Ministry of Tourism

Annual Report 2007-08

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 ANNUAL REPORT
2007 - 08

Ministry of Tourism
Government of India

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 CONTENTS
Sl. No. Chapter Page No.
Tourism - An Overview 6
1. Ministry of Tourism and its Functions 10
2. Major Initiatives and Achievements during 2007 14
3. Future Strategy for Tourism Development 20
4. Development of Infrastructure and Destination Management 26
5. New Tourism Products 30
6. Development and Regulation of Tourism Industry 34
7. Human Resource Development 40
8. Publicity and Marketing 48
9. Overseas Activities 52
10. Promotional Activities undertaken by Domestic Offices 56
11. Research, Analysis, Computerisation and Monitoring 62
12. International Co-operation 70
13. India Tourism Development Corporation Limited 74
14. Welfare Measures 80
15. Progressive Use of Hindi 81
16. An Overview of North Eastern Region 84
17. Gender Equality - The Prime Concern 86
18. Vigilance Activities 88
19. Departmental Accounting Organisation 90
20. Important Audit Observations 96
21. Implementation of Right to Information Act, 2005 97

Annexures
I Organisational Chart 100
II Indiatourism Offices in India 101
III Indiatourism Offices Abroad 102
IV National Tourism Awards - 2006-07 103
V Projects Sanctioned in the States /Union Territories 104
(up to February 29, 2008)
VI Incentives Presently Available to Hotel & Tourism Industry 105
VII Hotel Management Institutes and Food Craft Institutes 107
affiliated with NCHMCT
VIII Grants-in-Aid Released to Autonomous Bodies during 2007-08 108
(up to February 29, 2008)
IX Foreign Tourist Arrivals and Estimated Foreign Exchange 109
Earnings for the Last Ten Years
X Surveys & Studies 110
XI Summary of Important Audit Observations 112

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 Tourism - An Overview
Tourism has been pivotal in social progress as well as
an important vehicle of widening socio-economic and
cultural contacts throughout human history. A wide
array of interests - entertainment, sports, religion,
culture, adventure, education, health and business -
drives tourism. With the advancement of transport,
communication and improvement in general economic
well being the demand for tourism has increased
concomitantly.
2. Tourism is both cause and consequence of
economic development. It facilitates business
contacts, widens markets and helps diffusion of
growth impulses across territories to promote
broad based employment and income generation.
Investment in tourist infrastructure adds to
economic growth, catalyses generation of income
and employment, which in turn, leads to further
growth in demand for tourism and stimulates
subsequent rounds of investment in a virtuous
circle.
3. Tourist expenditure generates multiple effects
with extensive outreach along its value chain.
Adding to the demand for a variety of goods and
services, tourism offers potential to exploit
synergies across a large number of sectors such as
agriculture, horticulture, poultry, handicrafts,
transport, construction - the sectors, where
growth of income has favourable impact on
poverty alleviation.
4. The development strategy for tourism is in itself an
agenda for sustainable economic and social
progress. Through increased contact it helps to
promote cultural cohesion and social bonding and
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thereby creates a durable social fabric. By adding
value to culture, tradition, heritage, nature,
environment and ecology, tourism puts a premium
on their preservation and protection - a prerequisite
for sustainable development.
5. From the Five-year Plan perspective, initiatives
required for the development of tourism synergize
with the development efforts needed to accomplish
a number of other goals like employment
generation, poverty alleviation, environmental
regeneration, advancement of women and
disadvantaged groups.
6. While the Government plays a crucial role in
making provision for tourism infrastructure and
skill development, such initiatives catalyse private
enterprises to come forward and invest in this
sector. Private firms also see considerable benefits
to their business in Public-Private Partnerships.
The Trends
The share of India in international tourist arrivals
has progressively increased from 0.46% in 2004 to 0.49%
in 2005 and further to an estimated 0.52% in 2006 and
0.55% in 2007. Foreign Tourist Arrivals (FTAs) rose
from 3.46 million in 2004 to an estimated 5 million in
2007. Tourism makes a significant contribution to
India's foreign exchange earnings, which grew from
US$ 6.17 billion (Rs. 27944 crore) in 2004 to an
estimated US$ 11.96 billion (Rs. 49413 crore) in 2007.
The share of India in world earnings from tourism
registered an increase from 0.98% in 2004 to 1.21% in
2006. Domestic Tourism too has grown phenomenally
over this period. The number of domestic tourists in
India has risen from 366.23 million in 2004 to an
estimated 462 million in 2006.
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1.1
Ministry of Tourism
and its Functions
The Organisation 1.2 Role and Functions of the Ministry of (viii) Legislation and Parliamentary Work (vii) Human Resource Development:
Tourism
Ministry of Tourism of the Government of (ix) Establishment Matters a. Institutions
India, as the nodal agency, formulates national policies As the nodal agency for the development of
(x) Overall Review of the Functioning of the Field b. Setting standards and guidelines
and programmes for the development and promotion of tourism in the country the Ministry, apart from
Offices
the tourism sector in the country. In performing this role, coordinating and supplementing the efforts of the (viii) Publicity & Marketing:
the Ministry co-ordinates the activities of various other State/ Union Territory Governments, plays a crucial role (xi) Vigilance Matters
a. Policy
Central Government Ministries/agencies, the State in catalysing private investment, strengthening
(xii) Official Language: Implementation of Official
Governments/Union Territories and the private sector promotional and marketing efforts and in providing b. Strategies
Language Policy
representatives. Smt. Ambika Soni, the Union Minister trained manpower resources in the sector. In this c. Co-ordination
for Tourism and Culture, Government of India heads context, the Ministry handles the following main (xiii) VIP References
the Ministry. functions: d. Supervision
(xiv) Budget Co-ordination and Related Matters
The Secretary (Tourism), who is also the ex- (i) All policy matters including: (ix) Assistance for Parliamentary Work
(xv) Plan Co-ordination and Monitoring
officio Director General (DG) of Tourism, provides the (x) Establishment Matters of the Directorate
a. Development Policies (xvi) Integrated Finance Division
executive directions to the Ministry. The Directorate General of Tourism excluding those of Group 'A'
General of Tourism, which is an attached office of the b. Incentives (xvii) Overseas Marketing (OM) Work Officers and those requiring the approval of
Ministry, has 20 field offices within the country, 13 Secretary/ Minister.
c. External Assistance (xviii) Welfare, Grievances and Protocol
overseas offices (one new office in China has recently
been sanctioned) and one subordinate office/project, d. Manpower Development 1.3 Advisory and Co-ordination Mechanism
The Directorate General of Tourism is
i.e., Indian Institute of Skiing and Mountaineering e. Promotion & Marketing responsible for the following functions: In order to advise the Government on various
(IISM)/Gulmarg Winter Sports Project (GWSP). IISM tourism related policy matters and to give impetus for the
conducts various ski and other courses in the Jammu & f. Investment Facilitation (i) Assistance in the formulation of policies by
development and promotion of tourism in the country,
Kashmir Valley. The overseas offices promote the providing feedback from the field offices
g. Growth Strategies the Ministry of Tourism, Government of India has
market for Indian tourism abroad. The domestic field (ii) Monitoring of plan projects and assisting in the constituted a “National Tourism Advisory Council”,
offices are sources of tourist information. They are also (ii) Planning
plan formulation headed by the Union Minister for Tourism & Culture.
responsible for monitoring the progress of (iii) Co-ordination with other Ministries, Depart-
implementation of field projects in their respective (iii) Co-ordinating the activities of the field offices The composition of the Council is as follows:
ments, State/ Union Territory Governments
jurisdictions. and their supervision
Chairperson: Union Minister for Tourism & Culture
(iv) Regulation:
The latest organisational chart of the Ministry of (iv) Regulation:
Members:
Tourism is given in Annex-I. Annex-II lists the a. Standards
a. Approval and classification of hotels,
locations of the tourism offices in India under the (i) Representatives of the Ministries/ Departments
b. Guidelines restaurants, Incredible India Bed & Breakfast
Ministry. Annex-III shows Indiatourism Offices of Government of India:
(IIB&B) units
abroad. (v) Infrastructure & Product Development:
a. Secretary, Tourism
b. Approval of Travel Agents, Tour Operators
India Tourism Development Corporation a. Central Assistance
and Tourist Transport Operators, etc. b. Finance Secretary
(ITDC) is the only public sector undertaking under the b. Distribution of Tourism Products
charge of the Ministry of Tourism. The Ministry is also (v) Inspection & Quality Control: c. Principal Adviser (Tourism), Planning
in charge of the following autonomous institutions: (vi) Research, Analysis, Monitoring and Evaluation Commission
a. Guide service
(i) Indian Institute of Tourism and Travel (vii) International Co-operation and External d. Secretary, Culture
b. Complaints and redressal
Management (IITTM). National Institute of Assistance:
e. Secretary, Urban Development
(vi) Infrastructure Development:
Water Sports (NIWS) has merged with the a. International Bodies
f. Foreign Secretary
IITTM. a. Release of incentives
b. Bilateral Agreements
(ii) Experts in the field of Travel and Tourism
(ii) National Council for Hotel Management and b. Tourist facilitation and information
c. External Assistance Management, etc.:
Catering Technology (NCHMCT); and the
c. Field publicity, promotion & marketing
Institutes of Hotel Management. d. Foreign Technical Collaboration a. Shri Valmik Thapar, Conservationist, 19,
d. Hospitality programmes Kautilya Marg, New Delhi 110021.
e. Conventions & conferences b. Shri Vikram Oberoi, Joint MD, The Oberoi
Group, 7, Sham Nath Marg, Delhi-110054.

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 c. Dr. Mohan Thomas, Medical Director of the l. Shri Nikhil Alva, CEO, Miditech Pvt. Ltd,
Cosmetic Institute, 169, Lily Villa, Sant 121, Udyog Vihar, Phase IV, Gurgaon-
Andrews Road, Off Turner Road, Opp. 122015, Haryana.
Macronells Roof Garden, Bandra West,
(iii) The President of each of the following
Mumbai-405050.
Associations:
d. Shri Suman Dubey, Secretary, Jawaharlal
a. Federation of Indian Chambers of
Nehru Memorial Fund, N-125, Panchsheel
Commerce and Industry (FICCI)
Park, New Delhi-110017.
b. PHD Chamber of Commerce and Industry
e. Shri R.K. Krishna Kumar, Vice Chairman,
(PHDCCI)
Taj Group of Hotels, Bombay House, 24,
Homi Mody Street, Fort, Mumbai-400001. c. Associated Chambers of Commerce and
Industry of India (ASSOCHAM)
f. Shri Ajeet Bajaj, Adventure Tour Operators
Association of India, Community Shopping d. Confederation of Indian Industry (CII)
Centre, 1st Floor, B-1, Vasant Kunj,
e. Travel Agents Association of India (TAAI)
New Delhi-110070.
f. Indian Association of Tour Operators
g. Shri Aman Nath, Co-Chairman Neemrana
(IATO)
Hotels, 12, Jaipur Estate, Nizamuddin East,
New Delhi-110013. g. Federation of Hotel and Restaurant
Associations of India (FHRAI)
h. Shri Ranjit Barthakur, Chairman, Globally
Managed Services, 6th Floor, Mumbai h. Hotel Association of India (HAI)
Educational Trust, General A K Vaidya i. Experience India Society
Chowk, Bandra Reclamation, Mumbai-
400050. (iv) Minister/ Secretary, Tourism of various States/
UTs could be invited as Special Invitees, as and
i. Ms. Uma Gajpati Raju, Moving Pictures India when necessary.
Co. Ltd, 739/1, M.G. Road, Parsvnath
Arcadia, 3rd Floor, Sector-14, Gurgaon Member-Secretary:
122001, Haryana. Additional Director General (Tourism), Ministry
j. Shri Jose Dominic, MD and CEO, CGH of Tourism, Government of India.
Earth, Casino Building, Willingdon Island,
Cochin-682003.
k. Shri Rupin Dang, MD, Wilderness Films
India Ltd, 1 Factory Road, Ring Road South,
Near Safdarjung Hospital, New Delhi-
110029.

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 2 Major Initiatives and
Achievements during 2007
2.1 A summary/ excerpts of major initiatives and
achievements discussed in various chapters in this report
is reproduced below, subject-wise details are given in the
respective chapters.
2.2 International Recognition
The efforts undertaken by the Ministry have borne
fruits through a series of international recognitions:
(i) India has been unanimously elected as the
Chairman of the Executive Council of the
United Nations World Tourism Organization
(UNWTO) for one year in November, 2007.
(ii) India bagged the World Travel Awards - 2007 in
three categories, viz. (a) World's Leading
Destination Marketing Award for the Incredible
India Campaign, (b) Asia's Leading Destination,
and (c) Asia's Leading Tourist & Convention
Bureau.
(iii) India has been awarded Favourite Country of the
Year in the Conde' Nast Traveller Readers' Travel
Awards - 2007.
(iv) The Ministry of Tourism has won the Pacific Asia
Travel Association (PATA) Grand Award for
Marketing pertaining to the year 2007.
(v) Travel Trade Gazette (TTG), Asia Travel Group
has chosen India as the Destination of the Year in
the 18th TTG Travel Awards - 2007.
(vi) Presspace (French National Syndicate for Print
Advertising) has selected the Taj Creative of the
Incredible India International Media Campaign
2006-07 as the best foreign advertising creative in
French Newspapers.
(vii) Incredible India TV Commercial received The
Golden City Gate-2007 Award (Das Goldene
Stadttor-2007) during ITB-2007 at Berlin,
Germany.
2.3 International Campaigns
The Ministry has launched successful international
campaigns through leading print and electronic media
showcasing India's rich and diverse heritage and tourist
attractions.
The following campaigns were launched during
2007 in the global and domestic markets:
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(i) The International Media Campaign - 2006-07
Phase II was conducted during January 2007 in
major print and in-flight TV channels targeting
European audience. The campaign was undertaken
to coincide with the World Economic Forum at
Davos and the International Tourism Bourse -
2007 (ITB - 2007), where India participated as a
Partner Country.
(ii) A focused Print and TV Campaign in the UK
market was undertaken to provide publicity for the
“India Now” event, an India centric celebration
organized in collaboration with the Mayor of
London.
(iii) A Media Campaign was launched in the print and
electronic media as well as on buses, taxis and
outdoor panels in Central London during the
“India Now” event. India was the theme at the
Regent Street Festival held in September during the
“India Now” celebrations.
(iv) Four major Print and TV Campaigns in the
international markets, Asia Pacific Region, Europe
and Americas Region and a Global Online
Campaign have been launched.
(v) A Print Media Campaign was launched to coincide
with the Singhe Khabab - Sindhu Darshan Festival-
organized at Ladakh.
(vi) India participated as a Partner Country at the
International Tourism Bourse (ITB) 2007, held in
Berlin. As a Partner Country, India organized a
spectacular cultural programme. Niche segments
including Wellness and Medical tourism,
Adventure and Youth tourism, Business tourism
were showcased at various platforms at the ITB.
(vii) To coincide with the September session of the UN
General Assembly, the Ministry of Tourism and
Culture and Confederation of Indian Industry
(CII) organized the Incredible India@60 - a four-
day celebration that took India's extraordinary
beauty and cultural diversity to New York. The
focus of Incredible India@60 was cherishing
democracy and celebrating diversity on the
occasion of 60th Anniversary of India's
Independence. This provided a unique opportunity
to capture the minds of global leaders by projecting
the best of India's economy, culture, heritage and
art forms.
(viii) Incredible India@60 was conceptualized as a
complete experience to showcase India's economic
dynamism and highlight its growth and vibrancy.
The celebrations comprised a sand sculpture of Taj
Mahal in Manhattan, cultural performances from
the different regions of India, demonstration and
display of Indian handicrafts, handlooms and
textiles, music concerts, art exhibition and Indian
food festivals. The events were spread out across
different venues like the Lincoln Center, Bryant
Park and South Street Sea Port.
(ix) India had a visible and effective presence at the
World Travel Market (WTM) - 2007, held in
London. An India Pavilion was set up with the
participation of State Governments/Union
Territories and Travel Trade representatives as
co-exhibitors in the Pavilion.
2.4 The Ministry of Tourism took several initiatives for
developing bilateral and international co-operation for
the development and promotion of tourism. Following
are the major highlights:
(i) Joint Working Group Meetings on Tourism with
Greece, Egypt, Russia, Thailand and Germany
were organized during the year.
(ii) 'India-China Year of Friendship Through Tourism'
was launched in New Delhi to promote tourism
between the two countries. A joint logo to mark
and publicize “2007” as 'India-China Year of
Friendship Through Tourism' was released. The
Chinese version of the Incredible India website
w a s
launched and India's tourism literature was
produced in the Chinese language.
(iii) The first meeting of India-ASEAN Tourism
Ministers was held in Bangkok, Thailand on
January 22, 2008, wherein Terms of References for
the India-ASEAN Joint Working Group were
adopted and initiatives to enhance co-operation in
areas of manpower development, promotion and
marketing were identified.
2.5 Infrastructure Augmentation
The Ministry has sanctioned 165 new projects and
utilized Rs. 460.00 crore in the current financial year for
the upgradation of infrastructure facilities at important
tourist destinations and is focusing on the development
of destinations/circuits of national importance. Mega
destinations/circuits and projects for Nalanda-
Bodhgaya-Rajgir, Varanasi-Sarnath, Agra, Delhi, and
Kurukshetra have already been sanctioned.
2.6 Efforts to Overcome Shortage of
Accommodation
The upsurge in tourist arrivals intensified the
Ministry's efforts towards augmentation of tourist
accommodation. The Ministry brought out guidelines
for the classification of Apartment Hotels, Timeshare
Resorts and Guest Houses. Capital Subsidy for 43
budget category hotels and Interest Subsidy for 86
budget category hotels were authorized by the Ministry.
146 new hotel projects with 12623 rooms were approved
besides proposals for Foreign Technical Collaboration
along with new cases of Foreign Direct Investments.
The Ministry of Urban Development has now
liberalized the operation of Guest Houses in National
Capital Territory of Delhi as per its Master Plan 2021.
On the request of Ministry of Tourism, Ministry of
Urban Development has rationalized the conversion
charges that are levied on the Guest Houses.
The excessive demand led to planning for an
inventory of budget category rooms, bringing into its
orbit spare rooms that are available with various house-
owners, who are willing to use them for tourist
accommodation. These facilities are classified as
'Incredible India Bed & Breakfast Establishments',
under 'Gold' or 'Silver' categories. The scheme facilitates
availability of rooms at affordable costs for the common
tourists, who desire to stay with Indian families and
experience Indian culture combined with authentic
Indian cuisine. To motivate house-owners to apply for
this scheme, an integrated publicity campaign was
launched. Such registered houses are being promoted
through the e-commerce platform of the 'Incredible
India' website.
2.7 Domestic Campaigns
A nation-wide campaign “Sare Jahan Se Achcha”
coincided with the celebration of 60th Anniversary of
India's Independence that sought to arouse interests
among country people to travel within the country.
The 4th Phase of “Atithi Devo Bhava” was
launched aiming at sensitization and education of
stakeholders and general public in the value of
preservation of monuments and places of tourist
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 interests.
All these campaigns were undertaken in leading TV
channels, print publication, FM radios and popular
cinema halls across the country.
Four more campaigns during 2007-08 aimed at
promotion of North East, Jammu & Kashmir, Rural
Tourism and Adventure and Wildlife Tourism.
2.8 Rural Tourism
(i) The Ministry has taken initiative to bring rural
tourism artisans to a national platform by
organising their participation in Dilli Haat, India
International Trade Fair, Delhi; and Toshali
National Craft Mela, Bhubaneswar.
(ii) The rural tourism site 'Aranmula' received PATA
Gold Award for the year 2007.
2.9 Medical Tourism
In two important international events - one in the
International Tourism Bourse (ITB) at Berlin held in
March 2007; and the other, in a separate session
organized during the New York Times Travel show in
February 2007 - the Ministry promoted the image of
Indian healthcare services and invited investment into
India as the new emerging healthcare destination.
Further, a new category of visa has been
introduced for foreign tourists who are willing to come
to India for medical treatment.
2.10 Adventure Tourism
In 2007, the Indian Institute of Skiing and
Mountaineering, Gulmarg had conducted 5 water skiing
courses with assistance from the Ministry of Tourism.
multiple-entry facilities carrying a stipulation of 90 days
on each visit, to the nationals of 18 select countries, viz.
France, Germany, Luxembourg, Netherlands, Belgium,
Finland, Spain, Switzerland, Norway, Iceland, New
Zealand, Japan, South Korea, Argentina, Brazil, Chile,
Mexico and Vietnam.
On the request of the Ministry of Tourism, Tourist
Police Force has been deployed for helping the tourists in
the states of Andhra Pradesh, Karnataka, Goa, Kerala,
Maharashtra, Himachal Pradesh, Rajasthan, Jammu &
Kashmir , Uttar Pradesh and Delhi.
Acting on the recommendation of the Ministry of
Tourism to increase the rate of abatement on package
tour services, the Ministry of Finance has issued a
notification prescribing the rate of abatement as 75%
compared to 60% earlier.
2.12 Initiatives for Quality Tourism Manpower
Development
The Ministry endeavours to create institutional
infrastructure to train manpower needed to meet the
growing demand of the hospitality industry. The
Ministry took initiative to sanction new Institutes and
upgrade some from the existing ones.
The Ministry sanctioned 8 new State Institutes of
Hotel Management, Catering Technology & Applied
Nutrition and 4 new Food Craft Institutes. One Food
Craft Institute has been upgraded to a Hotel
Management Institute. In addition, the Ministry
sanctioned applied training centres/ executive
development centres in 4 Institutes of Hotel
Management (IHM) to bring them up to the
international standards.
Chandigarh by catering meals to 49 schools.
2.13 COMPACT
The COMPACT, a package for the computeri-
zation of accounting system, has been introduced in
most of the areas in Pay and Accounts Office.
2.14 India Tourism Development Corporation
Limited (ITDC)
The financial performance of the ITDC improved
in 2006-07 vis-à-vis 2005-06. The turnover in 2006-07
has been Rs. 561.75 crore (provisional) as compared to
Rs. 373.64 crore in 2005-06. The profit before tax
increased from Rs. 51.57 crore in 2005-06 to Rs. 68.77
crore (provisional) in 2006-07.
However, due to the closure of duty free shops and
rooms in some hotels for upgradation, the turnover
during April-December 2007 was less at Rs. 312.63
crore (provisional) as compared to Rs. 362.65 crore
(provisional) in April-December 2006.
2.15 Tourism is a multi-sectoral activity. Considering its
tremendous potential in income and employment
generation, the Ministry of Tourism has also undertaken
initiatives to remove the existing bottlenecks through
inter-ministerial consultations. These efforts are aimed
at bringing about the enabling regulatory and policy
framework that can ensure that tourists get a world class
experience. All these efforts are aimed at creating
appropriate infrastructure, human resources and
facilities that will make India achieve new heights in
tourism.
2.16 In order to encourage and recognize pursuit of
excellence in tourism related activities, National Tourism
Awards are presented by the Ministry every year.
Different categories for which awards were presented in
2006-07 are at Annex-IV.

2.11 Other initiatives Skill development programmes have been

The most important issue connected with tourism
growth is the issue relating to visa. The issue of visa on
arrival to tourists was taken up with the Ministry of
External Affairs and Ministry of Home Affairs. As a
sequel thereto, the Advance Passenger Information
System to facilitate security clearances has already been
introduced on a pilot basis in Air India Flights coming
from various locations to Delhi.
The Ministry of Home Affairs has decided to grant
Long Term Tourist Visa of 5-year duration with
introduced in the ITIs in collaboration with the Ministry
of Labour and Employment, Government of India.
Yet in another programme, “Earn While You
Learn”, the trainee-students have been encouraged to
work as student-volunteers to inculcate enriching field
experience in the tourism industry while, at the same
time, combining earning with learning.
A very special initiative on the part of the IHM
Chandigarh was to support the Mid-day Meal
Programme of the Union Territory Government of

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 3 Future Strategy for
Tourism Development
3.1 Tourism is one sector that has shown consistently
high global growth in recent years. India too achieved
spectacular success in tourism with a growth rate that
surpassed the global average. Consequently, India's share
in the world tourist arrivals continued to increase from
2002 onwards. Despite this upward trend , in terms of
size, the share is still low at 0.55% in 2007. The challenge,
therefore, lies in increasing this share. Furthermore,
foreign exchange earnings from tourism in India rose
substantially from US$ 3 billion in 2002 to an estimated
US$ 11.96 billion in 2007. The share of India in world
tourism receipts scaled from 0.65 per cent in 2002 to 1.21
per cent in 2006. As in the case of foreign tourist arrivals,
India's share in world tourism receipts, though
increasing, is still low.
Domestic tourists in India constitute a large
number and is growing rapidly. Considering the benefits
that tourism brings, the Ministry of Tourism,
Government of India is continuing with a multi-
pronged development strategy with a view to achieving
even higher growth of quality tourism in the near future.
The medium-term strategy for the development of
tourism in India has been outlined in the Eleventh Five
Year Plan document of the Planning Commission. The
development agenda of the Ministry is on track to
implement these strategies. The Ministry aims to achieve
10 million foreign tourist arrivals and over 500 million
domestic tourists in 2010. It is expected that tourist flow
of this magnitude will lead to accumulation of additional
foreign exchange to the tune of about US$ 9 billion and
about 15 million additional jobs.
This will require action on two fronts: achieving
quantum expansion in cost effective tourist
infrastructure; and diversifying tourism products and
international source markets to cater to diverse tourist
preferences and to reduce seasonality in foreign tourist
arrivals to promote round-the-year tourism.
The broad elements of future strategy, the seeds of
which have already been sown in the developmental
plans and programmes of the Ministry, are as under:
3.2 Diversifying the principal source markets for
foreign tourists
In addition to bringing about an increase in the
total number of tourists, diversifying the source markets
for foreign tourists would reduce the seasonality in
international tourist arrivals. Efforts are on to tap new
20
potential overseas source markets from where the
present level of inbound tourists into India is low. The
promotional and marketing strategy will expand and
strengthen to create more awareness, interests and
visibility to achieve this goal. The principal source
markets, as at present, will be diversified to include
countries like South Africa, Israel, Spain, China, Japan,
South Korea, Australia, Brazil, Argentina, etc. Efforts
will also focus on increasing tourist arrivals from
countries with large size of Indian Diaspora like South
Africa, Mauritius, Kenya, Malaysia, Fiji, etc.
Simultaneously, efforts will be needed on the domestic
front to create world class infrastructure and services
and other logistics including improving air connectivity.
The Ministry of Tourism has taken up issues with the
Ministry of Civil Aviation on the following three fronts:
(i) Modernizing metro and non-metro airports;
(ii) Augmenting direct international air connectivity
with non-metro destinations; and
(iii) Encouraging domestic and foreign carriers to
increase air seat capacity from long haul overseas
market.
Possibilities would also need to be explored to start
direct air connectivity between the source countries and
India wherever such connectivity does not exist and as a
result, intermittent transit-halts interrupt and prolong
the journey. The requirements of frequent hopping on
the way may divert tourist preference in favour of
intermediate tourist destinations. A related concern
would be to ensure that air travel to and within India
becomes cost competitive in comparison to competing
overseas destinations. The avoidable elements that add
to travel costs and make travel unattractive and
uncompetitive vis-à-vis other destinations would need to
be identified and removed through suitable policy
measures. This would call for the rationalization of tax
measures at the Centre and the States from tourism
perspective. Finally, facilities and quality of services in
the domestic and international airports need to be
upgraded to world class standards. Quality and
connectivity of railways would need to improve since
domestic travel complements international travel. With
regard to the railways, the initiative will focus on
increasing direct rail connectivity to world heritage sites
and other important tourist destinations; introduction
of new luxury trains; improving infrastructure like
sanitary conditions in and around important railway
stations; upgrading in-train services; provision of
budget hotels by the railways in all major metro cities, etc.
The Ministry of Tourism has requested the Ministry of
Railways to explore the possibilities of introducing
luxury tourist trains on Public-Private Partnership basis
in identified tourist circuits and destinations.
3.3 Addressing shortage of tourist
accommodation
Seized with the concern for addressing acute
scarcity of hotel accommodation, the Ministry has
already introduced the innovative Incredible India Bed
and Breakfast (IIB&B) scheme all over the country. The
Incredible India Bed & Breakfast (IIB&B) units are
being treated as non-commercial units in the National
Capital Territory of Delhi. Government of India
provides five-year tax holiday for hotels.
Steep escalation of room tariffs in India is an
indication of increasing demand for tourist accommo-
dation. If such a condition prolongs, the tourists being
priced out may opt for an alternative destination in
another country. This might have long-term implications
in terms of potential loss of future stream of tourists in
favour of competing tourist destinations. The crisis
requires an immediate and aggressive response. Over
and above, there is an urgent requirement to meet the
demand for additional rooms in the wake of the XIX
Commonwealth Games 2010.
Apart from the IIB&B scheme, the Ministry has
proposed several measures to combat the crisis. These
include proposals for the Central and State
Governments to convert selected government
properties into Heritage hotels and making use of vacant
land in the government premises including surplus lands
available with the Airports Authority of India and the
Indian Railways for developing hotels. The Central and
the State Governments are also encouraged to set up
land banks and create Single Window facility for the
investors in tourism projects. Expeditious allocation of
land by the land owning authorities at the Centre and in
the States remains a key to finding an early solution to the
problem. The State Governments would also need to
consider various tax incentives and exemptions in their
respective jurisdictions to attract investments in tourist
accommodation.
Operation of Guest Houses has already been
liberalized in the National Capital Territory of Delhi as
per the Master Plan 2021 of the Ministry of Urban
Development. The conversion charges that are levied on
the Guest Houses have also been rationalized.
The goal would be to reach at least 1,50,000 rooms
of approved quality by 2010.
3.4 Road connectivity
An important thrust area for the present, which will
also remain a priority in the future strategy, is the
construction and improvement of roads that connect
important heritage and tourist sites, and the
development of roadside amenities. The Ministry has
prepared a list of such important roads and furnished the
same to the Ministry of Road Transport and Highways
to spearhead this process.
3.5 Development of tourist destinations and
circuits
Identification and development of tourist
destinations and circuits will continue to remain the
central plank of tourism development strategy in the
country. The Ministry has identified mega destinations/
circuits of national importance and already sanctioned
projects for Nalanda-Bodhgaya-Rajgir, Varanasi-
Sarnath, Agra, Delhi and Kurukshetra.
Development of world class infrastructure in these
destinations and circuits is going to remain a key area of
focus in tourism development strategy. The Ministry's
support to such infrastructure projects takes two forms:
financial assistance to the States/Union Territories; and
financial assistance to projects to be implemented on
Public-Private Partnership basis. Each of the schemes
has a separate ceiling of maximum assistance. In the
latter case, the scheme is meant to assist Large Revenue
Generating Projects to be implemented in Public-Private
Partnership as well as in partnership with the semi-
government agencies; the quantum of assistance is
determined through competitive bidding process.
Tourism being a cross-cutting sector, building
synergies with other ministries and sectors will be critical
in achieving efficiency and speed in the development
process. The effort is on to synergies with the Jawaharlal
Nehru National Urban Renewal Mission (JNNURM) of
the Ministry of Urban Development, which is being
implemented in 63 selected cities in the country for the
integrated development of infrastructure services, urban
renewal, basic services to the urban port, asset
21
 management and urban governance. Convergence with
the JNNURM will ensure that there is no duplication and
would maximize the impact of investments on
infrastructure.
An important high level forum to achieve
consensus and co-ordination among various
infrastructure related ministries, the Committee on
Infrastructure, chaired by the Prime Minister, includes
Ministry of Tourism. The Committee is expected to play
an important role in the Ministry's endeavour to secure
co-ordination with other ministries in the imple-
mentation of its policies and programmes.
An undertaking by the beneficiary State
Governments/Union Territories provides for the
management and maintenance of the tourism assets
created with the assistance from the Central
Government.
Regular and periodic inspection and review of the
centrally funded projects by the senior officials of the
Ministry of Tourism constitutes the key oversight
mechanism to ensure quality implementation and timely
completion. The impact and effectiveness of various
schemes are evaluated by independent professional
agencies.
3.6 Promoting new tourism products and
improving existing tourism products
Efforts to promote new tourism products like
Rural Tourism, Medical Tourism, MICE, Adventure
Tourism, etc. will continue as parts of the future strategy
for tourism development along with strengthened
efforts to develop sustainable beach, coastal and cruise
tourism.
Heritage tourism would be expanded, in possible
cases to integrate within the circuit, nearby culturally rich
villages and towns, and crafts villages. Rural tourism has
potential to flourish on India's “intangible heritage” or
“soft culture” that includes folklore, music, dance, local
crafts and arts, sports, events, etc. Special interest
shopping tourism could also be encouraged as a tourism
itinerary to achieve higher tourist-spending on India's
crafts, jewelry, handlooms, etc. that would help revival of
India's traditional arts and crafts that support the
livelihoods of the community of rural artisans and
craftsmen. With the growing popularity of India's
fashion designing abroad, opportunities for shopping
tourism has widened. A blend of fashion designing and
22
rural crafts can be showcased in dedicated shopping
centres to attract tourists on a buying spree. Likewise,
India's wide variety of traditional cuisines is a source of
tourist attractions that can be packaged and marketed by
developing “culinary tour routes” for special category of
tourists keen on authentic tastes and cuisines.
In order to give a boost to cruise tourism, issues
regarding improvement of infrastructure in identified
ports have been taken up with the concerned port
authorities. Finalization of a cruise tourism policy and
development of dedicated cruise terminals at important
ports have been proposed by the Ministry of Tourism.
3.7 Development of quality manpower
Considering the shortage of trained manpower in
the tourism sector, the Ministry is supporting additional
Institutes of Hotel Management in the States and
providing financial assistance for the modernization and
capacity enhancement of the existing ones as also of the
Food Craft Institutes.
As a future strategy to meet the growing need of
quality manpower in this sector, the Ministry has
proposed to involve the Industrial Training Institutes
and Polytechnics to impart skill training in this sector.
The Ministry also proposes to introduce Hospitality
education and training as an optional vocational course
at +2 stage in schools and as a separate discipline at the
under graduate level in the universities.
Revised guidelines have been issued by the Ministry
for the training of Regional Level Guides thereby
making training and selection of the guides more
competitive and effective. A new category of premier
guides has been introduced to cater to the upper echelon
of the foreign tourists and discerning tourists with
specialized interests.
The Ministry has a scheme for Capacity Building
for Service Providers (CBSP) to impart basic training to
service providers, majority of whom are in the
unorganized sector. The scheme would continue as a
future strategy to ensure quality service at the lower
segment of tourism and to widen opportunities for
decent employment for this category of service
providers.
3.8 Promotion and publicity
Promotion and publicity, both domestic and
overseas, through print and electronic media are being
pursued vigorously by the Ministry of Tourism and will
continue to remain important elements of the future
strategy for tourism development. Initiatives, some of
which have already been launched and the others could
be planned for the future are: targeting new source
markets like Italy, Spain, France, Germany, Korea, Japan
and China; publicity in regional languages in some of
these countries; to promote India as a summer retreat for
students of schools and colleges in Europe and North
America during their summer break; forming new
bilateral alliances, increasing visibility through
participation in major international events, etc. Future
strategy also envisages greater use of the tools of
Information Technology like Internet and e-commerce,
both for publicity and web-based services.
3.9 Streamlining procedures
The Ministry of Tourism has proposed actions by
the concerned ministries to reduce time taken for issuing
visas, introduce “multiple-entry” long-term tourist visa
and for providing visa on arrival facility in possible cases.
At present, there are some 18 countries having the
facilities of “multiple-entry” long-term visa.
The Ministry has also requested the Ministry of
Home Affairs to review and examine the possibilities of
relaxing the restrictive permit policies that are applicable
to exotic and adventurous tourist destinations like North
East States, Jammu & Kashmir and Lakshadweep.
Since important tourist circuits are spread over a
number of States and UTs, multiple tax regimes apply in
different States as tourists move from one entry point of
a State to another. The Ministry has emphasized the need
for rationalization of road and transport taxes and
introduction of zonal permits for tourist vehicles.
The Ministry has mooted the concept of tourist
police, a special category of police specially trained to
assist tourists, and proposed that State Governments
may create such a force. At present, only some states
have “tourist police”.
3.10 Tax, incentives and concessions
The Ministry of Finance, in the Budget proposal
2008-09, has proposed to grant a five-year holiday from
income tax to two, three or four star hotels that are
established in specified districts which have UNESCO-
declared 'World Heritage Sites'. The hotel should be
constructed and start functioning during the period
April 1, 2008 to March 31, 2013.
3.11 Research and analysis
As at present, continuous research and analysis will
feed on policy decisions of the Ministry from time to
time through evaluation of the existing schemes at work
and exploring potentials for new policy options. Market
research, based on collection, collation and analysis of
data will continue to support tourism marketing strategy
of the Ministry. Efforts are on to strengthen statistical
base to support research and analysis. Initiative is being
taken to obtain more differentiated statistics on tourist
profile like segregating NRI and non-NRI tourists. States
are being encouraged to compile and furnish district-
wise statistics on tourists.
Finally, safety and health and environmental
preservation will continue to remain key concerns while
formulating tourism development strategy for the
future.
23
24 25
 Then Now

4 Development of Infrastructure
and Destination Management
4.1 Infrastructure Development holds the key to
India's sustained growth in the tourism sector.
Therefore, the Ministry of Tourism has been making
efforts to develop quality tourism infrastructure at
tourist destinations and circuits. The following schemes
have been implemented to achieve this objective.
The State-wise number of tourism projects
sanctioned and amount released for the year 2007-08 (up
to February 29, 2008), which includes the projects
sanctioned for infrastructure augmentation of
destinations and circuits are at Annex-V.
4.2 Scheme for Product/Infrastructure
Development for Destinations and Circuits
Under this centrally sponsored scheme, the
Ministry of Tourism extends Central Financial
Assistance to the State Governments/ Union Territory
Administrations for Product/ Infrastr ucture
Development in Destinations and Circuits for tourism
projects. The projects are identified and prioritized in
consultation with the State Governments/UT
Administrations for improving the existing as also for
developing new tourism products. 100% Central
Assistance is given under the scheme for identified
projects for development of major destinations/circuits
to world standard and also for rural tourism
infrastructure development. The Ministry provides
Financial Assistance of Rs. 5 crore for the development
of tourist destinations and Rs. 8 crore for the
development of tourist circuits to States/ UTs. The
upper limit of financial assistance has been increased to
Rs. 25 crore and Rs. 50 crore for the development of
identified major tourist destinations and identified major
tourist circuits, respectively to world class infrastructure.
The Ministry of Tourism has identified
destinations/circuits as mega projects out of which
projects for Agra, Varanasi-Sarnath, Bodhgaya-Rajgir-
Nalanda, Delhi, Kurukshetra and Hyderabad
(Charminar area) have been sanctioned so far. This is an
on-going process and is based on the national/
international importance of destination/ circuit,
number of visitors, potential for growth, etc.
Socio-economic benefits of rural tourism
percolate down to rural community under the
component of rural tourism infrastructure develop-
ment. For each project (identified rural tourism sites)
under this scheme, a maximum of Rs. 50.00 lakh is
Fatehpur Sikri
sanctioned to States/ UT Administrations.
In order to facilitate capacity building, thereby
enabling low-income village communities to develop the
required skills for tourism industry, the Ministry of
Tourism, in partnership with the UNDP, is
implementing the Endogenous Tourism Projects linked
to the Rural Tourism Scheme of the Government of
India.
4.3 Scheme for Assistance to Large Revenue
Generating Projects
The scheme of Assistance to Large Revenue
Generating Projects seeks to encourage Public-Private
Partnership for the development of tourism
infrastructure. Projects include tourist trains, cruise
vessels, cruise terminals, convention centres, golf
Bodhgaya
courses, etc. that are eligible for assistance under this
scheme.
4.4 Creation of Land Bank for Hotels
The Ministry of Tourism has introduced this Then Now Then Now
scheme for augmenting hotel accommodation in the
country by purchasing land from the land owning
authorities and building hotels through Public-Private
Partnerships.
4.5 Assistance to Central Agencies for Tourism
Infrastructure Development
The Ministry of Tourism has introduced this
scheme with a view to ensuring tourism infrastructure
development through Financial Assistance of the
Ministry for tourism sites/products owned by Central
agencies like Archaeological Survey of India, Port Trust
authorities, ITDC, etc.
Ajanta-Ellora
4.6 Externally Aided Projects
The projects for the development of infrastructure
at major Buddhist sites in Maharashtra are aided by Then Now
external funding from Japan Bank of International Co-
operation (JBIC).

26
Mahabalipuram
28 29
 5 New Tourism Products
5.1 Rural Tourism
To showcase rural life, art, culture and heritage at
rural locations in villages and to benefit the local
community economically and socially as well as to enable
interaction between tourists and local population for a
mutually enriching experience, the Government of India
decided to develop and promote rural tourism.
The Ministry has partnered with the UNDP for
Endogenous Rural Tourism as pilot projects for capacity
building. Within prescribed limits, the hardware projects
are funded by this Ministry and the funds for capacity
building were provided by the UNDP through this
Ministry. The software component was implemented
with the involvement of an NGO/Gram Panchayat
identified by the UNDP in co-ordination with the
District Collector and the local community. The Ministry
also extends the scheme of Capacity Building for Service
Providers (CBSP) to other rural sites beyond those
covered under partnership with the UNDP.
The focal point for each site is the District
Collector for ensuring convergence with other Yojanas
and Schemes. The project implementation is monitored
by the Project Standing Committee chaired by the Joint
Secretary (Tourism). Field visits are conducted by the
Ministry of Tourism-UNDP Teams.
To monitor the projects, the National Workshops
and Regional Review Meetings have been held regularly
where initiatives were taken to further strengthen the
scheme which included home-stay with food, guide-
training among the local youth, enhancing the role of
women, linkage with tour operators and encouragement
of the foreign students to stay with the rural host
community, etc. In some sites, e.g. Hodka, Pochampalli,
Kumbhalangi, Karaikudi (Chettinad), Aranmula,
Raghurajpur, tour operators are involving such
communities within their groups.
UNDP has created a panel of architects to advise,
guide and provide design inputs for site hardware work
plan with sensitivity to the local environment using local
skills, material and style. In many sites, the architects
have been able to give new dimensions which are based
on local skill, material and style.
To give exposure and to make available outlets to
the products created by the local rural artisans, efforts
30
have been made to provide platform in the following
forms:
(i) In Dilli Haat, in 2006, artisans were called from
various rural sites to sell their products for 3 days.
Similarly, in 2007 during Deep Utsav, artisans were
called from the sites which are ready for marketing.
(ii) Artisans participated in India International Trade
Fair (IITF) and were able to sell their products.
(iii) The rural tourism website has been revamped and
provides features which have been incorporated in
the upgraded website.
(iv) The rural tourism sites which are ready for
marketing have now been up-loaded. Some of the
broad features incorporated facilitate linkage
between potential visitors and site service
providers; hyperlink with other advantageous
websites, faster download, all round animation,
display of visuals as a slide show, upgrading of
video quality and display of video clips highlighting
art and craft process, etc. Feedback received
indicates that the rural sites are becoming popular.
(v) The website focuses on each rural community with
emphasis on the role of women as the principal
stakeholders with their attribute of art, craft,
culture and natural heritage.
(vi) Some of the sites like Chaugan, Samode, etc. have
their own brochures for the publicity. 'Aranmula',
the rural tourism site, has won the PATA Gold
Award - 2007, in the culture category.
5.2 Medical Tourism
Medical Tourism is gaining momentum and the
following initiatives have been taken to promote this
segment:
(i) The Ministry of Tourism, Government of
India par ticipated at the Inter national
Tourism Bourse (ITB) at Berlin, where India
was promoted as the new emerging healthcare
destination.
(ii) The Ministry of Tourism participated in New
York Times Travel Show in which there was
also a session organized by the Indiatourism
Office, New York, Indian High Commission
and Confederation of Indian Industry (CII)
to promote Indian healthcare services and
invite investment into India.
(iii) A new category of medical visa has been
introduced which can be given for a specific
purpose to foreign tourists coming to India
for medical treatment.
5.3 Cruise Tourism
(i) Cruise Tourism is a fast growing sector globally.
Experience in the Caribbean, Latin American and
South-East Asian countries indicates that huge
amount of foreign exchange can be earned by
providing the right policy environment and
infrastructure for the growth of cruise tourism.
The global scenario for cruise shipping is picking
up very fast both in terms of fleet and passengers
carried.
(ii) India, with its vast and beautiful coastline, virgin
forests and undisturbed idyllic islands, long
historical and cultural tradition of architecture,
theatre and performing arts, is a high potential
tourist destination for cruise tourists.
(iii) The cruise tourism potential in the country should
be assessed from the medium-term and long-term
perspective with details of foreign and domestic
stakeholders. The following constraints would
need to be addressed:
a. Development of major terminals
b. Development of non-major ports
c. Rationalization of duty structure for import
of vessels
d. Development of inland water cruise
e. Rationalization of the laws pertaining to
cruise shipping and streamlining of their
implementation
5.4 Adventure Tourism
(i) Development of Adventure Tourism is a part of
the policy for the diversification of tourism
products in India. A set of guidelines on safety and
quality norms on Adventure Tourism as Basic
Minimum Standards for Adventure Tourism
activities was formulated to cover land, air and
water based activities including mountaineering,
trekking, hang-gliding, para-gliding, bungee
jumping and river-rafting. Financial assistance is
extended to various States/Union Territory
Governments for the development of various
adventure tourism projects and infrastructure
facilities required for trekking, rock climbing,
mountaineering, aero- sports, winter/ water related
sports, trekker huts, wildlife viewing facilities, etc.
(ii) Financial assistance was provided to Andhra
Pradesh, Dadra & Nagar Haveli, Kerala, Madhya
Pradesh, Mizoram, Tamil Nadu, Arunachal
Pradesh, Sikkim, Haryana, Rajasthan, Karnataka,
Lakshadweep, Chhattisgarh, Assam, Andaman &
Nicobar Islands, Uttaranchal during 2006-07 for
the purchase of water sports equipment like
kayaks, canoes, paddle boats, fiber glass boats,
hovercrafts, water scooters, etc.
(iii) With the Ministry's assistance, 5 water skiing
courses were organized in Indian Institute of
Skiing and Mountaineering, Gulmarg, Jammu &
Kashmir in 2007.
(iv) Financial assistance for the construction of
Double Hull Boats, Jetties, Cruise Vessels, etc. was
extended to Kerala, Andhra Pradesh, Dadra &
Nagar Haveli, Tamil Nadu, etc. The Ministry made
special efforts to promote Inland Water Tourism by
providing necessary infrastructural facilities.
31
32 33
 6 Development and Regulation
of Tourism Industry
6.1 To ensure sustained growth and high standards of
quality in tourist facilities offered by the private sector,
Central and State Governments have made several
incentives available. The Central Government incentives
include:
(i) Interest Subsidy Scheme
Hotel projects of one to three star categories
outside the metropolitan cities of Mumbai,
Kolkata, Delhi and Chennai will get an interest
subsidy of 3% on loans taken from the approved
financial institutions like Tourism Finance
Corporation of India Ltd. (TFCI), IFCI, State
Financial Corporations, Industrial Corporations,
ICICI, IDBI, SIDBI, HUDCO and Scheduled
Banks. A subsidy of 5% is available if the location
of such projects is in the Travel Circuits and
Destinations identified for intensive development
as per National Action Plan for Tourism. The
scheme envisaging higher interest subsidy to
Heritage hotel projects discontinued with effect
from April 1, 2002; however, interest subsidy
continues for the projects approved earlier.
(ii) Revised Scheme of “Incentive to
Accommodation Infrastructure”
To encourage growth of Budget Hotel
Accommodation and to increase the inventory of
rooms for the promotion of tourism in the
country, a revised scheme of “Incentive to
Accommodation Infrastructure” has been
introduced to provide incentives to new approved
hotel projects in one, two, three star categories and
Heritage (basic) category hotels in the country.
The details of the scheme for grant of Capital
Subsidy are as follows:
a. The scheme would be effective for the first
year of the 11th Five Year Plan i.e. up to
March 31, 2008 on an experimental basis.
The first phase would be up to March 31,
2008.
b. The scheme will be applicable throughout the
country.
c. The scheme would apply to all hotels in one
to three star and Heritage (basic) categories
where the hotel projects have been
commissioned and classified by the Ministry
of Tourism, Government of India from
April 1, 2007 to March 31, 2008.
d. The incentive will be in the form of capital
grant of Rs. 2.00 lakh per room subject to a
maximum of Rs. 30.00 lakh to one star hotel,
Rs. 3.00 lakh per room subject to a maximum
of Rs. 75.00 lakh to two star hotel, Rs. 3.00
lakh per room subject to a maximum of Rs.
100.00 lakh to three star category hotel
projects.
e. In the case of Heritage hotels, where the
investment is required mainly for the
refurbishment of existing building, which
includes creation of additional facilities and
accommodation, the incentive will be
available only for the lowest category i.e.
Heritage (basic) of Rs. 3.00 lakh per room
subject to a maximum of Rs. 100.00 lakh.
f. The amount of incentive will be released to
the concerned hotel after completion of its
classification in the said category.
g. Hotels availing of the capital subsidy under
the scheme can apply for upgradation in
classification beyond three star category; and
Heritage (basic) only after a period of eight
years from the date of initial classification.
The hotels have been asked to ensure that they
function in the same category for a period of five years
from the date of initial classification.
6.2 Approval and Classification of Hotels
To conform to the expected standards for different
classes of tourists, especially from the point of view of
suitability for international tourists, the Ministry of
Tourism maintains a system of approval of hotel
projects linking them with various incentives and
benefits.
Classification of hotels under the star system - in
six categories - from one to five Star Deluxe and
Heritage Hotels (introduced in 1994) is undertaken by
the Hotel and Restaurant Approval and Classification
Committee (HRACC), set up by the Ministry of
Tourism.
To ensure that these hotels maintain the requisite
standards, the Ministry re-classifies them every five
years, the review of which is undertaken by the Agents Association of India and the Institutes of Hotel
Committee set up for the purpose with representatives Management.
from the Ministry of Tourism, Government of India, There were 1437 hotels with 84327 rooms on the
State Governments, Federation of Hotel and Restaurant approved list of the Ministry of Tourism up to
Associations of India, Hotel Association of India, December 31, 2007. The break-up of these hotels by
Indian Tour Operators Association of India, Travel different star categories is given below:
Star Category No. of Hotels No. of Rooms
5 Star Deluxe 100 21100
5 Star 85 10311
4 Star 116 7986
3 Star 482 22028
2 Star 204 6184
1 Star 54 2871
Heritage 78 2333
3 Star Apartment Hotel 2 110
4 Star Apartment Hotel 1 44
5 Star Apartment Hotel 1 100
5 Star Deluxe Apartment Hotel 2 259
5 Star Timeshare Resort 1 62
Silver B&B Establishment 81 216
Gold B&B Establishment 51 180
Guest House 1 40
To be classified 178 10503
Total 1437 84327
To expedite the ongoing process of classification/ (iii) Existing classified hotels and new projects have to
reclassification of functioning hotels in one, two and adopt environment-friendly practices and facilities
three star categories, five Regional Committees were set for the physically challenged persons.
up in Delhi, Mumbai, Kolkata, Guwahati and Chennai to
(iv) Segregation of smoking and non-smoking areas in
conduct regular inspection.
hotels has to be made besides complying with other
Revised and simplified guidelines for the requirements of the provisions under “The
classification of hotels and approval of hotel projects Cigarettes and other Tobacco Products (Prohibi-
came into effect from March 24, 2003, the salient tion of Advertisement and Regulation of Trade
features of which are as follows: and Commerce, Production, Supply and
Distribution) Act, 2003”.
(i) Project approval valid for 5 years.
6.3 Heritage Hotels
(ii) Classification of hotels is valid for five years from
the date of issue of order or for reclassification, The popular concept of Heritage Hotels was
from the date of expiry of the last classification introduced to convert the old palaces, havelies, castles,
subject to the fulfilment of other conditions. forts and residences built prior to 1950, into

34 35
 accommodation units as they reproduce the ambience
and lifestyle of the bygone era. The scheme is to ensure
that such properties, which are the landmarks of our
heritage, are not lost due to decay but become financially
viable by providing the required room capacity for the
tourists, while at the same time creating interests among
them in tradition and heritage of the place.
The Heritage Hotels have also been sub-classified
in the following categories:
Heritage (basic): Covers hotels in Residences/
Havelies/Hunting Lodges/ Castles/Forts/Palaces
built prior to 1950. The hotel should have a
minimum of 5 rooms (10 beds).
Heritage Classic: Covers hotels in Residences/
Havelies/Hunting Lodges/Castles/ Forts/Palaces
built prior to 1935. The hotel should have a
minimum of 15 rooms (30 beds).
Heritage Grand: Covers hotels in Residences/
Havelies/Hunting Lodges/Castles/ Forts/Palaces
built prior to 1935. The hotel should have a
minimum of 15 rooms (30 beds).
Heritage Renaissance: Covers hotels in
Residences/ Havelies/ Hunting Lodges/ Castles/
Forts/Palaces built prior to 1950. The hotel should
have a minimum of 5 rooms (10 beds). This
category includes those properties constructed
prior to 1950 which have been dismantled and
rebuilt at new location.
6.4 Approval of Standalone Restaurants
Quality restaurants, authentic food and variety of
cuisines, particularly cuisines of different states in the
country have become increasingly popular both with
domestic and foreign tourists and extend an enriching
tourism experience. Accordingly, the Ministry's scheme
for the approval of standalone restaurants stands revived
with effect from November 30, 2005.
6.5 Guidelines for Apartment Hotels
Apartment hotels have become increasingly
popular with business travellers who visit India for some
assignments or family holidays, etc., which sometimes
prolong for months together. With a view to providing
standardized world class services to the tourists, the
Ministry has introduced a voluntary scheme for
classification of fully operational Apartment hotels in
36
the five star deluxe, five star, four star and three star
categories.
Salient features of the scheme:
(i) Apartments will not be sold individually for
residential or any other purpose.
(ii) Classified Apartment hotels/ approved projects
are eligible for various concessions and facilities
that are announced by the Government from time
to time, getting world-wide publicity through the
websites of the Ministry and Indiatourism Offices
located in India and abroad.
(iii) Approvals are given in all the above mentioned
categories at the project implementation stage
itself.
(iv) Inspection and assessment are made by the Hotel
and Restaurant Approval and Classification
Committee (HRACC).
6.6 Approval of Guest Houses
In order to augment supply of hotel accommo-
dation for budget tourists, both domestic and foreign,
the Ministry has introduced a voluntary scheme of
approval of Guest Houses, which will meet certain
standards of cleanliness, hygiene, upgraded facilities and
practices. Guest Houses and unregulated accommo-
dation units that spring up in cities and towns can also
come under such schemes if they meet certain standards.
Such steps can potentially augment, not only hotel
accommodation in the budget category, but also
generate employment and revenue for the states.
6.7 Approval and Classification of Timeshare
Resorts
In view of growing popularity of vacation
ownership for leisure holidays and family holidays of
tourist accommodation, known as the Timeshare, the
Ministry introduced a voluntary scheme for
classification of Timeshare Resorts (TSRs) into three
star, four star and five star categories with effect from
August 10, 2005.
6.8 Incredible India Bed & Breakfast Scheme
The scheme offers foreign and domestic tourists an
opportunity to stay with an Indian family and enjoy the
warm hospitality and a taste of Indian culture and cuisine
in a clean and affordable place. Resident home-owners
who are able to offer a minimum of one to a maximum
of five rooms of prescribed specification along with the
facilities comparable to a three-four starred hotel are
eligible to apply for this scheme. For the host, the scheme
offers, besides an opportunity to earn extra income, an
enriching experience of interaction with the guest. The
scheme has been launched all over the country and taken
up as a pilot project in Delhi for a focused
marketing/attention. It has potential to address acute
shortage of hotel accommodation and increase the
inventory of hotel rooms especially in Delhi and all
metro cities.
It is an excellent medium to showcase India as a
destination and being promoted by the Ministry through
its Indiatourism Offices in India and overseas, through
its website - www.tourism.nic.in - and by the tour
operators and travel agents' associations of India with a
wide media campaign to invite the prospective owners.
Guidelines have been framed with the necessary
requirements to be fulfilled by the interested home-
owner whose residence would then be inspected by a
Regional Classification Committee for the Silver or Gold
category as opted by the home-owner in his/her
application.
6.9 Approval of Standalone Air Catering Units
To meet the increasing demands of the specialized
professional inputs and outputs of international
standards in the air catering segment, the Ministry of
Tourism approves and classifies Standalone Air Catering
Units in the country. Only those air catering units which
are approved and classified as per the Ministry of
Tourism's guidelines are found suitable.
6.10 Approval of Convention Centres
Meetings, Incentives, Conferences and Exhibitions
(MICE) are important segments of the tourism industry.
In a rapidly globalizing high growth Indian economy,
MICE tourism is bound to grow and the country is in
need of more Convention and Exhibition Centres to
meet this requirement. To encourage investment and
standardize facilities in these areas, the Ministry of
Tourism grants approval to Convention Centres.
The incentives presently available to the Travel
Trade Industry are at Annex-VI.
6.11 Approval of Travel Trade
To encourage better quality and standards in
services of the Travel Agents, Tour Operators,
Adventure Tour Operators, Domestic Tour Operators
and Tourist Transport Operators, the Ministry of
Tourism has a set of guidelines for approval of all bona
fide agencies operating in these areas under a voluntary
scheme. The guidelines were revised on August 27, 2007.
Total number of approvals as per the revised guidelines
is as under:
Category Till December 31, 2007
Travel Agents 341
Tour Operators 441
Tourist Transport Operators 163
Adventure Tour Operators 24
Domestic Tour Operators 19
6.12 Tourist Charters
With effect from August 17, 2006, guidelines for
the operation of Tourist Charter Flights to and from
India were made effective and these were further
liberalized subject to the condition that Tourist Charter
Flights will be permitted only for “Inclusive Tour
Package (ITP)”. Some of the modifications for the ITP
are:
(i) Application for operating inclusive Tourist Charter
Flights to India can be filed by an Indian Tour
Operator recognized by the Ministry of Tourism or
flight clearing agencies, cleared by the security
agencies for obtaining flight clearances from the
Directorate General of Civil Aviation.
(ii) The stipulation of minimum duration of stay of
charter tourists in India has now been removed.
During the period from January 1, 2007 to
November 30, 2007, a total of 626 (ITP) Tourist Charter
Flights operated into India bringing a total of 1,40,530
foreign tourists.
37
 Institute of Hotel Management, Dehradun

38
 7 Human Resource Development
7.1 To meet the demand for trained manpower in the
hospitality industry, Ministry of Tourism has a network
of institutes. Initially four Institutes of Hotel
Management, Catering Technology and Applied
Nutrition were set up at New Delhi, Mumbai, Chennai
and Kolkata. Subsequently, 12 Food Craft Institutes
were also set up at different places in the country to
promote the hospitality related craft disciplines and to
meet the manpower needs of the tourism industry in the
country.
7.2 The Ministry continues to actively pursue its
endeavour to create institutional infrastructure to train
manpower needed to meet the growing demand of the
hospitality industry. To meet the demand, this year 8 new
State Institutes of Hotel Management, Catering
Technology & Applied Nutrition at Kozhikode in
Kerala, Ailwang in Mizoram, Dimapur in Nagaland,
Yupia in Arunachal Pradesh, Bodhgaya in Bihar,
Hamirpur in Himachal Pradesh, Solapur in Maharashtra
and Fursatganj in Uttar Pradesh were sanctioned. The
Ministry also supported upgradation of the Food Craft
Institute at Puducherry to a Hotel Management
Institute. For expanding facilities for skill level training,
the Ministry sanctioned setting up of 4 new Food Craft
Institutes at Garhmukteshwar in Uttar Pradesh, Jammu,
Hassan in Karnataka and Samaguri in Assam. Applied
training centres/ executive development centres were
sanctioned in IHMs at Gwalior, Chandigarh, Bangalore
and Gurdaspur to raise these Institutes to international
standards. To qualitatively upgrade the guide services,
the Indian Institute of Tourism and Travel Management
was designated as the sole agency for the training of
regional level guides. Another important programme
'Earn While You Learn' has been launched for college
students to inculcate appropriate tourism traits and
knowledge amongst the trainees to enable them to work
as student volunteers.
7.3 National Council for Hotel Management &
Catering Technology
In 1982, National Council for Hotel Management
and Catering Technology (NCHMCT) was set up to
coordinate the growth and general advancement in the
development of hospitality management education
40
through its affiliated Institutes. Like all academic
institutes, it undertakes recruitment; standardizes
admission, fees, bye-laws, syllabus for studies, courses,
research and examinations, results; regulates building
plans and equipment, in addition to conducting training,
publishing periodicals, magazines, etc; receives and also
carries out such government approved activities as
prescribed from time to time. The NCHMCT also
affiliates Institutes of Hotel Management for admissions
and regulation of examinations. At present, 30 Institutes
of Hotel Management, comprising 21 Central Institutes,
5 State Institutes and 4 private Institutes are affiliated to
the NCHMCT. They conduct Degree, Post Graduate
degree/Diploma courses in various disciplines relevant
for hospitality industry. The NCHMCT also affiliates
State Food Craft Institutes (FCIs) both in the Central
and State sectors for diploma courses. These FCIs are
located at Aligarh, Balangir, Darjeeling, Puducherry,
Faridabad and Udaipur with 491 registered students
(2006-07).
A list of IHMs (Central Autonomous Bodies) and
Food Craft Institutes (FCIs) affiliated to the NCHMCT
is at Annex-VII.
The NCHMCT holds Joint Entrance Examination
(JEE) on all India basis for admission to the 1st year of
the 3-year B.Sc. programme in Hospitality and Hotel
Administration for its affiliated Institutes.
Admission to M.Sc. in Hospitality Administration
is centrally carried out by the Council. In the case of
other courses, i.e. P.G. Diploma in Accommodation
Operation; P.G. Diploma in Dietetics and Hospital Food
Service; Diploma in Food Production; Diploma in Food
and Beverage Service; Diploma in House Keeping
Operation; Diploma in Front Office Operation;
Diploma in Bakery and Confectionery; Craftsmanship
Course in Food Production; Craftsmanship Course in
Food and Beverage Service and Certificate Course in
Hotel and Catering Management, admission is directly
carried out by the respective Institutes as per eligibility
criteria prescribed by the National Council for each of
the courses. Strength of students including those
promoted to higher classes, during 2006-07 academic
session are as under:
Course Title Students on Roll
M.Sc. in Hospitality Administration 9
Ist year of 3-year B.Sc. in Hospitality and Hotel Administration (new admissions) 3367
IInd year of 3-year B.Sc. in Hospitality and Hotel Administration 2786
(promoted from lower class)
IIIrd year of 3-year B.Sc. in Hospitality and Hotel Administration 2565
(promoted from lower class)
P.G. Diploma in Accommodation Operations and Management 164
P.G. Diploma in Dietetics and Hospital Food Service 62
Craftsmanship Course in Food Production 538
Craftsmanship Course in Food and Beverage Service 237
Diploma in Food Production 377
Diploma in Food & Beverage Service 344
Diploma in House Keeping Operation 137
Diploma in Front Office Operation 142
Diploma in Bakery and Confectionery 107
Total 10835
The National Council organizes an All India institutional infrastructure such as construction of
Student Chef Competition each year to develop a hostels and modernization of laboratories.
competitive zeal amongst students of Hotel
Grants-in-Aid released to autonomous bodies
Management to demonstrate their skills in production of
during 2007-08 (up to February 29, 2008) is at
dishes and menus in the different categories of the
Annex-VIII.
competition with certain rules and guidelines.
7.5 Brief Report on the Central Institutes of Hotel
7.4 Central Financial Assistance for Creation of
Management
Institutional Infrastructure
Institute of Hotel Management - Ahmedabad
The Ministry extends Central Financial Assistance
(Gandhinagar)
(CFA) for the setting up of State Institutes of Hotel
Management. The National Institute of Tourism & The Institute, formed in 1972 as a Food Craft
Hospitality Management (NITHM) at Hyderabad and Institute, was upgraded as IHM in 1984 and offers
IHM at Dehradun were set up with CFA and they are B.Sc. programme with 392 students on roll.
already functional. The other projects that are at various
The campus recruitment is 100% with an average
stages of construction are located at Kurukshetra,
salary of Rs. 1,18,000/- per annum.
Silvassa, Jamshedpur and Raipur. The CFA for such
projects is subject to certain guidelines including Institute of Hotel Management -
allocation of at least 5 acres of land by the state Bangalore
government concerned and affiliation of the Institute to This was established in 1969 as a Food Craft
the NCHMCT. Normal grant is up to Rs. 10 crore, of Institute. It offers M.Sc. and B.Sc. programmes with 424
which, Rs. 8 crore is for construction and rest for the students on roll. The qualified candidates were offered
purchase of equipment required by the Institute. jobs with the salary range between Rs. 1.20 lakh and Rs.
The expenditure over and above the Central Grant 3.50 lakh per annum.
is met by the respective state governments. Financial The Institute signed an MoU with Hospitality
assistance is also extended for upgradation of Institute from South Bank, Queensland, Australia for
41
 faculty exchange programme. An Executive
Development Centre (EDC) with residential facility with
30 rooms is being set up by the Institute with the
financial support of the Ministry of Tourism,
Government of India.
Institute of Hotel Management -
Bhopal
The Institute, set up in 1986, offers B.Sc. and Craft
Food Production Programme with 580 students on roll
and achieved a record placement of 290 jobs. Many
students got selected as management trainees on salary
ranging between Rs. 1.20 lakh and Rs. 2.50 lakh per
annum.
Institute of Hotel Management -
Bhubaneswar
The Institute, started as a Food Craft Institute in
1973, offers four programmes ranging from Craft level
to B.Sc. degree. Up to March 2007, 3867 students were
trained successfully and 3482 of them were placed in
different organizations.
Dr. Ambedkar Institute of Hotel
Management - Chandigarh
Set up in 1990, this Institute offers two progra-
mmes for 473 students on roll. Placement was 100%
with average salary between Rs.1.00 lakh and Rs.3.00
lakh per annum.
The Institute helped the Union Territory
Government of Chandigarh in launching its Mid-day
Meal Programme by catering to 49 schools.
Institute of Hotel Management -
Chennai
Established in 1963, this Institute offers ten
programmes ranging from Certificate level to B.Sc.
degree with 630 students on roll. Placement is good.
Institute of Hotel Management -
Goa
The Institute started in 1968 as a Food Craft
Institute, is now upgraded to IHM. It offers 3
programmes ranging from Craft level to B.Sc. level with
703 students on roll.
42
Institute of Hotel Management -
Gurdaspur
The Institute, set up in 1994, offers B.Sc. in
Hospitality and Hotel Administration programmes with
357 students on roll. Two students were selected for 8
weeks internship by 'Vatel, International Business
School', Paris, France.
Institute of Hotel Management -
Guwahati
The Institute, which started as a Food Craft
Institute in 1995, was upgraded as IHM and offers three
programmes ranging from Craft level to B.Sc & Post
Graduate level with 354 students on roll. Placement is
95% with a salary offer from Rs. 0.90 lakh to Rs. 2.00
lakh per annum.
Institute of Hotel Management -
Gwalior
The IHM, Gwalior began initially as a Food Craft
Institute in 1986 and was upgraded to IHM in 1992. It
offers 3-year B.Sc. Degree in Hospitality and Hotel
Administration and one year Crafts Certificate Courses
in Food Production, Food & Beverage Services and
Housekeeping. Students' strength was 423 in 2006-07.
The placement for the last academic session i.e. 2006-07
was 63% with remuneration package from
Rs.1 lakh to Rs. 3.6 lakh per annum.
Institute of Hotel Management -
Hajipur
The Institute, set up in 1982 as a Food Craft
Institute, was upgraded to IHM and offers three
programmes ranging from diploma level to B.Sc. level
with 352 students on roll.
Institute of Hotel Management -
Hyderabad
The Institute started in 1972 as a Food Craft
Institute and was upgraded to IHM and offers four
programmes ranging from craft level to B.Sc. with 343
students on roll. Placement of students was over 90%.
Institute of Hotel Management - Jaipur
The Institute was upgraded from a Food Craft
Institute to IHM in 1989. There were 107 students in the
degree course. Leading organizations held campus
interviews and 180 jobs were on the offer.
Institute of Hotel Management - Kolkata
The Institute was established in 1963. It has 529
enrolled students in different programmes such as Craft,
PG diploma and B.Sc. programmes. 165 students were
placed in different organizations.
Institute of Hotel Management - Lucknow
The Institute, initially started in 1969 as a Food
Craft Institute, was upgraded to IHM with 180 students
on roll for the degree course. 138 students received job
offers, many of them received more than one offer.
Institute of Hotel Management - Mumbai
The Institute was established in 1954. During the
academic year 2006-07, at craft level, a new course in
Bartending and another course for Airline Cabin Crew
positions of Air Hostess and Flight Pursers were
introduced. Started an International Chefs Diploma of
1½-year duration in July 2006 in collaboration with
Niagara on the Lake Culinary School, Canada.
The placement is 85% with the highest salary of
Rs. 3 lakh per annum. Recruiters included hotels,
restaurants, BPOs, airlines, multiplexes. A record
number of 21 organizations came for the campus
recruitment.
Institute of Hotel Management - New Delhi
The Institute, set up in 1962, offers seven
programmes ranging from craft to M.Sc. level with 530
students on its roll. During the placement interviews,
209 jobs were on offer.
Institute of Hotel Management - Shillong
The Institute, set up as Food Craft Institute in
1995, was upgraded to IHM and offers 3-year B.Sc. in
Hospitality & Hotel Administration programme with 62
students on roll. Placement was 100% and salary offered
ranged from Rs. 0.72 lakh to Rs. 0.96 lakh per annum.
The Institute started the one-and-a-half-year diploma in
Food Production from the academic session 2007-08.
Under the CBSP Scheme, the Institute offers 3
months' course in Indian Sweets and Namkeen and 6
months' course in Bakery & Confectionery. Five
43
 programmes in Indian Sweets and Namkeen and 2
programmes in Bakery & Confectionery were completed
and more than 128 trainees were trained in 2006-07.
Institute of Hotel Management - Shimla
The Institute offers 4 programmes ranging from
craft level to B.Sc. level with 467 students on roll.
During the campus interview, 70 students were selected
for placement.
Institute of Hotel Management - Srinagar
Established in 1982, the Institute offers B.Sc. in
Hospitality and Hotel Administration programme with
47 students on roll. Some additional training
programmes are also being conducted by the Institute
under the Prime Minister's Tourism Reconstruction Plan
(PMTRP)/Capacity Building for Service Providers
(CBSP) schemes.
Institute of Hotel Management -
Thiruvananthapuram
The Institute was established in 1990 and offers
three programmes ranging from craft to B.Sc. level with
420 students on its roll. Placement was 100%.
7.6 Indian Institute of Tourism and Travel
Management (IITTM) - Gwalior
(i) Indian Institute of Tourism and Travel
Management (IITTM), established in 1983, is a
pioneer in the field of travel and tourism education
and training for providing specialized training and
education for tourism and travel industry both in
private and public sector.
(ii) In 2008, the Institute is celebrating its “Silver
Jubilee Year”. During the Silver Jubilee year, the
Institute will be organizing Directors' Conclave on
44
Emerging Dimensions of Human Resource
Development in which Heads/Directors
(Tourism) of Universities/Institutes and other
experts and practicing managers are participating
from all over the country. An International
Conference on Innovations in Tourism:
Competitiveness and Sustainability is also
scheduled to be conducted at the IITTM,
Bhubaneswar. The Institute is also organizing
National Tourism Quiz, National Dance and Song
Competition for the students of tourism
institutes/universities.
(iii) IITTM organized a Syllabus Review Workshop
from October 16 to 18, 2006 at Delhi, and based on
the recommendations of the Workshop, the
Institute decided to offer the following All India
Council for Technical Education (AICTE)
approved programmes with an intake of 60
students each from the academic session 2007-08
at Gwalior, Bhubaneswar and Delhi centres:
a. Two-year Post Graduate Diploma in
Management (Tourism and Travel) - from
Gwalior and Bhubaneswar
b. Two-year Post Graduate Diploma in
Management (International Business) - from
Gwalior and Bhubaneswar
c. Two-year Post Graduate Diploma in
Management (Service Sector) - from Gwalior
d. Two-year Post Graduate Diploma in
Management (Tourism and Leisure) - from
Delhi
(iv) During 2006-07, IITTM conducted refresher
courses on tourism/travel management for
university and college teachers. AICTE also
sanctioned Rs. 8.00 lakh for establishing an
Entrepreneurship Development Cell in IITTM.
National Institute of Water Sports - Goa
India has a vast coastline; but the water based
adventure sports/ tourism potentials have still remained
untapped. The researchers are unanimous in their
opinion that water sports tourism could be an ideal non-
polluting industry for the under-developed coastal
regions of the country. The Ministry of Tourism
established the National Institute of Water Sports
(NIWS) in Goa on the beach of Panjim. The
administrative control of NIWS was entrusted to
IITTM. During 2006-07, NIWS conducted several
short-term programmes and about 400 participants have
attended these programmes related to Powerboat
Handling, Lifesaving Techniques, Wind Surfing and
Lifesaving for water sports, etc.
7.7 Capacity Building
The Ministry is equally alive to the need of
upgrading the skills and building capacities of service
providers of the Industry. To this end, the Ministry
commenced the scheme of Capacity Building for
Service Providers, under which, trainings are undertaken
to cover a wide range of services like health & personal
hygiene, cleanliness, basic service techniques, cooking
techniques, garbage disposal, etiquette and basic
manners, basic nutrition values, energy saving and
nutrition saving techniques, guide training, etc. It, inter-
alia, covers service providers such as coolies/ servers/
Abstract of Financial Assistance Extended under the CBSP Scheme
during the Year 2007-08 up to February 29, 2008
Indiatourism Offices
IHMs/ FCIs
NCHMCT
IITTM
State Government Organizations
India Tourism Development Corporation
Specialized Training Organizations
For Rural Tourism to State Governments
Total
waiters/ helpers/ front office staff/ reception counter
staff/ food kiosk and dhaba staff/ personnel engaged in
handling tourists, airport security staff, immigration
officials and customs officers.
The implementing agencies are Indiatourism
Offices, Institutes of Hotel Management, Food Craft
Institutes, Indian Institute of Tourism and Travel
Management, NCHMCT, tourism departments of
States/ UT Governments, State Tourism Development
Corporations, India Tourism Development Corpo-
ration, State/Central training/academic institutions.
Under the scheme, the participants of 1 to 3-day
programmes are compensated for the loss of wages. The
fee and other costs of training for all the programmes are
covered.
For the promotion of rural tourism, the Ministry
of Tourism extends assistance for capacity building in
selected villages.
(Rs. in lakh)
31.00
35.00
23.00
19.24
40.57
61.97
15.05
427.58
653.41
45
 8 Publicity and Marketing
8.1 Domestic Campaigns
The Ministry of Tourism, as part of celebrations
of 60th Anniversary of India's Independence, had
launched a campaign titled, “Sare Jahan Se Achcha”.
The campaign activities were undertaken in major TV
channels and popular cinema halls across the country.
The objective was to make Indians proud of their
country and encourage them to travel within the country.
In its continued efforts in educating/sensitizing
stakeholders and general public about the importance of
preserving monuments and places of tourist interest and
to reinforce the “Atithi Devo Bhavah” message, thereby
achieving the objective of responsible tourism, the
Ministry of Tourism had launched the “4th Phase of
Atithi Devo Bhavah - Awareness Campaign”. The
campaign activities were undertaken in leading TV
channels, print publications, FM radios and popular
cinema halls across India.
Four more domestic campaigns for promotion of
the North East, Jammu & Kashmir, Rural Tourism and
Adventure & Wildlife Tourism have been planned during
the year 2007-08.
Events
(i) Supported the Conference on Initiative Tourism
on Kashmir on April 9, 2007 in New Delhi.
(ii) Participated in South Asian Travel & Tourism
Exchange (SATTE) 2007 - Promotion of North
East.
(iii) Supported the “Look South” Conference
organized by the Federation of Indian Chambers
of Commence and Industry (FICCI) in Hyderabad
in May 2007.
(iv) Participated in the Travel and Tourism Fairs in
Ahmedabad, Hyderabad, Bangalore and Kolkata
through the Indiatourism domestic offices.
(v) Organised welcome dinner for delegates of the
12th International Conference of National Trusts
in Delhi jointly with Indian National Trust for Art
and Culture Heritage (INTACH).
(vi) Supported the World Press Photo Exhibition from
December 12, 2007 to January 12, 2008 in
Mumbai.
(vii) Jointly organised the Tourism-cum-Handicrafts-
48
cum-Cultural Festivals with State Governments of
Maharashtra, Orissa and Madhya Pradesh.
8.2 Marketing Objectives of Overseas Offices
The Ministry of Tourism, Government of India,
through its 13 offices overseas, endeavours to position
India in the tourism generating markets as a preferred
tourism destination, to promote various Indian tourism
products vis-à-vis competition faced from various
destinations and to increase India's share of the global
tourism market.
The above objectives are met through an integrated
marketing and promotional strategy and a synergised
campaign in association with the Travel Trade and State
Governments. The specific elements of promotional
efforts undertaken overseas include advertising in the
Print & Electronic Media, participation in Fairs &
Exhibitions, organising Seminars, Workshops, Road
Shows & India Evenings, printing of Brochures and
Collaterals, Brochure Support/ Joint Advertising with
Travel Agents/ Tour Operators, inviting the Media and
Travel Trade to visit the country under the Hospitality
Programme, etc.
8.3 Assistance to Service Providers under the
Market Development Assistance (MDA) Scheme
Under the Market Development Assistance
Scheme, the Ministry of Tourism, Government of India,
provides financial support to approved tourism service
providers (i.e. hoteliers, travel agents, tour operators,
tourist transport operators, etc.), whose turnover
includes foreign exchange earnings also, for undertaking
the following tourism promotional activities abroad :
(i) Sales-cum-Study Tours
(ii) Participation in Fairs/ Exhibitions
(iii) Publicity through printed material
8.4 Familiarization Tours under Hospitality
Programme
One of the important elements of the Marketing
Strategy and Plan of the Ministry of Tourism is the
Hospitality Programme, under which, the Ministry of
Tourism invites editorial teams of travel publications,
journalists, photographers, TV teams, travel agents, tour
operators, etc. from overseas, through the Indiatourism
Offices to effectively project India as an attractive multi-
dimensional tourist destination offering a vast range of
attractions. These invited guests are able to get first-hand
information/knowledge of the Indian tourism product
during their familiarization tours.
During the year, Travel Agents, Tour Operators
and Media Representatives from important tourist
generating markets overseas were invited, not only to
visit the varied tourist attractions of the country but also
to participate in and cover events including South Asian
Travel & Tourism Exchange (SATTE), Himalayan Run
& Trek Event and the Annual Convention of the
Adventure Tour Operators Association of India.
Fam Trips for groups of Travel Agents and Tour
Operators were organized in collaboration with FIN Air,
Air Arabia, EVA Air, Air India, Special Buddhist
Mahaparinirvana Train, the Deccan Odyssey Luxury
Train, etc. Also groups of Travel Agents/Tour
Operators/Media representatives from the Latin
American countries, US & Canada, UK, Scandinavia,
Greece, Belgium, Germany, South Africa, Singapore,
China, Japan, Korea, etc. were provided hospitality
during their Fam Tours to different destinations in the
country under the Hospitality Programme.
8.5 Online Campaign
A complete 360-degree approach was planned for
the online campaign during the year 2006-07,
considering all possible touch points to connect
Incredible India with the internet users. The online
campaign ran across esteemed and high traffic domestic
and international sites and travel portals. Innovative site
captures and road blocks, rich media creative
(completely owning the environment of the site with
Incredible India banners and visuals) along with bigger
size creative resulted in higher click-through rate across
all the websites.
In addition, content integration, image/photo
gallery and destination specials were taken across portals
to enhance various themes of India. A fresh campaign
that commenced from September 2006 to March 2007
across major portals and travel sites (196 million
impressions in domestic sites and 166 million
impressions in international sites) is expected to give
more mileage to various products and destinations of
India. For another campaign specified for US, Korea,
Japan and China markets, the sites have been chosen.
Innovative units, rich media creative and other forms of
digital media have been take into consideration to reach
the target audience.
Informative Interactive and Quick Time Virtual
Reality (QTVR) CD ROMs
Thematic CD ROMs have been made for
providing specific and updated information to the India
Tourism promotional agencies, media and tourists in
particular to promote the specific products. These CDs
are being distributed through network of the
Indiatourism Offices in India and abroad. The subjects
of new CDs produced during the period are:
(i) Adventure Tourism
(ii) Cruise Tourism
(iii) Medical Tourism
(iv) MICE Tourism
(v) Buddhist Sites of India
(vi) World Heritage Sites
49
A Ministry of Tourism, Govt. of India Initiative A Ministry of Tourism, Govt. of India Initiative
 9 Overseas Activities
9.1 Marketing Objectives/Activities of Overseas Internet, by post and across the counter; inviting media
Offices and travel trade to visit India (to see for themselves its
tourism products and infrastructure) under its
The Ministry of Tourism, Government of India,
hospitality programme; collecting market intelligence
through its 13 overseas Indiatourism Offices located at
data through travel trade and other related sources and
New York, Toronto, London, Frankfurt, Paris,
public relation activities, etc. The Ministry of Tourism PATA TRAVEL MART
Amsterdam, Milan, Los Angeles, Dubai, Johannesburg,
also provides assistance to marginal service providers SEPTEMBER 2007
Singapore, Tokyo and Sydney, endeavours to position
under its Market Development Assistance Scheme for
India in the key tourism generating markets as a
the purpose of sales-cum-study tour abroad,
preferred tourism destination and to promote diverse
participation in travel fairs and exhibitions abroad and
Indian tourism products vis-à-vis competition faced
printing of publicity material for overseas promotion.
from various destinations and to increase India's share
of global tourism market in terms of international Some of the major promotional activities
arrivals and foreign exchange earnings. undertaken in the overseas markets during the year are:
“Incredible India@60” in New York; “India Now' in
These objectives are met through an integrated
London; PATA Travel Mart in Bali; participation in
marketing strategy and campaigns synergized in
Japan Association of Travel Agents (JATA) World Travel
association with the travel trade in India and abroad,
Fair in Tokyo during India-Japan Tourism Exchange
State Governments, airlines, Indian Missions and other
Year 2007; road shows in China during India-China Year
related organizations. The specific elements of activities
of Friendship Through Tourism-2007; World Travel CITM-KUNMING (CHINA)
undertaken by overseas offices include direct marketing
Market (WTM) in London, International Tourism NOVEMBER 2007
market development; improving supply and demand
Bourse (ITB) in Berlin; World Wide Exhibition for
situation; establishing one-to-one relations with travel
Incentive Travel, Meetings & Events (IMEX) in
trade and media persons; media planning and advertising
Frankfurt; European Incentive, Business, Travel &
in the print, electronic, interactive media and outdoor
Meeting (EIBTM) in Barcelona; Feria International de
advertising; participation in travel and consumer fairs
Turismo (FITUR) in Madrid; Arabian Travel Mart
and exhibitions; organizing of seminars, workshops,
(ATM) in Dubai; Incentive Travel & Conventions
travel marts, road shows and India evenings; printing of
Meeting Asia (IT&CMA) in Bangkok; China
brochures and collaterals for distribution in major trade,
International Travel Mart (CITM) in Kunming and Asia
consumer, media fairs and to the discerning tourists;
Pacific Incentive and Meeting Expo (AIME) in
brochure support/joint advertising with tour operators,
Melbourne.
travel agents; dissemination of information through

INDIA NOW LONDON

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I T B BERLIN
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52
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 10 Promotional Activities undertaken
by Domestic Offices
10.1 Promotional Activities undertaken by
Domestic Offices
There are 20 Indiatourism Offices in India. They
participated in a wide range of events in various parts
of the country. With traditional welcome at airports and
seaports they ushered important opinion makers from
abroad to India; offered hospitality to eminent tourists,
their groups and to cruise liners. To create and promote
tourism awareness among general public, they organized
debates and quiz competitions. These offices also
performed important functions regarding redressal of
grievances of the tourists to their satisfaction. The
offices carried out classification of new hotels and
reclassification of the old ones, approved the new travel
agents, tour operators and tourist transport operators in
addition to approving the old ones, monitored the
sanctioned tourism projects under Central Financial
Assistance besides communicating to and guiding the
tourists effectively.
These offices played a pivotal role in promoting
tourism, developing its infrastructure and co-ordinating
with various segments of the industry. World Tourism
Day was celebrated with a number of events and
functions, which made a favourable impression with the
tourists and the locals.
Indiatourism Delhi
(i) 186 establishments were inspected during 2007,
for inclusion as properties under the Bed &
Breakfast scheme.
(ii) 300 persons underwent training at the Best
Western Country Club Resort, Manesar and also at
Bhimtal and Binsar under the programme of
Capacity Building for taxi drivers, auto drivers and
other service providers.
(iii) Awareness was spread about tourism and its
products in India by distribution of publicity
material like framed blow ups, posters, brochures
among hotels, travel agencies and tour operators,
defence personnel and educational institutions.
Indiatourism Agra
(i) Orientation programmes were organized for
coolies at Mathura, Tundla and Agra Fort railway
stations and also for dhaba workers on National
Highway from Agra to Aligarh. Orientation
programme was also organized for approved
guides.
56
(ii) Extended hospitality to a VIP delegation of the
SAARC Nations.
(iii) 750 Parliamentarians from the Commonwealth
Nations were guided and facilitated during their
visit to Agra and Fatehpur Sikri.
Indiatourism Jaipur
(i) Participated in India Travel Mart (ITM), an
important event, where participants also came
from Singapore Board of Tourism, Malaysian
Airlines, hotel chains and resorts, travel agencies,
etc.
(ii) Inter-school Quiz Competition and Inter-college
Debate Competition were organized on the theme
'Women can perform better than men in tourism'
consistent with the World Tourism Organization's
(WTO) theme for the year.
(iii) Participated in the marketing meet at Jaimahal
Palace Hotel, Jaipur.
Indiatourism Varanasi
Participated in a seminar organized by Varuna
Travels on the topic “Changing trends, challenges
and employment potential in tourism”. The
seminar was attended by about 100 participants
and speakers from Banaras Hindu University
(BHU) and Kashi Vidyapeeth.
Indiatourism Chennai
(i) Indiatourism Chennai provided hospitality to 31
groups mainly from Canada, USA, Germany,
South Africa, France, Singapore, Japan.
(ii) Provided traditional welcome and information
services on board and at port to 7 luxury liners with
2568 passengers.
(iii) Assisted the handling agents for services at the
seaport through Port Trust.
(iv) Organized a cultural programme for the Crew and
the VIPs of the Swedish ship `Gotheborg' which
arrived at Chennai on January 31, 2007. The
Union Minister for Shipping, and the Governor of
Tamilnadu were present on the occasion.
(v) Conducted 45 Capacity Building Programmes in
the Southern Region at Chennai, Kodaikanal,
Bangalore, Hyderabad, Secunderabad, Tirupati,
Wyanad, Alleppey, covering a total of 5500
participants.
(vi) A training programme for 620 stewards and cooks
of Indian Railways Catering and Tourism
Corporation (IRCTC) was conducted through the
Institute of Hotel Management, Catering
Technology & Applied Nutrition, Chennai.
Indiatourism Bangalore
(i) Participated in the Conference of World Presidents
Organization held at Hotel Leela Palace, Bangalore
on October 26, 2007.
(ii) Participated in the “Tourism Run” organized by the
Department of Tourism, Government of
Karnataka.
Indiatourism Hyderabad
(i) Made a presentation on Buddhist Sites in India in
a seminar held at Osmania University, Hyderabad.
(ii) Inaugurated the Tourism Resource Centre at the
Government City College, Hyderabad.
Indiatourism Kochi
(i) Celebrated the World Tourism Day on September
27, 2007. The travel trade operators and the
hoteliers were sensitized to the event well in
advance and were requested to display banners
depicting the theme, accord traditional welcome,
offer discounted tariff for food and transport,
illuminate premises, etc.
(ii) Conducted a seminar on tourism highlighting the
significant role of women in tourism industry in
Chavara School of Tourism Studies, Ernakulam,
Kochi on the World Tourism Day.
Indiatourism Mumbai
(i) During the months of March and April, 16 luxury
liners visited Mumbai. The office arranged
traditional welcome with 'tikka' and rosettes to the
passengers on board and opened an information
counter at Ballard Pier to assist the tourists.
(ii) A programme on 'Advantages of meditation in our
life' was organized for the benefit of staff
members. A representative of the Sahaja Yoga
Meditation Centre delivered a lecture on
spirituality.
(iii) An in-house 'Training for Trainers' was arranged
for the staff members of the Indiatourism Mumbai
to enhance their skills needed for organizing
Capacity Building Programmes for Service
Providers.
(iv) Arranged a traditional welcome for the Chairman
of China National Tourism Administration and
his team on their arrival at the airport.
(v) In a joint initiative with the Bombay Chamber, a
performance by the First Police Band was
organized at Hanging Garden Band Stand on
September 27, 2007 on the World Tourism Day,
reviving thereby an old tradition of music being
played at nine identified Band Stands.
(vi) On the World Tourism Day, a traditional welcome
was accorded to the tourists who arrived by the first
flight at the Mumbai airport after midnight on
September 27, 2007. Banners with WTO theme
were put up at various prominent places and at
Travel & Tourism Institutes. Competitions such as
Quiz, Debate, Essay Writing, etc. among Travel &
Tourism students were also conducted.
(vii) The Regional Director attended a conference at
Colombo organized by the Sri Lankan Holidays
where a presentation on Incredible India was also
made.
(viii) Sponsored Prayaag Festival organized by the
Jamnalal Bajaj Institute of Management Studies to
promote youth tourism. Various competitions like
Quiz, Debate, Workshop on tourism were arranged
and the winners were given lunch/ dinner coupons
for two nights' stay package in one of the tourist
locations in the region. Similar programmes of St.
Xavier's College and NITIE were also sponsored.
(ix) Participated in an exhibition called 'Locations'
organized by the Novel Event Works Co. Ltd. The
Indiatourism stall displayed different places of
interest to popularize various locations for film
shooting. Also, Indiatourism participated in 'India
International Travel Mart' organized by the
IITTM, Bangalore at the World Trade Centre,
Mumbai.
(x) Presentations were made to the Belgian Travel and
Tour Operator group and US Delta Press Trip
who were the guests of the Ministry of Tourism,
Government of India and Indiatourism New York.
(xi) Training programmes for service providers such
as coolies, auto/ taxi drivers, service staff of hotels
57
 were conducted under the scheme of Capacity
Building for Service Providers.
Indiatourism Aurangabad
(ii)
(i) Inaugurated the prog ramme of “Rock
Museum-Khadak Pushp” during the month of
July. Also, attended the inaugural function of
“Foreign Exchange Operation” by Thomas Cook
Ltd.
(ii) Organised a Seminar on “Indian Tourism -
(iii) Participated in the 8th International Expo from
Problems, Myths and Solutions”.
(iii) Quiz competition, talk and panel discussions on
“Tourism Education” were arranged by the office
where members from the Institute of Hotel and
(iv) Organised 8 Capacity Building Programmes
Tourism Management, Institute of Hotel
Management and Catering Technology, and
various colleges also participated.
(iv) Opened a Tourist Counter at the Goa Youth
Cultural Festival in Aurangabad and distributed
publicity material.
Indiatourism Imphal
Indiatourism Goa
(i) Celebrated the World Tourism Day by arranging
various activities such as traditional welcome to
tourists, essay competition for students and a
workshop in the evening at Miramar Residency.
The meeting was chaired by the Secretary (Tourism
& Agriculture), Government of Goa and was
attended by eminent personalities and representa-
Indiatourism Shillong
tives from Travel Trade.
(i)
(ii) Organized Travel Agents' and Tour Operators'
meet for the newly introduced 'Home Stay'
facilities by 'Culture Angan' along with visit to
Sawantwadi Palace, Adivasi Cultural Village Theme
Park, Sindhudurg Fort and Dhamapur Lake.
(ii)
Indiatourism Khajuraho
(i) Organised a monsoon festival for the local
children.
(ii) A Workshop on Art and Craft was organized at
Shilpgram by the Centre for Cultural Resources &
Training (CCRT). All necessary assistance was
provided by Indiatourism, Khajuraho in organizing
the programme.
Indiatourism Guwahati
(iii) Organized a cultural programme in association
(i) Participated at the Kaziranga Expo from
58
September 1 to 13, 2007 by way of taking a booth
and distributing tourism promotional literature to
the visitors.
Celebrated the World Tourism Day. Tourists were
welcomed at the Guwahati Airport and at the city
office. A cultural programme in the evening was
also organised at Hotel Brahmaputra Ashok,
showcasing various classical and folk dance forms
of the State of Assam.
October 25 to the November 7, 2007 in Guwahati
along with representatives from Bangladesh,
Thailand, Kenya, Myanmar and Egypt.
between April and October, 2007 at Guwahati for
service providers such as auto/taxi drivers, river
cruise employees, shopkeepers, local craftsmen,
receptionists, waiters, etc. who directly interact
with tourists.
Celebrated the World Tourism Day with a
traditional welcome to the visitors at the office. A
group of students from the Modern School,
Imphal was invited for a talk on the theme
“Tourism Opens Doors for Women” to educate
the young minds on the socio-economic benefits
of tourism specially for women.
Celebrated the World Environment Day on June 5,
2007 in association with Shankar Dev College,
Shillong. On this occasion, saplings were planted
and a cleaning drive was undertaken in the nearby
village Lawsohtun, which is visited by tourists.
To mark the visit of the Hon'ble Tourism Minister
of Thailand to Shillong on the June 30, 2007, a
seminar was organized by the North East Council
and presentations were made by the North East
States to attract Thai investments in various sectors
including tourism. At this event, Indiatourism
Shillong exhibited an attractive display of the
tourism material including promotional scrolls at
the venue of the seminar. Literature kits were also
distributed among the delegates.
with the Department of Tourism, Government of
Meghalaya and also participated in a radio-talk on
the occasion.
Indiatourism Kolkata
(i) Participated in a Fair at Durgapur, organized by
M/s Blue Eye Kolkata from July 7 to 8, 2007. This
is a platform to promote tourism to the people
outside the metros.
(ii) Participated in Travel and Tourism Exposition
(TTE) held at Kolkata from July 13 to 15, 2007.
(iii) Participated in the 5th Bhutan Trade Show 2007
which was organized by Bhutan Chamber of
Commerce and Industry (BCCI) from August 3 to
7 at Paro, Bhutan.
(iv) Participated in the Travel and Tourism Fair (TTF)
2007 organised by M/s Fairfest Media Ltd held at
Kolkata from August 18 to 20, 2007. The fair was
inaugurated by the Hon'ble Union Minister of
Tourism & Culture. It was very well attended by the
Government and the private agencies from India
and abroad. This event gets the largest footfall
among all the promotional programmes organized
in Kolkata. In TTF 2007, Indiatourism Kolkata
won the first runner-up award for the door of the
stall.
(v) Celebrated the World Tourism Day in a befitting
manner with a variety of programmes on
September 27, at the airport and in the city office by
Indiatourism Kolkata. Banners with the year's
message were put up at the office and at the airport.
Visiting tourists at the information counters were
welcomed in the traditional way.
(vi) In the city office, a cultural programme of Chhow
folk dance of Purulia (West Bengal) was
organized to entertain the visiting international and
domestic tourists. Orphan children from the
Missionaries of Charities with escorts were invited
to attend the function. They were presented with
beautiful Incredible India publicity material and
also taken for a sight seeing tour of the city. At the
request of Indiatourism Kolkata, Museums of the
city allowed free entry to the visitors on the day.
Indiatourism Bhubaneswar
(i) Participated in Orissa International Tourism Fair
held from September 7 to 9 at Bhubaneswar.
(ii) Celebrated the World Tourism Day with various
programmes organised in the office and at the
airport for the arriving passengers/ tourists.
(iii) Indiatourism Bhubaneswar, through the Reliance
Petroleum outlets, is distributing publicity material
to the highway travellers at the strategic locations
on National Highway (NH) in Orissa.
(iv) Organised training programmes for 164 service
providers to upgrade their respective skills.
Indiatourism Patna
(i) Celebrated the World Tourism Day on September
27, 2007 and organized various programmes both
at the city office and at the airport. Banners were
put up with the year's message.
(ii) Organised Capacity Building Training Progra-
mmes at Bodhgaya and Rajgir during the
month of November 2007.
59
 11 Research, Analysis, Computerisation
and Monitoring
11.1 Information and Research Activities infrastructural facilities at tourist centres, etc. is also
prepared by this Division.
The responsibility for the compilation, tabulation
and dissemination of information on various aspects of 11.2 Foreign Tourist Arrivals
tourism is entrusted to the Market Research Division in
During the year 2007, the number of foreign tourist
the Ministry, which compiles data on domestic and
arrivals estimated at about 5 million (Provisional)
foreign tourist visits, occupancy statistics of approved
represents a growth of about 12% as compared to the
hotels, etc. Preliminary study for the preparation of
corresponding figures for the previous year. Annex-IX
master plans, perspective plans and Detailed Project
also contains a statement of foreign tourist arrivals for
Reports (DPRs) for the development of tourism is also
the last ten years. Month-wise estimates on foreign
undertaken by this Division. Periodic appraisal of the
tourist arrivals during 2007, along with the
profile of international and domestic tourists,
corresponding figures during 2005 & 2006, are given
expenditure patterns, tourist preferences and satisfac-
below:
tion levels along with availability and adequacy of
11.3 Foreign Exchange Earnings (FEE) from from 2000. As per these estimates, foreign exchange
Tourism earnings from tourism in 2007 was approximately
Rs. 49413 crore as compared to Rs. 40375 crore for
Tourism is an important segment of Indian
2006,indicates an estimated growth of 22.4%.
economy with its substantial contribution to the
Annex-IX also displays long-term trends of the
Foreign Tourist Arrivals in India during 2007 and foreign exchange. Methodology of computation of
estimated foreign exchange earnings for the last ten
Corresponding Figures for 2005 & 2006 FEE from tourism was revised in December, 2007 with
years. Month-wise estimates of foreign exchange
the main objective of reducing the difference in the
Month Foreign Tourist Arrivals Percentage Change earnings, both in Rupee and US$, during the year 2007,
estimates prepared by the Ministry of Tourism and the
along with corresponding figures for the last two years,
2005 2006 2007@ 2006/ 05 2007/ 06 Reserve Bank of India (RBI). Estimates of FEE from
are given below:
tourism has been revised using the new methodology
January 385977 459489 532088 19.0 15.8
February 369844 439090 498806 18.7 13.6 Foreign Exchange Earnings from Tourism during 2007 and
Corresponding Figures for 2005 & 2006 (Rs. in crore)
March 352094 391009 444186 11.1 13.6
Month Foreign Exchange Earnings Percentage Change
April 248416 309208 333945 24.5 8.0
2005* 2006* 2007# 2006/05 2007/06
May 225394 255008 267758 13.1 5.0
January 3272 3970 4793 21.3% 20.7%
June 246970 278370 310104 12.7 11.4
February 3136 3793 4823 21.0% 27.2%
July 307870 337332 377474 9.6 11.9
March 2985 3378 4832 13.2% 43.0%
August 273856 304387 360089 11.1 18.3
April 2156 2850 3242 32.2% 13.8%
September 257184 297891 325893 15.8 9.4
May 1957 2350 2610 20.1% 11.1%
October 347757 391399 440715 12.5 12.6
June 2144 2566 3041 19.7% 18.5%
November 423837 442413 510987 4.4 15.5
July 2556 2990 3760 17.0% 25.8%
December 479411 541571 575148 13.0 6.2 August 2273 2698 3594 18.7% 33.2%
Total 3918610 4447167 4977193 13.5 11.9 September 2135 2640 3259 23.7% 23.4%
@ Provisional Estimates October 2921 3739 4441 28.0% 18.8%
November 3560 4227 5189 18.7% 22.8%
December 4028 5174 5829 28.5% 12.7%
Total 33123 40375 49413 21.9% 22.4%
* Revised Estimates
# Advance Estimates
62 63
 11.4 Domestic Tourism (ii) Improved Tourist Information
Domestic tourism experienced substantial increase (i) Improved Efficiency at Indiatourism Offices
during the last few years owing to an increase in income and at the Ministry Headquarters
and the emergence of a dynamic urban middle class with
a. Provision of PCs
more income to spend on tourism. As per the
Foreign Exchange Earnings during 2007 and information received from States/ Union Territories, the The Ministry, in its quest for improved and
Corresponding Figures for 2005 & 2006 (US$ million) efficient services, has provided computers to
number of domestic tourist visits is estimated at 462
Month Foreign Exchange Earnings Percentage Change million in 2006, showing a growth of 17.8% as compared all its officers up to the level of Assistant
to the year 2005. Director in the Headquarters and field
2005* 2006* 2007# 2006/05 2007/06
offices. All Indiatourism Offices, both in
11.5 Surveys & Studies
January 749 894 1081 19.4% 20.9% India and overseas, have been provided with
February 717 854 1092 19.1% 27.9% One of the important activities of the Ministry of computers. Upgradation of PC's is done on
Tourism is to sponsor studies and surveys to get a regular basis.
March 683 761 1098 11.4% 44.3% important inputs for formulation of policies and
b. E-Mail/ Internet
April 494 627 766 26.9% 22.2% programmes for the development of tourism in the
country. In addition, evaluation studies are also Access to Internet and E-Mail IDs have also
May 449 517 639 15.1% 23.6% been provided to all the employees of the
conducted to find out the effectiveness of the schemes
June 492 564 746 14.6% 32.3% being implemented by the Ministry of Tourism. The status of Principal Private Secretary (PPS),
Ministry also funds the preparation of Detailed Project Personal Assistant (PA), Assistant, the senior
July 585 645 930 10.3% 44.2%
Reports (DPRs)/ Feasibility Studies, etc. officers in the Headquarters and in the
August 520 582 879 11.9% 51.0% Indiatourism Offices in India and abroad for
Details of Surveys, Studies, DPRs, Feasibility
September 489 569 808 16.4% 42.0% quick disposal of information and other
Studies, etc. completed/ commissioned during 2006-07
works.
October 643 831 1124 29.2% 35.3% and 2007-08 are given at Annex-X.
c. Project Monitoring System (PMS)
November 784 940 1316 19.9% 40.0% 11.6 Information Technology Initiatives
Project monitoring system, developed by the
December 888 1150 1477 29.5% 28.4% The Ministry of Tourism, Government of India
NIC (National Informatics Centre) for the
Total 7493 8934 11956 19.2% 33.8% has, in the recent past, taken major initiatives in the field
planning division to monitor/update/enter
of Information Technology with a view to benefit the
* Revised Estimates the details of Central Financial Assistance
tourists. The aim of these initiatives is as follows:
# Advance Estimates projects for various State Governments/
(i) Improved efficiency at Indiatourism Offices and at Union Territories is in operation. Updating
the Ministry Headquarters is done on a regular basis.

64 65
 (ii) Improved Tourist Information
Various initiatives have been taken in the direction
of providing quality tourist information, facilitation and
services to the tourists, tourism promotional agencies,
media and others in India and abroad. Some of the
major initiatives taken are as below:
a. Website www.tourism@nic.in - provides all
the organisational activities/policies of
the Ministry of Tourism.
b. Website www.incredibleindia.org - the
main promotional portal of the Ministry of
Tourism is being updated regularly.
c. Website www.incredibleindia.org - has
been translated in various languages viz.
Hindi, Chinese, Japanese, French and
Korean. The site is also being translated in
German and Spanish.
d. Thematic 10 Microsites have been developed
within www.incredibleindia.org to
promote specific destinations/products.
e. E-Newsletters/Mailers are being regularly
sent to more than 1,00,000 registered users
of www.incredibleindia.org across the
world.
f. An online platform to facilitate online
booking of various India Tourism products is
being developed on www.incredibleindia.org.
An MoU in this regard has already been
signed between the Ministry of Tourism and
EVIIVO Limited, London.
66
g. An exclusive website dedicated to the North
East of India www.northeastofindia.com
is in operation.
The revamped Incredible India website showcases
all that is striking about India - the colours, the
technology, the vastness, the diversity and depth of the
country. From this perspective, the site is representative
of modern India - the India with its roots firmly in place,
yet forward looking and contemporary. Minute
navigation features have been kept in mind, while
designing the information architecture of the site,
placing it in the league of the best travel websites in the
world. The drop down menus have now adopted a
“select and go” approach, whereby the user just has to
click on a topic of preference to move to that topic,
instead of selecting the topic and clicking the “go”
button besides it.
The site has well laid out drop down menus, making
surfing a pleasurable experience. Besides giving the site a
clutter free look, it helps to pack a lot of content in an
easily comprehensible format. The masthead changes
make every section interactive.
11.7 Central Financial Assistance
Assistance on 50:50 basis is given to State
Governments/ UTs as a part of Central Financial
Assistance (CFA) for developing IT initiatives. The CFA
is being given to develop websites, translation of
websites into foreign languages, networking, office
computerization, GIS, production of CD/ VCD/ DVD
ROMs, procurement of multi-media projection system,
etc.
67
68 69
 12 International Co-operation
12.1 Co-operation with International
Organizations
International Co-operation Division participates
and engages in various consultations and negotiations
with international organizations which include United
Nations World Tourism Organization (UNWTO),
Economic and Social Commission for Asia and the
Pacific (ESCAP), Bay of Bengal Initiative for Multi
Sectoral Technical and Economic Co-operation
(BIMSTEC), Mekong-Ganga Co-operation (MGC),
Association of South East Asian Nations (ASEAN),
South Asian Association for Regional Co-operation
(SAARC), and South Asian Sub-regional Economic
Co-operation (SASEC). The Division also negotiates
with other countries for signing bilateral agreements
and attends the Joint Commission Meetings in co-
ordination with the Ministries of Commerce, Culture,
External Affairs, Civil Aviation, Finance, etc. for the
promotion of tourism.
During the financial year 2007-08, some of the
important Meetings and Events attended by India are
as follows:
(i) Meeting of the UNWTO Commission
for South Asia and UNWTO Asia-Pacific
Conference on Low Cost Carriers held at
Islamabad, Pakistan.
(ii) Arabian Travel Mart at Dubai, UAE.
(iii) UNWTO Regional Workshop on Tourism
Statistics & Tourism Satellite Account for
South Asian Countries at Colombo, Sri
Lanka.
(iv) Eightieth Session of Executive Council
of UNWTO at Tunisia.
(v) India-Pakistan talks on the promotion of
friendly exchanges in various fields held
at Islamabad, Pakistan.
(vi) SASEC (South Asian Sub-regional
Economic Co-operation) Tourism
Working Group Meeting at Bhutan.
(vii) Regent Street Festival in London, UK.
(viii) Japan Association of Travel Agents (JATA)
Travel Mart held at Tokyo, Japan.
(ix) 13th Meeting of India-Russia Joint
70
Working Group on Tourism and Culture at
Moscow, Russia.
(x) India-Thailand Joint Commission Meeting
(JCM) in Bangkok.
(xi) Joint Commission Meeting between India
and Germany at Berlin, Germany.
(xii) Incredible India @ 60 Event in New York,
USA.
(xiii) Pacific Asia Travel Association (PATA)
Travel Mart and PATA Board of
Directors' Meeting in Bali, Indonesia.
(xiv) North East India Investment Opportunity
Week at Bangkok, Thailand.
(xv) WTM (World Travel Market) at London,
UK.
(xvi) Summit on Tourism and Climate Change
organized by the UNWTO on the Sidelines
of World Travel Market.
(xvii) China International Travel Mart at
Kunming, China.
(xviii) Seventeenth Session of the United
Nations World Tourism Organization
General Assembly at Cartagena de Indias,
Colombia.
(xix) Knowledge Sharing Workshop between
the Greater Mekong Ganga Sub-region
and South Asian Sub-regional Economic
Co-operation Member-Countries at
Veintiane, Laos.
12.2 Bilateral Tourism Co-operation Agreements
In 2007, India took part in 2 Joint Working Group
Meetings on Tourism one with Greece and the other
with Egypt.
12.3 External Assistance
Under the programme of external assistance for
the development of tourism related infrastructure,
besides the on-going work of Ajanta-Ellora
Conservation and Tourism Development Project
Phase II, Japan Bank of International Co-operation
(JBIC) has signed a loan agreement for the development
of Uttar Pradesh Buddhist Circuit.
Ajanta-Ellora (Phase II)
Japan Bank of International Co-operation signed
a loan agreement for 7331 million Japanese Yen on
March 31, 2003 to undertake the Ajanta-Ellora
Development Conservation Project (Phase II) with the
main thrust on monument conservation, improvement
of Aurangabad airport, afforestation, improvement of
roads, construction of tourist complexes, water supply
at tourist attractions, public awareness activities,
human resource development and computerization
of tourist information. The work is in progress.
Development of Buddhist Circuit in Uttar
Pradesh (Phase II)
Japan Bank of International Co-operation signed
another loan agreement for 9496 million Japanese Yen
on March 31, 2006 for improvement of infrastructure,
public utilities, conservation of monuments, etc. at
Sarnath, Kushinagar, Kapilvastu, Sravasti, Sankisa in
Uttar Pradesh.
12.4 India-China Year of Friendship Through
Tourism
India and China launched 'India-China Year of
Friendship Through Tourism' to promote tourism
between the two countries. The inaugural function
was attended by the Minister for Tourism and Culture,
Minister for External Affairs, Minister of Foreign
Affairs of the People's Republic of China, Ambassador
of the People's Republic of China in India, Vice
Chairman, China National Tourism Administration
(CNTA), Ambassador of India in China and other
dignitaries. The inaugural function marked the
following activities:
(i) Unveiling of a Joint Logo to mark and publicise
“2007” as India-China Year of Friendship
Through Tourism.
(ii) Release of an Action Plan.
(iii) Launch of the Chinese version of Incredible
India website.
(iv) Release of India's tourist literature in Chinese
language.
12.5 The Action Plan released at the inaugural function
of 'India-China Year of Friendship Through Tourism'
included month-wise activities to be undertaken by
both India and China. The details of the activities
which have been undertaken as per Action Plan are
as follows:
(i) A sixteen-member Chinese Media/Tour
Operators group visited India on fam tour under
the 'Hospitality Scheme' of the Ministry of
Tourism. The group visited Delhi-Agra-Jaipur.
(ii) A delegation sponsored by the China National
Tourism Administration (CNTA) comprising
Tour Operators from Jiangsu Province, Zhejiang
Province and Shanghai visited India for tourism
promotion.
(iii) CNTA participated in the South Asian Travel &
Tourism Exchange (SATTE) Exhibition in New
Delhi.
(iv) The Ministry of Tourism organized road shows
in Beijing and Shanghai to showcase India's tourist
attractions.
(v) Indian Association of Tour Operators (IATO)
extended invitation to CNTA for participation in
the Annual Convention of IATO which was held
in New Delhi.
(vi) CNTA opened its office in New Delhi. As part
of the inaugural ceremony, India-China Tourism
Forum was held to enable interaction between
travel trade from India and China. At this
Forum, eminent speakers from both sides shared
their views. Minister of Tourism and Culture and
CNTA Chairman unveiled the plaque to
inaugurate the CNTA office in New Delhi. CNTA
also organized China Tourism Night in Mumbai as
part of its promotion and marketing efforts in
India.
(vii) Exchange visit of students and faculty from
Hotel Management Institutes took place between
the two countries.
(viii) Indiatourism Office participated in China
International Travel Mart in Kunming city of
China.
12.6 Promotion of India-Japan Tourism
Exchange
A joint statement on the 'Promotion of India-
Japan Tourism Exchange' was signed between India
and Japan to enhance co-operation in the field of
tourism between the two countries. As part of the
71
 ongoing co-operation, the Ministry of Tourism
participated in the Japan Association of Travel Agents
(JATA) World Travel Fair which was held in Tokyo.
The Indian delegation was led by the Minister of
Tourism and Culture.
A Tourism Conference and Buyer-Seller Meet
was organized during the Fair in collaboration with
the Federation of Indian Chambers of Commerce and
Industry (FICCI). State Governments and Travel Trade
from India also participated in the meet. An India
Evening was organized during the course of the
event.
12.7 India Elected Chairman of the Executive
Council of UNWTO
India was unanimously elected as the Chairman
of the Executive Council of the United Nations
72
World Tourism Organization (UNWTO) for a period
of one year in the 82nd meeting of the Executive
Council held at Cartagena de Indias, Colombia on
November 29, 2007. UNWTO, a specialized agency
of the United Nations, is the leading international
organization in the field of tourism.
UNWTO's membership comprises more than
150 countries, seven territories and 300 Affiliate
Members representing the private sector, educational
institutions, tourism associations and local tourism
authorities. The Executive Council meets between
sessions of the UN General Assembly and takes all
the administrative and technical decisions as may be
necessary. The decisions taken by the Executive
Council are reported to the Assembly at the following
session, for approval.
73
 13 India Tourism Development
Corporation Limited
13.1 India Tourism Development Corporation (ITDC) Tours, Ashok Reservation & Marketing Services, Ashok 13.5 Capital Structure
is the only Public Sector Undertaking of the Ministry of Creatives, Ashok Institute of Hospitality & Tourism
Tourism. Incorporated on October 1, 1966, the ITDC Management and Engineering Services Division, etc. The Capital Structure as on December 31, 2007 is as under:
played a key role in the development of tourism supported by Human Resource Management, Finance &
(Rs. in crore)
infrastructure in the country. Apart from developing the Accounts, Public Relations, Secretarial and Vigilance &
largest hotel chain in India, the ITDC offered tourism Security departments. 2005-06 2006-07 2007-08
related facilities like transport, duty free shopping, (up to December 2007)
13.3 Network of ITDC Services
entertainment, production of tourist publicity literature, Authorised Capital 75.00 75.00 150.00
consultancy, etc. The present network of ITDC consists of 8 Ashok
Group Hotels, 7 Joint Venture Hotels and one yet-to-be- Paid up Capital 67.52 67.52 67.52
The ITDC also played a committed and pivotal
completed hotel, 2 Restaurants (including one Airport Reserves & Surplus 114.20 * *
social role in the development of tourism infrastructure
Restaurant), 12 Transport Units, 1 Tourist Service
in backward areas, thereby trying to promote regional Net Worth 176.01 * *
Station, Duty Free Shops at International as well as
balance.
Domestic Customs Airports in Goa, Bangalore and Capital Employed 158.71 * *
Disinvestment of 18 hotels resulted in ITDC Calicut (sale operations were closed at Duty Free Shop
consolidating itself to take up diversified service- (DFS) Mumbai with effect from January 3, 2008), 1 Tax *These figures will be worked out after finalisation of annual accounts.
oriented business activities like consultancy and Free Outlet, 1 Sound & Light Show and 4 Catering
execution of tourism and engineering projects, event Outlets. Besides, ITDC is also managing a Hotel at The Government contributed Rs. 73 crore towards 13.7 Financial Performance
management, mounting of Son-et-Lumeire (SEL) Bharatpur, a Tourist Complex at Kosi and a Son-et- additional equity in December, 2007, against which The financial performance of the Corporation
Shows, Money Changing facilities, etc. Lumeire (SEL) Show at Sabarmati, Ahmedabad owned equity shares will be allotted to the Government. improved in 2006-07 with the turnover increasing from
by the Ministry of Tourism. Rs. 373.64 crore in 2005-06 to Rs. 561.75 crore in 2006-
13.2 Organisational Set-up 13.6 Pattern of Shareholding
13.4 Subsidiary Companies 07 (Provisional). The profit (before tax) grew
The present organisational set-up at the Corporate The authorised and paid-up capital of the substantially from Rs. 51.57 crore in 2005-06 to
level comprises C&MD, 9 functional Directors and Details below indicate ITDC's investment of Corporation as on March 31, 2007, stood at Rs.75 crore Rs. 68.77 crore in 2006-07 (Provisional).
Heads of various business groups viz. Ashok Group of Rs. 8.47 crore in the seven subsidiary companies as on and Rs. 67.52 crore respectively.
Hotels, Ashok International Trade, Ashok Travels & December 31, 2007: Closure of Duty Free Shops and rooms in hotels
The pattern of shareholding is indicated below: (for upgradation) in Delhi reduced the turnover to
Government 89.975% Rs. 312.63 crore (Provisional) during April-December
2007 from Rs. 362.65 crore (Provisional) in April
General Public 9.999%
December, 2006. The key figures relating to financial
(Rs. in crore) Employees 0.026%
performance of the Corporation for the last four years
Subsidiary Companies ITDC's Investment and for 2007-08 (upto December, 2007) are shown
below:
MP Ashok Hotel Corporation Ltd. 0.82
Utkal Ashok Hotel Corporation Ltd. 4.69 (Rs. in crore)
2003-04 2004-05 2005-06 2006-07 2007-08
Ranchi Ashok Bihar Hotel Corporation Ltd 0.36
(Provisional) (up to December 2007)
Assam Ashok Hotel Corporation Ltd. 0.51 (Provisional)

Pondicherry Ashok Hotel Corporation Ltd. 0.31 Turnover 290.65 363.49 373.64 561.75 312.63

Donyi Polo Ashok Hotel Corporation Ltd. 0.51 Operating Profit 5.13 37.94 54.53 74.30 51.70
(before Interest & Deprectiation)
Punjab Ashok Hotel Company Ltd. 1.27
Profit Before Tax 2.86 31.16 51.57 68.77 48.89
Total 8.47
Profit After Tax 2.72 28.77 45.79 45.56 48.89
Direct Foreign Exchange 121.65 156.59 146.93 118.19 24.07
Earnings

74 75
 13.8 Memorandum of Understanding (MoU)
MoU for the year 2007-08 was signed between the
Ministry of Tourism and ITDC envisaging enhanced
targets for financial, dynamic and efficiency parameters.
The criteria included targets for gross sales and gross
margin, customer delight, tourism projects (planning &
execution), preparation of Human Resource (HR)
Strategy Plan, professional training to surplus staff for
their redeployment, multiple of Average Room Revenue
(ARR) and occupancy of ITDC hotels and joint venture
hotels, etc.
13.9 Ashok Group of Hotels
The Ashok Group of Hotels played host to several
prestigious international and national level conventions
and events, including Asian Ministerial Conference on
Disaster Management, 53rd Commonwealth
Parliamentary Association, Centenary Celebrations of
Satyagraha, Fashion Design Council of India Meet, Wills
India Fashion Week (2007), United Nations Office of
Drugs & Crimes Meet, United News of India
Conference, World Toilet Summit 07, International
Honda Meet, Annual Convention of Dental
Association, Micro-finance Conference, Gala evening
hosted by McKinsey, Interpol Conference, IATO
Convention, Bride & Groom Wedding Exhibition,
76
VIVAH Exhibition, the event of Fertilizer Association
of India, INTACH - 07, ISNCON - 07 (Society of
Nephrology), SAFMA Parliamentary Meet, UNICEF
Convention, Auto-Expo Delegation, NRI Conference,
Maruti Suzuki Meet, All India Convention on
Gynecology, SAARC Car Rally, UNESCO's Regional
Conference on Literacy, World Ophthalmology
Conference and Defence Expo.
The Ashok Group also hosted delegations from
Maldives, Malaysia, Bahrain, China, Egypt, South Korea,
Britain, Vietnam, Kenya, Thailand, Sudan, Libya,
Germany, Mauritius, Indonesia, Austria, Afghanistan,
Russia, Saudi Arabia, Morocco, Pakistan, Iran,
Bangladesh, etc.
During 2006-07, The Ashok and Hotel Janpath in
New Delhi undertook major upgradation drives for
guest rooms, public areas and other facilities. A new
Banquet Hall is under construction at Hotel Pataliputra
Ashok, Patna. Efforts are on by the ITDC for leasing
existing restaurants/open space outside their hotels
through tie-ups with national/multi-national food
chains.
The Ashok's star product the world class state-of-
the-art city lifestyle spa, namely AMATRRA, continues
to add various dimensions to its profile, helps one to
Lalitha Mahal Palace Hotel, Mysore
access and unlock hidden reserves of energy with Ministerial Conference on Disaster Risk Reduction,
customized Wellness Programmes, the ancient science UNESCO Regional Conference in Support of Global
of Ayurveda and advanced training system. ITDC plans Literacy and Ministerial Conference on Avian and
to open destination Spas in other hotels also, for which Pandemic Influenza, etc.
steps have already been initiated. International
For business promotion, ARMS continued to
Gourmet colors, in the form of KUMGANG - The
interact with various agencies and offered special rates to
Korean restaurant, MASHRABIA - The Lebanese
travel agents. For direct interaction with international
cuisine restaurant, CHINATOWN - The Chinese
and domestic travel agents, ARMS participated in ITB
restaurant, BOYARIN - The relaunched Russian cuisine
Berlin. The division is also promoting Ashok Group of
dinning restaurant and SSTEEL & ORANGE ROOM-
Hotels through its event management activity.
CAPITOL, FRONTIER - North West cuisine speciality
restaurant and DURBAR - Awadhi cuisine restaurant 13.11 Ashok International Trade
better the image of The Ashok. Besides, Hotel Samrat's
The division competed with national and
new F&B outlets - RED CHILLI, DECIBEL - an
international duty free operators for operation and
upmarket Pub lounge and THE CHAKRAS - an
running of the Duty Free Shops both at government and
international multi-cuisine Resto Bar - are providing
private-run airports and won some of the tenders.
fine dining option for the hotel residents as well as
general public. Steps are on for opening two new up- To upgrade the Duty Free Shops to international
market fine dining outlets - a Mexican restaurant at Hotel standards, the division took a major strategic initiative
Janpath and an international cuisine restaurant at Hotel and formed a joint venture company (JVC) with Aldeasa
Samrat, for parties, etc. of Spain, the fifth largest duty free operator in the world.
Efforts are on for exploring other international
The Ashok launched direct marketing campaign
partnership arrangements to achieve international
for domestic, international tourists, corporate travellers,
standards in merchandising and display, lowering costs
conferences and banquets business and steps initiated
of serving customers for improving the supply chain
for strengthening in-house training to all employees in
and overall business productivity, etc. New
association with an expert training organization. Several
opportunities for sales in-flight and sales at seaport and
different regional cuisine Food and Cultural Festivals
in other areas are also being explored for business
were organized by The Ashok Group of Hotels.
expansion.
The Ashok Group of Hotels participated in several
13.12 Ashok Travels & Tours (ATT)
Food Festivals abroad at Tokyo in Japan, Cape Town in
South Africa, Buenos Aires in Argentina, Cartagena, Ashok Travels & Tours is an in-house approved
Bogota and Quito (Ecuador) to popularize Indian Travel Agency of the ITDC to provide all travel related
cuisine globally. services primarily for the Government as also for the
general public. Their services include Airline Ticketing/
13.10 Ashok Reservation & Marketing Services
Hotel Booking/ Tour Packages/ Car & Coach Rentals/
(ARMS)
Money Changing/Money Transfer Services/Overseas
The division manages Events, Conferences and Insurance & Organising Exhibitions.
Exhibitions and is currently handling over 50 events per
It handled 10 exhibitions across the country. With
year. Some of the major events handled include: India's
the growth in tourism sector, ATT strengthened its core
participation in International Tourism Bourse (ITB) as
business activities and added new services like Overseas
Partner Country, Incredible India @ 60 event at New
Medical Insurance, Visa assistance and Exhibitions. ATT
York, designing and fabrication of many popular
handled ticketing of a very large group from the
pavilions like pavilions for CAPART, for the Ministry of
Ministry of Youth Affairs and Sports, for Latin America
Micro, Small and Medium Enterprises, India Post booth
and 2 groups from the National Defence College in
in India International Trade Fair, 53rd Commonwealth
2007. It was also selected Lead Travel Agent for Asian
Parliamentary Union Conference, 12th World Lakes
Development Bank's 39th AGM. Opening more offices
Conference, 39th Codex Committee Meeting, 2nd Asian
is in the offing for expansion.
77
 13.13 Ashok Creatives
The Ashok Creatives continued to play a major
role in tourism promotion and developmental projects
for the Ministry of Tourism and a host of other clients.
The division bagged the international and domestic
campaigns of the Ministry of Tourism through open
bids. The international campaign is focused at
reinforcing the campaign of Incredible India Brand
worldwide and the domestic campaign unravels multiple
facets of a wide ranging tourist products across the
length and breadth of India through print, electronic,
radio, cinema and outdoor media. The Ashok Creatives
was nominated to design and execute the Republic Day
Tableau - 2008 on behalf of the Ministry of Tourism.
The division has also designed and produced
several print production jobs for the Ministry of
Tourism, Election Commission of India and the Second
Administrative Reforms Commission. Coinciding with
the India's 60th Anniversary of Independence, the
Collectors' Issue of "Incredible India", containing 60
incredible destinations of the country was designed by
the Ashok Creatives. The publicity brochures/ folders
for Uttarakhand Tourism Development Board and Bihar
Tourism are in the pipeline. Designing and printing jobs
of various events managed by the Ashok Reservations
and Marketing Services are also handled by the Ashok
Creatives.
Mounting of Sound & Light Shows at Udaigiri,
Madurai, Vivekanand Rock Memorial at Kanyakumari,
Hampi, Deogarh, Sabarmati and Kumbhalgarh
undertaken by the Ashok Creatives are at various stages
of development. The show in English at Chandigarh is
already functioning, while the Hindi and Punjabi
versions are in the process. The Ashok Creatives recently
entered into Public-Private Partnership with advertising
agencies and design houses, for improving its financial
management.
13.14 Ashok Consultancy & Engineering Services
The division renders Engineering Consultancy
Services to the tourism departments of various State
Governments and the Ministry of Tourism,
Government of India for the preparation of Detailed
Project Reports (DPRs) for Development of Circuits,
Destination & Rural Tourism. In 2007, the division
prepared 15 DPRs for various tourism related Circuits,
Destinations and Rural Tourism in many states. The
78
Ministry of Tourism, Government of India has also
engaged them for the preparation of DPRs for 11 mega
Tourist Destinations/Circuits, out of which, three
reports have already been submitted.
Upgradation/improvement/renovation of its
hotel properties all over the country is in the offing for
the ensuing Commonwealth Games to be held in India in
2010.
The division has also undertaken the execution of
Tourism Infrastructure Projects involving preparation
of detailed plans, estimates, tenders, monitoring &
execution of works at site on fixed centage basis in
various states. Assignments under progress include:
(i) The construction of Puducherry Institute of Hotel
Management & Catering Technology building at
Puducherry.
(ii) The construction work of Indian Institute of
Skiing & Mountaineering at Gulmarg.
(iii) The work of development of Bhalukpong-Tawang
Tourism Circuit in Arunachal Pradesh is nearing
completion.
(iv) The development works at new sites in Jharkhand
State i.e. at Sakshi, Dimna, Madhuban, Barkatta
and Hundru.
(v) The building work of National Council of Hotel
Management & Catering Technology at Noida has
been completed. The work of interiors is under
progress.
(vi) The works assigned by the Government of
Jharkhand.
(vii) The development work at Rai Bareli (Uttar
Pradesh) is in progress. Some completed
projects were handed over.
(viii) The development works assigned in Mizoram,
Manipur and Mysore were taken up.
(ix) The illumination work of Gwalior Fort, various
works at Kanniyakumari and development of
Somnath Temple complex were completed.
13.15 Plan Schemes
The Revised Budget Estimate for 2006-07
envisages an outlay of Rs. 16.36 crore towards capital
expenditure including Rs. 13.82 crore for
renovation/improvement in existing hotels. The capital
expenditure during 2006-07 was Rs. 6.04 crore.
The Annual Capital Plan for the year 2007-08 was
initially formulated with an outlay of Rs. 154.72 crore,
which included Rs. 145.02 crore for renovation of
existing ITDC hotels including major renovation of The
Ashok which has now been deferred for 2008-09. The
Revised Plan Outlay towards capital expenditure for
2007-08 is Rs. 29.45 crore.
13.16 Ashok Institute of Hospitality & Tourism
Management (AIH&TM)
Ashok Institute of Hospitality & Tourism
Manag ement an ISO 9001-2000 accredited
establishment, provides training facilities for human
resource development in the Hospitality and Tourism
sector. The training programmes are designed and
conducted as per international standards to update
knowledge, skills and self-development of students to be
internationally competitive.
AIH&TM has been conducting capacity building
training programmes for the Ministry of Tourism.
Capacity building training programmes were conducted
for Himachal Pradesh Tourism, Nagaland Tourism and
the state of Jammu & Kashmir. Plans are afoot to
expand its activities, through franchise if necessary, to
ensure appropriate geographical spread.
During 2006-07, 13 training programmes were
conducted for 537 employees of outside agencies and
5 programmes for 268 ITDC employees. In addition,
42 Management Trainees and 190 Apprentices in
different trades were trained. About 160 Industrial
Trainees and 110 Craft Course Trainees in Culinary skills
are also undergoing training.
A project titled “Air Hostess, Travel & Hospitality
Management Career Training” for 100 Scheduled Caste
candidates sponsored by the Social Welfare Department,
Government of Karnataka in Bangalore was completed.
AIH&TM is presently conducting classes for a new
batch of 175 SC candidates in Bangalore and for a batch
of 140 SC candidates in Ahmedabad. AIH&TM has
been successfully conducting 4 years' Bachelors' Degree
Course in International Hospitality and Business
Management in affiliation with the Kurukshetra
University, Haryana. Trade Diploma Courses in Hotel
Operations in affiliation with Board of Technical
Education, Delhi Government has also started.
13.17 Human Resource Management
Human Resource Management Division is of vital
importance for service industry. As on March 31, 2007,
ITDC had a total manpower of 2754 employees as
against 2854 in the previous year. Of these, 797
employees belong to Scheduled Castes, 60 to Scheduled
Tribes and 101 to Other Backward Classes.
The total manpower of ITDC for the year 2007-08
as on November 30, 2007 is 2647. Of these, 766
employees belong to Scheduled Castes (SCs), 58 to
Scheduled Tribes (STs) and 100 to Other Backward
Classes (OBCs).
13.18 Industrial Relations
The overall industrial relations situation in the
ITDC is harmonious and cordial. There was no loss of
mandays during 2007-08.
13.19 Implementation of Official Language Policy
During the year, efforts were made to implement
Hindi in official work. Cash incentives were granted to
motivate the employees for completing prescribed
quantum of work in Hindi. Employees were nominated
for training in Hindi typing/stenography.
Hindi workshops were organised for imparting
training on noting-drafting and other works in Hindi.
Various Hindi competitions were also organised during
Hindi Month celebrations.
13.20 Conservation of Energy
During the year, ITDC maintained its thrust on
energy conservation, with commitment at all stages of
operations due to commercial considerations as well as
for the compliance with energy conservation policies
and practices.
79
 14 Welfare Measures
14.1 Scheduled Castes/ Scheduled Tribes Cell
An officer of the rank of Director (Tourism)
functions as the Liaison Officer for the Scheduled
Castes/ Scheduled Tribes Cell in the Ministry which
attends to the grievances on service matters of
Scheduled Caste and Scheduled Tribe employees of the
Ministry and its attached/ subordinate offices. The Cell
issues directions to all the administrative authorities
for compliance with the reservation orders issued
from time to time.
14.2 Reservation for SC, ST and OBC Candidates
All recruitments in the Ministry and the
subordinate offices are being made as per the orders of
reservation issued by the Government from time to time
and reservation rosters are maintained accordingly.
Regular annual returns on the subject are forwarded to
the Ministry of Social Justice and Empowerment.
14.3 Employment Opportunities to Physically
Challenged Persons
There is no specific scheme or budget allocation
for disabled persons in the sphere of activities of the
Ministry. One visually challenged person, who was
appointed in 1987 as LDC, was promoted as UDC. As
per Government orders, efforts are continued by the
Ministry for exploring job opportunities for disabled
persons.
80
14.4 Complaints
The Ministry of Tourism has a Complaint Cell
headed by a Deputy Director General. Regional
Complaint Cells exist in the Regional Indiatourism
Offices. The State Governments have also been
requested to set up Complaint Cells at the state level.
14.5 Initiatives towards Mainstreaming of HIV/
AIDS: Strengthening the National Response
National AIDS Control Organisation (NACO) and
UNDP are implementing a programme of "Support to
the National Response for Mainstreaming HIV/AIDS”
since August 2007. As a part of this programme, the
Ministry is supporting initiatives to build awareness on
HIV/ AIDS among its employees in the Headquarters
and the field offices. Students of IHMs were also
imparted the knowledge of HIV/ AIDS. Efforts are on
for developing a multi-pronged strategy for the spread
of awareness regarding prevention of HIV/AIDS
amongst the stakeholders of the tourism sector.
With a Deputy Secretary as the nodal officer, an
HIV Unit was established in the Ministry with a
Consultant provided by NACO/UNDP. Many activities
like presentation, orientation programmes, sensitization
workshop, conference, awareness training programmes,
publicity and campaigns were held in 2007.
15 Progressive Use of Hindi
15.1 Implementation of Government's Official
Language Policy and Programme
Joint Director, Official Language (OL) holds the
charge of Hindi Unit. The Unit is responsible for
compliance with the provisions of the Official
Language Act, 1963, Official Language Rules and
various orders/ instructions issued by the Department
of Official Language from time to time on progressive
use of Hindi for official purposes.
Apart from monitoring the implementation of the
Official Language Policy and Programmes of the
Government, the Unit arranges training of the staff in
the use of Hindi, Hindi Typing and Hindi Stenography,
preparation of bilingual documents and translation from
English to Hindi and vice-versa.
15.2 Official Language Implementation
Committee
The Official Language Implementation
Committee, constituted under the Chairmanship of
Additional Director General (Tourism), holds regular
quarterly meetings for necessary follow up on the
progressive use of Hindi.
15.3 Award Scheme for Literature Written
Originally in Hindi
The Ministry of Tourism has a scheme (introduced
in 1989) called “Rahul Sankrityayan Award Scheme” to
present awards for books written originally in Hindi on
subjects related to tourism. Under this scheme, there are
first, second and third prizes of Rs. 20,000, Rs.16,000
and Rs. 10,000 respectively and one consolation prize of
Rs.6,000.
15.4 Correspondence in Hindi
In pursuance of Section 3(3) of the Official
Language Act, 1963, all resolutions, notifications,
communiques, press releases, rules, regulations,
administrative reports and all official papers meant for
laying in the Parliament were issued bilingually and
efforts were made to achieve the targets of
correspondence in Hindi with offices and persons
located in “A”, “B” & “C” Regions.
15.5 Compulsory Training in Hindi
Almost all officers and employees have proficiency
and working knowledge in Hindi.
15.6 Translation and Bilingual Printing of
Manuals, Rules, etc.
All the manuals, codes, etc. being used in the
Ministry are the ones prescribed and brought out by the
Department of Personnel & Training. However, all
other rules relating to tourism, such as Guidelines
regarding Central Financial Assistance, Guidelines for
Recruitment of Tourist Guides and National Tourism
Policy were translated into Hindi.
15.7 Special Measures for Promoting the Use of
Hindi
(i) Notifying Office under Rules 10(4): The
Ministry of Tourism has already been notified
under Rules10(4) of the Official Language Rules,
1976.
(ii) Incentive Scheme and Cash Awards: Incentive
scheme for doing original official work in Hindi is
in operation in the Ministry of Tourism.
(iii) Hindi Diwas and Hindi Fortnight: Hindi
Pakhwada was organised in the Ministry of
Tourism from September 14 to 30, 2007.
Competitions such as Essay in Hindi, Noting
Drafting in Hindi, Picture Expression, Hindi
Translation and Hindi Quiz, etc. were held during
this period. On October 31, 2007, a “Puraskar
Samaroh” was organised in the Ministry of
Tourism, where Secretary (Tourism) gave away
cash awards and certificates to winners of the
competitions.
(iv) Hindi Workshop: Hindi Workshops are arranged
for the officers/employees to encourage them to
work in Hindi. Two workshops were organized.
15.8 Inspections
With a view to ensure proper compliance of the
Official Language Policy, 5 Sections and 12 Subordinate
Offices were inspected during 2007-08.
15.9 Hindi Salahakar Samiti
The term of Hindi Salahakar Samiti of Ministry of
Tourism ended on June 4, 2003. Process is in final stage
to reconstitute the Committee.
15.10 Departmental Website
Hindi version of the Ministry's promotional
website was launched.
In the year 2007, Hindi software were provided to
various Divisions and Sections in the Ministry, so that
they can work in Hindi on the computers.
To review the work being done in Hindi, Second
Sub-Committee of Parliament on Official Language
visited National Council for Hotel Management and
Catering Technology, New Delhi and Institute of Hotel
Management, Pusa, New Delhi.
15.11 National Tourism Awards include a separate
category of award for Excellence in Publishing on
Tourism in Hindi.
81
 16 An Overview of
North Eastern Region
16.1 The North Eastern Region of India is strategically
located having international borders with Bangladesh,
Bhutan, China and Myanmar. The States in North East
Region are Arunachal Pradesh, Assam, Manipur,
Meghalaya, Mizoram, Nagaland, Tripura and Sikkim
which form part of the Eastern Himalayan region
embracing Darjeeling Hills of West Bengal up to the
Myanmar border. The region has a great tourist
potential.
16.2 The region is a heaven of rich natural beauty,
serenity and exotic flora and fauna, invaluable for
development of eco-tourism. The remote locations,
with highly fragile environment has tourism spots
spread all over the region and each state has its own
diverse and distinct tourist attractions. Lack of
infrastructural development hinders the tourist flow in
spite of its abundance of natural beauty, snow-peaked
mountains and rivers.
16.3 The Ministry earmarked plan allocation for the
infrastructure development of tourism in North Eastern
Region (NER). The sites for development are identified
in consultation with the respective State Governments.
Information Technology (IT) projects pertaining to
development of tourism websites, creation of CD-Roms
for individual states, fairs and festivals of the North East
are held each year under the scheme of Central Financial
Assistance. Budget under the head “domestic promotion
and publicity including fairs and festivals” has also been
increased for the NER.
16.4 The Ministry of Tourism initiated the following
steps to boost tourism in the region:
(i) Under promotion and marketing, a series of
collaterals including State-wise brochures and
thirteen posters on each individual state and five
themes related to the region such as music & dance
and arts & crafts have been produced. A
84
compendium on North East as a whole and also a
set of six display scrolls on each of the individual
state of North East have been produced.
A website devoted to the North East
(www.nor theastofindia.com) has been
launched. A logo and brand line for the North East
titled “India's North East Paradise Unexplored”
has been devised for the North East Region. A CD
of the brochure and a high resolution image CD on
the Region have been produced. Films and
commercials on North East and a film on Eastern
Himalayas have also been produced.
A major integrated campaign for the promotion of
the North-East Region was initiated during 2005-
06. This campaign with further innovation was
pursued during 2006-07 and implemented in the
current financial year as well.
(ii) Nation-wide campaign focused on tourist
attractions of the North East Region is being
continued in various places in the country.
(iii) The Ministry of Tourism, Government of India
provides space in the India Pavilion at important
international Travel Fairs and Exhibitions to the
States in the North Eastern region on
complimentary basis so that they can showcase and
promote their tourism products in the global
markets.
(iv) Financial assistance is being provided for the use of
Information Technology for tourism promotion.
(v) The North Eastern States are given a special focus
in the Marketing Conference of the overseas
offices of the Ministry and all these offices are
giving due publicity for promotion of tourism in
the region.
 17 Gender Equality -
The Prime Concern
17.1 Article 15 of the Indian Constitution prohibits A number of women are working in the Ministry, in its
discrimination against women; Articles 16 and 39 domestic and overseas offices. Women employees of the
provide for equal opportunity as well as equal pay for Ministry are given an equal opportunity to participate in
equal work, irrespective of sex. The Government of all the events of national and international importance,
India added provision in the Conduct Rules specially road shows, exhibitions, seminars and conferences.
gender bias to safeguard the rights and legal entitlements
17.3 The National Tourism Awards include an award for
of women. The Government set up the National
Lady Chef of the year.
Commission for Women in 1992.
17.4 The Ministry has a Grievance Redressal Cell for
17.2 The Hon'ble Minister for Tourism and Culture is a
Women.
lady. The Joint Secretary of the Ministry is a lady.

86
 18 Vigilance Activities
18.1 The Vigilance Unit in this Ministry is headed by a
Chief Vigilance Officer (Joint Secretary) assisted by a
Deputy Secretary, Under Secretary and a Confidential
Assistant. All possible efforts are made to look into the
complaints received in the Ministry and to get them
processed/investigated promptly. Wherever necessary,
the cases are also referred to CBI/CVC.
18.2 There is only one public sector undertaking under
the Ministry, i.e. India Tourism Development
Corporation (ITDC). All cases pertaining to ITDC
88
which are referred to by the Central Vigilance
Commission (CVC) are examined in the Vigilance Unit
of this Ministry. Sometimes, trade unions of ITDC also
send complaints against persons working in the
organization. The Vigilance Unit always takes due care to
make proper enquiries in respect of all such matters.
Pending vigilance cases are also regularly reviewed.
18.3 Like every year, Vigilance Awareness Week was
observed in the year 2007.
 19 Departmental Accounting
Organisation
19.1 Secretary (Tourism) is the Chief Accounting
Authority of the Ministry of Tourism. He discharges this
responsibility with the assistance of the Joint Secretary &
Financial Adviser of the Department and the Financial
Controller. The Financial Controller heads the
accounting organisation and reports to the Secretary
through the Joint Secretary & Financial Adviser. The
accounting organisation comprises the Principal
Accounts Office, Internal Audit Wing and one Pay &
Accounts Office at Delhi. The Financial Controller is
Head of the Department for the accounting
organization and is responsible for:
(i) Consolidation of the accounts of the Ministry of
Tourism in the manner prescribed by the
Controller General of Accounts.
(ii) Preparation of Annual Accounts of Demands for
Grants for the Ministry of Tourism, submission of
Statement of Central Transactions and the material
for the Finance Accounts of the Union
Government (Civil) to the Controller General of
Accounts.
(iii) Payment of loans and grants to State Governments
through Reserve Bank of India.
(iv) Preparation of manuals keeping in view the
objective of management accounting system, if
any, for rendition of technical advice to Pay &
Accounts Offices, maintaining necessary liaison
with the Controller General of Accounts Office
and to effect overall co-ordination and control in
accounting matters.
(v) Maintaining Appropriation Audit Registers for the
Ministry of Tourism as a whole and to watch the
progress of expenditure under the various Grants
operated by the Ministry of Tourism.
(vi) Arranging internal inspection of payments and the
accounting records maintained by the various
subordinate formations and Pay & Accounts
Offices of the Ministry and inspection of records
pertaining to transactions of the Ministry of
Tourism, maintained in Public Sector Banks.
19.2 Pay & Accounts Office carries out pre-check of
bills submitted by the DDOs (Drawing & Disbursing
Officers) for payment. In some cases, Pay & Accounts
Officers authorize cheque Drawing & Disbursing
Officers to operate funds up to a certain level through
90
the issue of “Letter of Credit”. All payments made by
Drawing & Disbursing Officers are subject to post-
check. Any discrepancies/ shortcomings found in the
working of the Drawing & Disbursing Officers (both
cheque & non-cheque drawing) are pointed out in the
Internal Audit reports of those offices.
19.3 Pay & Accounts Office compiles the monthly
accounts on the basis of receipts collected and payments
authorized by them after reconciling and incorporating
the accounts of cheque Drawing & Disbursing Officers
and submits these accounts to the Principal Accounts
Office. The other important functions of the Pay &
Accounts Office include authorization of Loans/
Grants-in-Aid to statutory bodies/other institutions,
maintenance of General Provident Fund accounts and
settlement of retirement benefits of Government
employees, including authorization of pension, etc.
19.4 The Ministry of Tourism operates Grant No. 92
for which the Budget provision during 2007-08 is as
under:
(Rs. in crore)
Revenue Section
Plan 347.00
Non-Plan 43.62
Capital Section
Plan 606.00
Non-Plan 0.00
Total 996.62
(i) Computerization
The office of the Financial Controller is taking a
number of measures to implement Computerization
and introduce IT for overall improvement and
transparency in the accounting function of the Ministry.
COMPACT
Another important initiative in Computerization
of Accounting System, taken at the instance of the office
of the Financial Controller is the implementation of
COMPACT package which touches upon the
functioning of most of the areas in a Pay & Accounts
Office. The overall objective towards development of
COMPACT has been to achieve accuracy and speed in
various functions of the Pay & Accounts Offices, in
addition to removing routine drudgery of manually
entering the same data again and again. Computer
support is being used through this package to ensure that
once the accounts data are entered, the same can be used
at various places without the need of re-entering for
other purposes like compilation of monthly accounts, or
generating reports, etc.
The system will not only enrich the accounting and
provide better management information, but also help in
improving the analysis of the accounting information.
There are various functions, especially those relating to
reconciliation, which involves a lot of manual work.
This package will help in taking care of such functions
apart from improving the overall accuracy and exchequer
control through the system. The package also provides
for internal controls and audit through computerized
validation and will thus be of great help in improving the
quality of accounts. Improvement in office ambience
will also be a by-product of Computerization.
Apart from these two major initiatives undertaken,
several other steps are being taken in the office of the
Financial Controller to increase the Computerization
process for which the officials are regularly being sent for
training at the Institute of Government Accounts &
Finance (INGAF).
The Pay & Accounts Office is regularly uploading
the data in e-lekha on daily basis at website
www.cga.nic.in/elekha/elekhahome.asp.
(ii) Computerization in Principal Accounts Office
The account is consolidated in Principal Accounts
Office through another software called “CONTACT”.
The compilation is done by the Pay & Accounts Officers
in the COMPACT and floppy is generated and
forwarded to Principal Accounts Office. The Principal
Accounts Office consolidates the accounts in
CONTACT software. The consolidated account of the
Ministry is sent to the Ministry of Finance, Controller
General of Accounts for further consolidation of
accounts of the Union of India. Several reports are also
generated through “ CONTACT” software package.
With the aid of these accounting packages and
other accounting records, the Principal Accounts Office
prepares the Monthly Expenditure Report (even
weekly/ fortnightly when required) for the benefit of the
Ministry in planning, monitoring, etc.
The Fiscal Responsibility and Budget Management
(FRBM) Act, 2003 mandates minimum quantifiable
targets for reducing the growth of debt, deficit and
guarantees in a time-bound manner and also embeds a
series of improvements in the area of fiscal transparency
and medium-term fiscal planning to improve Budget
Management.
With the implementation of FRBM, the Principal
Accounts Office prepares a Monthly Expenditure/
Receipt Analysis of the Ministry, showing (a)
Consolidated major Head-wise Receipts (b) Major
Scheme-wise Plan Expenditure and (c) Month-wise
trend of Expenditure (both Plan and Non-Plan) along
with graphic depictions and transmit it to the office of
the Controller General of Accounts for consolidation
and further transmission to the Ministry of Finance.
Also, the data of Receipt and Expenditure relating to the
Ministry of Tourism are hosted every month on the
Website of the Ministry (www.tourism.nic.in).
In addition, the office of the Financial Controller
prepares an 'Annual Accounts at a Glance' giving
detailed analysis of accounts and the financial
performance of the Ministry. This is also available on the
Ministry's Website.
(iii) Internal Audit
Internal Audit Organization in the Ministry of
Tourism is headed by the Financial Controller who is
assisted by the Assistant Financial Controller, one Senior
Accounts Officer and four Assistant Accounts Officers.
Internal Audit works as an important tool for
reviewing of accounting, financial and administrative
functions. It highlights the important areas of
deficiencies. The Internal Audit provides a basis for
taking remedial and corrective measures. Significantly,
compliance of Internal Audit paras pre-empts draft
C & AG paras.
The Internal Audit Section at the headquarters
maintains a Control Register of Internal Audit for each
financial year to serve as a basic and permanent record of
the inspection of various units carried out by the Internal
Audit Inspection Wing. The Internal Audit Section at
headquarters draws an Internal Audit Plan based on the
classification of the units to be audited annually, bi-
annually depending on the budget allocation and staff
strength of the units. Every year in the first week of
March, particulars of all units due for inspection during
91
 the ensuing financial year are recorded in the Control
Register. Based on this information the Internal Audit
Programmes are prepared on Quarterly basis.
Intimation of the proposed visits of the Inspection
Parties is sent to the concerned Heads of the Offices/
Pay & Accounts Offices at least one month in advance so
that all the accounts books and other relevant records are
kept ready to facilitate smooth working of the
inspection. Simultaneously, an intimation regarding
inspection of the office of the Drawing & Disbursing
Officer (DDO) is sent to the Pay & Accounts Office.
The Senior Accounts Officer/Accounts Officer
supervises the Inspection Party. The percentage of
supervision is determined with due regard to the nature
of the unit inspected and the volume of work involved.
Wherever necessary, the Financial Controller/Assistant
Financial Controller may himself supervise the working
of any Inspection Party.
In order to speed up the progress and to achieve the
targets of auditing the units of the Ministry of Tourism,
additional Internal Audit parties were constituted
consisting of officers from the Regional Pay & Accounts
Offices situated in Mumbai, Kolkata and Chennai.
In the financial year 2007-08, 33 units were audited
till December, 2007 against 32 units completed during
the financial year 2006-07. Further, audit programmes
for the remaining units in India to be audited during the
financial year 2007-08 have already been finalized.
Scope of Internal Audit
a. To study the Accounting Procedure
prescribed by the Department with a view to
ensuring that they are correct, adequate and
free from any defects or lacunae.
` b. Watch implementation of the prescribed
procedures and other issues from time to
time.
c. Scrutiny and check of payments and
accounting work of the accounting units.
d. Investigation of important areas on
accounting and other connected records.
e. Co-ordination with other Ministries and the
office of the Controller General of Accounts
regarding audit procedures.
92
f. Periodical review of all accounts records. (iv) Follow-up and Remedial Action Department/Office has accepted the Internal Audit
point of view and has intimated that the necessary
g. Pursuance/ settlement of objections taken in The Head of Office is expected to furnish para-
compliance can be verified during the course of
test audit notes issued by the statutory audit wise replies to the Inspection Report through the
checking of all such records at the time of next
offices and other matters relating to statutory Controlling Officer/ Head of the Department within six
inspection, may be treated as finally settled.
audit. weeks from the date of issue of the final report. The
progress of the settlement of objections is watched Specific objections pointing out overpayments,
h. To examine and report on points or
through the Control Register of outstanding reports/ short and non-realization of Government dues, irregular
irregularities brought to its notice by the
paras. First reminder for para-wise replies to the payments of grants, non-utilization of costly stores,
Principal Accounts Office and the Pay &
inspection report is issued after six weeks from the date equipment and machinery, irregular purchases and other
Accounts Offices in the Ministry/
of its issue. serious irregularities where the Department/office has
Department.
furnished satisfactory replies are treated as settled
i. Preparation and submission of Annual An objection book is maintained at the subject to the verification at the time of next audit. The
headquarters entering therein objections having money
Review on performance of Internal Audit outstanding audit reports/audit paras are reviewed
value. The progress of recovery or sanction to write off
Wing to the Internal Audit Wing of the periodically.
the loss is watched through this book.
Controller General of Accounts.
An annual review on performance of Internal
Nature of Audit Objections of routine nature relating to initial Audit is sent to the Department of Expenditure,
records i.e. cash book, log book, overtime allowance Controller General of Accounts and the Secretary
The nature of checks by the Internal Audit Wing
register, stock register and service books, etc. where (Tourism).
are as follows:
a. Detailed scrutiny of accounts/records
required to be maintained in Pay & Accounts
Office and in the Drawing & Disbursing
Offices.
b. Verification of payments and accounting
procedure in the Departmentalized System
of Accounts including procedure to be
followed by the cheque DDOs.
c. Verification of the extent and frequency of
control and checks exercised by the Heads of
the Offices, in order to locate any lacuna in
the procedure whereby frauds or defalcations
may be possible either by individual or in
collusion. Wherever necessary, steps to
remove such lacunas are suggested.
d. Scrutiny of sanctioning and purchase
procedure in the offices inspected.
e. Checking procedure in regard to disposal of
assets to ensure that there exists adequate
scrapping.
f. Scrutiny of General Office Management
procedure adopted by the Heads of the
Offices locally where they have financial and
accounting implication, so as to suggest
tightening up administrative and financial
control, savings in expenditure or
streamlining of accounting.
93
 20 Important Audit Observations
20.1 Excess Release of Grants-in-Aid
Ministry of Tourism's failure to scrutinize the
project proposal of State Government property resulted
in excess release of Rs. 2.39 crore.
(Para 15.1 of Report No. 2 of 2007) Transaction
Audit Observation
20.2 Injudicious Release of Funds
Injudicious release of funds without ascertaining
the availability of land for the proposed project resulted
in wasteful expenditure of Rs. 31.31 lakh.
(Para 15.2 of Report No. 2 of 2007) Transaction
Audit Observation
The details of the above paras are given at Annex-XI.
21 Implementation of Right to
Information Act, 2005
21.1 The Right to Information Act (RTI Act), 2005 of is appropriately hyperlinked to other sections of the
the Government of India seeks to promote transparency website.
and accountability in the working of every public
21.2 Information on the activities of the Ministry is
authority and to empower citizens to secure access to
provided in its Annual Reports. These Reports are
information available with them. To this end, in
available to the general public on the website and in the
accordance with the provision of Section 4 (I) (b) of this
library.
Act, the Ministry of Tourism brought out a handbook
for information and guidance of the stakeholders and 21.3 The Ministry designated fifteen of its officers as
general public and posted it on the Ministry's official the Central Public Information Officers (CPIOs) with
website www.tourism.gov.in under a distinct section each CPIO responsible for a distinct functional domain.
namely RTI Act. The handbook provides information The Additional Director General of the Ministry is
on various schemes, projects and programmes being designated as the Appellate Authority.
implemented by the Ministry along with its
21.4 Information that is not available in the handbook
organizational set-up, functions and duties of its officers
can be obtained against payments.
and employees, records and documents available, etc. It

Central Public Information Officers

Sl. Name of Designation Address Subject Matter
No. the Officer
1. Shri Devesh Director Transport Bhavan Service matters pertaining to
Chaturvedi New Delhi-110001 Administration, ITDC, Planning &
Co-ordination (P&C), Publicity,
Events & Info. Technology (PE&IT)
and Projects North & Central (PNC)
2. Dr. Prabhakar Director Transport Bhavan Matters pertaining to Adventure
Dubey New Delhi- 110001 & Rural Tourism (A&RT),
Projects South & West (PSW),
Projects East & North East (ENE)
and International Co-operation
3. Shri Ajay Kumar Joint Director C-I Hutments Market Research
Gupta General New Delhi-110011
4. Shri Umesh Director Transport Bhavan Matters relating to Accounts &
Kumar Kalra (Finance) New Delhi-110001 Budget, Audit, Integrated Finance
and E-Governance
5. Shri K. Deputy Transport Bhavan Matters relating to Vigilance,
Ravindran Secretary New Delhi-110001 Parliament, Administration-II &
IV, National AIDS Control
Organization (NACO), Welfare and
Public Grievances Readressal Cell
6. Shri Vijay Kumar Deputy C-I Hutments Matters relating to Human
Secretary New Delhi-110011 Resource Development Division
and Domestic Offices Division
(only Tourist Promotion and RTI
Window Display)

96 97
 7. Shri S.P. Singh Dy. Director C- I Hutments Matters relating to Travel Trade
General New Delhi-110011
8. Shri M.N. Javed Dy. Director C-I Hutments Matters relating to Hotels and
General New Delhi-110011 Restaurants
9. Shri K.R. Arya Dy. Director Transport Bhavan Matters relating to Overseas
General New Delhi-110001 Marketing and Hospitality
10. Smt. Devki Joint C-I Hutments Matter relating to Official Language
Director New Delhi-110011
11. Ms. Roma Singh Regional Indiatourism, “Embassy” Matters relating to Indiatourism
Nongpiur Director 4, Shakespeare Sarani Offices of the Eastern Region
Kolkata-700071
12. Ms. Roma Singh Regional Indiatourism Matters relating to Indiatourism
Nongpiur Director G.L. Publication Complex Offices of the North East Region
G.S. Road
Guwahati-781006
13. Ms. Sujata Thakur Regional Indiatourism Matters relating to Indiatourism
Director 123, M. Karve Road Offices of the Western Region

14. Shri D. Subhash Regional

Opp. Church Gate
Mumbai-400020
Indiatourism Matters relating to Indiatourism
Annexures
Director 154, Anna Salai Offices of the Southern Region
Chennai-600002
15. Shri M.M. Regional Indiatourism Matters relating to Indiatourism
Sadana Director 88, Janpath Offices of the Northern Region
New Delhi-110001

Appellate Authority
Shri Sanjay Kothari, Additional Director General (Tourism), Ministry of Tourism, Transport Bhavan,
Parliament Street, New Delhi- 110001.

98
 Annex - I Annex - II
(Para 1.1) (Para 1.1)
Organisational Chart Indiatourism Offices in India

Regional Offices
Secretary to the Government of India and Director General (Tourism)
SHILABHADRA BANERJEE 1. New Delhi

2. Mumbai

3. Kolkata

4. Chennai

5. Guwahati

Other Offices
Joint Secretary Addl. Director Addl. Director Joint Secretary & Advisor (T)
Leena Nandan General General (MR) Financial Advisor Dr. Manas 1. Patna
Sanjay Kothari Dr. R.N. Pandey E.K. Bharat Bhushan Bhattacharya
2. Jaipur

3. Bangalore

4. Varanasi

5. Agra

Director DDG (OM) Dy. Secretary Director Jt. DG (MR) Director (F) Under Secretary 6. Bhubaneswar
Devesh K.R. Arya (Parlt. & Vig.) Dr. Prabhakar Ajay Kumar Gupta Umesh Kumar Kalra Nagmani Rao
Chaturvedi K. Ravindran Dubey 7. Port Blair

8. Imphal

9. Shillong

10. Hyderabad

Jt. Director (OL) Dy. Secretary DDG (TT) DDG (Hotels)

11. Kochi
Devki (HRD, RTI & DO) S.P. Singh M.N. Javed
Vijay Kumar 12. Goa

13. Aurangabad

14. Khajuraho
MR - Market Research OL - Official Language
T - Tourism HRD - Human Resource Development 15. Naharlagun (Itanagar)
OM - Overseas Marketing RTI - Right to Information
Parlt. & Vig. - Parliament & Vigilance DO - Domestic Offices
F - Finance TT - Travel Trade

100 101
 Annex - III Annex - IV
(Para 1.1) (Para 2.16)
Indiatourism Offices Abroad National Tourism Awards - 2006-07

Sl. No. Operation/ Countries Covered National Tourism Awards for 2006-07 were given in the following categories:
Station 1. Best state in infrastructure development for promotion of tourism
2. Best state for tourism-related programmes (2 awards)
America
1. New York All States on the East Coast of USA, South America up to 3. Best rural tourism project
Columbia/Venezuela 4. Best tourism promotion collateral/publicity material (2 awards)
5. Best classified hotels in different categories:
2. Los Angeles All States on the West Coast of USA up to Panama
(i) 5 Star Deluxe
3. Toronto Canada and Greenland (ii) 5 Star
UK (iii) 4 Star
(iv) 3 Star
4. London UK, Ireland and Iceland
(v) 2 Star
Europe (vi) 1 Star
5. Frankfurt Germany, Poland, Czech Republic, Slovakia, Austria, Romania, (vii) Heritage Grand
Bulgaria, CIS countries, Israel (viii) Heritage Classic
6. Paris France, Switzerland, Spain, Portugal (ix) Heritage
(x) Eco-friendly hotel & resort (2 awards)
7. Amsterdam Netherlands, Luxembourg, Belgium, Scandinavian countries
6. Best convention centre
8. Milan Italy, Greece, Malta 7. In the segment of private-public enterprise, the best hotel that provides
West Asia facilities for the physically challenged
8. Chef of the year (2 awards)
9. Dubai KSA, UAE, Iran, Syria, Kuwait, Qatar, Bahrain, Jordan, Yemen,
9. Lady chef of the year
Lebanon, Iraq, Egypt, Turkey
10. Travel agents/tour operators (6 awards graded on the basis of foreign exchange earnings)
10. Johannesburg South Africa, Kenya, Mozambique, Tanzania, Zimbabwe, Mauritius, 11. Tourist transport operators (3 awards)
Madagascar.
12. Best domestic tour operator (2 awards)
Australasia 13. Best mice operator
11. Sydney Australia, New Zealand, Fiji and The Pacific 14. Most innovative tour operator
15. Best overseas tour operator (5 awards for different regions)
12. Singapore Singapore, Malaysia, Thailand, Brunei, Indonesia, Vietnam
16. Best overseas charter operator (2 awards)
East Asia 17. Best foreign journalist for India
13. Tokyo Japan, South & North Korea, China, Hong Kong, 18. Best foreign photographer for India
Laos, The Philippines 19. Best maintained tourist-friendly monument
An overseas office in China has recently been sanctioned and the 20. Best maintained tourist-friendly national park/wildlife sanctuary
proposed coverage will include Mainland China, Taiwan, Hong 21. Most innovative tourist project (3 awards)
Kong, Laos, Mongolia and Macau 22. Best NGO promoting/ developing tourism
23. Best tourist guide
24. Best film on tourism (3 awards)
25. Excellence in publishing (2 awards - one each for Hindi and English)
26. Most innovative use of information technology website/portal promoting tourism
27. Best adventure tour operator

102 103
 Annex V Annex - VI
(Para 4.1) (Para 6.10)
Projects Sanctioned in the States/ Union Territories Incentives Presently Available to Hotel & Tourism Industry
(up to February 29, 2008)
Section 80-ID (1) of the Income Tax Act (v) Such goods (except tools) imported under EPCG
(Rs. in lakh)
scheme shall not be allowed to be transferred for a
Sl. No. State Number of Amount Amount In the budget proposals for 2007-08, a tax holiday
period of five years from the date of import even in
projects sanctioned released for 5 years was declared for new hotels under budget
cases where export obligation was fulfilled.
category coming up between 1.4.2007 to 31.3.2010 in the
1. Andhra Pradesh 7 2369.12 1896.28 National Capital Territory of Delhi and the Districts of (vi) A true and proper account of exports/ supplies
2. Arunachal Pradesh 9 2993.61 2394.87 Faridabad, Gurgaon, Gautam Budh Nagar and made and services rendered on fulfilment of export
3. Assam 5 1271.90 1017.52 Ghaziabad. obligation shall be maintained for a period of 3 years
from the date of redemption by every EPCG license
4. Bihar 2 785.82 628.65 Tourism Finance Corporation of India Ltd.
holder.
5 Chandigarh 2 20.00 18.00 Tourism Finance Corporation of India Ltd. has
Served from India Scheme
6. Chhattisgarh 4 1274.09 1019.27 been set up to render financial assistance to private
(Erstwhile Duty Free Credit Entitlement Scheme)
7. Delhi 7 749.08 601.27 sector for construction of hotels and other tourist
facilities. (i) Registered hotels of one star and above (including
8. Gujarat 4 559.58 447.26 managed hotels and heritage hotels) and other
Export Promotion Capital Goods Scheme
9. Haryana 11 2260.27 1695.82 service providers in the tourism sector registered
10. Himachal Pradesh 12 2286.22 1834.97 (i) The scheme allows import of capital goods at 5% with the Ministry of Tourism shall be entitled to
Customs duty subject to an export obligation duty free credit equivalent to 5% of the foreign
11. Jammu & Kashmir 34 6812.65 4763.22
equivalent to 8 times of duty saved on capital goods exchange earned by them in the preceding financial
12. Jharkhand 7 1130.47 904.35 imported under EPCG scheme to be fulfilled over a year as against the average foreign exchange
13. Kerala 6 2447.04 1957.95 period of 8 years reckoned from the date of issuance earnings of the preceding 3 years.
14 Karnataka 3 1343.44 1074.74 of license.
(ii) Stand-alone restaurants will be entitled to duty credit
15. Maharashtra 4 905.02 723.93 (ii) The capital goods shall include spares (including equivalent to 20% of the foreign exchange earned by
16. Meghalaya 2 674.40 539.52 refurbished/reconditioned spares), tools, jigs, them in the preceding financial year (as against 5%
fixtures, dies and moulds including second-hand of the average foreign exchange earnings of the
17. Mizoram 3 1183.74 946.99
capital goods (without any restriction or age) and preceding 3 years).
18. Madhya Pradesh 16 3952.66 2983.71 import of required components of such capital
In the case of one and two star hotels and stand-
19. Nagaland 20 2221.99 1777.58 goods needed for assembly or manufacture of
alone restaurants, the foreign exchange earned through
20. Orissa 14 3443.59 2733.62 capital goods by the license holder.
International Credit Cards and sources as may be
21. Puducherry 6 1610.88 1288.70 (iii) Only hotels, travel agents, tour operators or tour notified only shall be taken into account for the purposes
22. Punjab 1 397.89 318.31 transport operators whose total foreign exchange of computation of duty credit entitlement under the
earning in current and preceding three licensing scheme.
23. Rajasthan 2 1554.46 1243.57
years is Rs.1.5 crore will be allowed to import motor
24. Sikkim 23 5968.48 4765.42 Export House Status
cars, sports utility vehicles/all purpose vehicles.
25. Tamil Nadu 11 2761.80 2209.44 However, the parts of motor cars, sports utility The Government of India accorded Export House
26. Tripura 9 399.04 319.22 vehicles, all purpose vehicles such as chassis, etc. Status to Tourism. The Hotels, Travel Agents, Tour
cannot be imported under the EPCG scheme Operators, Tourist Transport Operators shall be entitled
27. Uttar Pradesh 7 2788.32 2509.15
(earlier there was no threshold limit of Rs.1.5 crore). for recognition as Export House/Trading House/Star
28. Uttarakhand 5 2081.04 1620.86 Trading House/Super Star Trading House and will be
(iv) Group companies or managed hotels are allowed to
29. West Bengal 12 2993.52 2399.27 entitled to such benefits as specified in the Chapter 12 of
transfer capital goods (under intimation to the
Total 248 59240.12 46633.46 the Handbook of Procedures (Vol.I) of the Ministry of
Regional Licensing Authority).
Commerce.

104 105
 Foreign Investment New Industrial Policy Annex - VII
Foreign direct investment are important sources of In the New Industrial Policy, "Eco-Tourism” was (Para 7.3)
supply of foreign capital, technology, know-how, and announced as a Thrust Industry for development in the Hotel Management Institutes affiliated with NCHMCT
skills, all of which are critical for achieving globally States of Jammu & Kashmir, Sikkim, Himachal Pradesh
competitive standards. To attract such investment, the and Uttaranchal to accelerate industrial development,
Hotel and Tourism related industry in India has been boost investors' confidence and generating additional The affiliated Institutes of Hotel Management and Catering Technology are located in the following places:
declared as a high priority industry for foreign employment. Accordingly, a range of incentives was
investment and eligible for approval of direct investment made available. The Eco-Tourism projects identified for 1. Delhi (Pusa) 14. Ahmedabad (Gandhinagar)
up to 100%. the purpose are Hotels, Resorts, Spas, Entertain- 2. Mumbai 15. Bangalore
ment/Amusement Parks, Ropeways, etc. 3. Chennai 16. Bhopal
Foreign Collaboration
North East Industrial and Investment Promotion 4. Kolkata 17. Bhubaneswar
To promote technology upgradation in the hotel
Policy (NEIIPP), 2007 5. Chandigarh (Known as Ambedkar 18. Goa
industry, approvals for technology agreements are
available automatically on fulfilment of the following On April 1, 2007, the Government approved a package Institute of Hotel Management) 19. Guwahati
parameters: of fiscal incentives and other concessions for the North 6. Gurdaspur 20. Gwalior
East Region under the 'North East Industrial and
(i) Technical and Consultancy Services including fees 7. Srinagar 21. Hyderabad
Investment Promotion Policy (NEIIPP), 2007' covering
for Architecture, Design, Supervision, etc. 8. Thiruvananthapuram
the States of Arunachal Pradesh, Assam, Manipur, 22. Jaipur
constitute up to 3% of the Capital cost of the
Meghalaya, Mizoram, Nagaland, Tripura and Sikkim. 9. Dehradun 23. Lucknow
project (less cost of land and finance).
The incentives are applicable to the following service 10. Chandigarh
(ii) Franchising and Marketing/ Publicity support fee sector activities/ industries: 24. Patna (Hajipur)
account for up to 3% of the net turn-over. 11. Gangtok 25. Shillong
(i) Hotels (not below two star category), adventure and
12. Jodhpur 26. Shimla
(iii) Management fees (including incentive fee) account leisure sports including ropeways.
for up to 10% of gross operating profit. 13. Delhi (Lajpat Nagar)
(ii) Medical and health services in the nature of nursing
These criteria are applicable provided the collabo- homes with a minimum capacity of 25 beds and old-
rations are proposed with companies running/managing age homes.
hotel(s) with at least 500 rooms. No permission is now
(iii) Vocational training institutes catering to the training
required for hiring foreign technicians.
needs in the following areas: hotel management,
Applications for automatic approval for foreign catering, food crafts, entrepreneurship develop-
investment on technology agreements and/or ment, nursing, para-medical profession, civil Food Craft Institutes affiliated with NCHMCT
management contracts can be made to the Reserve Bank aviation, fashion designing and industry.
of India. The entrepreneurs can approach authorised
Further information is available with the Ministry of
dealers for the release of foreign exchange. Agreements The affiliated Food Craft Institutes are located in the following places:
Commerce & Industry, Department of Industrial Policy
which involve a variation in the parameters will be
and Promotion and also in its website www.dipp.nic.in. 1. Aligarh
considered on merits by the Foreign Investment
Promotion Board. 2. Balangir
3. Darjeeling
4. Faridabad
5. Puducherry
6. Udaipur

106 107
 Annex - VIII Annex - IX
(Para 7.4) (Paras 11.2 & 11.3)
Grants-in-Aid Released to Autonomous Bodies during 2007-08 Foreign Tourist Arrivals and Estimated Foreign Exchange Earnings
(up to February 29, 2008) for the Last Ten Years

(Rs. in crore)
Sl. Name of Amount Year Foreign Percentage Estimated Percentage Estimated Percentage
No. the Institute released Tourist Change Foreign Change Foreign Change
Arrivals over Exchange over Exchange over
1 IHM, Ahmedabad, Gujarat 0.63 (in nos.) Previous Earnings Previous Earnings Previous
2 IHM, Srinagar, Jammu & Kashmir 0.44 Year (Rs. in crore) Year (in million Year
3 IHM, Lucknow, Uttar Pradesh 0.14 US$)
4 IHM,Shimla, Himachal Pradesh 0.40 1998 2358629 -0.7 12150 15.6 2948 2.0
5 IHM, Pusa, Delhi 0.15
1999 2481928 5.2 12951 6.6 3009 2.1
6 State IHM, Kozhikode, Kerala 4.00
7 State IHM, Gangtok, Sikkim 3.50 2000 2649378 6.7 15626 20.7 3460 15.0
8 IHM, Jaipur, Rajasthan 0.42
2001 2537282 -4.2 15083 -3.5 3198 -7.6
9 State IHM, Ailwang, Mizoram 4.00
10 IHM, Lucknow, Uttar Pradesh 0.11 2002 2384364 -6.0 15064 -0.1 3103 -3.0
11 IHM, Jaipur, Rajasthan 0.15 2003 2726214 14.3 20729 37.6 4463 43.8
12 State IHM, Kurukshetra, Haryana 0.71
2004 3457477 26.8 27944 34.8 6170 38.2
13 State IHM, Dimapur, Nagaland 4.00
14 State FCI, Garhmukteshwar, Uttar Pradesh 2.00 2005 3918610 13.3 33123* 18.5 7493* 21.4
15 State FCI, Faridabad, Haryana 1.50
2006 4447167 13.5 40375* 21.9 8934* 19.2
16 State IHM, Jodhpur, Rajasthan 1.30
17 IHM, Shimla, Himachal Pradesh 0.78 2007 4977193@ 11.9 49413# 22.4 11956# 33.8
18 State IHM, Puducherry, Tamil Nadu 2.00
* Revised Estimates
19 State FCI, Hassan, Karnataka 2.00 # Advance Estimates
20 State FCI, Jammu, Jammu & Kashmir 2.00 @ Provisional
21 IHM, Pusa, Delhi 0.20
22 IHM, Gurdaspur, Punjab 1.00
23 State IHM, Hamirpur, Himachal Pradesh 4.00
24 State IHM, Fursatganj, Uttar Pradesh 4.00
25 State IHM, Bodhgaya, Bihar 4.00
26 State IHM, Yupia, Arunachal Pradesh 2.00
27 State FCI, Samaguri, Assam 2.00
28 State IHM, Solapur, Maharashtra 2.00
Total 49.43

108 109

Surveys & Studies
The Surveys/ Studies/ DPRs/ Feasibility Studies
completed during 2007-08:
(i) Evaluation of the scheme of Incentives to
Accommodation Infrastructure.
(ii) Evaluation of the scheme of Rural Tourism.
(iii) Survey on collection of Tourism Statistics for
the State of Goa.
(iv) Survey on collection of Tourism Statistics for
the State of Orissa.
(v) Survey on collection of Tourism Statistics for
the State of Uttar Pradesh.
(vi) Study to quantify the size, scope & economic
impact, etc. of the India's convention industry.
(vii) Detailed Project Report for Southern Tourist
Circuits - Phase II at Lunglei-Saichho-Thenzawl
Sialsuk-Hmuifang in Mizoram.
(viii) Detailed Project Report for destination
development at Kanhmun in Mizoram.
(ix) Detailed Project Report for freedom struggle
circuit, and religious circuit in Punjab.
(x) Detailed Project Report for destination
development at Amritsar, Patiala and Wagha
Border in Punjab.
(xi) Detailed Project Report for destinations at
Belonia, Agartala and Udaipur in Tripura.
(xii) Detailed Project Report for two rural tourism
centres at Banabithi and Hurizala in Tripura.
(xiii) Detailed Project Report for destination
development at Sakawrdai in Mizoram.
(xiv) Detailed Project Report for two rural tourism
projects at villages Sesawng and Thanzawl in
Mizoram.
(xv) Detailed Project Report for the development of
Aero Sports at Aizawl under destination
development scheme in Mizoram.
110
Annex - X
(Para 11.5)
(xvi) Detailed Project Report for destination
development at Aizuto and Tuophema in
Nagaland.
(xvii) Detailed Project Report for development of
Circuit - Tueasang-Zunheboto-Kiphire in
Nagaland.
(xviii) Detailed Project Report for the circuit
development at Wokha-Nuiland Dimapur-Peren
in Nagaland.
(xix) Detailed Project Report for development at
Tiger/Sumour village in Nubra in Jammu &
Kashmir as tourist village.
(xx) Detailed Project Report for the circuit
development at Itanagar-Ziro-Daporijo-Basar
in Arunachal Pradesh.
(xxi) Detailed Project Report for destination
development at Mechuka (West Siang district)
in Arunachal Pradesh.
(xxii) Detailed Project Report for destination
developement at Jairampur War Memorial
(Changlang district) in Arunachal Pradesh.
The Studies/ Surveys likely to be completed
during 2007-08:
(i) Evaluation study of the scheme of Capacity
Building for Service Providers (CBSP).
(ii) Evaluation of the scheme of Domestic
Promotion & Publicity.
(iii) Evaluation of the scheme of financial
assistance to States for development of
circuits/destinations.
(iv) Preparation of an Action Plan to raise the
number of tourists from 3 million to
25 million in 10 years' time.
(v) A study to assess the Hotel Room requirement
in metro cities and 50 major cities in the
country.
(vi) Detailed Project Report for infrastructure
development of 7 culturally significant circuits/
destinations by ITDC.
The Surveys/Studies commissioned/taken up
during 2007-08:
(i) Evaluation study for the plan scheme of
assistance for Large Revenue Generation
Projects.
(ii) Evaluation study for the plan scheme of
Computerization and Information Technology.
(iii) Evaluation study for the plan scheme of Market
Research Professional Services.
(iv) Evaluation study for the plan scheme of
assistance to IHMs/FCIs/IITTM/NIWS, etc.
The Surveys/ Studies/ DPRs/ Feasibility Studies
completed during the year 2006-07:
(i) Evaluation study in selected Overseas Markets.
(ii) Survey on collection of Tourism Statistics for
the State of Chhattisgarh.
(iii) Survey on collection of Tourism Statistics for
the State of Bihar.
(iv) Survey on collection of Tourism Statistics for
the State of Uttaranchal.
(v) Survey on collection of Tourism Statistics for
the State of Karnataka.
(vi) Survey on collection of Tourism Statistics for
the State of Assam.
(vii) Survey on collection of Tourism Statistics for
the State of Rajasthan.
(viii) Survey on collection of Tourism Statistics for
the State of Madhya Pradesh.
(ix) Feasibility study report for Mountain Airline in
Uttaranchal.
(x) Feasibility study report for Golf Tourism in
Uttaranchal.
(xi) Conservation & Management Plan for Mughal
Gardens in Jammu & Kashmir.
(xii) Detailed Project Report for the development of
Mubarak Mandi as tourism destination and
Socio-cultural-cum-Heritage Centre at Jammu in
Jammu & Kashmir.
(xiii) Detailed Project Report on destination
development at Imphal in Manipur.
(xiv) Detailed Project Report for tourism circuits in
Imphal Bishnupur-Churchandpur in Manipur.
(xv) Detailed Project Report for Bungus Valley in
Jammu & Kashmir.
(xvi) Detailed Project Report for the development of
tourism circuits of Dirak-Namsai-Chokham-
Wakro-Parasuramkund-Tezu-Hayuliang-Walong
in Arunachal Pradesh.
(xvii) Detailed Project Report for the development of
Eastern tourism circuit - Kritum-Vanlaiphai-
E. Lungdar-Khawbung-Farkawn-Zokhawthar-
Hnahlan-Saitual-Tamdil in Mizoram.
(xviii) Detailed Project Report for the development of
Southern tourism circuit of Hrangchalkawn-
Tawipui-Lawngtla-Saiha-Vawnbuk-Sangau-S.
Vanlaiphain Mizoram.
(xix) Detailed Project Report for three rural tourism
projects at Andro, Khongjom and Noney
villages in Manipur.
(xx) Detailed Project Report for development of
tourism-circuit of Ranchi-Rajrappa-Hazaribagh-
Itkhori in Jharkhand.
(xxi) Detailed Project Report for the development of
tourist destinations of Parasnath -Madhuban
Phase-II in Jharkhand.
(xxii) Detailed Project Report for the development of
rural tourism at Amadubi district, East
Singhbhum in Jharkhand.
(xxiii) Detailed Project Report for the development of
rural tourism at Deuridih district Saraikela-
Kharsanwan in Jharkhand.
111

Summary of Important Audit Observations
Details of the Paras
18.1 Excess Releases of Grants-in-Aid
Ministry of Tourism's failure to scrutinize the
project proposal of State Government property resulted
in excess release of Rs. 2.39 crore
The Ministry of Tourism received a proposal (July
2002) from the State Government of Andhra Pradesh
for setting up of a tourist facilitation centre “Balayogi
Paryatan Bhawan” at Hyderabad at a cost of Rs.10.25
crore with a request for Central Financial Assistance
(CFA) of Rs.4 crore and the remaining amount was to be
arranged by the State Government. In addition, land
measuring 2.15 acres was to be arranged by the State
Government free of cost for the project. After
consideration, the Ministry approved the proposal under
the scheme for Development of Tourist Centres.
The Ministry sanctioned (March 2003) Central
Financial Assistance (CFA) of Rs. 5 crore to the project
against an assistance of Rs. 4 crore sought by the State
Government by assuming the total cost of Rs. 22.25
crore after including Rs. 12 crore on account of the cost
of land provided by the State Government for the
project. No fresh proposal from the State Government
was obtained. The sanction of Rs. 5 crore was justified
on the ground that the Ministry had already agreed to
sanction Rs. 5 crore for the project during 2001-02 itself.
The Ministry released the first instalment of Rs. 1.89
crore in March 2003 and the second instalment of Rs.
2.50 crore in April 2004 against the utilization certificate
of Rs. 3.09 crore received from the State Government in
March 2004. The project was actually completed (March
2005) at a lower cost of Rs. 7.20 crore against the initially
projected cost of Rs. 10.25 crore (excluding the cost of
land). Thereafter, the Ministry advised the State
Government to adjust the excess release of Rs. 0.88
crore against some other project as the CFA of Rs. 3.51
crore was considered to be admissible against total
release of Rs. 4.39 crore for the project costing Rs. 7.20
crore. The excess release of Rs. 0.88 crore was neither
recovered nor adjusted as of October 2006.
112
Annex - XI lying between Yamuna River Front, National Samadhis Thereafter, MOT directed the ITDC (December,
and Red Fort through the ITDC1. Pending preparation 2004) to refund the amount of Rs. 5.00 crore released in
(Para 20.2)
of plans/ drawings/ blue prints, detailed estimates of February 2004. The ITDC refunded (June 2005) Rs. 4.69
the work and transfer of land to the project executing crore after deducting Rs. 31.31 lakh which included
agency, the Ministry released an amount of Rs.5.00 crore expenditure of Rs. 28.94 lakh incurred mainly on hiring a
to the ITDC (February 2004) as an advance to start the project consultant and security guards and contingencies
Audit noted that as per the guidelines of the scheme work. As per the sanction, the ITDC was asked to and centage charges of the ITDC.
of Development of Tourist Centres, CFA up to Rs. 2 furnish land availability certificate within six weeks from
The release of Rs. 5.00 crore in anticipation of
crore only could have been provided, whereas under the the date of the sanction as the land belonged to the
scheme of large revenue generating projects, CFA at 25 sanction of detailed estimates and handing over of land
Central Government. The work was required to be
per cent of project cost or Rs. 10 crore whichever was for the project to the ITDC resulted in idling of public
completed by 15 February 2005 i.e. within a period of
less, was admissible. As the Ministry had approved the funds for over fifteen months.
one year from the date of issue of sanction. After
project under the scheme of Development of Tourist completion of project, the assets created were to be Thus, injudicious sanction and release of funds
Centres, the eligible CFA for the project could have been handed over to the DDA2 for maintenance and without ascertaining the availability of land for the
only up to Rs. 2 crore and therefore, sanctioning Rs. 5.00 management. proposed project resulted in wasteful expenditure of Rs.
crore (after including Rs. 12 crore in the total cost of the 31.31 lakh.
The ITDC requested (March 2004) the L&DO3 for
project on account of the cost of the land) was irregular.
permission to carry out the sanctioned work and also The matter was reported to the Ministry in January
Thus, the Ministry need to recover Rs. 2.39 crore instead
submitted a project proposal to MOT at an estimated 2006; their reply was awaited as of December 2006.
of Rs. 0.88 crore as calculated by them on proportionate
cost of Rs. 787.33 lakh, including 3 per cent
basis. (Para 15.2 of Report No. 2 of 2007) Transaction
contingencies and 5 per cent centage charges. The
Audit Observations
The Ministry in their reply (May 2006) stated that the L&DO, however, intimated MOT (December 2004) that
amount of Rs. 0.88 crore would be adjusted against other the land was not available for the project as the same had
1
India Tourism Development Corporation Limited
project. It further stated (November 2006) that when already been transferred to the DDA for the purpose of 2
Delhi Development Authority
the project was conceptualized the maximum ceiling of integrated development of Yamuna River Front.
3
Land and Development Office
grants-in-aid under Tourist Centres was Rs. 2 crore but
when the project was sanctioned, the revised guidelines
were in place under which the upper ceiling for each
destination was Rs. 5 crore.
The replies (May, 2006 and November, 2006) of the
Ministry are not tenable because although the project
was sanctioned after the new scheme guidelines were
notified but it was sanctioned under the old scheme
where the eligible CFA could have been only up to Rs. 2
crore. Besides, sanctioning Rs. 5 crore against the
demand of Rs. 4 crore by State Government was
irregular and not called for.
(Para 15.1 of Report No. 2 of 2007) Transaction
Audit Observations
18.2 Injudicious Release of Funds
Injudicious release of funds without ascertaining the
availability of land for the proposed project resulted in
wasteful expenditure of Rs. 31.31 lakh.
The Ministry of Tourism (MOT) decided (January
2004) to develop “Yamuna River Front Development
of Great Green Tourist Complex, Delhi” in the area
113
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