharashtra State supporting viable
Tiger population.
 Available land - 1900 sq meter
Capex
 Capex require (New Construction) - 60
Crores
Rooms
 Proposed number of rooms – 30
 Tariff will be 10k-20k per night
 Expected occupancy - 80% in steady
state
Revenue
 Expected revenue - ₹ 29 Crores
 Activities- Ballroom, conference facility, 3
restaurants, 1 bar, night entertainment,
water sports activities etcMTDC will need to acquire more
land from forest/Government for
construction of this property

46
Development of land under AEDP – significant potential to unleash
▪ 235 hectares in Ajantha and 35 hectares in Ellora
▪ Phase 1 – (1996 – 2002), Phase 2 – (2004 – 2013),
Phase 3 – (2015- 2019)
▪ Funded by JICA, Soft loan through ODA
▪ Key features of the plan
– Dedicated water system
– Development of no vehicle zone
– Up gradation of airport
– Widening of roads leading to caves
– Dedicated electricity channel
Key aspects of AEDPAEDP (Ajanta Ellora Conservation and Tourism
Development Project)
SOURCE: AEDP, JICA
▪ Buddhist theme park
▪ Buddhist Monasteries from 8-20 countries
▪ Museum to showcase rich history of caves
▪ Five star resort
▪ Rock climbing, sculpture making courses for
tourist
Potential land development

47
Ajantha caves Verul caves
Aurangabad Resort (Leased asset)
Budget
Connectivity
▪ Nearest metro is Pune- 235 km
▪ Located in Aurangabad city
▪ Nearest railway station: Aurangabad 15 km
▪ Nearest airport: Aurangabad 4 km
▪ Distance from principle road- 3 km
Area
▪ 14,459 sq meter
▪ No land related issues
Attractions
▪ Verul caves- 30 km
▪ Ajantha caves- 90 km
Financials
▪ Capex- ₹7.5 Crores
▪ Revenue- ₹4.4 Crores
Rooms
▪ Proposed no of rooms – 30
▪ Tariff - ₹2,000 to 5,000
▪ AC and non AC rooms are available
Competition
▪ Near by total hotels- 14
▪ Key competitors- Vits hotel, Regal plaza, Keys
hotel, Pushpak hotel
SOURCE: MTDC
Note: Land related issue: Local encroachments, CRZ area, Gram panchayat issue

48
Sillari Pench Resort (Leased asset)
Connectivity
▪ Nearest metro is Nagpur- 75 km
▪ Located in northern Nagpur
▪ Nearest railway station: Nagpur 70 km
▪ Nearest airport: Nagpur 93 km
Area
▪ 4,000 sq meter
Attractions
▪ Tiger reserve- 1 km
▪ Pench dam- 3 km
Financials
▪ Revenue-₹0.7 Crores
Rooms
▪ Tariff - ₹2,000 to 5,000
Competition
▪ Key competitors- GoFlamingo resort pench,
Village machan resort, Bazz jungle resort
Budget
Tiger reserve Pench dam
SOURCE: MTDC

49
Gajba devi Mithbav beach
Mithbav 3 (Land Bank)
Connectivity
▪ Located in middle of Sindhudurg
▪ Nearest railway station: Mithbav 10 km
▪ Nearest airport: Dabolim 163 km
Area
▪ 3,300 sq meter
▪ Comes under CRZ-1 area
Attractions
▪ Gajba devi temple- touch
▪ Mithbav beach- 1 km
Financials ▪ No need for new construction
Rooms ▪ No need for new construction
Competition
▪ Key competitors- Galaxy resort, Hotel parijat,
Nivant resort
▪ Competitors are 30 km away from destination
(Devgad beach)
Budget
SOURCE: MTDC

50
Tarkarli beach Sindhudurg fort
Tarkarli 3 (Land Bank)
Connectivity
▪ Located in southern Sindhudurg
▪ Nearest railway station: Kudal 50 km
▪ Nearest airport: Panji 127 km
Area
▪ 13,890 sq meter
▪ Comes under CRZ-1 area
Attractions
▪ Tarkarli beach- 1 km
▪ Sindhudurg fort- 9 km
Financials
▪ Revenue- ₹2.8 Crores
▪ Newly constructuted 3 star resort
Rooms
▪ Newly constructed 11 rooms resort
▪ Facilities- Tennis court, swimming pool, scuba
diving, water sports, dolphin watch etc.
▪ Very few space is available for construction
▪ Only 10 movable tents can be build in
addition
Competition
▪ Key competitors- Sea view tarkarli resort,, Tian
resort, Sagar beach resort
▪ Only 1 three star hotel which is 48 km away
Mid scale
SOURCE: MTDC

51
Panhala fort Teen darwaza
Panhala fort Resort (Leased asset)
Connectivity
▪ Located in Kolhapur city
▪ Nearest railway station: Kolhapur 23 km
▪ Nearest airport: Kolhapur 25 km
Area
▪ 12,748 sq meter
▪ 60 year old property, Archaeology issue
Attractions
▪ Panhala fort- 5 km
▪ Teen Darwaza- 7 km
▪ Someshwar temple- 16 km
Financials
▪ Capex - ₹5.0 Crores
Rooms
▪ Tariff - ₹2,000 to 5,000
Competition
▪ Key competitors- Tourism green hotel, Valley
view grand, Holiday Inn
Budget
SOURCE: MTDC

52
Lonar lake
Lonar 2 (Land Bank)
Mid scale
Connectivity
▪ Nearest metro is Mumbai- 550 km
▪ Located in Amravati
▪ Nearest railway station: Jalana 90 km
▪ Nearest airport: Aurangabad 122 km
▪ Distance from principle road- Road touch
Area
▪ 20,000 sq meter
Attractions ▪ Lonar lake- 4 km
Financials
▪ Capex - ₹28.0 Crores
Rooms
▪ Proposed no of rooms – 50
▪ Occupancy- 75% in steady state
▪ Tariff- ₹5000 to 10,000
▪ Acivities: Lake view restaurant, Lake safari,
river rafting etc.
Competition
▪ Key competitors- Gitam lodge, Hotel Krishna,
Lonar urbun
SOURCE: MTDC

53
List of approvals to open a resort facilitates that MTDC can facilitate along
with the shortlisted partner (1/2)
Pollution
Control
Department
▪ Consent of air/water pollution
Government of
Maharashtra
▪ Bar licenses
▪ Clearance of ceiling of Resort
Local Municipal
Corporation
▪ No objection certificate (for establishment)
▪ Consent of additional floor space
▪ Height clearance of resort
▪ Water lines & sewerage
▪ Approval for garbage disposal
▪ Approval for Installation of cold storage
▪ Sanction of building plan (For occupancy)
▪ NOC required If heritage property
All India Resort
Development
Association
▪ Membership of “All India resort development association” (AIRDA)
Local Fire
Brigade
Authority
▪ No objection certificate (for fire fighting arrangements)
1
2
3
4
5

54
List of approvals to open a resort facilitates that MTDC can facilitate along
with the shortlisted partner (2/2)
Ministry of
Tourism
▪ Approval to get tax related concessions (Luxury Tax)
▪ Public performance/event license (Live event)
Ministry of
Petroleum
▪ Sanction of LPG, furnace etc. (3 Star and above)
State Electricity
Board ▪ License for Power & electricity installation
Pollution
Control
Department
▪ Consent of air/water pollution
Food Safety &
Standards
Authority of
India
▪ Food standards (For Standardized Operations)
Concerned
Police
Department
▪ No objection certificate (for authorization to start)
Municipal
Health Dept.
▪ Clearance certificate (for hygiene's)
Airport
Authority of
India
▪ Non objection certificate (if project located near airport)
6
7
8
9
10
11
12
13

55
‘CEO- breakfast’ to kick start private participation in Maharashtra tourism
International
players
Domestic
players
Key
individuals
from
Government Shri Devendra
Fadnavis
Chief Minister of
Maharashtra &
Minister of Tourism
Shri Ram Shinde
State Tourism
Minister,
Maharashtra
Smt. Valsa R.
Nair-Singh
(I.A.S) Secretary for
Tourism & Culture,
Maharashtra
Shri Paraag Jaiin
Nainuttia (I.A.S.)
Managing Director –
MTD Corporation Ltd.
Source: MTDC

56
creation)
1
Developing 20 niche
locations through
partnerships
2
revenues
3
assistance
4
Maharashtra
5
Setting of customer service
cell
6
7
disasters
8
9

57
We have interacted and interviewed 10 types of tourism stakeholders
1
Tourists and
consumers
 Conducted survey on domestic/foreign
tourists
 Religious and leisure tourists across Mumbai
and next 13 top destinations
2
Travel
Intermediaries
 Interacted with 4 intermediaries and
associations
 Discussed ideas across transport, hotels,
restaurants and tour operations
3
Industry
leaders
 Interviewed 4 industry leaders in tourism
 Interviewed 2 leaders in hospitality
4
MTDC resort
managers
 Interviewed 30 resort managers
 Resort managers spanned across religious,
beach, heritage and ecotourism
destinations
5
Government
Authorities
 Interacted with 7 government authorities
 Spanning tourism, transport, public
workers and district collectors office

58
We have interacted and interviewed 10 types of tourism stakeholders
6
Individual
experts
 Interacted with a panel of 5 experts
 Panel consisted of members of Incredible
India, ecotourism society and tour operators
associations among others
7
NGOs and
local self help
groups
 Interviewed 9 local self help groups
 This group also included various tourism and
regional development organizations
8
International
authorities
 Interacted with 3 international tourism
authorities
 Organizations across tourism promotion,
aviation, hotels and multilateral banks
9
International
tourism boards
 Interacted with 3 international tourism
promotion boards
10 Expatriates
 Interviewed 50 expatriates from countries
such as US, UK, Australia and Japan

59
Reputation is one the critical key buying criteria for tourists
Percent of respondents marking this factor as
a “Top-5” consideration
Factors
Reputation
Scenic setting
Infrastructure
Affordability
Accessibility
Proximity to other attractions
Climate
Range of activities
Interesting culture and history,
events
By type of tourist By income
81
55
41
35
32
30
28
26
25
82
55
40
34
33
28
28
25
24
78
55
44
39
30
37
29
30
27
82
60
43
38
29
30
29
24
23
Total Religious Leisure
INR4-15
lacs p.a
>INR15
lakhs p.a
81
49
38
32
36
31
27
28
28
Some of the highly
rated destinations
Goa, Munnar, Leh,
Lonavla
Alleppy, Coorg, Matheran
Hyderabad, Kochi, Pune
Darjeeling, Nashik
Jaipur, Aurangabad
Kerala, Nainital, Nashik
Darjeeling, Manali, Ooty,
Toranmal
Goa, Manali, Leh, Tarkarli
Udaipur, Jawhar
SOURCE: Panel consisted of domestic/foreign tourists
1

60
Key buying criteria for tourists in Alibaug and Toranmal are very different
Factors
Alibaug – Percent of tourists
making this factor as key criteria
Reputation
Scenic setting
Infrastructure
Affordability
Security
Accessibility
Proximity to other attractions
Climate
Range of activities
Interesting culture and history,
events
30
10
3
2
5
10
12
10
17
1
5
25
2
30
3
5
5
17
5
3
Toranmal – Percent of tourists
making this factor as key criteria
SOURCE: panel consist of domestic/foreign tourists
Key governing criteria for destination choice
1

61
Customer loyalty is gained by different factors for different locations
SOURCE: panel of interviews
1 Loyalty index is the percentage of non first timer tourists to the destination
Segments Relevance of drivers for loyal visitors of Toranmal
Loyal
visitors
Lonely
planet
travelers
Demanding
tourists
Service-
conscious
tourists
Services
Facilities
Entertain
-ment
Culture
Escape
Security
Place image
Convenience
Continuity/
Repurchase
Last minute
packages
Relevance of drivers for loyal visitors of Alibaug
Services
Facilities
Entertain
-ment
Culture
Escape
Security
Place image
Convenience
Continuity/
Repurchase
Last minute
packages
Loyalty index1
Goa Kochin Maharashtra (average) Lonavla
60% 35% 12% 20%
1

62
We have spoken to other stakeholders to build the case for the selected
destinations
MTDC resort
managers
 V S Magdum, Resort Manager, Tarkarli
 Haridas Kaimal, Resort Manager, Matheran
 Nandu Kale, Resort Manager, Karla
 Kishor Ugale, Resort Manager, Malshej Ghat
 Vishnu Kalambe, Resort Manager,
Mahabaleshwar
 Deepak Argade, Resort Manager, Panshet
 R S Deshpande, Resort Manager, Shirdi
 Vishnu Agare, Resort Manager, Ajanta T Point
And 22 more resort managers
4
Government
authorities
 Archeological Survey of India
 Airport Authority of India
 Forest Development Corporation of
Maharashtra
 National Highway Authority of India
 Maharashtra Maritime Board
 District Collectors Office in Maharashtra
(Parbhani)
 Tourism Corporation of Gujarat Ltd
5
Individual
experts
 Inir Pinheiro (Founder, Grassroutes Journeys)
 Anirudh Chauji (Ecotourism Society of India)
 Praveen Pardeshi (Principal Secretary,
Revenue & Forests Department)
 Shama Pawar (Anegundi village)
 Anjali Pratap (Director, The Meadows Resort,
Aurangabad)
6
NGOs and
local self help
groups
 Abhinav Education Society, Pune
 AFORD, Action for Development, Chandrapur
 Coastal Belt Development Agency, Vengurla
 Sahara Pratishthan, Mumbai
 Sahyadri Sanvardhan Society, Ahmednagar
 Culture Aangan
 Grassroute Journeys
 Parashar Agritourism
 Equations
7
Note: for some of the calls we have used dedicated telecallers
International
authorities
 World Travel and Tourism Council
 International Hotel & Restaurant Association
 Asian Development Bank
 Japan International Cooperation Agency
 Pacific Asia Travel Association
8

63
We have spoken to other stakeholders to build the case for the selected
destinations
International
tourism
boards
 Singapore Tourism Board
 Tourism Authority of Thailand
 Tourism Malaysia
9
Expatriates  Interviewed 50 expatriates from countries such as US, UK, Australia and Japan
10
Note: for some of the calls we have used dedicated telecallers

64
What have we tried to answer as part of prioritization exercise
Identify focus locations for MTDC from a tourism
promotion standpoint
Identify important parameters for tourism
development at priority locations
Identify investments to be prioritized that have
maximum impact on Maharashtra tourism

65
Robust methodology for selection of tourist destinations
Preparation of an
universe of tourist
destinations
1
 We have
compiled a list of
232 locations on
the basis of
various reports.
 These locations
represent tourism
destinations with
highest demand
and footfall.
Segregation into
hubs and spokes
2
 The 232 locations
have been
divided into 64
hubs with their
associated
spokes.
 The hubs and
spokes form a
geographically
contiguous set of
attractions for the
tourist, to be
promoted
together
Evaluation of
attractiveness based
on current infra and
potential for tourism
3
 The hub and
spoke
combinations
were then
evaluated on the
basis on their
infrastructure and
tourism potential.
 The locations
selected had low
infrastructure and
high tourism
potential.
Preparation of the
final list
4
 A final list of 14
leisure locations
and 6 religious
locations
 The locations
were determined
for investment
purposes.

66
Why did we differentiate between religious dominated and non religious
dominated destinations
INR
Religious Tourist Leisure Tourist
1 Average nights per trip for leisure tourist is 6x of Religious tourist
Source: NCAER 2012, RBI, Ministry of Tourism Statistics 2012
425
350
1,975Total
Food & beverages
Accommodation1
1,200Travel 4,800
2,800
8,550
950
Average tourist spend (per person per trip)
Typical
investment
required
Basic accommodation, civic
amenities, public utilities
Resorts / higher end
accommodation, theme based
investments, promotion campaigns

67
Footfall numbers were validated across different dimensions
▪ Multiple sources have different
methodologies, hence different footfall
numbers (e.g., for Kolaba fort in Alibaug, AC
Neilson predicts 3,42,600 per annum while
ASI computes 42,445 for 2012-13)
▪ Need for standardizing the definition of
footfall (>4 hours visit for leisure/religious
activities)
Variation in data
sources
▪ Ministry of Tourism Statistics, District Tourism
Plan, Archeological survey of India (ASI), AC
Nielsen Reports, and IL&FS Reports have
different estimates
▪ Usually variation is from –50% to 100%
▪ Significant variation across weekly
footfalls due to fares, festivals,
conventions and summer season
▪ Normalized seasonal impact on the
footfall number
Variation from
seasonal impact
▪ Ram Navami festival at Sai Baba temple in
Shirdi , Sula festival in Nashik contribute to 50%
plus of Nashik footfalls
▪ Visitor can be classified into transit or non
transit type depending on their nature of
stayNature of visitor
▪ Most of the eco-tourists near Nagpur at
locations like Pench, Tadoba, etc. Transit through
Nagpur
▪ Certain visits may not be tourism linked,
however they can inflate footfall numbers
▪ Can contribute ~10-15% variation in the
tourist footfalls sometime
Purpose of visit
▪ Events like marriges, state examinations, rally
add to the footfall number without adding much
to the tourism
Source: NCAER 2012, District Tourism Plans, Ministry of Tourism Report 2012, www.hvs.com, AC Nielsen report, ASI
ExamplesDescription

68
We have compiled the list of 232 key tourist destinations by analyzing
different reports and speaking to several sources
232
destinations1
1 Destinations are locations with 1 attraction. For e.g. Toranmal has 4 destinations
1
Planning Commission
report on Maharashtra
1
20 experts on high
potential travel
destinations
6
Identification of tourism
circuits across India,
Maharashtra, IL&FS,
July 2012
2
5 tour operators on
emerging tourism trends in
Maharashtra
7
Report on Tourism
Statistics of Maharashtra,
Apr to Jun 2013
3
Travel intermediaries on
tourist demands
8
District tourism plan for the
35 districts in Maharashtra
4
MTDC officials and resort
managers on development
of tourist destinations
9
Environmental Information
Systems (ENVIS) Centre,
Tourism and Heritage
report
5
World Economic Forum –
Travel and tourism as a
driver of employment
growth report
10

69
We have clubbed the 232 locations into 60 hubs
 All the location
shave been
grouped in to hubs
and spokes
 Hubs are the most
identifiable location
of the group
 The spokes are
geographically
located very close
to the hubs (< 120
Km)1
 The spokes are
added attractions
for the tourists
visiting the hubs
Alibaug Igatpuri
Satara
2
1 Hub radius varies with locations
Max distance: 25
Km (Karnala bird
sanctuary – 52 Km)
Max distance: 45
Km
Max distance: 113
Km (Gondavalekar
Maharaj Math – 120
Km)
Not included in current cluster classification
Included in current cluster classification

70
We have identified the high-priority destinations on the basis of 6
important parameters ( ) weightage
Facilities(30%)
1. No or bad facilities
2. facilities in bad condition
3. Limited usable facilities, need upgrade
4. Good condition
5. Well planned, excellent facilities
Cleanliness (5%)
1. Very dirty, solid and liquid waste mgmt required
2. Periodic cleaning reqd, SWM, LWM missing
3. Periodic cleaning, waste mgmt not utilized fully
4. Clean area, SWM, LWM systems working well
5. Extremely clean area
Infra Connectivity (35%)
1. Bad Road
2. Decent Road
3. Train and road connectivity
4. Airport, train and road connectivity
5. Nearby Airport, road and train presence
Tourist attractions1 (30%)
1. No or 1 attractions
2. 1 or 2 attractions
3. More than 2 attractions
4. More than 5 attractions/ high footfall attractions
5. More than 7 attractionsInfrastructure
5 point system used across 4 categories1
Foot fall (per annum) (60%)
1. < 6 Lakh
2. 6 Lakh to 35 Lakh
3. 35 Lakh to 65 Lakh
4. 65 Lakh to 1 Crore
5. > 1 Crore
Inherent potential (40%)
1. Little or no attractiveness
2. Little attractiveness
3. Moderate attractiveness
4. High attractiveness
5. Very high attractiveness
Tourism
Potential
5 point system used across 2 categories2
3
1 Attractions with >2 lakh footfall p.a.

71
Prioritized locations
We have prioritized 14 leisure locations based low infrastructure and
high intrinsic potential
Source: District Tourism plans, Consumer survey
Mumbai
Aurangabad
Lonavala Pune
Ajanta
Kolhapur
Ganpatipule
Malvan/Tarkarli
Toranmal
Igatpuri
Alibaug
Mahabaleshwar
Tadoba
Pench
Satara
Nagpur
Murud
Gondia
Dapoli
Harihareshwar
Panchgani
Lonar
Meraj
Jawhar
Matheran
Melghat
SawantwadiGhadchiroli
Malshej
Umerkhed
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Score:Potential
Score: Infra
3
Note:
Satara includes the following locations Kas Pathar, Sajangarh, Koyna dam, Thosegarh waterfall, Gondawale Maharaj Math, Ajinkyatra Fort, Shri Bhavani
Museum, Aundh Museum, and Bamnoli,
Nagpur includes Ambagar Fort, Naigaon Peacock Sanctuary, Pauni Fort
Locations on the border, hence are
considered part of the prioritzed list

72
Prioritized locations
We have prioritized 6 religious locations based on low infrastructure
and high intrinsic potential
Source: District Tourism plans, Consumer survey
Shirdi
Grishneshwar
Tuljapur
Trimbakeshwar
Aundha Nagnath
Pandharpur
Bhimashankar
RamtekJunnar
Solapur
Khuldabad
JalnaRanjangaon
Ahmednagar
Mahur
Nanded
Sangli
Shegaon
Yavatmal
Vajreshwari/Ganeshpuri
Ratnagiri
Latur
Chiplun
Shanisignapur
Nashik
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Score:Potential
Score: Infra
3

73
We have identified 14 high potential destinations
List of 14 top destinations
4
Destinations with religious significance
1. Toranmal, Nandurbar
1
2. Alibaug, Raigad
2
3. Harihareshwar, Raigad
3
4. Malvan/Tarkarli, Sindhudurg
4
5. Pench, Nagpur
5
6. Jawhar, Thane
6
7. Murud, Raigad
7
8. Tadoba, Chandrapur
8
9. Igatpuri, Nashik
9
10. Lonar, Buldhana
10
11. Ganpatipule, Sindhudurg
11
13. Panchgani, Satara
13
12. Dapoli, Ratnagiri
12
14. Kolhapur, Kolhapur 14
Locations on the border, hence are
considered part of the prioritzed list

74
Final list of high potential tourist destinations (religious)
List of 6 top religious locations
1. Grishneshwar
2. Tuljapur - Kuntalgiri
3. Trimbakeshwar
4. Aundha Nagnath
5. Bhimashankar
6. Pandharpur
Top attraction District
Grishneshwar jyotirlinga
Shri Tuljabavani mandir
Trimbakeshwar jyotirlinga
Aundha Nagnath jyotirlinga
Bhimashankar temple jyotirlinga
Vithoba temple
Aurangabad
Osmanabad
Nashik
Hingoli
Pune
Solapur
Note: Prominent religious destinations are already part of tourist locations that were not shortlisted
Saptashiringi (Temple of goddess Saptashrungi Nivasini)– Nashik
Kuntalgiri (Digamberpanthi Jain Temple) - Osmanabad

75
Methodology for prioritization of investment for MTDC
Projects to be executed by MTDC in Tarkarli:
• Underwater Hotel/Restaurant at Tarkarli
• Tsunami Island in Tarkarli
• Honeymoon resort Vengurla
• Tortoise Breeding center/sanctury at Vengurla
• Dolphin Breeding center, Bhogve Beach
• Eco Tourism group of villages at Vengurla
• Malvan Beach/Sindhudurg fort
• Rock sculpture, Malvan
• Investment for Vengurla, Shiroda, Achara, Chivala,
Tondivili beaches
Preparation of master list of executable projects for
MTDC
Impact was determined on the basis of footfall (80%) and
spend (20%). Quantum of impact is higher for theme projects
for established locations. For new locations, impact is most
through offering accommodation facilities.
Projects with maximum impact for Tarkarli:
• Honeymoon resort Vengurla
Evaluation of quantum of impact for the projects
Scope for PPP was determined on the basis of ability to
attract private investors, which is determined through
revenue generating capacity and costs involved.
Projects with scope for PPP/DBFOT in Tarkarli:
Evaluation of scope for PPP
Implementability was established on the basis of operational
efficiency of the projects. Projects with relatively moderate
implementibility were selected for execution
Implementable projects in Tarkarli:
De-prioritisation based on implement-ability of the project

76
We have shortlisted 35 priority projects in niche locations (1/2)
SR
No. Destination Project Name
Approximate cost
(₹crores)
1
Ganpatipule 1. Luxury Houseboat & Yacht
2. Water sport activities
3.0
6.0
TOTAL 9.0
2
Murud 1. Museum & Film Festival
2. Water sport activities
3. Luxury Houseboat & Yacht
3.0
8.0
1.0
TOTAL 12.0
3
Alibaug 1. Laser show at Kolaba fort in Alibaug
2. Marine Park & Aquarium at Kolaba fort
3. Kokan Art & Craft center
5.0
25.0
2.0
TOTAL 32.0
4
Jawhar 1. Tribal Museum
2. Deck & Beautification of Dabhosa Waterfall
5.0
1.0
TOTAL 6.0
5 Tuljapur 1. Electric car for internal movement at temple campus 0.50
6 Trimbakeshwar 1. Build hall for tourists (Temple authority can taken care) 1.0
7
Grishneshwar 1. Guest House & Dormitories
2. Beautification of the surroundings
3. Development of Cafeteria
5.0
1.0
0.5
TOTAL 6.5
8 Bhimashankar 1. Multipurpose hall for tourist (Temple authority can taken care) 1.5
9
Aundha Nagnath 1. Construction of Multipurpose Hall
2. Providing enroute and onsite Signage
1.0
0.1
TOTAL 1.1
10 Pandharpur 1. Development of Cafeteria (Temple authority can taken care) 0.50
11 Toranmal forest 1. Herbal medical zone with a budget hotel 3.25
Source: MTDC, District tourism plans

77
We have shortlisted 35 priority projects in niche locations (2/2)
SR
No. Destination Project Name
Approximate cost
(₹crores)
12 Harihareshwar 1. Water Sports 1.0
TOTAL 1.0
13
Tarkarli 1. Dolphin Breeding center, Bhogve Beach
2. Beautification Vengurla beach
9.0
6.5
TOTAL 15.5
14 Igatpuri 1. Ropeway & budget hotel at Tringalwadi fort 12.5
15
Panchgani 1. Light & laser show at Pratapgarh fort
2. Exhibition (Photo, tour and travel)
3. Garden and restaurant at Dhoom Dam
8.0
7.0
2.0
TOTAL 17.0
16
Kolhapur 1. Agro Tourism
2. River Tourism, Karveer, Shirol
8.0
2.0
TOTAL 7.0
17
Lonar 1. Celebrating Lonar Mahotsav/Other festivals
2. Creating Treks routes
2.0
2.0
TOTAL 4.0
18
Dapoli 1. Luxury houseboats and yacht at backwater
2. Water sport activity
7.5
5.0
TOTAL 12.5
19 Tadoba 1. Multipurpose hall 3
TOTAL 3
20 Pench 1. Auditorium for tourist 2
GRAND TOTAL 141.5
Source: MTDC, District tourism plans

78
creation)
1
Developing 20 niche
locations through
partnerships
2
revenues
3
assistance
4
Maharashtra
5
cell
6
7
disasters
8
9

79
We are working on 4 innovative themes to be implemented in next 2-3
months (1/2)
Boat/cruise
tourism
 EOI will publish in next one week- expected launch
October/November 2015
 Potential routes from Mumbai to Goa, Alibaug, Tarkarli etc.
 MTDC will get percentage of revenue and fixed monthly rental
 Boats and cruises to be owned by private party
 MTDC will give land for infrastructure development
 Potential players- Cruise lines India, Indus cruise etc.
 Potential tourist footfall: ~ 2 lakhs per year
 Potential revenue to MTDC: ~ Rs. 2 croes per year
Heli tourism
 EOI is already published – expected launch in October 2015
 Potential locations: Mumbai, Sindhudurg region, Nasik region
 MTDC will get percentage of revenue and fixed monthly rental
 Capex to be borne by private party
 Potential players- Yagna aviation, Pawan Hans, Accretion
aviation etc.
 Potential tourist footfall - ~ 20,000 per year
 Potential revenue: Rs. 0.2 to 0.5 crores per year
SOURCE: Team analysis

80
We are working on 4 innovative themes to be implemented in next 2-3
months (2/2)
Virtual reality
 EOI will publish within this week
 Expected launch by October
 Technical consultant/developer will develop android
based application for virtual reality tourism
 MTDC will get better connectivity with potential
customers which helps to increase the future sales
 Potential impact on tourist footfall: ~3x from existing
levels (in direct revenue of ~ Rs. 3-4 crores per year)
 Expected visits to application: ~2 lakhs per year
Amphibian
tourism
 EOI is ready for publication
 MTDC to hire operator to run amphibian services
 MTDC will get percentage of revenue and fixed
monthly rental
 Buses will be owned by private party. MTDC will
provide land for infrastructure development
 Potential players- Maritime Energy Heli Air Services
etc.
 Potential tourist footfall: ~ 20,000 per year
 Potential revenue to MTDC: Rs. 0.3 to 0.6 Crores per
year

81
creation)
1
Developing 20 niche
locations through
partnerships
2
revenues
3
assistance
4
Maharashtra
5
cell
6
7
disasters
8
9

82
We have reached out to 8 institutions for TA/FA assistance for the
development of locations and destinations
Development banks
Key aspects
▪ 4 Concept notes ready for WB,
ADB, KFW and JICA for
development of niche
destination
▪ Meeting MD of Tourism
Finance Corporation of India
(TFCI) and IFC in next week for
investment in niche themes and
destinations
▪ Reached out 8 development
banks/financial institutions for
catalyzing private investment in
Maharashtra

83
creation)
1
Developing 20 niche
locations through
partnerships
2
revenues
3
assistance
4
Maharashtra
5
cell
6
7
disasters
8
9

84
Project management office for driving asset monetization
MTDC designate
C. Jaiswal
Sapna D.
Yogesh N.
T. Solanke
Steering committee
Land & estate
F&A lead
MIS & Stakeholder
lead
Legal lead
Structure for PMO
Program Management
Office
Sanjay Dhekane
Program Manager
Seek support from external
legal advisor too

85
Key next steps and decisions required
▪ CEO Breakfast meeting of key hospitality players (Taj,
Oberoi, etc.)
▪ Approve for initiation for all the prioritized properties each
in three categories
‒ Budget has 36 properties (6 land banks)
‒ Mid-scale has 23 properties (15 land banks)
‒ Luxury has 4 properties (all 4 are land banks)
▪ Initiate with land banks in Phase 1 as against leased
property or resorts
▪ Form an SPV where the assets get transferred (100%
owned)
▪ RFP for the tender to be finalized by 15th July
▪ Create a PMO for this & other projects with representative from
estate, operation, legal and finance

87
MTDC assets (1/4)
SR NO. Property Type
1 Harihareshwar Resort
2 Valneshwar Resort
3 Tarkarli Resort
4 Tarkarli House Boat Resort
5 Ganpatipule Resort
6 Matheran Resort
7 Malshej Ghat Resort
8 Mahabaleshwar Resort
9 Ajantha T Juntion Resort
10 Ajanta Resort Resort
11 Karla Resort
12 Panshet Resort
13 Bhandardara Resort
14 Shirdi Resort
15 Tuljapur Resort
16 Chikhaldara Resort
17 Tadoba Resort
18 Nagpur Resort
19 Ridhapur H.R possession with MTDC/ Under Repaired
20 Gazipur H.R possession with MTDC/ Under Repaired
21 Fardapur H.R possession with MTDC/ Under Repaired
22 Aundhya-Nagnath H.R possession with MTDC/ Under Repaired
23 Narsi-Namdev H.R possession with MTDC/ Under Repaired
24 Dajipur H.R possession with MTDC/ Under Repaired
25 Gaganbawda H.R possession with MTDC/ Under Repaired
26 Akloli H.R possession with MTDC/ Under Repaired
27 Bordi H.R possession with MTDC/ Under Repaired
28 Harihareshwar H.R possession with MTDC/ Under Repaired
29 Khopoli H.R possession with MTDC/ Under Repaired
30 Titwala H.R possession with MTDC/ Under Repaired
31 manor H.R possession with MTDC/ Under Repaired
32 elephanta H.R possession with MTDC/ Under Repaired
33 Lonar Open land
34 Aajispur Open land
35 praksha Open land
36 mahadevpur Open land
37 govardhan Open land
38 toranmal (old) Open land
39 akkalpada Open land
40 kharghar Open land
41 olwan-2 Open land
42 Akaluj* Open land
43 Akkalkot* Open land
44 Alibaug-II * Open land
45 Vasai Fort ** Open land
46 Bordi - II * Open land
47 Ellora *** Open land
48 Erangal ** Open land
49 Fardapur-I *** Open land
50 Gorai - I * Open land
51 Gorai - II * Open land
52 Kasid * Open land
53 Kaundinyapur * Open land
54 Lonar - II * Open land
55 Mahur- I * Open land
56 Manori- I * Open land
57 Manori- II * Open land
58 Mithbav -I * Open land
59 Mithbav -II * Open land
60 Mithbav -III * Open land
61 Mithbav -IV *** Open land
62 Mithbav -V *** Open land
63 Olwan - II * Open land
64 Pimpaldari *** Open land
65 Salbardi * Open land
66 Shirgaon-Satpati * Open land
67 Sillari * Open land
68 Sindhudurgnagari * Open land
69 Surekhar * Open land
70 Thane *** Open land
71 Ubhadanda * Open land

88
MTDC assets (2/4)
SR
NO.
Property Type
72 Ajantha Restaurant Restaurant
73 Chikhaldara - Restaurant Restaurant
74 Malshejghat Restaurant Restaurant
75 Matheran Restaurant Restaurant
76 Harihareshwar Restaurant Restaurant
77 Moharli (Tadoba)Restaurant Restaurant
78 TRC Nagpur Restaurant. Restaurant
79 Shirdi Restaurant Restaurant
80 Bhandardara Restaurant Restaurant
81 Mahabaleshwar Venna Restaurant Restaurant
82 Restaurant at Karla Water Park Restaurant
83 Karla Restaurant Restaurant
84 Ganapatipule Restaurant Restaurant
85 Tarkarli Restaurant Restaurant
86 Velneshwar Restaurant Restaurant
87 INDIATOURISM MUMBAI (Aurangabad) Shops
88 Ashoka Tours and Travels (Aurangabad) Shops
89 Shri Barek Ali Khan (Aurangabad) Shops
90 Classic Travels (Aurangabad) Shops
91 M/s. Chhatisgarah Tourism (Nagpur) Shops
92 M/s Excel Fibrotech Pvt.Ltd (Nagpur) Shops
93 Convergent Carbon Credit Pvt. Ltd (Nagpur) Shops
94 M/s. 21st Century Inft. (I) Pvt. Ltd.(Nagpur) Shops

89
MTDC assets (3/4)
SR
NO.
Property Type
95 Aurangabad Resort Short Lease
96 Sillod Resort Short Lease
97 Kanhaiya Kunj Resort Short Lease
98 Diveagar Resort Short Lease
99 Raigad Fort Resort Short Lease
100 Khekarnala Resort Short Lease
101 Sillari Pench Resort Short Lease
102 Bor Dam Resort Short Lease
103 Ramtek - Gadmandir Short Lease
104 Khindsey - Meghdoot Short Lease
105 Holiday Resort Sakoli Short Lease
106 Mahur Short Lease
107 Trimbakeshwar Resort Short Lease
108 Gaganbavada Resort Short Lease
109 Panhala Fort Resort Short Lease
110 Jyotiba Yatriniwas Short Lease
111 Sinhagad Short Lease
112 Koyana Lake - Resort Short Lease
113 Shikhar-Singnapur Resort Short Lease
114 Karla Health Spa Short Lease
115 H.R Mahabaleshwar Health Spa Short Lease
116 Bhatye-II Short Lease
117 Amboli Short Lease
118 Dhamapur Resort Short Lease
119 Kharepatan Resort Short Lease
120 Kinara Sagareshwar Resort-Ubhadanda Short Lease
121 Vijaydurg Short Lease
122 Lonar Resort Short Lease
123 Shegaon Resort Short Lease
124 Washim Short Lease

90
MTDC assets (4/4)
125 Harsul Long Lease
126 Paithan Long Lease
127 Aakshi Nagaon Long Lease
128 Kihim - Alibaug Long Lease
129 Matheran Long Lease
130 Murud Janjira Long Lease
131 Ganeshpuri Long Lease
132 Chikhaldara - I Long Lease
133 Chikhaldara - II Long Lease
134 Sitabardi (satkar) Long Lease
135 Wardha Long Lease
136 Jalgaon Long Lease
137 Yeola Long Lease
138 Panhala Long Lease
139 Lonavala Long Lease
140 Khengar-I (Panchgani) Long Lease
141 Khengar-II (Panchgani) Long Lease
142 Mahabaleshwar Long Lease
143 Pandharpur - Bhakti Niwas Long Lease
144 Bhandarpule-I Long Lease
145 Bhatye-I Long Lease
146 Harnai Fort / Murud Long Lease
147 Amboli Long Lease
148 Aravali-Tak Long Lease
149 Velagar Shiroda Long Lease

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