TOURISM PLANNING AND INFRASTRUCTURE

DEVELOPMENT IN INDIA

SUBMITTED BYLEKHNI GARG

UDIT MAHAJAN

Tourism In India

Indian tourism covers 0.8% of the Worlds Market.

Estimated that tourism in India could contribute Rs.

8,50,000 crores to the GDP by 2020 ( approx. 1800 million

USD)

Foreign tourist arrival in India during

2010 5.78 Million

2011 6.29 Million

2012(Till July) 3.76 Million

Foreign Exchange Earning during

2010 Rs 64889 Cr

2011 Rs 77591 Cr

2012(Till July) Rs 52149 Cr

Employment during 2011-july 2012

Direct 10.7 Million

Indirect 24.4 Million

Tourism PlanningTourism is one of many activities in a community or

region that requires planning and coordination.

Planning is the process of identifying objectives and

defining and evaluating methods of achieving them.

Tourism planning is goal-oriented, striving to achieve

certain objectives by matching available resources and

programs with the needs and wants of people.

By comprehensive planning we mean planning which

considers all of the tourism resources, organizations,

markets, and programs within a region.

Comprehensive planning also considers economic,

environmental, social, and institutional aspects of

tourism development

Tourism Planning Process

Background Information

Mission

Vision

Goals

Theme Development

Objective

Action Plan

Writing Recommendation

Identifying Evaluation Strategies

Prioritize Recommendation

Write plan

Implementation

Evaluation and Monitoring

Evolution of tourism development planning

Stage 1

Unplanned tourism development era

Stage 2

Beginning of partly supply oriented tourism

Stage 3

Entirely supply oriented

Stage 4

Market or Demand oriented tourism development

Stage 5

Contemporary Planning Approach

Two Sides of Tourism Planning

Tourism planning has evolved from two related but distinct

sets of planning philosophies and methods.

1.Tourism is one of many activities in an area that must be

considered as part of physical, environmental, social, and

economic planning.

2. Tourism may also be viewed as a business in which a

community or region chooses to engage

Stages Of Tourism Planning At National Level

National level  Planning

Tourism Policy

Other major infrastructure considerations.

The general amount types, and quality level of

accommodation and other tourist facilities and services

required.

The major tour routes in the country and their regional

connections

Regional Planning

Regional Policy

Regional access and the internal transportation network of

facilities and services

Type and location of tourist attraction

Location of tourism development areas including resorts

areas

Amount, type and location of tourist accommodation and

other tourist facilities and services.

Marketing strategies and promotion programs

Resort Planning

It is more specific than regional planning level, but not as

detailed as development area or resort land use planning.

The components of the resort plan will depend on the

situation of the resort, but typically would include tourist

attraction features, general location of accommodation and

other tourist facilities and services

Tourism Planning in India

In India tourism planning started quite late with the 1st

tourism policy announced by govt. in November 1982.

In July, 1986 the Planning Commission of India set up the

National Committee on Tourism in order to formulate plans

for this sector.

In May, 1992 the National Action Plan for tourism was

announced.

Indian tourism planning increased with the 7th Five year plan

India(1985-1989).

In 8th Five year plan(1992-1997) govt allowed private sector

to participate in tourism sector.

In 9th five year plan(1998-2002) and 10th Five year plan there

is no innovation has been started, all proposed project were

completed.

After that during 11th five year plan(2007-2012) there was a

distinct shift in the approach of tourism development.

Strategies for development of tourism during 12th plan

Targets for tourism sector

A. Increase India’s share of international tourist arrivals to at least

1% by the end of 12th plan requiring an annual growth of 12.38%

during 2011-2016.

B. Provide adequate facilities for domestic tourism to sustain the

growth 12.16% during 12th plan.

Implications of the targets

i. Foreign tourist arrivals

Number of FTA’s in 2016 are estimated to be 11.24 million.

Number of tourist visit in 2016 will be around 35.96 million.

ii. Domestic tourism

Number of domestic tourist visit in 2016 are estimated to be

1451.46 million.

iii. Additional Foreign Exchange Earnings From tourism

The foreign exchange earning from tourism will increase from Rs

64889 Crore in 2010 to Rs 134383 Crore in 2016.

Additional FEE from tourism during 2010-2016 are estimated to be

Rs69494.

iv. Employment generation

The total number of jobs in the tourism sector in 2016 are

estimated to be 77.5 million as compared to 53 million 2010. An

additional employment of 24.5 million is likely to be created

during 2010-2016.

Manpower requirement in hospitality sector

YearRequirement Supply Gaps

2011-12 5.83 0.52 5.32

2012-13 6.26 0.56 5.70

2016-17 8.29 0.75 7.54

(In Lakhs)

Accommodation units

Availability of Hotel Rooms 2010

Classified 128771

Unclassified 2583519

Total 2712290

Availability of Hotel Rooms 2016

Classified 310523

Unclassified 4661807

Total 4972330

Additional Hotel Rooms Requirements 2016

Classified 181752

Unclassified 2078288

Total 2260040

Employment Generation Due to Proposed Strategies

StrategyProposed Government Outlay (Crore)

Likely investment by private sector

Total likely investment (Crore)

Estimated Jobs generated (Lakhs)

Strategy 1 9450 11340 20790 162.16

Strategy 2 1000 20000 2100 6.0

Strategy 3 770 770 6.0

Strategy 4 4000 4800 8800 68.64

Total 15220 36140 51360 145.43

Taxation and Incentives

i. Taxes on Hotel sector

It is observed that it ranges from 4% to 20%.

ii. Taxes on food & beverages

VAT on food items ranges from 5% to 16.84%

VAT on liquor varies from 13 to 58%

Service tax 10%(with an abatement of 70%)

iii. Taxes on road transport

23% of the package cost

iv. Taxes on Air travel

new service tax of Rs 185

passenger service tax

airport tax varied from 200-400Rs

fuel surcharges varying from Rs1850 to Rs 2500.

Proposed Outlay Of Ministry of Tourism For 12th Plan12th Plan 11th Plan

Existing Strategy-Dest./Circuits 4000 2606

Strategy 1 – 35 dest./circuits 9450

Strategy 2 – 20 tourism parks 1000

Strategy 3 – 70 RTC’s 770

Overseas Promotion & Publicity 3000 1010

Domestic Promotion & Publicity 1500 426

Manpower Development 1650 603

Incentives to accommodation Infrastructure 750 235

Other Scheme 276

MR 230

ITDC 250

IT 150

Land Bank 50

Total 22800 5156

Initiatives to be taken to achieve the target

Strategy 1

Enhancing the industrial infrastructure of hospitali ty

Education by

• Opening new institute of hotel management and food Craft

Institute(FCI)

• Augmenting the capacity of existing IHM/FCI

• Facilitating private Sector Investment

Strategy 2

Hospitality Education to be broad to cover

• Universities

• Polytechnics

• Industrial training Institute

Strategy 3

• Skill development through “Hunar se Rozgar”

• Above educational Institutions

• Classified Star category Hotels

Strategy 4

• New sector to be identified eg. Restoration workers of

heritage building

• Convergence with planning commission , ministries of HRD

labour and rural Development.

Infrastructural Development In India

The infrastructure for tourism includes basic components

like airports, railways, roadways, waterways amenities like

electricity, water supply, drainage, sewage, solid waste

disposal and services & facilities like accommodation,

restaurants, recreational facilities and shopping facilities.

Strategies for infrastructural development

Strategy 1

Identify major circuits/ destinations having potential to attract

large number of visitors for development in mission mode.

Strategy 2

Develop tourism Parks to be located in developed/

underdeveloped/ unexplored area of tourist interest.

Strategy 3

Identify cluster of villages having unique craft, ethnic art form

for development as tourism product.

Strategy 4

Sanctioning of mega tourism destinations to be discontinued.

Political framework in India

The union govt. is responsible for matters such as external

affairs, visa regulation, foreign exchange and import export

procedures.

State govt. is responsible for Law & orders, land use, civic

amenities, shops & establishments.

To provide adequate, convenient , fast and safe facilities which

are competitively priced service to meet the primary needs of

the domestic and foreign tourist.

To provide the multi dimensional requirement of Indian tourism

industry with support facilities and act as catalyst to economic

development of the country.

Major objectives for infrastructural development

Construction Scheme

Forest lodges , landed accommodation , tourist complexes

wayside amenities, motels/cafeteria/ restaurant ,tourist

reception centers, pilgrim sheds, public convenience.

Tourist Transport

• Mini buses ,jeeps, elephants etc for wildlife viewing

• Cruise boats ,ferry launchers ,etc. for water transport

• Tourist coaches in selected circuits

• Special tourist trains

Infrastructure Development Scheme

Product Development Scheme

• Development of rural tourism

• Development of Cruise tourism

• Development of adventure tourism

• Refurbishment of monuments and environmental planning

• Development of pilgrim centre

• Open sky policy

• Foreign direct investment

The India Tourism Development Corporation

Limited (ITDC) is an Hospitality, retail and Education company

owned by Government of India, under Ministry of Tourism.

Established in 1966, it owns over 17 properties under

the Ashok Group of Hotels brand, across India.

ITDC came into existence in October 1966 and has been the

prime mover in the progressive development, promotion and

expansion of tourism in the country.

India Tourism Development Corporation Limited

Mission Statement: To provide leadership and play a catalytic

role in the development of tourism infrastructure in the country

and to achieve excellence in its strategic business units

through professionalism, efficiency, value for money and

customer focused service.

To function as an efficient corporate house with improved

productivity levels and profit margins.

To be a major player in the development of tourism infrastructure

in the country.

To play an active role in associating State Governments and State

Tourism Development Corporations in conceptualizing and

execution of tourism projects, publicity, promotion and training.

To rationalize/ right-size the manpower to have a lean, thin and

efficient organization.

Objectives of ITDC

To create value for the shareholders.

To ensure customer delight by providing value for money.

To construct, take over and manage existing hotels and market

hotels, Beach Resorts Travellers’ Lodges/Restaurants;

To provide transport, entertainment, shopping and conventional

services;

To produce, distribute, tourist publicity material;

To render consultancy-cum-managerial services in India and

abroad;

To carry on the business as Full-Fledged Money Changers

(FFMC), restricted money changers etc.

Various Infrastructural Development Plans undertaken In Karnataka

No Location Extent ofland inacres

Indicative projects ideas Indicativeinvestment inRs. Crore*

1 PilikulaMangalore

18 Convention center, StarHotel/ Theme Park / Cultural Village

100

2 Tannir Bhavi,Mangalore

20 Aquamarine Park 150-200

3 Mysore 35 Convention Center, StarHotel / Multi Theme Park

275

4 Jog 20 Eco Resort & AdventureSports Activities

15

5 Shantisagar Lake 8.1 Adventure sports, FamilyEntertainment Centre

35

6 Anekal 40 Resort, Adventure sports 75

7 Badami 2 Star Hotel 60

8 Bijapur 3 Resort / Amusement Park 25

9 Belur 3 Wellness Centre / TouristAmenities Centre

5

10 Kerethonnur Lake

5 Adventure sports, FamilyEntertainment Centre

30

Ongoing Projects

Budget Hotel Projects (North East India, Uttaranchal etc)

Uttaranchal Air Connectivity

Ropeway Projects in Uttaranchal, Meghalaya etc.

Tourism Destination at Tehri Dam

Ski Resort

New Tourism Development in Bodoland

Tourist Rest Houses in Kumaon Hills

Sea / River Cruises in Andhra Pradesh

Southern Splendour Luxury Train in Andhra Pradesh

Ananthgiri Eco-Tourism Development Project in Andhra

Pradesh.

Sri Ram Sagar Destination Development in Andhra Pradesh

Vizaq Beach Development in Andhra Pradesh

International Convention Centre, Jaipur, Rajasthan

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