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Tourism

2

Gujarat : An Enduring Strong Economy

§ High industrial growth : Gujarat has demonstrated a

high industrial growth rate of 12.5% from 2002 -2007

§ Industrialisation : Gujarat is home to over 800 large

industries and 3,20,000 micro, small and medium

enterprises

Composition of GSDP as per economic activity (2006-07)

44.0%

37.8%

18.2%

Source: Socio Economic Review 2007-08

§ Population : Over 50 million (5.0% of India)

§ Geographical area : 1,96,000 sq. km (6.2% of India)

§ Gross State Domestic Product (GSDP) : US$45.3 billion

§ Per Capita Income : US$915 at current prices

§ Urbanisation : 37.4%

Primary sector

Secondary sector

Tertiary sector

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Presence across industry sectors

Gujarat : A Thriving Industrial StateContribution to India's economy

§ World’s largest producer of castor and cumin

§ World’s largest gas based single location sponge iron plant

§ World’s largest producer of processed diamonds

§ World’s 3rd largest producer of denim

§ Asia’s largest grass root petroleum refinery at Jamnagar

§ India’s largest producer of cotton

§ India’s first LNG chemical port terminal at Hazira

Significant share in key sectors & products

Source: Socio Economic Review 2007-08

30.0%

22.0%

19.2%

17.0%

15.6%

14.0%

10.0%

9.5%

Stock market capitalization

Coastline

Exports

Fixed capital investmentValue of output

Net value added by manufacture

No. of Factories

EmployeesPetroleum products

Chemical & Pharma

Engineering Industries

Food & Beverages

Textiles & Apparels

Mineral based industries

Metallurgical Industries

Others

31.2 %22.9 %12.6 %9.7 %6.5 %2.9 %7.5 %6.7 %

35.0%

42.3%

50.0%

58.0%

65.0%

80.0%

85.0%

98.0%

Pharmaceuticals

Cotton

Groundnut

Chemicals

Petrochemicals

Plastic industry

Diamond processing

Salt processing

Soda ash production

Fabrics 30.0%

42 %

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Power

Gujarat: Robust Infrastructure

§ Present power generation capacity is 9,628 MW; plans afoot to raise it to 25,000 MW by 2012§ Per capita power consumption is 1,354 units against the national average of 665 units§ Rich availability of natural gas (34 MMCD) and lignite (1,072 MMT)

§ 24-hour 3-phase uninterrupted power supply

Gujarat is the only State to carry out interlinking of rivers

§ An extensive water grid network of 75,000 km for irrigation and drinking§ It will cover 75% population of the state by 2010

Transformation of economy through natural gasGas

§ Gujarat State Petronet Limited (GSPL) supplies piped gas to 13 districts, 5 more districts will be added

§ Total length of Integrated Gas Grid will be 2,200 km, of which 1,453 km is complete and the rest is

under construction

Water

Dependable power supply – key to industrial development

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Gujarat: Robust Infrastructure

Gujarat Ports opening the gateway to prosperity

§ 42 ports along 1,600 km coastline, including 1 major port at Kandla and 41 minor ports§ Landmark projects such as LNG port terminal at Hazira developed by Shell India Limited,

green field port at Mundra developed by Gujarat Adani Port Limited, LNG terminal at Dahej

developed by Petronet LNG Ltd. and Pipapav port developed by Gujarat Pipapav Port Ltd

Ports

Airport connectivity – a cutting edge for business

§ 13 airports - Vadodara, Surat, Jamnagar, Rajkot, Bhavnagar, Porbandar, Bhuj, Pipavav,Mandvi, Mundra, Kandla, Palanpur and Ahmedabad (International Airport)

Airports

Rail and Road Surfaced road length – one of the highest in India

§ State-of-the-art road infrastructure: India’s first National Expressway from Ahmedabad to Baroda

§ Total road length is 74, 018 km - 95% surfaced road

§ Total rail length - 5188 km (8.25% of India)

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Gujarat: Introduction§ Gujarat has an immense potential to become a major tourist destination. Its historical

monuments represent the great religions of Asia – Hinduism, Buddhism, Jainism, Islam, Zoroastrianism and Sikhism.

§ For eco-tourists, the state offers opportunities to see a wide range of wildlife including the

Asiatic lion and Indian wild ass, endangered antelopes, a variety of deer, etc. It has

India’s first marine national park. Gujarat is also one of India’s most important areas for

birdwatchers.

§ There are more than 400 archaeological sites in the state including some of the most

substantial excavations of Indus Valley civilisation period at Lothal (near Ahmedabad), Surkotada and Dholavira (in Kutch).

§ The archaeological zone of Champaner - Pavagadh has been acclaimed by UNESCO as

the ‘World Heritage Site’ because of its great mosques, temples, stepwells and forts. The Wild Ass sanctuary, Dholavira Harappan City and Rani-Ki-Vav are in the

process of getting the status of the World Heritage site.

§ Gujarat has many enchanting tourist places, memorable historic monuments and sacred

pilgrimages, depicting the glorious cultural heritage, which can attract both Indian and

international travellers.

§ The state has important pilgrimage places like Dwarka, Somnath, Dakor, Ambaji, etc for

Hindus; Udwada, Navsari and Surat for Parsees; and Palitana, Girnar, etc for Jains.

Kite Festival

Culture

Asiatic Lion

Art & Craft

Source: India Guide Gujarat, 2007; Vision 2020, GIDB

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§ Medical tourism is expected to experience a high growth potential because of the

availability of high-quality, low cost surgeries at Gujarat’s hospitals. The

large Gujarati population in America, Europe and Africa can be a major growth

driver for this segment of tourism.

§ The domestic air-traffic in Gujarat increased from 1.21 million in 2005-06 to

1.93 million in 2006-07 and the international air-traffic increased from 0.13

million in 2005-06 to 0.33 million in 2006-07 (Deccan Airways has started

Helicopter services at Girnar for the tourists).

§ Kuwait Airlines, Jet Airways, Air India, Al Arabia, Qatar, Singapore Airlines

and Emirates are the international flights from Ahmedabad. Most of the leading

Indian airlines – Indian, Jet, Kingfisher, Air Sahara, Deccan, Spicejet, Go,

etc. have flights to and from Ahmedabad.

§ The State witnessed a total of 12.34 million tourists during 2006–07 out of

which 12.1 million were the domestic tourists and 0.20 million foreign tourists.

The average contribution of tourism industry to the State’s GDP is close to 2.5%,

while the comparable figure for India is 5.3%. The average foreign tourist spend

per person per day is close to US$700 to 1050 in Gujarat.

10.6%

2.5%

5.3%

10.6%

Gujarat India World

Average contribution of tourism to GDP

Source: Industries Commissionerate,2007; Accelerating Growth in Gujarat, CII

Domestic Tourists Foreign Tourists

Rs. 500Rs. 630

$700-1050

$1250

Gujarat India Gujarat India

Average tourist spend (one person per day)

Gujarat: Introduction

8

Key Current Statistics§ The total flow of tourist during the year 2006–07 was 12.34 million and recorded

a growth of 15% over the previous year. Growth of 18.5% was observed in the tourist flow from foreign countries during 2006-07. With a number of more than 200,000 foreign tourists in 2006-07 and around 1,75,000 in 2005-06.

§ Ahmedabad, Ambaji and Dwarka are the major tourist destinations which invited maximum number of tourist in Gujarat. These three destinations accounted for 33% of the total tourist flow in the state

§ Almost 78% of the tourist flow in 2006 – 07 was from within Gujarat. The share of other Indian states was 20.6%. The foreign tourists accounted for 1.68% in the total tourist flow

§ The majority of tourist visit for the business purpose (53%) in the state, subsequently followed by religious visit (35%). 8% of the of the tourist visit for the leisure purpose, which is showing an increase in the trend

12.34

10.79.510

10.511

11.512

12.5

2005 - 06 2006 - 07

Year

Tourist Flow

15% Growth

* OIS – Other Indian States

21%

77%

2%

With in Gujarat OIS * Foreigners

Gross tourist flow 2006-07

Tourists origin (2006-07)

10012.3410010.701007.61Total

40.5340.4840.34Other

354.33363.84372.81Religion

80.9650.5150.39Leisure

536.53555.87544.06Business

%Number %Number%Number

2006-07 Flow2005-06 Flow2004-05 FlowPurpose

Table 1: Purpose of tourist flow(Numbers in million)

Source: Tourist Flow in Gujarat, TCGL, Annual Report 2006 - 07

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Key Current Statistics

53%

8%

35%

4%

Business Leisure Religion Other

Fig. 6: Purpose of tourist flow (2006-07)

22%

18%

14%11%

7%

5%

4%4%

4%4%

4% 3%

Ahmedabad Dw arka Vadodra

Surat Becharaji Ambaji

Junagadh / Girnar Jamnagar Rajkot

Bharuch Gandhinagar Somnath

Fig. 7: Individual destination flow from other states (2006-07)

§ Gujarat attracts around 12 million domestic tourists per annum (2006 – 07)

§ Gujarat has a large number of theme restaurants, multiplexes and water parks

§ More than 2000 fairs and festivals–important state for event-based tourism especially based on Navratri, Kite Festival and

Tarnetar Fair etc.

Key highlights

Source: Tourist Flow in Gujarat, TCGL, Annual Report 2006 - 07

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Value Chain Analysis§ The Tourism value chain concentrates on meeting and exceeding visitors’ expectations of the ‘internal’ quality of a destination.

Those aspects of a destination that involve every step from pre-visit image, marketing and after sales care and commitment

§ Each stage of the visitors’ journey is an important aspect. A quality experience along each of the stages would result in a

satisfied customer, who will talk to friends and family about their good experience

§ There are many ways in which the businesses in an area can be made easy for visitors journeying along the chain. Each stage proposes ways in which the key principles can be incorporated into actions. This way would create a sustainable

approach to the quality a tourism destination offers

Backward linkages

Pre-visit image / Information

Bookings

Journey to destination

Initial welcome

Information at

destination

Places to stay

Attraction and

activities

Places to eat

Infrastructure and

environment

Farewell and

return journey

After visit memory and

contact

Logistics Operations Marketing and promotion

‘Tourism value chain’

Marketing Services

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Emerging Areas

Spiritual tourism

‘Well being’ tourism

Heritage tourismCultural tourism

Sun and beachSports-water and adventure sports

Nature tourismUrban and rural tourism

CruisesTheme parks

Meetings and conferences-convention centreGolf tourism

Source: Tourism Corporation Of Gujarat Ltd., GoG

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Sector Strengths

Religious tourism

• For Hindus, Gujarat has important sites like two jyotirlingas at Somnath and Dwarka (Nageshwar), one of

the four dhams at Dwarka, two of the 51 shakti peeths at Ambaji (Legend says heart fell) and Mahakali in

Pawagadh; one of the five holy lakes of India at Narayan Sarovar; and one of the seven holiest rivers of the

Hindus is the Narmada which flows through Gujarat.

• There are also important temples at Dakor, Virpur, Khodiyar, Sarangpur, etc. The Bhuvaneshwari temple of

Gondal is among the two in India. These temples attract Hindus from around India and many Hindu NRIs

visit these holy places at least once in their lifetime.

• Three of the four most important pilgrimages for the Parsees – Sacred Iranshaw Fire Temple at Udvada,

Navsari Atashbehram and Surat Atashbehram – are in Gujarat. Besides these, Sanjan, where the Parsees

landed in India is also in Gujarat.

• Akshardham, Gadhada, Bachosan, Gondal, Sarangpur, etc. are some of the famous Swaminarayan temple.

Swaminarayans form a wealthy sect. Two of the five important Jain sites in India are at Palitana and Girnar.

In addition to these, there is a regular flow of Jain pilgrims to Sankeshwar, Taranga, Kumbhariyaji,

Badhreshwar, Mandvi 79 Jinalaya, Naliya, Mahudi, etc.

• The dargahs of Sarkhej and Unjha are among the much visited Islamic sites of India.

• The ashrams of Morari Bapu, Rameshji Oza, Asharam Bapu, etc are on the spiritual tourism map of India.

Somnath temple


Akshardham temple

Dwarka temple

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Sector Strengths

Archaeological and heritage tourism

• Gujarat is rich in archaeological sites including world heritage site of Champaner; Indus Civilisation sites

such as Lothal and Dholavera; ancient Buddhist sites, etc.

• Ahmedabad’s heritage walk is the only daily departure heritage walking tour in India.

• Gujarat’s princely heritage has resulted in the state having more than 20 heritage hotels including converted

forts and palaces.

Cultural tourism

• Gujarat is the land of rich handicrafts like Patola weaving, khadi, bandhani, embroidery, block printing,

rogan painting, matani pachhedi, namda, woodcrafts, metal crafts, bamboo crafts, pithora, pottery, etc.

• The state has a variety of colourful communities from the camel herders of the Kutch desert to the hill tribes

of Sabarkanta, Banaskanta, Chhota Udepur, Dangs, etc.

Adalaj Vav

Handicraft


Event-based tourism

• Unique festivals and fairs like Navratri, Uttaranyana/Makar Sankranti, Sharad Poornima, Mahashivaratri

melas, Tarnetar Fair, Kvant Fair, Chitra Vichitra Fair, Dangs Durbar, etc.

• The Gujarat government has created successful events like Rann Utsav, Modhera Dance Festival,

International Kite Festival, Vibrant Gujarat, etc. Navratri Festival

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Sector Strengths

Business tourism• Gujarat is one of the leading state in investment and has attracted huge investments in recent years,

resulting in tremendous growth in business tourism

• 55 SEZs in the state reflects an increased share of business tourist, air traffic and road traffic

• The increase in business tourists is a growth driver for hospitality industry.

Entertainment and recreational tourism• A 1666km long coastline with many good beaches.

• A hill station at Saputara and other hill stations in south, east and north Gujarat.

• One of India’s first multiplexes came up at Gandhinagar in Gujarat. Since then, there are multiplexes and good cinema theatres in most of the cities in Gujarat.

• India’s first water park came up at Mehsana in Gujarat. India’s first drive-in is at Ahmedabad. The Science City at Ahmedabad has IMAX theatre and other entertainment. Shopping malls are mushrooming in the affluent cities of Gujarat. Gujarat has some of India’s best museums.

Wildlife tourism• Gujarat has four national parks and 21 sanctuaries. It is the only home of the Asiatic lion, Indian wild ass

and many beautiful animal and birds.

• The whale shark breeds on the Gujarat coast.

• The Gulf of Kutch is India’s first marine national park.

• Okha is one of the few places in India where dugong is found.

• Abdasa Taluka of Kutch is one of the few places where the Indian Bustard is breeding successfully.

Business Meet

Wild Adventure

Asiatic Lions


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Sectoral Strengths

Well-being tourism• Gujarat has world class hospitals at Ahmedabad, Vadodara, Karamsad, Nadiad, etc. A large number of

NRGs come for treatment at these hospitals.

• Gujarat has been the home of Ayurveda for centuries, and many herbs used in the natural cures promoted by Ayurvedic sciences are grown in the state. Gujarat has a presence of ayurvedic colleges and pharmacies all over the state.

• Jamnagar is one of the most important places for ayurvedic studies in India

• The ayurvedic treatment available in the state cater to the need of foreigners and tourists visiting the state

• The Cambay Spa at Gandhinagar offers a variety of treatments.

• There are centres for naturopathy, homeopathy, pranic healing, reiki, etc. in Gujarat.

Ayurveda


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Investment OpportunitiesHotels

Location: Ahmedabad, Surat, Vadodara, Rajkot, Jamnagar, Junagadh, Porbandar, Bhuj (Katch), Mandvi, Somnath, Valsad, Vapi, Mehsana, Champaner, Kutch

Adventure – aero sports

Location: Saputara, Pavagadh and Junagadh

Entertainment

Location: Saputara, Junagadh, Bhavnagar, Porbandar, Valsad, Navsari, Rajkot, Jamnagar, Champaner (Pavagadh), Bharuch/ Ankleshwar, Mundra, Gandhidham

Apartment hotel

Location: Ahmedabad, Vadodara, Champaner (Pavagadh), Mandvi (Kutch), Pingleshwar (Kutch) and Surat

Beach water sports

Location: Ubharat, Nargol, Dwarka / Bet Dwarka, Ahmedpur Mandvi, Tithal, Madhavpur, Harshad Mata, Mandvi (Kutch) , Chorwad and Dummas (Surat)Cruise Services upstream Narmada Dam


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Leisure and knowledge

Location: Junagadh, Bhavnagar, Vodhera, Sidhhpur, Idar,Pavagadh, Adalaj, Vadodara, Dandi, Ranpur, Rajkot, Jamnagar, Dholavira, Lothal, Morbi, Somnath, Ahmedabad and Vadnagar

Motel and cottages

Location: Coastal belt of Porbandar and Jamnagar district, Bhavnagar, Junagadh, Kutch and Bharuch

Recreation(Restaurants and cafetarias)

Location: National and State Highways touching Ahmedabad, Vadodara, Champaner (Pavagadh), Bharuch, Surat, Valsad, Godhra, Himmatnagar, Khedbrahma, Mehsana, Palanpur, Viramgam, Gandhidham and Mundra

Day and weekend tourism

Location: Ahmedabad, Rajkot, Surat, Vadodra and Bhuj

Well being tourism

Location: Gondal, Nadiad, Ahmedabad, Jamnagar, Bhavnagar (Ayurvedic Treatment) and Rajkot (Allopathic Treatment)

Investment Opportunities


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Investments in Pipeline

A joint venture company (JVC) formed with IL&FS IDC for undertaking development of tourism and

civil aviation projects under Public Private Partnership (PPP)

§ Mandavi – Kutch

§ Dholavira – Kutch

§ Sasangir and Somnath – Junagadh

§ Champaner – Panchmahal

§ Dwarka – Jamnagar

§ Development of convention centre at Surat and Vadodara

§ Development of air strips for enhancing connectivity between the tourist destinations

Somnath Temple

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Critical Factors for Investors

Gujarat scenario

Safety

Utilities and transportation

Income distribution

Cosmopolitan index

Globalisation index

Experimentation index

Youthfullness index

Availability of manpower

Increase in the tourist flow

High Medium

20

Investment Locations Map-

National and State Highways touching Ahmedabad, Vadodara, Champaner (Pavagadh), Bharuch, Surat, Valsad, Godhra, Himmatnagar, Khedbrahma, Mehsana, Palanpur, Viramgam, Gandhidham, Mundra, Mandvi and Bharuch

Recreation

(Restaurants and Cafeterias)

Coastal belt of Porbandar and Jamnagar district, Bhavnagar, Junagadh, Kutch and Bharuch

Motel and cottages

Junagadh, Bhavnagar, Modhera, Sidhhpur, Idar, Pavagadh, Adalaj, Vadodara, Dandi, Ranpur, Rajkot, Jamnagar, Dholavira, Lothal, Morbi, Somnath, Ahmedabad, Vadnagar, Porbandar, Champaner, Pavagadh and Udvada

Leisure and knowledge

Ubharat, Nargol, Dwarka / Beyt Dwarka, Ahmedpur Mandvi, Tithal, Madhavpur, Harshad Mata, Mandvi (Kutch) , Chorwad and Dummas (Surat)

Beach water sports

Ahmedabad, Vadodara, Champaner (Pavagadh), Mandvi (Kutch), Pingleshwar (Kutch) and Surat

Apartment hotel

Saputara, Junagadh, Bhavnagar, Porbander, Valsad, Navsari, Rajkot, Jamnagar, Champaner (Pavagadh), Bharuch/ Ankleshwar, Mundra and Gandhidham

Entertainment

Saputara, Pavagadh and JunagadhAdventure aero sports

Ahmedabad, Surat, Vadodara, Rajkot, Jamnagar, Junagadh, Porbandar, Bhuj (Katch), Mandvi, Somnath, Valsad, Vapi, Mehsana, Champaner and Kutch

Hotels

Harshad Mata

Pavagadh

Saputara

Kutch

Jamnagar

Rajkot

Champaner

Vapi

Porbandar

Junagadh

Bhavnagar Bharuch

Navsari

Mandvi

Pingleshwar

Surat

Ahmedabad

Amedpur Mandvi

Madhavpur

Tithal

Ubharat

Sasan

Dwarka

Kuda

Katpar


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Support Infrastructure

§ Tourism Corporation of Gujarat Ltd. (TCGL) has selected 37

destinations for integrated tourism development

§ In the last two years more than 600 projects in 300 tourist destination

have been taken up with a cost of more than US$24 million

§ 35 Pravasi Path of international standards has been taken up in

Gujarat, involving an investment of US$19 million

§ Annual tourism budget has been increased from US$7 million to

US$24 million. This provision has been enacted in the new five year

plan. The increase in budget has been provided for tourism

infrastructure projects.


22

Support Infrastructure: Major LocationsSaputara

§ Air - Nearest airport is Mumbai, 250 km

§ Rail - Nearest railway station is Waghai, on the Billimora - Waghai narrow gauge section of the western railway. Tourists coming from Gujarat via Surat or Ahmedabad or even from Bombay would find Billimora as the most convenient rail head because direct bus service is available from there.

§ Road - State transport buses and private luxury coaches connects various centres of Gujarat and Maharashtra. It is situated 409 km from Ahmedabad and 51 km from Waghai.

Saputara Lake

Somnath-the shrine eternal

§ Air - The nearest airport is at Keshod, (47 km) which is connected with Mumbai

§ Rail - Veraval, (5 km) is the closest railway station

§ Road - State transport buses and private luxury coaches connect various centres of Gujarat to Somnath.

Somnath TempleSource: Tourism Corporation Of Gujarat Ltd., GoG

23

Support Infrastructure: Major tourist Locations

Dwarka

§ Air - nearest airport is Jamnagar (146 Km)

§ Rail - connects Dwarka and Jamnagar, 132 km away. Connecting Mumbai (945 km) via Rajkot (270 km) and Ahmedabad (453 km). Dwarka lies on the metre gauge link between Viramgam and Okha

§ Road - state transport buses and luxury coaches are available from different parts of the Gujarat

Dwarka Temple

Gir wildlife sanctuary

§ Air - nearest airport is Rajkot 165 km via Junagadh. Daily flights operate from Mumbai and New Delhi to Rajkot.

§ Rail - one can travel by rail to Junagadh from Ahmedabad or Rajkot and then take a 65 km road trip on bus or taxi to Sasan Gir.

§ Road - distance of 400 km from Ahmedabad via Rajkot, Junagadh and Mendarda; distance of 43 km from Veraval; and distance of 65 km from Junagadh via Mendarda.

Asiatic LionSource: Tourism Corporation Of Gujarat Ltd., GoG

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Support Infrastructure: Major Locations

Champaner

§ Air - Vadodara is the nearest airport (47 km) connected by daily flights from Mumbai and Delhi

§ Rail - The nearest railhead is Vadodara from where Champaner is accessible by road

§ Road - Champaner is located 47 km by road from Vadodara off National Highway No. 8

Champaner

Sardar Sarovar Narmada Dam

§ From Bharuch-Ankleswar-Rajpardi, Rajpipla to Kevadia – approx. distance 82 km.

§ From Vadodara-Dabhoi-Tilakwada-Garudeshwar to Kevadia-approx distance-90 km.

Sardar Sarovar Narmada DamSource: Tourism Corporation Of Gujarat Ltd., GoG

25

Support: Educational Infrastructure

Vadodara

RajkotGandhinagar

§ To meet the requirement of the trained manpower in the emerging

tourism sector, Gujarat has established Institutes for hospitality

and hotel management

§ The institutes organises various activities viz. food festivals, chef

competitions, educational tours, and fairs etc. every year to

inculcate professionalism in students and staff

§ In its PPP initiative the government has set up a centre for torism

and hospitality management for speeding up training of service

providers, guides and tourism personnel with special emphasis on

target groups who are mainly from the weaker section of society.

§ TCGL-AMA Centre for tourism and hospitality management

started at Ahmedabad .

§ There are other private hotel management institutes in the state

to provide trained manpower are –

Vivekananda Institute of Hotel and Tourism

Management, Rajkot

Gujarat Institute of Hotel Management, Vadodara

Institute of Hotel Management, Catering Technology

and Applied Nutrition, Gandhinagar

Education Clusters in Ahmedabad


26

Leading Properties in Gujarat

Grand Bhagwati, Ahmedabad

The House of MG (Metro Heritage Hotel)

Cambay Resort, Ahmedabad

Cama Plaza, Ahmedabad

Fortune Land Mark, Ahmedabad

Le Meridian, Ahmedabad

The Pride Hotel, Ahmedabad

Inder Residency, Ahmedabad

Taj Residency, Ahmedabad

Darbargadh Poshina (Heritage Hotel)

Taj Gateway, Surat

Lords Park Inn International, Surat

Hotel Rann Riders, Dasada (Little Rann of Kutch)

Taj Residency, Baroda

Royal Oasis (Heritage Hotel), Wankaner

Orchard Palace/Riverside Palace, Gondal

Heritage properties, resorts and star hotels for foreign tourists


27

Investment Trend

§ A total of 33 Memorandum of Understanding (MOUs) involving an

investment of 10,793 crore (US$2.57 billion) were signed at 2007

Vibrant Gujarat Global Investor's Summit (VGGIS). Tourism sector

registered an increase of 47% over investments in 2005 VGGIS

34

147

3676

7352

10793

0

10

20

30

40

2003 2005 2007

Year

Num

ber o

f MoU

s

0200040006000

80001000012000

Inve

stm

ents

MoU Investment

Investments in tourism sector during VGGIS 03, 05, 07

28

The beginningThe Rann Riders Resort was conceptualised in the year 1998 and was started with mere 5 rooms at place in that period. Rann Riders is a family-owned and run business. The owners are descendants of Baktiar-ud-din, who was given the 24 sq mile jagir (Indian equivalent of a dukedom) of Dasada and its surrounding villages in return for military services provided to the Sultan of Gujarat in the 15th century. They were given the title of Malik Bakhan-1. In keeping with the tradition of their ancestors, the owners of Dasada assure visitors of undivided attention and the hospitality of the Kathiawad region in which the property falls. The business was started with only INR5 lakhs. Initially the resort used to book only one room per month. The business picked up the pace only after 2003 with the support from friends and Government. A lot of international marketing was done in 2002.

Story so farToday Rann Riders has about 20 well-equipped rooms designed, using local materials, to recreate the appearance of a village. Accommodations are in cottages, resembling the kooba houses of the Bajania community of Dasada and the bhunga houses of the Rabaris of Kutch, decorated with mirrors, mud-plaster work and embroideries. The resort has good room occupancy in the resort during its peak season between Navratri and Holi. The clientele includes students from IIM-A, MICA, American Embassy Schools, etc., international tourists from Europe, USA, Australia, New Zealand and Japan, weekend tourists from Ahmedabad, corporate houses for company picnics, and tourists mainly from the six metro cities. Today the resort charges US$125 per day for a couple including all meals which was just US$80 at the initial stage, while the rate for domestic tourists has risen from Rs1600 per couple to INR4000 per couple. A conference hall will be ready in 2008 which will boost the business further.

Social contributionThe resort generates direct and indirect employment to the local people. More than 80% of those employed in the resort including the manager, receptionist, kitchen staff, drivers, waiters and housekeeping staff, excluding those requiring specialised skills like the head chefs are from Dasada taluka. The region is benefiting from visiting the resort as guests of Rann Riders and taking camel cart rides, horse riding, camel rides, bullock cart rides, etc. and paying for music and dance programmes. The resort has plans for the upliftment of the local community and to promote craft and tradition of the place. It has already initiated projects for the Mir community, which is very poor but is getting a good revenue from making bangles for tourists, and is promoting the embroidery of the local Rabaris and Bharwads. The resort has a handicraft shop run by Kala Raksha, a reputed NGO.

The way forwardThe Rann Riders owners have plans to expand its business in near future. The management of the hotel is coming up with two new properties at Nal Sarovar and Kutch.

Case Study – Rann Riders Resort

29

Government InitiativesProactive government to promote the growth of the sector

Development of district–level tourism

• Integrated development of tourism

infrastructure facilities have been

planned.

• Action plan has been worked out for the

development and promotion of the tourist

locations by all the department, district

administration and local bodies.

• First time synergy among various line

departments, district administration and

local bodies through action plan and

integrated approach.

Investment facilitation cell started in TCGL

• Plans have been made by TCGL for

infrastructural facilities and basic

services in tourism.

• Development plan for six tourist

destinations by the Pilgrimage

Development Board of Gujarat.

• Action plans by administrative

departments and other agencies of State

Government.

Rationalisation of taxes and duties

• Entertainment tax has been reduced from

50% to 25%.

• No luxury tax up to tariff of INR500, from

INR501 to INR2000 per room 4% tax will

be charged and above INR 2000 per room

6% tax is charged.

• Electricity duty reduced from 35% to

25%, VAT on food reduced to 4% as

against 12.5% in other states.

The State Government’s vision is supported by investor-friendly policies and a conducive environment


30

Government InitiativesGujarat has been awarded for best tourism film , best tourism friendly monument and best tourism

literature in the last two years from Ministry of Tourism, Government of India

Human resource development

• TCGL-AMA Centre for Tourism and

Hospitality Management has been started

at Ahmedabad with corpus fund of INR15

lakhs.

• 688 trained local tourist guides, 34

trained regional guides

• Employees of TCGL are trained in

Hospitality, computers and E-governance

• Training of service providers started at

Ahmedabad and other 37 important

destinations of Gujarat

• 63 master trainer's training for service

providers started at Ahmedabad.

• 2194 service provider trained

Publicity, information

and promotion

• FAM tours organised for tour operators, column writers of travel magazine and photographers

• MOU signed with West Bengal, Tamilnadu, Rajasthan, Kerala, Uttar Pradesh and Himachal Pradesh

• Tourism Information Bureau (TIB) opened at Jaipur and 14 new Tourist Reception Centres (TRCs) opened at ST bus stations

• Websites started in seven different languages

• Road shows on regular basis at Bangalore, Hyderabad, Chennai, Mumbai, Jaipur, Goa, Calcutta and Pune.

• Gujarat Tourism Guide published as PPP initiative

Special incentives

• Medical tourism policy announced

• Eco-tourism policy announced

• Hotel Investment Incentive Scheme

introduced

• Heritage tourism policy declared


31

Logistics park

Kutch

Jamnagar

Porbandar

JunagadhAmreli

Bhavnagar

Rajkot

Surendranagar

Banaskantha

PatanMehsana

Himmatnagar

Kheda PanchmahalDahod

Vadodara

Bharuch Narmada

Surat

Navsari

Valsad

Anand

GandhinagarAhmedabad

Invest in Gujarat : A world- class Business Destination

Knowledge corridor

Chemicals, petrochem. pharma, textiles and

engineering

Industrial corridor(DMIC)

55 special economic zones (SEZs) across

Gujarat

Gujarat International Finance-Tec City

Petroleum, Chemicals and Petrochemicals Investment Region

(PCPIR)

Bio-Tech cluster

Soda ash and salt-based industries, cement and steel

pipes

202 industrial estates across Gujarat

Soda ash and salt based

Engineering and ceramics

18 Captive Ports along 1600 km coastline

across Gujarat

Special Investment Region (SIR)

Petroleum and brass parts

To Delhi

To Bombay

Savli Biotech Park

202 industrial estates across Gujarat55 special economic zones (SEZs) across Gujarat

32

Industries Department, Govt. of Gujarat

iNDEXTb -Industrial Extension Bureau

Gujarat Industrial Development Corporation

Gujarat Infrastructure Development Board

http:// www.gujaratindustry.gov.in

http://www.indextb.com

http://www.gidc.gov.in

http://www.gidb.org

Ministry of Tourism, Government of India http://www.tourisminindia.com

Tourism Corporation of Gujarat Limited http://www.gujarattourism.com/

Key Contacts

http://www.gujaratindustry.gov.in

http://www.indextb.com

http://www.gidc.gov.in

http://www.gidb.org

http://www.tourisminindia.com

http://www.gujarattourism.com/

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