Gujarat, Maharashtra take lead in attracting tourism sector investment

Written by fe Bureau | Ahmedabad | Updated: Aug 20 2014, 06:11am hrs
Gujarat followed by Maharashtra and Karnataka are the leading states attracting significant investment in Indias hotels and tourism industry, together accounting for 61% share, noted an Assocham study.

According to a study titled 'Indian Tourism Industry: The way forward', conducted by Assocham: Attracting highest amount of outstanding investments worth over R34,800 crore in Indias hotels and tourism industry, Gujarat has emerged on top with lions share of about 29% amid top 20 major states attracting combined investments worth over R1 lakh crore in the sector as of financial year 2012-13, thereby reflecting upon successful campaign of Gujarat government to attract investors in its tourism sector.

While Maharashtra has ranked second with about 18% share in total outstanding investments attracted by tourism sector across top 20 states in India followed by Karnataka (about 14% share), Odisha and Andhra Pradesh (6% each) amid top five states, highlighted the study prepared by the Assocham Economic Research Bureau. Clocking compounded annual growth rate of over 100%, Gujarat has recorded significant surge in domestic tourist arrival in the state which crossed 2.4 crore mark in 2012 from a level of 1.1 crore in 2006, noted the study. Garnering a share of about 2.4% in over 103 crore domestic tourist visits across India in 2012, Gujarat is emerging as ninth most-sought after tourist attractions for domestic travelers, the study added.

However, Gujarat ranks 15th in foreign tourist arrival in India. Building its tourism sector on core natural strengths, the government of Gujarat should hold fairs and festivals in foreign countries on a regular interval, said DS Rawat, national secretary general of Assocham, releasing the study findings.