Draft tourism policy suggests fund, infrastructural recast

Amiti Sen

New Delhi, Sept 12: The Draft Tourism Policy framed by the tourism ministry proposes to create a Tourism Development Fund to bridge critical infrastructural gaps, setting up of a Tourism Development Authority, for building “mutually beneficial” partnership between the public and private sector and rationalisation of taxes in the sector.

Other proposals in the Draft Policy, which has been circulated to a number of ministries and departments for their comments, include introduction of issue of visa of arrival at least for 15 days at all airports, creation of tourism economic zones and areas of special interest, placing tourism in the concurrent list, augmenting air seat capacity and effectively promoting and marketing India, as a multi-attraction tourism destination.

According to the Draft, the Government would facilitate larger flow of funds to tourism infrastructure by creating a tourism development fund.

Priority would be given for development of tourist infrastructure in selected areas of tourist importance and for products which are in demand or have the potential of being in demand in future markets.
The proposed Tourism Development Authority will comprise of senior government officials, tourism experts and professionals from the private sector.

The specific role of the private sector would be to build and manage the required tourist facilities in all places of tourist interest, assume collective responsibility for laying down industry standards, ethics and fair practices, sponsoring maintenance of monuments, museums and parks, undertaking industry training and manpower development, participating in the preparation of investment guidelines and collaborating with the Government in the promotion and marketing of destinations.

In order to extend support to the tourism industry, the Draft suggests that the Centre should try to persuade the state government to rationalise taxes and to put a cap of 20 per cent of all taxes taken together on accommodation and hospitality units, to allocate suitable land for tourism purposes at reasonable prices and to harmonise movement of tourist transport across state borders.

It also proposes extension of the export-house status to all tourism units irrespective of the annual turnover in addition to the hotels, travel agents, tour operators and tourist transport operators already enjoying the status.

Tourism economic zones have been proposed to be created with private participation based on the tourism potential of the area. Air, road and rail connectivity to these areas would be established to facilitate direct and easy access to the zones from international and domestic destinations.