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Dear Reader,

This issue of the DocUpdate reaches you after a period of nearly two years. We would
like to apologise for this prolonged delay in bringing this issue to you. There are a
number of factors that have contributed to this, the most important of them being a
series of internal changes. This year we bring to you a combined publication of
tourism issues for the year 2001. The edition covers materials from Newspapers,
Newsletters and Magazines. The information included is indicative of tracing the
tourism development and other broader issues, with a greater focus on India. The
issues that have been presented are based according to the sections and sub-section of
our classification code.

During the last year, the development of tourism in India has seen a sea of changes.
These rangefrom the preparation of the draft policies by the Tourism as well as the
Civil Aviation Ministries, disinvestment of hotels and airlines, liberalising the FDI
ceiling in airports and tourism to 100%, recognition of tourism as a important
industry in states such as Karnataka, Andhra Pradesh, Uttaranchal, the change in
events after the terrorist attacks and ways and means by which the industry tried to
counter the impact, ... It truly has been an year of ups and downs for tourism.

The mantle of the Minister for Tourism has again changed. This time round it got
shifted from Mr Ananth Kumar to Mr Jagmohan. One key area where he has been
putting his efforts into is with the tourism policy. The policy is being structured and
given form in terms of creation of a separate tourism developmentfund, setting up of
a tourism development authority, visa-on-arrivals, effective marketing and zoning.
A new feature of this policy is that of placing tourism in the concurrent list of the
constitution and giving more emphasis on people participation. The Government

t also invited tenders for formulating a 20-year perspective plan for development of
'Sustainable Tourism' in all States and Union Territories of India.

I
The Government has increased the budgetary allocation for tourismfrom Rs 135-cr
to Rs 155-cr for the year 01-02. The government is looking for more private
participation rather than investing themselves. The Tourism Department plans to
create a Tourism Development Fund on similar line as that of the National Culture
Fund created by the ASI. The ASI has got a good response from the Geneva-based
Aga Khan Trust for Culture and the Indian Oil Foundation. States have as well
started the privatisation and private participation drive by calling on tenders to sell
offits properties and manage heritage monuments in the state.

In the International Scenario, India has been collaborating with its neighbours
Nepal to work on developing the adventure and religious circuit and with
Bangladesh on liberalising the visa agreement between the two countries. Outbound
tourism in India has grown much more substantially while compared to inbound
tourism. This might also be the reason why a number of countries have increased
there promotional and marketing activities in India. A study conducted by WITC
and Oxford Economic Forecasting reveals that the Indian traveller is consuming
leisure and business products & services to the tune of $16.3 billion. This makes
Indians the fastest growing travel spenders in the whole world. This can also be
indicative ofthe fact that for thefirst time the balance of India's tourism account may
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slip to a deficit. Accordlllg to the fiRutc:'s, dllrillg tile last decade the foreigll
cxchl1llgcmmed by thctrauel illdustry is dowll by 36 percellt to Rs 4, 171-a ill 20()()
frolll Rs 6,547-cr ill 1991. These figures do IIOt seem to ellcol/ragillgfor til" tourislll
illdustry.

D�fa
f ellt
seems to Ilnve come lip with 11 Ilew olle- l1WIlSOOIl tourism- scllillg the mill to tilt'
Arnb tOllrist, while tile older oues such as backwater, Ayurllccia, advcllturc tourism
are being bl/ilt all 111/(1 lIeH' dimellsiolls givell to tlIem. Tire meanillg of m/(>cl1tII re
tourism Itas alsa takell ill IICW arells wilh tlu:first space tourist, Mr DellIlis Tito,
W/ID was takcll to tile IllfcmatiOlIII/ Space Statioll after hllVillS pllid 11 w/zappi1lg 20-
milfiOIl US dollars.

Tlte Southcm states of Il/dil1 /lI1ve becll workillg towllrds col/11110ratillg with l'l1cll by
participatillg ill the' Look South' cOllfaellces orglJllised by PICCI. On tillS pilltform
tlley come together 10 plal1 ol111letilodologics 10 be elmlked 0111 for the dcvelopmellt
IIlid promotioll of tourislII ill each sillte alld ill the regiollils well. Fallout ofthi;; is the
illtemal restructuril1g of tile state towism departmellt liS well. States like
Kanll1taka and Tamil NII£illllllPc appoillted a Commissiollff of tOllrislII zolio wOlild
overlook the developmellt of tourism as weI/lis fIllllltie tile corporations.

Each stl1tc ill ils own wily is tryillg to work at dife

f rell
Illis illdustry. Kamatllka lias set lip the State TOllrislil COlllICil, Kerall1 fIlls drafted
its Tourism Visioll: 202S Ilmi would ill fUlllre work with tile WT TC, LTttamllclwl
State Couemme/lt hilS cOllsfituted tl TourislIl IIdvisory Board, Hllr!/tllla pill/IS to
build 11 large 11 Ull1bcr of c{{;;ill(ls to keep its coffers ticklllS while IIl1dlIm Pradesh is ill
a tell rillS Illlrry to colI/plcte Ille first Creel/field airport at SlmlllsllI1[Jad but IS over
lookillg tlte rehabilitatioll oftllC people displaced due to tile project.

II1l0ther area wllose impact hilS /lot been felt greatly illllldill bill wOl/ld lIeed to br
kept ill milld is the WTOs' I1grecJllellt 011 Trade ill ServiCl's. TIle Illdiall deleglltioll
pll1lllled to press ahelld ill arms of helllt/l, teiecOllll1l1l11iCl1tioll, air transporl,
cOllstructioll, lourislIl, ellgillcerillg, accoulltl1l1cy and IIrchitecture for hbemlisillg
of visa regime at tile WTO negotiatiolls OIl services, III this spliere, Chll/Il has
II/relldy 1II0ved ahelld by Illlowil1g perlllllllellt reside/Icc ill till' cOlllltry to lilly
fore('{llcr wha would illvesl subslalltially to til(: cco//(/my.

At Ihis stage, tile IClllll would like fflllckllowledge the calliribu fio!! of Ms. Ninll Rao,
Del/Ii, Ballal/cho Saad, Goa, CAC (Citizell, COllsumer lind Civic Actioll Groll!'),
ClIelllllJi {/fld The Dialogue, Kozlzikode for providillg us witl! clippings I1lld reports,
The lIext editioll will sec l1Iucli //lore lIews fro11l llrOtllld India.

We /lOpe Ihat illspite of Ihe deillY ill producil1g Ihis issue, YOli would filld the issul'
useful alld il�fonllali(1e.1I1 this jltllctllre, whell we prepllre tlze !lext edition of the
DocUpdlltc (Jalluary-Jlllle, 2(02), wefeel that it is impemtive to rt'ccivc a feedl)(lck
from aliI' readers about II/(' DocUpdatl'.

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A • TOURISM AND TOURISM ALTERNATIVES

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AIO Tourism and Development ... . , "" , • •• .,. • 1 ''' . 4._

The Annual Western Region Confe rence of Computer Society of India was held in
Goa from February 22-23, 200 1 . The a genda for the conference was to d iscuss
I n forma tion Technology in Tou rism and i ts future interaction of industries related
to IT and special reference to the Tou rism Industry. The Conference comprised
v a rious informa tion sessions, tal ks and discussions by profession a l s from across
the country on topics ra nging from in-house solutions to e-commerce and Web­
based reservations. (CSI lIleet fOCIIS o n IT uses for tourism sector, B L, 21/ 2/01 )

ABO Tourism Research/Education • , . " .f •.

' . ',....... ". ' .,. ,

Kuvempu University has decided to s ta rt a Postgrad ua te Diploma C ou rse in

Tou rism from this academic year. The Depa rtment o f H istory and A rchaeology
w o u l d conduct i t . Kuvt'mpu U n i v e rs i t y is the first in the State to s t a r t a
Postgrad u a te Diploma course in Tou rism . (PC collrse ill tou rism, TH,23 / 6/0 1 )

.. 11,1 44 • � 1)1 44 .. , .. , I' I . ... II

B • TOURISM POLICY AND TOURISM DEVELOPMENT

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BOO Tou rism policy and Plans ....

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Policy-related
The Union Tou rism Ministry is now giVIng final touches to the d ra ft National
Tou rism Policy before p resenting i t to the Cabinet. The three main action points
t h a t emerged d u r i n g the e x e rc i s e r e l a ted to s u v i dh a ( fa c i l i ties), soochana
(information) a n d suraksha (safety and security). Most of these a reas needed
i n teraction and decision from various other Ministries (such as Civil Avi a tion) and
these a re now being co-ordina ted . A n important aspect of the new policy would
be p ub l i c p a r t i c i p a tion . Focused a ttention w o u l d be g i v e n for i n tegrated
development of identified centres w i th well-directed public p articipation. Moreover,
with e. m phasis on IT, there would be an increased reliance on optimal u se of e­
commerce, use of Internet for information d issemination and increased use of
porta ls for tourism information. (New tourism policy to aim at people's participation,
BL, 2 8/5/0 1 )

The M a in Features o f the Draft Tou rism Policy framed b y the Tou rism Min istry
a re:
• C rea tion of a Tourism Development Fund to bridge critical infrastructural gaps

• Setting up of a Tou r i s m Development A u thority, for b u i l d i n g 'mutu a l l y

beneficial' p artnership between the public a n d private sector

• Introduction of issue of visa on a rrival for at least 15 days at all a irports,

• Zoning of a reas of special interest,

• Placing tourism in the concurrent l ist,

• A u gmenting a i r capacity and

• Effectively ma rketing and promoting India overseas.

(Tourism fund, illfrastructural recast amollgst draft policy proposals, A miti Sell, FE, 13 /
9/0 1 )

The Department o f Tou rism, Government o f India proposes t o draw u p a panel of

consu l tants/ a gencies for p reparing a 20-year perspective p l a n for sustainable
d evelopment of tourism in the states/ union territories. The p l a n w il l be prepared
3
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b y a ssessing the exis ting tourism scenario of the sta te / UT w ith respect to
a v a i l a b i l i ty of na tura I resou rces, heri tage a n d o th e r socio-c u l tu ra I a s s e ts,
quantita tive / demographic factors like popula tion, employment, occupa tion,
income levels, etc and services and infrastructure . (TOI, M, 4/8/01 )

The Centre appea rs to have succeeded in considerably na rrowing down differences

over the issue of placing tourism in one of the l ists of the Constitution and moves
are a foot to accord it legal status by making it part of the concurrent l ist. The Centre
now plans to bring in a constitutional amendment to vest tourism in concurrent list.
This was one of the major outcome of the conference of state tourism ministers and
CMs. Almost all the states are in favour of this m ove however Rajasthan, Kerala,
Goa, Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, Tamil Nadu etc had opposed
the proposal on grounds tha t if the proposal was approved, states would lose their
right to legislate on a major share of state subjects and tha t a Comprehensive Central
Legisla tion may not be able to take into account the regional variations w ithin the
country. This is mainly due to the fact tha t Tourism is a location specific activity
and i t should remain within the state's sphere of duties. (Tourism may be placed in
concu rrent list, B S Awn, DH, 1/1 1/01)

The N a tional Commission for Women (NCW) has urged the Government to make
its Na tional Tourism Policy gender-sen s i tive a fter looking i n to the issue of
t r a ff ic kin g s e r i o u s l y. The d r a fted p ol i c y, w h i c h has been sent to v a ri ou s
Orga nisa tions for Comments, h a s reportedly n o t l ooked into the issue of tourism­
rel a ted trafficking.

The NCW has been conducting a series of workshops on w omen trafficking for
the past two years . Much to the shock of i ts members the 20-odd w orkshops have
revealed how tourist sp ots l ike Goa , Kovalam and Sikkim have a ctually become
dens for buying and sell ing young girls, majority of them still in their teens.

Some of the recommendations given are: sensitisa tion programmes for all sections
of people, thwarting the supply route, stepping up vigil at a ll tourist cen tres,
having a n ti- trafficking messages at a ll police sta tions, hotels, beaches and other
tourist spots to instil fear in those indulging in it a re some of NCW's suggestions.
These and much more are a lso contained in a report titled 'Tra fficking - a Socio­
Legal Study ' . The report a lso analyses previous legisla tions and gives suggestions
for the rev ision of anti-trafficking legisla tions besides suggesting offences and
penal p rovisions. It is now w a i ting for time from the Minister for the release of
the report before any a c tion is initia ted officially. (NeW wan ts tou rism policy made
gender sensitive, Soma BaSH, TH, 26/1 2/0 1 )

The Meghal a ya Sta te Government h a s p repa red a New Tourism Policy t o Boost
Tourism in the Sta te . The p ol icy works at improving the economic condition of
the people of the Sta te . The Policy Documents a re being sold at a price of
Rs 300/- (Govt frames new tourism policy, BL, 1 3/2/01 )

In a move likely to speed up Implementation of Tou rism Projects in the Coun try,
the Tou rism M inistry has decided to give Central Funds earmarked for the sector
d i rectly to State Tourism Corp ora tions (STCs) instea d of giving it to Sta te
G overnments. A taskforce headed by Tourism Secretary M P Bezba r u a h to
reformu la te the guidelines of the Centra l Finance Assistance Scheme for Tou rism
Projects by incorpora ting necessary amendments has been set up . STCs had been
demanding direct control over Central funds for a long time, as most s ta te
governments d i d not release the funds on time. The Tourism Ministry has decided
4
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to cancel a l l p rojects that had been a pp roved in the Seventh Plan b u t were yet to
be implemented and use the funds for new p rojects. The Ministry has a lso fixed a
time-schedule for approval of projects and release o f funds. Forty-five days each
has been a l l o tted by the Government for listing of p riorities , submission of
proposals from State Governments and release of first instalment of funds. (Central
funds for tourism projects via S TCs, A miti Sen, FE, 1 9/2/01 )

Union Home M inister L K Advani has called for the rem o v a l of unnecessary
restrictions on travel in Indi a in order to boost tourism in the country. He pointed
out tha t unnecessary restrictions on d omestic travel was coming in the way of ful l
realisation o f tourism p otential a n d there w a s a n u rgent need to unshackle the
industry from a l l inhibiting rules . The Home Minister has started discussions on
removing the restri c ted a re a s t a tus from v a rious n orthe a s tern states. While
restrictions have a l ready been removed from certain areas in Sikkim, a dial ogue is
on going w ith the Arunachal Pradesh Government for the purpose. (Advani for
removal of curbs on travel, FE, 2 3

The Union Minister for Tourism a n d Culture has called o n the South Asian Nations
to embark on a Tourism Reform Programme and stressed on the need for chalking
out a road m a p so that the region cou l d a ttra c t more international tourists.
Addressing the South Asian Tourism M inisteria l Summit on Joint Marketin g and
Promotion, Mr Kumar said that a ttempts shoul d be made to finish the p rocess by
2003, which was the 'Visit South Asia Yea r ' . The Minister said that India was
w i l l in g to co-operate w i th any country to promote tourism .

The Secretary-General, World Tou rism Organisation, Mr Francesco Frangialli, said

that the Organisation has extended i ts technical assistance to India i n various
forms . He stated tha t they had j ust completed a m aster plan for A ndhra Pradesh,
a n d a re currently fie l d i n g a mission to N a g a l a n d for the for m u l ation of a
sustainable tourism p l a n . Besides, their consultants w ould a lso travel to Kerala
for the formulation of a marketing plan for the State . (Reform tourism, S. Asian
nations told, BL, 24/4/01 )

Another proposition p u t forth d uring the summ i t was tha t the SAARC countries
should introduce a common travel permit system on the lines of 'Schengen' visa
system p revalent in European countries for easy access to countries w i thin a region.
ASEAN is belie ved to be mulling the introd uction of the system . The Schengen
system would help in removing the a mbiguities in the types of travel documents
that would be ca rried by the tourist, as there would be uniformity. (SAARC nations
urged to ease travel procedures, BL, 5 /5/0 1 )

With the number of Indians travelling t o the US expected t o rise t o one million b y
the next two years, the Embassy h a s made the p rocess of issuing visas user-friendl ier.
The computerised counters are to collect the a pplications, p rocess them online, send
it to the embassy where they will be screened and then send out by courier/ speed
post to the applicants. (Procedures for us visa simplified, DR, 17(1/0 1)

The Indi a n Government has decided to allow for larger m o vement of tourist
charters benefiting both inbound and outbound tra ffic. It has allowed Indian tour
operators, travel companies and hotels to operate l a rger a ircraft to i n ternational
destinations l i fting the earlier restriction of using a i rcraft w ith a maximum of 30
seats. It has a lso opened u p close to 30 a irports in India, facili tating d irect travel
to the tourist destination . (Govt move widens ambit of flight charter business, Girish
Rao, 2 0 (1 /0 1)
5
The 10 urism Ministry is working on an action plan to deal w i th the slowdown in
the sector subsequent to the terrorist a ttacks in the US. The Ministry has called
representa tive from the travel tra de to disc uss on such matters (Actio t! plan afoot to
deal witiz tou rism slow down, FE, 28/9/01 )

As a p a rt of the action plan, the Depa rtment of Tou rism has asked a l l embassies
and high commissions abroad to project India as a safe and peaceful destination .
The Department also plans to give a major Boost to the Domestic and Regional
Tou ris m . (Effo rts to p roject In dia as a safe destination 011, Raja Awasthi, ET, 30/9/01 )

Excepts from an Interview with V K Duggal. Director General Tourism

What is the strategy you are planning now to combat and bring our tourism
industry from this down trend?

We are looking at a three-paint strategy. The first part of this is to convey to

potential travellers in all the markets that India is continuing to receive
thousands of visitors everyday and that the situation is absolutely normal,
safe and secure. Secondly, we are looking at giving a boost to regional
tourism, because the arrivals from the West have slowed down to some
extent . The initial reports indicate this. Also, thirdly, promoting domestic
tourism will be of great help to the industry.

It is estimated that this financial year, the loss to the industry because of
the crisis after the Sep 11!h incidents alone could be more than Rs 600 cr.
Is the government planning any assistance by way of concessions etc for
the industry?

We have not received any request as yet f rom the industry for any such
assistance or concessions. Their earlier demands are under consideration
and as a matter of fact, on some of these actions have already been taken.
These include the reduction in the monument visiting fee and action is at
hand in respect of some other demands also.
(India is normal, safe and secure, Raja Awasthi, ET, 3/10/01)

In the a ftermath of the terrorist attack in the US, the Government has decided to
set up a special tourism promotion task force to assess the impact of the incidents
on Indian tourism and chalk o u t .an action plan for sustained growth of this
major FE sector. This was decided at a meeting a ttended by the Union Minister of
Tou ri s m , Tou r ism Secretary and rep rese n t a tives o f the travel, tourism and
hospital ity industry, a i rlines, business associations and other government officials.
I t was a lso proposed that a small group comprising the travel trade, the hospital i ty
industry and airl ines be formed to bring travel writers and tou r operators to India
to get a first-hand feel o f the situa tion on the ground . Industry representatives
also demanded rationa lisa tion of taxes, tax exemp tions and other concessions in
v iew of the declining trend in tourism the world over. (Task fo rce to assess touris m
scenarios, BL, 5/10/0 1 )

The Spec i a l Tourism Task Force, s e t up t o d ea l w ith the i mpact o f the terror
strikes in US on tourism, has decided to undertake a ggressive marketing campaigns
in Japan, Austra l ian, Korea , Ta iwan and Southeast Asian coun tries . A p ackage is
being worked o u t by the tourism ind ustry with the help of a irl ines and the
hospitality industry to be sold d ur ing road shows to be conducted in these markets
in the coming weeks. At the first meeting of the Task Force, it was decided to
6
carry out publicity campaigns and bring in travel wri ters grou ps from these
countries to d ispel the i m p ression that India w a s near the a ction scene in
A fghanistan and project it as a safe destina tion . (Tourism marketing campaign, DH,
1 8/10/0 1 )

Excerpts from an interview with the Union Tourism Minister. Mr Jagmohan

Q) What are future plans for promoting tourism?

A) I am thinking of developing specific circuits, say around Ajanta-Ellora,

VaranasiSarnath-Bodhgaya-Rajgir-Nalanda. Lakhs of Japanese will come
if there are proper facilities. Another circuit could be Ladakh with its
monasteries. If we can combine this into a package thousands will come. I
am also thinking of linking all the places Vivekananda went to, in a sort of
Vivekananda yatra. Other circuits are possible too. We need to think on
new lines. I am having regular meetings with travel and tourism associations
I am also thinking of creating tourism police force, to help people. States
would have to do this themselves but we could first try it out in the Union
territories. I don't yet know whether this will be possible or not.

Q) Industry has suggested that one way of promoting domestic tourism

would be for the government to remove the restriction on leave travel
concession?

A) This would be an artificial boost; it is, after all, government money. It

could be one option but it would be the easy option. Instead, if we improve
things... if we do something solid, tourism will pick up. It is a question of
creating the atmosphere.

Q) Industry has been seeking concessions as incentive, particularly after

the Sept 11 th strikes in the US. What is the position on these?

A) They want cuts in expenditure tax, rationalisation of taxes from one state
to another, income-tax concessions on investment, reduction in duty on
liquor. We have recommended most of these to the finance ministry.
(Tourism's New Guide, Chandrika Mago, TOI, B,29110101)

Inaugurating the Conference of CMs and State Tourism Ministers, PM A .B .Vajpaypee

has announced setting up of a N ational Tourism Advisory Council for continuous
interaction among various contributors to successful implementation of tourism
policy. He has a lso urged a l l the sta tes to also follow suit. The proposed council will
have representatives from the central and state governments, members of Parliament,
industry representatives and eminent public figures. The CMs and Tourism Ministers
today almost unanimously a pp roved inclusion of tourism in the concurrent list of
the Constitution and a lso by and large expressed agreement w ith the draft of the
new tourism policy. (Exploit touri sm potential: PM, TH, 31/10/01 )

The apex chambers of Commerce and Industry h ave also welcomed the move to
set up the Tourism Advisory Council. It is felt the council would help in bringing
about rationalisa tion in the tax structure, removing anomalies and b ring about
simplifica tion of p rocedures. The council will give the m uch-needed fi llip towards
continuous interaction a mong various players of the tourism sector. (eTzambel's
welcome for matioll of new tou rism coullcil, BL, 3 1 /10/0 1 )
7
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H i t b y the global event after the terrorist a ttacks, India is looking eastward to
countries like China, Japan, Taiwan and South Korea to help rev ive the tourism
economy. In keeping with the new line of thinking to encourage tourist traffic from
nearby Asian countries, Tourism Minister Jagmohan would leave for China to pursue
talks for seeking a most-preferred d estination (MPD) status . China has so far
conferred MPD status on a dozen countries including Thailand and Singapore . A n
M PD status b y China "would hopefully pave the w a y for a d i rect a i r link between
the two countries which would boost not only tourist traffic but also business. The
Minister is a lso planning to v isit Cambodia later to "open new m arkets and channels
to boost short-haul travel" . (India lookin g east to boost tourism, TOI, B, 4/11/01 )

After a series of meetings, Ind i a has expande d i ts 3-point strategy to a 7-point

stra tegy to counter the adverse conditions faced by the tou rism i ndustry and
b uild a rep u tation for ethical trade a nd business p ra ctices.

• Steps would be taken to propagate India a s a safe and secure d estination.

• Step-up marketing i n the Western and Northern world and break new grounds
i n the East and South, p articularly with regard to China, Korea, Japan, Taiwan,
Singapore and Austra l i a .
• Special a tten tion wou ld be given to Domestic Tou rism, p articularly Tourism
Connected w i th Pilgrimage.
• The New Facilitie s and Infrastructure thu s created w ould be used to serve as a
backbone for International Tou rism.
• Strong action w i l l b e taken against those who failed to deal w i th the touts,
beggars a nd cheats.
• Radio taxis will be i ntroduced i n a l l metropol i tan centres that would go a l ong
w a y i n facilita ting tourists to reach their desti nations safely and comfortably.
• Special Tou rists C i rcuits were being w orked out like Ajanta-ElIoraDaula tabad­
F l e p h a n ta-M u mba i, Va ra na s i -Sa rna th-B o d h g a y a -Raj g i r-N a l a n d a -Va i sh a l i ,
Va ishnodevi-Leh-Hemis and Haridwar-Rishikesh-Badrinath-Gangotri-Lap of
Himalayas.

The Indian G overnment has a lso signed a pact w ith China . The two countries
would have direct air-link called 'China-Air Service' for which India has suggested
Shangha i-Mumbai-Sharjah or Beiji ng-Delhi-Sharjah as two a l ternative routes. This
is an effort to explore larger opportunities for Ind ian Tou rism i n the East. ( 7-point
pla n ready to boost tOllrism, BL, 1 7/1 1/01 )

In order to a ccelera te Development of Tou rism Infrastructure the Public Accounts

Committee of Parliament has recommended that fund s be released d i rectly by the
U nion M i ni stry to the imple menting agencies of States to avoid possible diversion
or delays.

Further, the committee has called for the lifting of the mora torium on LTC to
Government employees so as to give a Boost to Domestic Tourism. The Committee,
which submi tted its 26th report on ' Development of Tou rism Infrastructure' to the
P a rl i a ment, h a s a l s o c a l le d for m o n it o r i n g of a l l p r oj ects s a n c t i oned for
Development of Tou rism Infrastructure.

Besides, it has sought rectification of the l oopholes and shortcomings in the

implementation of various scheme s . The schemes a i m at ensuring comfortable
and modera te accommodation to tourists at reasonable rates through construction
of Yatri Niwas, tourist b ungalows a mong others. Under the scheme, the State
Governments had been recei v ing Central Assistance on a cost-sharing b asis.
8
__________
_______ D_?_����R��
The Committee beli eves th a t Tourism Promotion, i nstead of being viewed as a
source of revenue, deserves considera tion a s a tool of N a ti ona l I n tegration,
Employment Genera tion, as a possible means of b uilding global goodw il l and to
d isseminate better understanding of Indi a . (Avoid delays in tourism promotion projects:
PA C, B L, 1 2/1 2/01 )

There is a move t o further decentra lise the issue a n d receipt of passport applica tion
forms through the offices o f Deputy Comm issioners and Superintendents o f Police.
Addressing a n interactive meeting orga nised by the tra v el a nd trade segmen t of
the Federation of K a rna taka Chambers of Commerce and Industry, Mr Bagchi s a i d
p assport application forms a re now issued a n d a ccepted a t 1 8 Speed Post counters
a l l over the Sta te i ncluding three in Bangalore c i ty and hence i t is not necessary
for an appl icant to come to the Regional Passport Office . In add i ti on, the RPO has
two e x tension counters in Mangalore and Gulba rga . Further, the Passport Office
now also has a scheme for on- l i ne registration, b u t this faci l i ty is grossly under­
utilised as only 10 to 15 on-line registrations are made every day.

Mr Swamy, President, FKCCI has requested tha t submission of passports by travel

agents on Wednesdays be a l lowed as is done a l\ over India . (Passport office plans
further decentralisatioll, DH, 1 9/1 2/0 1 )

B20 Tourism Legislation, Rules, Regulations, Acts I' .. ..

'fl,' , '." •

E n try fee to tombs and historical monuments w i l l soon be rational ised i n keeping
w ith demands of tourists and domestic tour operators . The Tourism Ministry is
working o u t a fee package tha t w i l l give discounts to tourists who visit severa l
monuments in the country. The ministry is making a p ackage for one, two and
three days, one week and one month to ra tiona l ise fee s tructure . Concessions such
as free entry for students and for those below age of 14 w i l l be given. The en try
fee was raised from Rs 2-4 to Rs 5-10 for d omestic tourists and $5-10 for those
from abroa d . ( Tollrist-friendly ell try fee to mO/IU/1lCllts, IE, 1 4/ 2/0 1 )

B30 Indian Tourism Development Corporation '• • ., , .

Amitabh Kant has been brought by the centre i n to the Uni on Tourism Ministry as
joint secretary and chairman-managing d i rector of the ITDC (Amitabh Kant appointed
new CMD-ITDC, Girish Rao, ET, 2 7/7/0 1 )

Disinvestment
Government has received 1 75 applica tions from various bidders for the first tranche
of disinvestment in eight major hotels owned by ITD C . In December 2000, the
Government invi ted EoI for ITDC's hotel cha in, Ashok G roup of Hotels located in
Delhi and Bangalore, for operating on a l ong-term structured contract on a lease­
cum-management basis . G overnment had also i n v i ted b i ds for the sale of Ashok
H o tels p roperties located in Agra, Mad ura i , Man a l i , Bodhgaya, Hassan a n d
Mamallapuram. The Disinvestmen t Commission h a d recommended divestment of
up to 74 per cen t of ITDC's equ i ty i n the current fiscal by leasing out hotels,
demerger of ITDC hotels in small towns and spinning them into separate companies
before the sell-off. (ITDC divestl/lent: 1 75 bids received, DH, 1 6/2/0 1 ) .

W i th t h e c o m p l etion o f m o s t o f t h e form a l i ties f o r t h e f i r s t tranche, t h e

G o v e r n m e n t h a s g o n e a he a d a n d i n v i te d b i d s f o r the s e c o n d r o u n d o f
disinvestments i n ITDC p roperties. The p roperties for which the bids a re invited
would be e i ther sold or leased on a long- te r m . (Bids invited for secolld round
divestment ill ITDC, BL, 9/2/0 1 )
9
____
____
____

�DO_��R?�
The G o v e r n m e n t h a s a p p o i n t e d Laz a rd I n d i a a s a d v i so r s to the Fede ral
G overn men t on the sale. Bidders a re requ ired to have a net worth in the range of
1 20 m i llion rupees to one billion r u pees depend ing on the hotel p roperty. ITDC
operates six l uxury, 15 budget and five com fort category hotels across India and
plans to priva tise a ll 26 hotels in phases . (More hotels on the block, TOJ. M, 1 7 /2/0 1 )

One the ont! hand the Government i s i n ful l swing w i th the proceeding o f the
d isinvestments, while on the other, the A ll-India ITDC Workers Federation (AIIWF)
has been perturbed as 17 hotels have a lready been put up for d isinvestments and
they are yet to receive an i ntimation on what is to become of them post sell-off,
The Federation has a lso a lleged tha t the Government had deliberately kept the
corporation without a full-time head for last three yea rs to devalue a ssets so that
i t can be disposed off cheap. It was during these years only that the corpora tion
has suffered losses . ([TOC union plans to move COllrt against management, FE, 3/3/01 )

The Cabinet Committee o n Disinvestment has decided t o demerge ITDC into a

number of companies, each representing a separate property owned by the Public
Sector Company. The New Entities, a cting a s she l l companies, will then be sold to
bidders individ ually or collectively. A separate reserve price w i l l be set for each
property on sale. The Government has decided to go for an o utright sale of a l l its
properties except the ones in Delhi a n d Bangalore (FE, 6 / 7/01 )

The groundwork for divest nine ITOC properties, belonging to the second tranche,
has started and the sell off process is expected to begin immed i a tely after the
eight properties in the first tranche a re sold in October. The net profi t of ITOC in
2001-02 is estima ted at Rs, 1 4 .28 cr against a net loss of Rs 1 4 . 28-cr d u ring the
previous year. (Second trallche of ITOC sell off gets going, A m iti Sen, 1 2/ 7 /0 1 )

The Disinvestment in ITDC has come under a cloud w i th the National Buildings
Construction Company (NBCC) seeking the Centre's permission for initialising a
w inding up proceedings a g a inst the firm for non-payment of dues , (NBCC seeks
gov t approval for initiating winding up procedures against ITDe, Rajeev Jayaswal,
FE, 5 / 8 / 0 1 )

While a t the same time the board o f ITDC has cleared the management agreements
for three premier properties in New Delhi and Banga lore, These properties would
be handed over to private parties on a long-term structured contract on a lease­
cum-management basis. (ETOC board clears a greem en ts for Bangalorc, Oel/li p roperties,
FE, 29/8/01 )

The Govern ment has initia ted the demerge r process o f ITDC, which is a statu tory
prerequiSite to d ivestment in the Corp ora tion . The Government had a lready
b rought o u t the a d v e rtisement seeking meetings w i th ITOC cred i tors . After
d emerger all the 31 p roperties o f ITOC w i l l become separate entities . Soon a fter
the completion of formali ties for the ITOC demerger, the Government will start
the sale of the first tranche of ITDC hotels . The Tatas-owned Indian Hotels
Company holds 1 0-cent equity in ITOe. The Tatas reported to have given their
consent to the G overnment for the ITOC Privatisa tion . ([TOC demerger process
begins, Ravi Kapoor & A11liti Sen, FE, 1 5 1 1 0 / 0 1 )

The G overnment has fina l i sed transaction d ocuments for the sale o f 1 3 ITOC
properties, HCr and a l so the Privatisation of HZL. The Price Bids for these w i l l be
invited next month. All the properties of HCI except tha t in Srinagar will be
d ivested and the proceeds from these would be p lo u ghed back into A I for
10
stre ng thening India's Inte rn a tional C a rrier. A total of 115 p otential bidders,
including 97 for ITOC have been identified for the 13 properties. (Centre to invite
price bids in November, ITOC, HCI a lld HZL divestment, OH, 24/1 0/01 )

The Union Government has announced a clear time-table and other bidding details
for the first round of Priv a tisation of Eight ITOC properties spread cross the
Coun try in a b id to impart transparency to the Disinvestment Process. According
to the fin ancial biding schedule drawn up by the Government, the p rice bids
would be invited first from November 2 for 6 o f the eight properties belonging to
ITDC's hotel chain . In each of these cases, the G overnment will sell the entire
equity in ITOC aggregating 99.97 per cent being the combined share holding of
the Union G overn ment and Indian Hotels Company Ltd . (Time-table for [TOC
bidders, P MallOj, BL, 1/11/01 )

The G overnment has received a lukewarm response from the bidders to the
d ivestment plan in first trance o f eight p roperties of ITDC . While ITOC's prime
p roperty at Delhi -Hotel Ashok- a nd the one a t Manali received no bids, the
remaining six a ttracted few takers. The p roperties which a re not cleared b y the
Cabinet Committee on Disinvestment (CCO) for want of b i dders or for being
lower than the reserve price will be put up again for bidding when the second
tranche of ITOC properties are p u t tip for sale . (CCO meet today to discuss [PCL,
ITOC disillvestments, B L, 1 3/1 1/01 )

Name of Hotel Buyer Reserve Pri ce Agreed Price Sale/ Lease

(in Cr.) (in Cr.)

Hotel Ashok Bhara t Hotels 3.4 39.41 Lease- 30 years

Bangalore

Hotel Ashok M /S M ohanSingh 3.26 3.93 Sale

Agra

Hotel Ashok Sanghu Chakra 3.64 5.48 Sale

Madurai Pvt Hotels Ltd.

Ashok Bodh Lotus Nikko Hotels 1.67 2.01 Sale

Caya

ITDC Hassan Malnad Hotels 2.19 2.51 Sale

& Resorts
Temple Bay C . R . Thangamaligai 5.18 6.8 Sale
Ashok Beach
Resort,
Mamallapuram

(Hotel AS/10 k in Bangaiore to be leased for 30 years, 1PCL: Govt to sell 51 % sta ke, OH,
1 4/1 1 /0 1 )

The H otel Ashok Employees Union a n d A l l India ITOC Workers' Union (AITUC)
burnt the e ffigies of Prime Minister Atal Behari Vaj p ayee and Tourism Minister
Ananth Kumar in front of Hotel Ashok today in p rotest a ga inst the leasing out o f
the hotel in Bangalore and the outright s a l e of ITDC hotels in the Southern Region
of the Country. The Protesters charged the Government with not c a lling the unions
for negotiations and going ahead with the final ising process. Their repeated appeals
o f looking into their problems, to the Prime Ministe r, Minister for Tourism, Minister
for Disinvestment and Chairman & Managing Director, ITDC, have fallen on dea f
11
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ea rs . The Genera l Secretary of the Hotel Ashok Employees' U n ion Mr G Manjuna th

said thi s was the first C(lse of recen t disinvestments where 100 per cent equity h a d
b e e n handed o v e r t o t h e p r i v a te party. A l s o , uncerta i n ty o f continua nce o f jobs o f
t h e e m ployees looms la rge, a s i t a ppeared that t h e j obs w o u l d b e protected for a
period of one year only, a fter w h ich the b uyer m a y restructure the whole set-up
a nd may give the e mployees an exit o ption . (Unions not involved in talks; employees,
leasi n g alit of Hotel Ashok in Balzgalore, OH, 18/11/01)

A d ivision bench of M ad ras High Court restrained the Centre from proceeding
further w i th i ts proposal to sell its stake in two ITDC hotels in Ta m i l Nad u a s part
of i ts d isinvestments policy. The two hotels Hotel M a d u ra i Ashoka Pvt Ltd .,
M ad ur a i , a n d Temple Bay Ashok Beach Resort at Mamallapuram a re proposed
to be sold to Sangu Cha kra Pri v a te Ltd ., Tiruchi a nd G .R . Tha n gamaligai Private
Ltd, Chenna i, respectively. The j udges issued notice to the Cen tre a n d ITDC among
others . The peti tioners contended that besi des the future of the employees being in
peril, ITDC under the guise o f disinvestments is h anding over hotel properties for
less than the ma rket value. (HC restrains ITOC sell-off in Tamil Nadll, Bt, 21/11/01)

Activities
ITDC is negotia ting w i th A I to supply d u ty free mercha n dise for i n-flight sales.
The corpora tion, w hich is ta rgeting revenues of Rs 115 Cr this fiscal from i ts d u ty
free d i v ision, is also pushing for institutiona l sales to customers l i ke embassies,
diplomatic missions, hotels, etc. ([TOC ill talks witll Al to sell duty free goods, ET, 23/
7/01)

ITDC p l a ns to work to w a rd s i m p ro v i n g the w o r k i n g e n v i ro n m e n t i n the

corporation and diversifying i ts acti vi ties. As p a rt o f the i n i ti a t i v e to a ttract more
business, ITDC plans to send out m ore than 15,000 m a il e rs to v a ri ous chief
executives a n d corpora te to i n form them about fac i l i ti es the h otel chain has to
offer. O fficials i n d i c a ted tha t a mong the a reas, w hich cou l d be looked i nto, is
ITDC p roviding packages to the 22 Heritage Sites spread a c ross the coun try. ([TOC
may diversify to boost business, BL, 31/7/01)

ITDC is p oised for a major recast. Termed a s 'Operation Turnaround', ITDC h a s

chalked o u t stra tegy t o e x p a n d i ts business activi ties i n to consultancy, event
man a gement, r a i l w a y cate ri n g and food p la za business besides bringing major
cha nges i n i ts m arketing a n d human resource acti v i ties . (ITDC in for a major
recas t p l a ns foray i n to cons u l ta ncy, Rajeev Jayaswal, FE, 8 / 8 / 0 1)

As a p a rt of this turna round ITDC has decided to e n te r the Rs 3,000 cr. railway
catering service segment ([TOC to cllter Rs 3000-cr railway cate r ing segment, Tyoti
Muklll & Rajeev Tayaswal, FE, 7/8/01)

It has a lso launched the high-speed b roadband I nternet services using Digi ta l
Subscriber Line (DSL) technology for each of i ts 550 rooms a t Ashoka Hotel,
Delhi. The serv ice w i ll prov ide a d d i tional Fax a n d Line F a c ilities in the rooms
when needed and telephone l ines w i l l rema i n free for i ncoming a n d outgoing
ca l l s . ([TOC lwtel gets lilternet service, BL, 11/8/01)

Loss-ma k i ng ITDC, h i t by foreign bookin g c a ncell ations, a fter terrorist a ttacks

d ur i n g September is turning i n w a rd to m a ke good i ts a d d i tional l osses. The focus,
post-World Trad e Cen tre stri kes is the domestic tourist. ITDC a n d Delhi Tourism
a n d Tra nsporta tion Development Corporation (DFTDC) c a me together i n a pact
w here by DTTDC w i ll promote ITDC's hotel fa cilities and other tourist packages.

12
H i t by the 60% foreign booking cancell a ti ons for October, ITOC is hooking a t
speciaL a ffordable packages from October t o l u re the domestic tourist. There a re
separa te packa ges for s t u d e n ts a n d s e n i o r citizens a n d K ov a l a m Ayu rv e d ic
vaca tions . A p lan, has been "al m ost finalised", for a special railway i n formation
and reserva tion c o unter for confirmed reservations and packages and a l inkage
between d uty-free shop p u rchases and a 25 per cent d isco u n t at ITOC resta u rants.
I n this venture w i th OTTOC, ITOC w i l l offer s pecia l room rates to OTTOC from
October to M a rch . The two s ides hope this ventu re , the first of several, will be
beneficial to both of the m . (JTDC tllntS to domestic tourists to recoup losses, TOI. M,
1 /1 0/01)

ITOC, w hich is looking for n e w a reas o f i n terest, n o w tha t all i t s h o tels h a v e been
lined u p for Disinvestment, is planning to open fast food centres at p etrol pumps
and is working on one such agreement w i th Bharat Petroleum Corporation Limited
(BPCL) . (ITDC plal1s fast food outlets at B PCL petrol pumps, A miti S en, FE, 1 2/10/0 1 )

Adopting a n a ggressive marketing strategy to p romote d uty-free s h ops, ITOC has

red uced p rices o f a n umber o f p roducts sold a t the shops and has asked its
marketing team t o p ropose more p rice cut if requ ired . ITDC has d uty-free-shops
a t Delhi , Mumbai, Chennai, Calcu tta and Thiruvananth a p u ram a i rp orts . I t is also
w orking on opening new shops a t Bangalore, Hyderabad, A hmedabad, C a l ic u t,
Goa a n d Varanasi A irports. The d u ty -free shops ea rned a p rofit of about Rs 90 c r
in 2000-01 a n d Rs 83.5 cr d u ring 1 999-2000. After the d i si n vestments o f all ITDC
h otels, the d u ty-free shops would be the m a i n revenue e a rner for the corp oration.
(ITDC lowers prices to promote du ty-free SllOPS, A miti Sen, FE, 1 6/1 0/01)

T h e U n i o n Tourism M i n i s ter h a s asked ITDC h otels, t o s top C omplimentary

Membership of the Hotel Health C l ubs and Swimming Pools and refuse any oral
requests from Departmen ts for Meals and Parties. I n a dd i ti on , he has also ordered
money t o b e reco v e re d from ITDC o fficers s t a y i n g in h otels w i th o u t a n y
entitlemen t. I f a l l d ues were recove re d ITDC w o u l d be richer by R s 21-cr. (!TDC
told to stop givillg free meals, Challdrika Mago, TOI, D, 6/1 1/0 1 )

ITOC a n d Central Cottag e Industries Corporation l td . (CCIq s i gned a M o U for

mutual collaboration i n the p romotion and sale 'of products and serv ices i n New
Delhi, Bangalore, Chenn a i , Kolkata and M umba i . The MoU will see ccre display
a n d sell i tems a t the Ashok Travels and Tours ( ATT) c o unters at ITDC h o tels, t o
e n a b l e t h e guests to t a k e back I n d i a n s o u v e n i r s . Apart from this, l o c a l sightseeing
tours offered by ATT w i l l terminate a t CCIC emp o r i u ms v a rious c ities . As a
reciprocal a r rangement, ccre will p rovide counter space in ITDC in the lobby o f
C ottage Industries Emporium. With t h i s MoU, tourists w i l l now be a b l e to m a k e
ATT b oo k i ngs through CCIC showroom and also m a ke h o te l reservations thro u gh
a compu terised network. ([TDe, CCIC sig1l MoU for sales promotion, BL, 23/1 1/01)

G iven the u n ce rta inty surrounding the disinvestments o f 26 o f i ts hotels, ITOC i s

trying t o c u t i ts losses, looking t o convert i ts d i v i si on s i n t o busi ness u n i ts a n d
seeking a foothold in new a reas o f business . I t i s going t o State Gov ernments w i th
offers to ta ke up p rojects, trying to get into Event Management, priv a te h otels, i t
i s seeking a toehold i n the construction b usiness, looking a t food plazas o n railway
stations, motels and fast food joints a t p etrol p umps and even j o i n t ventu res in
resta u rants a b roa d .

ACCESS- Ashok Conferences, Conventions, Events and Support Services is a -

new event management g roup which will handle projects ran ging from conferences
13
to weddi n gs on a t urnkey basis. Ashok Reservations and Marketing Division is
t h e new n a m e of i ts m a r k e t i n g and h otel sales d i v i s i o n. T h e c o r p o ra te
communica tions division becomes Ashok Creative while the consultancy and
i n te r na t i o n a l tra d e d i v i s ions a l s o g e t the Ashok b ra n d . The new Ashok
Consultancy and Engineering Division, f o r i nstance, w o u l d l o o k a t the whole
gamut of tourism and consulta ncy p rojects. ([TOC looks towards Ilewer IlOrizolls,
Chandrika Mago, TOl, B, 6/1 2/01)

The ITDC is Contemplating M a n u facturing and Ma rketing of Chocolates under

i ts own B rand name through i ts D u ty -F ree Shops as part o f a strategy to grow
a fter d isinvestments of i ts H otel s . A Concep t Paper for ente ri n g Chocolates
M a n u facturing was being prepared, adding tha t !TDC w o u l d m arket the goodies
under the B rand Name 'Ashok/, a name associa ted w i th the Hotel Chai n . Mr
Lohani said tha t he would seek help of chocol a te experts to e n te r the a rena and
initially ITDC w o u l d seek to capture 25°/" of the business a t the d u ty-free shops.
(After hotels, it's cllOcolates for [TOe, B L, 22/12/01 )

. I
B31 S tate Tourism Development Corporations (TDCs)' " ,

During the y ea r, a n u mber of States have come together to sign MoUs between
themselves. The MoUs generally a d d ress the Promotion o f Tourism between the
Two States.

The MoUs signed a re:

a. Rajasthan and Kama tak a (Rajasthan, Karnataka set to ink MoU to promote
totlrism, FE, 24/7/01 )
b, Rajasthan and Andhra P ra d esh (RTOC to sign MoU with A P tourism board,
B L, 2/1 0/01)
c . Karna ta ka and Delhi (State, Delhi sign MoU 011 tourism, DH, 1 7/11/01)
d . Goa w i th Karnata ka, Kolkata , Delhi, Kerala and Andh ra Pra d esh (Goa and
Karnataka sign MoU to boost tOtlrism, Oevika Sequeira, O H, 8/1 2/01)
e . Karnataka and Kcwla (State, Kemla sign pact on tourism promotion, DH, 1 5/ 1 2/01 )

RTDC is a ls o in tal ks with the d omestic c arrier IC as well as a Foreign Airline to

intr od u ce 'Palace·on·Air': a luxury aircraft that will p ro m o te high-end premi u m
touris m in the state. It hopes to i m plement this plan b y 2003. (RTOC working on
'Palace-an-Air' plan, FE, 25/7/01)

K a rn a ta k a 's heritage si tes a t H a m p i , B a d a m i and Bija p u r m a y soon become

accessible to u pm a rket tourists in Goa th rough a hel icopter service. The GTDC,
which is assum i n g a m o re aggressive role as a facilita to r a n d competitor in the
tourism sector, is seriously negotiating such a proposal in collabora tion w i th the
KSTDC and some travel operators. (Copter rides from Hampi to Goa Ilnder study,
Oevika Seqlleira, DH)

The Delhi Travel & Tou rism Development Corporation has d ecided to utilise the
p roceeds from country liquor sales to provid e i nfrastructure in Delhi . DT&TDC is
working at increasing country l i q u o r sales, as m ore sales w o u l d m ean more
i nfrastructu res. A stra tegy is already in place to m a ke the vending machines m o re
c u stomers friendly. A n d the p roceeds of this would be u ti l ised for improvin g the
lighting, i nc reasing acceSSibility a n d provid i n g d rive-in facilities. (Glamorolls Liquor
Vends On The Anvil Witl! Staff In Bellettoll Uniforms! How would YOIl like you r drink,
sir? Manika Gupta, ET, 23/12/0 1 )

14
---.-------II--II------.�_O_S�R�
B40 Bilateral and Multilateral Agreements of Indian G overnment in Tourism
Panama's Vice-President, Mr Arturo Vallarino, has inv ited Indian Business to make
use o f h i s country 's fav ourable trade, financial and shipping environment a s a
g a teway to N orth and South A merica . The four p acts tha t w e re signed between
the two Govern ments w e re on a g ricultu re, IT, Science & Techn o logy and Tou r ism.
(Panama seeks Illdian iI/vestments, BL, 6/2/0 1 )

India a n d Nepal have agreed to set u p a working g ro u p t o iden tify a reas o f co­
o p e ra ti o n i n To u ri s m , w h i c h m a y i n c l u d e C o m b i n e d To u r i s m C i rc u i ts ,
i n frastructure developments, and Joint Ma rketing o f Tourism Prod ucts. Both the
Coun tries w i l l also sign a Tourism A g reement, w hich would p ro v i de a task force
for imp lementa tion and review p ro g ress once in six months. During the meeting,
held between both the sides i t was decided to form a 'Ruddha Circui t' including
the birth place o f G a utam Buddha i n Nepal and his w o rk places in India, a
'Religious Circui t' including Pashupatinath and Mu ktina th in Nepal and Kashi in
India . An 'Adventure Circui t' was also p roposed in view o f keen interest in
Mountains and Rivers of Both the Countries World over. These c i rcuits will be
jointly m a rketed the world over. (IlIdia, Nepal to set lip a working group 011 tou ris m,
DH, 25/4/01 )

India a n d Bangladesh hav e a greed t o sign a New Visa Agreement. Visa facilities
w e re u pgraded to m a ke people-to-peopl e contacts between the Two C ountries
easier. The main point o f the new visa regime is tha t Single Entry Tou r i st Visa w i l l
be v a l i d up to three mon ths. T h e formali ties f o r extension of Visa on Medical
grounds will be m a d e simpler. Student v isa will be gi ven for the entire period of
study, so that time is not w asted in getting v isa extensions every few months.
Long-te rm M u l tiple Entry Visa for Professionals Investors, Wor k Permi t Holders,
B usinessmen and Research Schola rs . The re will b e p ro visions for flexibility in case
of change of route. (lI ldia and Ballgladesfl liberalise visa rules, TOI. M, 25/5/01 )

The Indian Government, pa rtnering w ith Bangladesh a n d Thailand i s to take u p

n e w initiatives, to promote greate r Traffic of Tou rists between these Countries. The
Thai and Indian Govemments a re l ikely to ink a Formal Agreement in the coming
months. At the same time, tou r packages between India and Bangladesh are a l so
being finalise d . (Fresh impetus to see more tourists to Bangia, Thai, ET, 25/8/01 )

The U S Trade and Development Agency (TDA) see its assistance i n Ind ia growing
i n the a reas o f Env ironmen t and Avia tion . In Environment, one sector that is
likely to see increased activity i s wate r supply and treatment, wastewater trea tment
and desalina tion. In the a v i a tion sector, the TDA is w o rk i n g w ith the A A I on a
communica tion , navigation, s u rveillance a nd a i r traffic management. It will also
look a t a i rport security . ( US assistance for environment, aviation, R BaZaji & N
Ramakrishnall, BL, 25/1 0/01)

15
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COO Tourism Economy and Tourism Infrastructure I• • I • " "

Accord ing to a study conducte d by the Centre for Monitoring Indian Economy
(CMIE), the n umber o f foreign tourists a rriving in India has gone up from 20,26,743
in April -Ja nuary 1 999-2000 to 2 1 ,52,848 in the correspo nding period, 2000-200l .
Forex ea rnings from I nbound Tou rists in the same period have p u shed u p from
$2,443-mn to $271 7-mn. The h igher earnings a re a res u l t of increase in a rrivals
combi ne d w i th the h igher per capita spending o f the tou rists i n general . The
change i n pattern o f s pending can also b e a ttribute d to some new trends in the
composi tion o f tourists. While India still continues to d raw the v as t Majority o f i ts
Tou ri s ts from Europe, the Inflow of Tourists from Europ e seems to h a ve virtually
stagnate d . Significant g rowth in v o l u me o f tourist i n fl o w has b een w itnessed
from Canada. (All's bright on tOllrislIl frollt, Sanjllkta Mitra, ET, 1 3/3/01 )

F o r the first time the balance o f India's Tou r i s m Account m a y soon slip deficit .
There a re broad indica tions o f this from the foreign travel i ncome d a ta generate d
b y t h e Reserve Bank o f India (RBI). The Expenditure on Travel Abroad i n US
dollar terms is g ro w in g much more rapidly than the v a l u e of Tou rism Receipts .
According to the fig u res, d u ring the last decade the Foreign Exchan g e Income
Ea rned the Tra vel Industry is down b y 36 percent to US$897 million (Rs 4,171 cr)
i n 2000 from $ 1 ,408 million ( Rs 6,547 cr) i n 1 99 1 . The last four Budgets have
chosen t o overlook the basic p roblem o f mul tiplicity of taxes, which increases the
Tra vel Cost and Stay for a Tou rist i n India. On an a verage around 3 .7 million
Indians Travel Abroad a gainst Tourist A rrivals of only 2 .68 percent annually. Thus,
the d e ficit is d ue t o the i ncrease in o u tbound travel and slowdown in inbound
travellers. (Hig!l costs mar destination India, Meena Nkhani, ET, 1 5/3/0 1 )

The Parliamentary S tanding Commi ttee on Transport and Tourism has expressed
its v i e w tha t the decision to s uspend Leave Travel Concess i on (LTC) for two years
for Government employees will definitely have a n adverse impact on the Domestic
Tou rism whereas the exchequer may n o t be benefite d since the LTC i n v o l ves only
the transfe r of money from one head to anoth er.

F u rther, the C ommi ttee has recommended tha t to e nc o u ra g e P r i v a te Sector

p articipation in tourism, the Government mll s t try and remove the obstacles faced
b y them a n d ensure early implementation o f the single- window clearance system
for p ri v a te inves tors. It has also apprecia ted the efforts made b y the Governments
of G uj arat, Haryana and Rajasthan, w hich have set u p an a dministrative mechanism
to expedite the clearance of tou rism p rojects. (Quick decision sought on ITDe
divestment, BL, 2 8/4/0 1 )

The Centre h a s extended its austerity drive beyond the Government Sector. I n a n
unprecedented measure, the Finance Ministry has di rected all the Public Sector Banks
to Suspend Leave Fare Concession (LFC) or LTA facility for a Period of Two Years.

Based o n a n average outgo of Rs 1 0,000 per employe e / officer covering nearly two
lakh persons in two years, the banks a re expected to save substantially on the front .
Last month, by w a y o f notification the Government Suspended the Benefit for two
years for LIC and the fou r subsidiaries of GJc. I t has also come into force in RBI.

N o w, i t has been enfo rced in the banking industry. The U n i te d Forum of Bank
Unions (UFBU) representing over 13 l a kh empl oyees and o fficers has p rotested

16
a ga inst the decision .
(Govt directs banks to s llspend LFC facility for two years. Bankmen
up in arms, aCCl/se govt of sabotaging there mut1lal pact with IBA, V Balasubraman ian,
ET, 2816101 )

The Share o f Serv ices in India's total exports has gone up from under 20 per cent
in 1 990-91 to over 29 per cent in 1 999-00. This share i s higher than the global
a ve rage. At $ 1 ,350-bn, commercial services exp orts accounted for about one fifth
of the world's total exports i n 1 999.

RBI d a ta on composition o f serv ices exports show that over one fourth o f the total
income now comes from software servi ces ($4 bn in 1 999-(0 ) . The second la rgest
item is receipts from tra vel services. But travel recei p ts have remained almost
s tagnant at a round $3 b n for the last three y ea rs d ue lower g rowth in Forei gn
Tou r is t Arrival ( i n fact, of la te, the o u tflow on account of Indians travelling
abroad has risen faster) . (A t the world's service, ET, 24151(1)

A report o f the Pacific Asia Travel Association ( PATA) on India's Outbound Tra ffic
elaborates that the Indian outbound travel w ill continue to grow at 6.2 u/,) a y ea r over
the next five y ea rs , a rate maintained over the past decade. The report also states that
the balance on India's Tou rism Account. This is soon going to go into deficit.

Successive d ra ft Tou rism Policies since 1 993 have envisaged 3 m i l l i on tourist

a rrivals by the tu rn o f the century. B u t n o in-depth s tudy is ava ilable with the
MoT to figure out the reasons why this target was not achieved . Some of the
factors stated in the rcport for the tardy growth in tou r ist a rrivals a re:
1 ) Absence o f a Na tional Tou rism Promotion Boa rd recommended a s far back as
1 988 by the National Committee o n Tou rism;
2) Inadequate promotional and marketing measures, particu larly niche marketing
thrusts;
3) Lack o f comprehensive marke t segmen t s urvey s;
4) Inadequate in fra s tructure (incl u d i ng a i r seat capacity, shopping and way side
facilities, roads etc); and
5) Inadequate safety and hy g iene measures and meeting the requ i rements of the
cha nging and demanding tourists.
(Tourism market: A case of unequal exchange, Madllll Suri, 2615101 )

G a u g i n g b y the seriousness o f the H a ry an a State Government t o Woo For eign and

Domestic Tourists, efforts seem to b e moving in the d irection o f opening up a
n u mber of casinos. While the State G overnment is keen to improve its economy
by a ttracting tourists if a nd when casi nos a re legalised . This is also being l ooked
at weaning away the prospective tourists who head for Nepa l .

S l o t mach ines h a v e a l ready been i n t ro d u ced i n G o a . T h e M a d h y a Prad esh

G o v e rnment is a lso considering the i dea to set u p Casinos a t Key Tou rist
Destinations i n Khajuraho, G w a l i o r and Indore c i ties w ith t h e concurrence of the
Hotel and Tou r ism Industry to generate interest and to I ncrease the Stay of
Tourists. The G overnment wante d to permit wagering in h a rd currencies and
expected that casinos would bring in $32 million annually, that Tou rists would
s tay l onger and contrib ute t o the local economy. (Haryana keen to fatten coffers
through casinos, Ra/llIJ Kumar, ET, 2 715101)

T h e Eleventh F i nance Commission h a s a l l ocated Rs 4 5 c r for Development o f

Tou rism i n fras tructure i n M a d h y a Pradesh. T h e a l located fund w o u l d be u s e d t o
develop tourist fac i l i ties a t places s u c h a s Bhedaghat (Jabalpur), Mand la, Maiha r,
17
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C h i trakoot, Satna, Katn i, Bargi a n d Barmangha t . Similar facil ities w i l l also be

d eveloped a t National Parks in the Sta te. The Union Tourism M inistry has also
a g reed to fun d 1 6 new schemes for the Development o f Tou rist Res i d en ti a l Units,
facility of w a ter sports and refurbishmen t of monuments . Among the 1 6 schemes,
the Cha ttisga rh State will implement two of the p rojects. (T<s 45cr for tourism
infrastructure, BL, 1 1/6/01)

Foreign Exchange Regulation Act ( F ERA) has effectively been removed and been
replaced w ith the new Foreign Exchange Management Act (FEMA), 1 999, w hich
c a me i n to e ffect from May 1, 2 00 1 . I n the F o re i g n Excha nge M anagemen t
(Re a l i sa tion, repa triation and su r render of foreign e xchange) Regula tions, 2000,
the exchange that is drawn for travel abroad and the unutilised portion in excess
of the limit u p to w h ich exchange i s permi tted to be retained should be surrendered
to an a utho rised person w ithin 90 d a y s from the d ate o f return, of the traveller to
India, if the u nspent e xchange is in the form of currency n o tes, and w ithin 180
days, if i n the form of TCs. (FEMA will facilitalt' organised develop illent of forex
market', BL, 1 6/6/01)

According to a study conducted by the WTTC and Oxford Economic Forecasting,

'To u rism Accounting Satellite Research' the Indian tra veller together is consuming
l e i sure a nd business p rod ucts and services to the tune of $16.3 billion . A figure
that is e s tima ted to grow to some $51 b i l l i on by 2 0 1 1 . This w o u l d imply an annual
rise o f 9.7 per cent b y w a y o f rea l growth, m a ki n g Indians the fastest growing
travel spenders in the w hole world . Spends on this cou n t b y the Chinese would
grow by 8 .5 per cent annually, giving them fifth p o s i tion i n WTTe'S global
standing s . The Thais would grow a 5.5% and the Singa po reans at 4.8 percent.

This w ill take the per cap i ta spending by Indians i n Tou rism Prod ucts a nd Services
from $4.6 (in 2000) to more than $5 .75 by 2011 . (Traveller No 1 : Indians top global
listing, BOttOllllillc: Indians are tlte fastest growing travel spenders, Rohit Bansal, FE,
20/7/01)

The Research Report Ranks I ndia 1 53rd in a sample of 160 in terms of relative
Governmental Funding i n Travel and Tourism. India also fal l s short o f the average
r e l a t i ve s p en d i n g of the c o u ntries l i k e C h i n a , S i n g a po re, M a la y s i a , M a l es,
Indonesia, Nepal and Egypt. The study pegs China's spend in g 6,2 2 8 million for
200 1 , w h ich is 1 0 times Ind i a ' s current spending ($599 - m n ) . (Govt spending on
tourism inadequate, says survey, Sanjllkta Misilra, ET, 3/10/01)

U ni on Ministry is expectin g the Hospita lity Industry to a dd 25 million jobs and a

w hopping Rs 60000-cr wealth by the end of the Tenth Plan . The M i nistry w il l also
come o u t w i th short, med i u m and l ong-term policy frameworks for the industry
to achieve this target; While the long- term policy w ou l d reckon w i th a ddressing
issues concerning the sectors l i ke a i rl i n e capacity, i nfrastructure requirements,
c a p i ta l i n fl ow, etc the m e d i u m and short term p o l icies w o u l d be a i med at
real i stically assessing the va rious needs of the sector and implementing guidelines .
(Govt targets R s 60000-cr. RevCllue from tourism sector by 1 01/' plan, FE, 15/9/01)

The Indian Tourism Industry is reeling under the I mpact of the Recent Terrorist
A ttacks o n the US and the subsequent uncertainty created i n Sou th and Central
Asia. Based on the travel and tourism i n d u stry's calcul a ti o n o f abou t 70 per cen t
bookings by in-bound foreign tourists in the forthcoming peak season have been
cancelled . A s u rvey cond ucted by FICCI estimate s the l oss to translate to a round
Rs 4,OOO-cr. The study also shows the foreign exchange earnings target i f Rs 15,922-

18
cr from Tou rism set for the year 200 1 -02 would be missed by a ma rgin of 30 per
cent. (Tou rism industry may s uffer Rs 4000-cr loss, ET, 1 3/1 0/01 )

Persons going a b roa d on private travel o r tours now need not get the endorsement
of FE dealers on their passport for the exchange released . Till n ow i s was mandatory
for a u thorised dea lers to endorse on the traveller's p a ssport the foreign exchange
relea sed for travel a n d tourism. The RBI sent out a statement mentioning that the
b a sis o f this declaration g i ven by the traveller regard i n g the amount o f FE a vailed
d u ri n g the year, a uthorised dealers m a y release exchange for travel a n d private
p urposes. (Travellers' forex procedure eased, BL, 25/1 1/01)

Tourism I nfrastructure
The Utta r Pra d esh G overnment h a s p re p a re d an Rs 1 020-cr scheme for the
Development of Tou rism Infrastructure in the B u d d h is t C ircuit tha t w i l l be funded
a n d implemented by the Jap a n Bank o f Intern a tiona l Co-operati o n . (Rs 1 020-cr
scheme for tourislIl, BL, 20/9/01 , B31/COO)

I '"
COl Tourism Sector Budgets SOl • I , • "' ''' I ' n

B u d ge ta r y a l l oca tion for the Tou rism Industry h a s b een fixed a t Rs 1 55-cr for the
next fin ancia l yea r, up from Rs 1 35-cr a ll otted in the current fisca l . According to
s o u rces, a llocation for the itl dustry was e a rlier fixed at R s I SO-cr. The forthcoming
B u d get for the first time might h a ve a s ep a r a te p a r agraph, w hich would be
dedic a te d to the tourism i nd u stry. The Tourism Ministry was also looking forward
to the sanctioning o f several n e w schemes d esign e d b y i t to Promote Tou rism.
(To urism outlay at Rs IS5-cr, FE, 1 3/2/01 )

Planning Commission Deputy Chairperson K . C . Pant i s learnt t o h a ve cleared the

releas e of Rs S l -cr in p l a n funds for overseas tourism m arketing, over-riding a SO
per cent cut decision by a commission worried about the way these funds were
being used.

The d ecision comes from Union Tou rism Minister Jagmohan req u esting Mr Pant's
i n te rve n ti o n , p r o m i s i n g a fresh l oo k a t the overse a s m a r ke t i n g e ff o r t a n d
restructuring e xercise b y Ma rch 3 1 .

A t the G overnment Level, the Tou rism Dep a r tment's 1 8 overse a s o ffices were
getting Rs SI -cr a year for the first four years of the N inth P l a n . This yea r, i t w a s
red uced to Rs 25-cr, t h e Commission fee ling t h e n e e d f o r a relook a t these o ffices .
T h e issue, it seems, could not be resolved a t t h e b u reaucratic leve l . S o , Mr Jagmohan
December 19 letter to Mr P ant, making esse n ti a l l y fou r p oints for restoration .
One, r upee-d o l l a r p a rity h a s become u n fa vourable , so actual remittances h ave
gone d ow n greatl y. Two, activity h a s come to a "ne a r standstill" a t a time when
competitors l i ke M a l a ys i a and Singa pore h a ve stepped up p romotiona l efforts to
fill the post-September 1 1 vacuu m . Three, it's too l ate i n the yea r to cut funds.
L a stly, M r Jagmoha n spelt o u t h i s p l a n s to establish brand equi ty based o n the
countr y's civilisation and culture . (Rs 51 -cr allotted for tourism, Chillldrika Mago,
TOl, M, 29/1 2/0 1 )

.11
C 0 2 Foreign Investment i n Tourism Sector '" ., " 0, ; ., I , '. J

The UK-ba se d Forte Group of H o tels h a s o u tlined p l a n s to i ntro duce its leading
budget hotel Brand Travelodge i n Indi a . The g roup plans to have 75 Travel odge
by way of Joint Venture over a three·year perio d . India will be the only market
outside UK to have Travelodges hotel b ra n d . The Forte group w i l l a ls o be the
First Foreign Hotel chain to have a presence through foreign d i rect investment
19
(FDI) in the country. (Forte pla1!s to opell 75 Travelodges in India, Meena Nichan i,
29/1/01)

Actual i n fl o w of FDI into Ind i a rose to about $4.5 billion d u ring the year 2000 as
a gainst $4 billion in 1 999, a rise of 1 4 .67 p e r cent. Fuels, Telecommunications,
Electrical Equ ipmen t, Compu te r Softw a re and Electronics, Transportation Industry
Service Sector Meta l l urgical Industry, Chemicals, Food Processing Industries and
Hotel and Tou rism are among the sectors in w hich FDI approvals were p rovided .
(FDI i1!flOW lip 1 5 per cent i1! 2000, DH, 1 7/2/01)

A fter Hilton's much talked about tie up with Sanjay Khan's Golden Palms Spa, it i s
the turn o f Singapore based Banyan Tree Hotels & Resorts t o tap the Bangalore
recreation and Health Market by Joining Hands with Leading Developer Prestige
Group for Rs 27 cr spa in the outskirts of the Garden C ity. (S'pore co, Prestige plan spa
in Bangaiorc, Girish Rao, ET, 1 7/2/01)

The Group apart from opening up a spa in Bangalore is also planning to open a slew
of spa cum resorts across the Country over the next 2-3 years. I t is in the process of
signing u p a property in Delhi. It is also planning to develop one in the golden
triangle Qaipur-Agra-Delhi) region. Further, it has bagged the contract to d o up a l l
s p a s for the Oberoi Group in India . (Banyan Trec Holds to OpCl! resorts ill India in 3,
Anllbha Ghosh, FE, 7/4/01 )

Efforts a re o n to restore the Gardens o f Humayun's tomb and the associated water
systems a s they original were. For this p urpose, the A rchaeological Survey o f India
(ASI) has entered into collaboration with Geneva-based Aga Khan Trust for C ulture
(AKTC) under the aegis of the National C u l tu re Fund . This is the first time ever
that the ASI has entered into a collaboration with a private organisation for the
'environmental development' of one of its protected monuments. The A KTC has
pledged hal f a -million dollars towards the project. (ASI ties lip with Geneva-based
firm to restore gardens of Humayun' s tomb, Saurabh Sinlza, TOl, M, 24/2/01 )

Berjaya G ro u p of Malaysia has chal ke d o u t plans to enter the time-share holiday

business i n Indi a w i th an investmen t o f Rs 70.5 cr. The 7 .7-b illion Berjaya group i s
a Malaysian conglomera te with interest i n hospita l i ty, construction and recreation.
According to p la n s drawn up by the company, Berjaya proposes to own, acquire,
build, construct, take on l ea se , franchise, mainta i n and operate hote l s and resorts
and provide holiday accommodation. I t would also act as Management Consultants
and Advisers to Hotels, Resorts and Restau rants.

The Proposed Ven ture would b e 1 00 per cent owned by the B e rjaya g ro u p, w i th
Berjaya Vaca tio n Club Cayman holding 90 p e r cent stake . Berjaya Vacation Club
B e rhad, Malaysia would hold the balance 10 per cent. The Foreign Investment
Promoti on Board (FIPB) has a l ready cleared the proposal. (Berjaya eyes entry into
timeshare holiday biz, Tina Edwin, ET, 1 2/4/0V

The Union Cabinet took a Maj or decision by increasing Foreign Investment Limits
in the Banking Sector as well as the Pharmaceutical, Telecom, Civil Aviation and
Real Estate. The Cabinet decided to further liberal i se the FDI p o l icy for the Drugs
and Pharmaceu ticals, Telecom, Banking, Civil Aviation, Hotel and Tou rism, Courier
Service and New Township Development Sectors.

The Important decisions on disinvestments take today by the Union Cabinet include:
• FDI limit i n telecom rose to 74 per cent from 49.

• 1 00 per cent FDI in mass rapid transport system in metro s .

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• 1 00 p e r cent FDI in courier serv ices, hotels a n d tourism, development o f

townsh ips, a irports, p harmaceuticals.
( 1 00 Pc. FDl for Airport Projects, Defence sector opened up for private participation,
FDl, TH, 1 0/5/0 1 )

In a b i d to exploit the Tou rism Potential in the State, the Un ion G o vernment
a pproved i ts first 100 per cent foreign equity i n Agasthya Resorts and Tou rs
Private Ltd (ARTP), engaged in Promoting Tou r i s m . The M in ister for Commerce
and Industry, Mr M urasoli M a ran, cleared the ARTP's p roposal for Hiking Foreign
Equity to 100 per cent from the existing 99 per cen t at Rs 1 cr. Va rious other H otel
C hains were assured o f increased investments. ( 1 00 pc FDJ for Agastllya Resorts,
Bt, 21/6/01 )

Indian Hotels Company Ltd. (IHCL) has initiated talks w i th the Singapore A irport
Terminal Services (SATS) to form a Joint Venture fo r handling Hospitality A i r
Catering Business f o r A irlines. (Tata-SJA joint venture in a ir-catering, TH, 1 9/7/01 )

The Central Government has cleared 2 9 FDI proposals w orth R s 1 35-cr main ly i n
t h e a reas o f electrical, engineering, tou rism and merchant bankin g . The proposal
a pproved b y the Government in the Tou rism A rea was for Development o f Leisure
and A mu sement I n du stry w ith 1 00'X, FDI to a tune of R s 1 4.10-cr b y Mohammed
Al Otaiba G ro u p Est o f Abu Dhabi . (Govt clears 29 FDJ proposals worth RS 1 35-cr,
DH, 22/8/0 1 )

International Trav e l H ouse, which h a s acquired the exclusive franchise for No rth
India from the US-based Gray Line, is to launch Gray Line Luxury Coach operations
in India . They would at a later d a te look a t extending the service to other Key
Tou rism C i rcuits incl uding using Bangalore and M u mbai as a hub to launch tours
in South and Western I n d ia respectively. (lTH gets Gray Line franchise, Ashwini
Plladnis, Bt, 1 0/9/0 1 )

T h e Government h a s clea red 33 Foreign D i rect I nvestment (FDI) p ro p osals worth

Rs 380 Cr. The Majo r Investment Proposals, cleared b y Commerce and I ndustr y
Minister M u rasoli M a ra n perta i n to engineering industry, software development,
machine tools, e lectrical and electronics components, tourism, lea ther, footwear
and consultancy. With rela tion to the Tourism Industry the proposal put forth by
the British Travel and Tou r Major Thomas C o ok Oversea s Ltd s proposal o f
increasing stake i n its I n d i a n subsi d i a ry b y 2 0 per cent t o 60 percent . This w i l l
result in R s 1 0 5 .3 1 -cr a s F D I inflow a n d t h e p a rent has a l ready l a unched an open
o ffer for the public sha reholders of the Indian subsi d i a ry to increase its stak e ,
(Govt clears 33 FDf proposals, DH, 20/1 0/0 1 )

A total o f 1 3 projects involving I nvestments w orth a ro u n d R s 29,OOO-cr have been

e i ther stalled or deferred during the first seven months of the current financial
year. Chateau I n ternational Inn Private Ltd's ambitious Rs 1 ,445-cr Floating Hotel
(Folatel) P roject i n M u mb a i has been cancelled following opposition from the
local fishermen and death of the main promoter. (Projects worth Rs 28,921 -cr
postponed, Bt, 22/1 1/01, C1 1 /COl ) .

Notwithstanding the c urrent slowdown i n the d omestic scenario, g lobal hotel

chain Best Western I n te rna tional Inc plans to a lmost double i ts existing p resence
in the country to 30 hotels 2004.

They plan to w or k through franchisees where it extend s the Brand Name to a

Hotel in lieu o f license fees rather than manage it. The chain w hich w as launched
21
in India in 1 993, would also a d d nine Hotels in other South Asian countries like
Bangladesh, N epal, Sri Lanka and Maldives and the Middle Eas t to the present
six in next few years.

Various Innovative Schemes would be introduced to a ttract customers l i ke frequent

h o tels p ro g ra mme, tying u p w ith consortiu m of Travel Agents and Corporate. It
has i dentified Goa, Pune, Banga lore, J a i p u r, Delh i , Allahabad and other ci ties as
i ts upcoming locations. (Best Western plans 30 hotels by 2004, FE, 1 8/12/01)

T h e G overnment has w i thdrawn the order suspending LTC in p u b l i c sector banks

for a period of two years (LTC sllspension for bank staff withdrawn, Sarbajeet K Sen,
BL, 6/8/01 )

The Centre has decided to permit the PSI companies to exercise the i r d i scretion i n
permitting the empl oyees in ava i l in g the mselves o f the LTA facility. The decision
comes a t a point when the PSU insurance companies' contending tha t the centre's
d i rective was appl icable only to its Own Departments and not to the Public Sector
Enterprises . (lnsura llce cos can decide 011 LTA B L, 2 7/8/0 1 )

C03 Tourism Finance ... ., • .... . . . . .11 ..�..,.. ",

Tata Finance Ltd (TFL) is p l anning to foray i n to the Travel Segment w i th the
l a u nch of i ts travel services. Bringing under its p u rview both inbound and
o u tbound travel, the subsid iary would cover over 75 l ocations in the next 24
m on th s . The company was a lso interested in opening o u tlets a t the Nationalised
Banks to see i t a s a n opportun i ty to clear travel-related currency as both private
and p ublic sector banks were l a rgely interested in foreign c u rrency that was trade­
rel a te d a n d n o t travel-relate d . (Tata Fi1lance plans foray into travel, BL, 1 7/1/01)

T h e Government has decided t o create a Tourism Development Fund i n association

with the private sector. All contributions to the Tourism Development Fund would
have 100 percent tax exemption. The Fund would be set up on the lines of the National
C ulture Fund, and would have a corpus of around 5 cr. the rest of the money would be
mobilised from private sector. A massive networking programme aimed at linking up
the tourism destinations, hotels and airports across the country had also been carried
out. (Tourism ftmd to protect monuments proposed, BL, 1 6/12/01)

Transport .1 if • ' • .e"'" i. ."t"" """ ill •• J m _ ••• "

C21 Road Transport

The NHAI h a s s igned contracts for Four-Laning the H ighways a n d some of the
stretches h a ve even been completed . However, a major p a rt of the NHDP w il l be
a warded for Construction b y June 200 1 . The NHDP Comprises C onstruction of
5,952 k m o f National H i ghways on the Golden Quadrilateral Connecting the High­
Density Metro Corridor o f Delhi, M u mbai, C alcutta and Chennai and 7,300 km o f
North-South a n d East-West Corridor Kash m i r with Kanyakumari a n d Silchar w i th
S a u r as h tr a by December 2 009. To fac i l i ta t e this task, the N H A I board w a s
restructured by involving t h e Secretar y ( t h e M in i s try o f Road Transport a n d
H i g h w a y s ) , the Director-Gen e r a l . (Road Deve l o p ment) i n the M i n i s tr y, a n d
Secretary, Planning Commission, as full-time members . They will s up plement the
fi ve full-tim e members of the N H A I . I t would be pertinent to note here tha t the
Private Sector has, showed l i ttle keenness in the Development of Highwa ys through
Build-Operate-Tra nsfe r ( BOT) Meth o d . This is not s urprising considering that the
Centre expects only a modest 15- 20 percent o f the total funds requi re d for highway
development to come from the private sector. (Na tional Highway Development Project,
Not a distan t dream IIOW, P. Malloj, Bt, 1/1/01 )
22
The Uttar Pradesh Government is scouting for a joint venture pa rtner for the
$350-mil li on Taj Expresswa y tha t will connect New Delhi w ith A g ra . The Uttar
Pradesh G overnme n t, through a special p u rp ose vehicle - Taj Expressway
A u th ority would hold 26 per cen t equity in the b uild-operate-transfer (BOT)
vent u re while 74 percen t would be offered to the j oint venture p artner. The Joint
Ven tu re Pa rtner would be responsible for the Development o f a Deta i led Project
Report (DPR), arrangement o f finances, as well as Construction and Operation o f
the Six-Lane Super Expressw a y between t h e National C a p i ta l a n d A g r a . The
proposed Expressw a y would be of about 1 60 km length and w ou l d considerably
shorten the d is tance between New Delhi and A g ra, thereby red ucing the travelling
time to about 1 00 min utes. (UP seeking partner for Taj expressway, BL, 24/5/0 1 )

T h e Aga rtala-D h a k a b u s service i s set f o r a t r i a l r u n, w i th t h e B angl a d es h

Government givi n g its clearance. The trial r u n i s to b e held o n 1 2th July. (Agartala­
Dhaka bus link soon, BL, 2/7/0 1 )

With a View t o improve connectivity between t h e ports a n d the h i n terland, the

Government of India has entrusted the NHAI w ith the task of linking the Highway
Network o f the Golden quadrilateral to 12 Major Ports. The Project Cost is estimated
to be around Rs 1 ,600 cr. The Projects also include u pgrading the roads connecting
these ports to the nearest main road Network to Four Lanes . The Major Ports to
benefit from the hinterland connectivity a re Kandla, Mormugao, Mumbai, JNPT,
New M a ngalore, Kochi, Tuticorin, Chennai, Visakhapatnam, Pa radip, Haldia and
Kolkata. (NHAI to crank lip port connectivity, Sumeet Mehta, ET, 1 2/1 2/0 1 )

C 2 2 Water Transport , , .. , l!il . of'. 'Ii. « .',1)1* . , . ..__ " .11 '" u"

The Chennai-based Shipping a n d C ruising Company, Seaways Maritime Pvt Ltd .

is planning to open two floatels in India. For this, it w i ll form a Joint Venture w ith
the Canada-based I n ternational Hospita l i ty Inc (IHI) a global player i n passenger
shipping industry. IHI is part of the US Mari time Capita l G roup, w hich i s a financial
a dvisory firm specialising in the p a ssenger shipping i n d ustry. The Operations in
India w il l inclu d e RIRO (roll-in a n d rol l-out w ith y o u r car s / trucks) passenger
vessels along the Indian Coastline besides l u xu r y cruise-liners operating cruises
to locations in the Indian Ocean, Africa, Australia and South-East-Asia. These
incl ude South Africa, Kenya, Dubai, M a uritius, Seyche lles, Singapore and Gold
Coast. (Seaways Maritime p lans to open two floatels in Ind ia, Padmaja Shastri,
FE, 1 6 / 4 / 0 1 )

G l ob a l M aritime Conglomerate, P & O have mooted a cruise d ivision- Princess

C r uises in India i n its attempt to garner a share of the fast-growing domestic
L ux u ry C ru i se Segment. The Promotional Expendi tu r e i ncu rred by the company
for creating Cru ise Awareness in I n d ia i s ranked next only to Japan . The Cruise
Wing would b e part o f P&O Travel India e s tablished i n 1 995- a joint ventu re
between P&O Travel of the UK a n d The Great Eastern Shipping w i th a 75 percent
and 25 percent equity stake respectively. The company offers more than 1 50
i tineraries ranging from seven to 72 days, calling on more than 230 ports a round
the worl d . (P&O floats cruise division in India, Kailash Rajwadkar, FE, 20/4/01 )

The R s 60-Cr C r uise Bu siness, which caters t o the top-end leisure travel segment
comprising o f Chief Executives and Top Management Executives, i s poised for a
100 per cen t growth this year. An Industry Overview p repa red by R oyal Caribbean
C ruise expects the n umber of passengers to increase from 30,000 last year to
50,000-60,000 this year. Tou r operators selling C r uise Packages attribute the growth
to the novelty of the product and renewed interest o f corporate and senior company
23
__
__
__
__
__
__ �D_?�
execu tives i n venturing o u t o n a long, quiet vaca ti on w ith their families. Some o f
t h e regu l a r cruise l i ne rs operating i n India i n c l u d e Star Cruise, C a n a r d , Princess
Cruise a n d three l i ners offered by Cox & Ki ngs, First Choice, a n d Gold e n Sunand
Carnival Cruise . (CEOs cock a sHook at recession cruise into tranqu illity, tile Rs 60-cr
cruise business, catering to corporate chiefs, is poised for 1 00% growth, Rajeev layaswal
& Rupali Mukherjee, FE, 26/5/0 1 )

Star Cruises, the leading cruis e liner in Asia Pacific, p l a n s t o target Kera la a s one
o f its prime markets i n the Country since the n umber o f o u tbound tou rists from
the state is o n the rise. As part o f i ts awareness ini tiatives o n cruising, the company
is o rganising sem inars and w o rkshops in association with the Singapore Tou rism
Boa rd a n d Silk A i r for its agents i n Kochi a n d Thiruvanth ap u r a m . (Star Cruises
targets Kernla, Bt, 2 1/9/0 1 )

B uoy e d b y the recent l i fting o f econo m ic sanctions b y the U S a d m inistration, the

Union Government i s set to s tart negotiations w i th m u l tilate ra l agencies such as
the World Bank for securing loans w orth about $850-mn fo r the inland water
transport sector. The Fund L i ne for Waterways is:
Inland Waterwa y s A u thority o f India has submitted p roject reports for m ulti­
l a teral fun d i n g .
These could be u s e d t o create i n frastr ucture, w hich w i l l l u re private investments
i n to the sector.
Inland Water Tra nsport Development Council has endorsed the main points o f
1 0 th P l a n g ro u p recommenda tion s . (fund-raising bid for illland waterways, P Manoj,
BL, 7/10/01)

C23 Railways , .. it ' . ! .r ""'., ...-_ . , "j ,. ":f , ...

I n a b id to cater to the needs o f the regular passengers w h o are forced to make

u rgent j ou rneys, the Konkan Rai l w a y s has i ntrod u ce d the 'Gold Card' scheme,
w hich enables the p a ssenger to get a confi rmed accommoda tion i n 3-tie r AC even
a t the last moment without prior p u rchase o f ticket. (Konkan rly launched 'gold
card', IE, 7/3/01)

I n i ts innovative p l a n to p rovide online tra in a n d freight b ooking, t h e Railway s

h a v e tied up w ith P u njab Nationa l Bank (PNB) . The project w i l l be r u n on a pilot
basis in Del h i . If successful i t w i l l then open Internet bookin gs in 20 majo r cities,
w hich would accou n t for over 75 per cent of l o ng-dis tance passenger reserv a tions.
The p roject e n visages facilitating ticketing through b ra nches o f P N B, I n ternet
ticketing and also through ATMs of the bank - both for passenger a n d freight.
The Indian Railwa y Catering a n d Tou rism Corporation ( I RCTC) will be i nvolved
i n this project. They would essential l y tap the market and enable easier facilita tion
o f o n l ine bookings a n d delivery o f tickets . (Rlys to take OTC ticketing, freight booking
onliHe, Samik Dasgupta & I Padmapriya, fE, 5/5/01 )

Indian Railway Catering a n d Tou rism Corporatio n ( IRCTC) will soon take over
the catering services for the entire Railway s, for wh ich it is in talks with several
domestic and i n terna tional food chains and catering gro u p s . The taking over o f
the catering services o f the I n d i a n R a i l w ay s i nvolve s absorb i n g 7,000 d i rect
employ ees and almost 3,000 commissioned vendors operating in trains or a t stations
a n d training many of them . The Railways, w h ich a lready has food outlets a t 3,1 52
o f 7,300 stations, is a ls o planning to set u p m u l ticuisine food p la zas at the stations
for which IReTC is in ta l ks w i th McDonalds, Niru la, Halid iram, Oriental Cuisine
a n d many o thers . ([RCTC to take up railway catering, BL, 30/1 1/0 1 )

24
--
, v ________'_
. 1
DOC UMENJAlla�
--.'-l�� QRn
C23a Luxury Trains ... I. , ••. "�.," " .,

The Indian Ra i lway has i n d i ca te d i ts w i l l i n gn ess to co-operate w i th State Level

Organisa tions to til ke up p rojects in the Tourism Sector in Keral a . The J o i n t
Pa rticipation o f sta te Governments and t h e Central G o v e rn m e n t through a Rail
In frastructure Corporation will not only help in accelera t i n g Railway Development
but also benefit the State i n pinpointing their priori ty i n execu ting the p rojects.
(Rys offers to aid Kerala tourism, S Sa 1II1 11 dakll 111a r, 3/1/0 1 )

F u r th e r t o thei r collabora t i on w i th the I n d i a n Ra i lways the Kera l a Tou rism

Dep a rtment has a l ready p roposed f i ve special r a i l - to u r packages to the Board .
The Project env isa ges a continuous link o f backwa ters a n d connecting rivers, along
w i th a rtificial c,) n a l s . T h e p l a n w a s t o go in for a n i nt e r n a t i o n a l b i d for
i m plementing the project a n d the State Government expected the Centre to support
i t financial ly. The new packages a i med at exploiting the ra i l connect i v i ty to the
State, espec i a ll y through the K o n kan R a i l w a y network. (Kemla plans rail-tour
packages, BL, 1 4/1/( 1 )

Ma harastra h a s a lso been i n ta lks w i th the I n d i a n Ra ilways t o s ta rt as t ra i n on the

l in es o f the Pa bce on Wheels . A memorandum of understa n d i n g (MOU) has been
s ig n ed between the Ra i lways and Maharastra Government u n d e r which the
Railways would run the train and STDC would m a i nta i n the serv ices o n board .
The l u x u ry tra i n should be ready to ta ke o ff on i ts b y October 2002. The broad
gauge train, conSisting of 21 coaches and a d iesel l ocomotive, w i l l cover Mumbai,
Ratnagiri, Sinshudurg, Goa, Pune and A ur a n gabad i n seven days. (Maharastra
Palace on wheels SOOl1, TOI, M, 1 7/2/01 >

West Bengal is the third S ta te on l ist that is p l a n n i n g to star t a Luxury Tra i n on the
l i n es o f the Palace on Wheels. The route would be to cover places connected w i th
Budd h ism . The Government has chalked o u t a n Rs 475-cr-tourism maste r plan for
the p ur p ose . T h e y a l s o p l a n to t a k e up w i th t h e R a i l w a y s M i n i s t r y t h e
modernisation o f the toy-tra i n between Siliguri a n d Da rjeelin g . (Palace-on-wheels
for Bengal, DH, 29/5/(1)

T h e Railways have also a greed i n princ iple with t h e Karnata ka Sta te Tourism
Development Corporation (KSTDC) to opera te the Palace-on-Wheels in the S ta te .
This Project would most p robabl y b e opera tional w i th i n the n e x t t w o years . I t
w o u l d l in k tourist destinations i n North Karna taka such as Hampi, Badami, A ihole
and Pattad akallu, the coastal districts, Belur, Halebeed u , Shrav a nabelagola and
Mysore. The special t ra i n w o u l d sta r t i ts j ou r n ey from B a n ga lore to North
Karnataka i n i ts first leg. The second leg would b e from North K a rna taka to
coastal d i s tricts to enable tou rists to visit beaches, pilgrim cen tres a n d exotic spots
i n the Western Ghats . The third leg would be from M a n ga l o re to Hassan from
w here tourists would be taken t o Belur, Halebeedu and Sha ravanabelagola and
the final lap would be from Hassan to Mysore . (Palace-on-Wheels to be operated in
S tate in two years, TH, 3 1 /5/0)

The CBI carried o u t a ra i d on the first tour o f the season o f the Palace-on-Wheels.
The operation termed as 'Flying Checki ng' was t o c heck for passengers w ithout
proper t ickets o r perm ission t o tra vel . The check was carried o u t in a d e ta i le d
m a nn e r. T h e cm found a n u mber of passenger induding G o vernment Officials
a n d Journa l ists w i thout tickets, causing a loss o f nearly Rs 80-lakhs to the Railways.
(Nothing U llllSlWI about free ride 01/ 'Palacc-olJ- Wheels', DH, l 1 /9/0 J )

25
The " freeloaders," who were on the Palace-on-Wheels i n Septembe r, w hen i t was
raided b y the CBI a t J od hp u r, were "guests" o f the RTOC, cl aimed m i n ister o f
tourism Blna K a k . Accord ing t o a decis i o n taken b y the RTOC b oa rd , o n every
trip select m e d i a persons and two others could travel . Th i s i s the a rrangement
for a normal tour and such persons a re i n v i te d by the RTO C . But for a "cam
tour" w hich is a Promotiona l Exercise, there a re n o restrictions on the n umber o f
g uests . She s a i d the tra i n w a s ca rrying g u ests o n ' "cam tour" when i t was
raided . No d ep a rtmenta l i n q u i ry w a s con d u cted fol l o w i n g the C B I raid. A l s o, as
the C B I w a s p robi n g the m atter, the Sta te Government con d ucted n o sepa rate
i n qu iry. The State Government is a wa i t i n g the report o f the C BI and it w o u l d
i n i ti a te a c ti o n only a f ter that. (Freeloaders 0 11 the Palace-on-Wheels were RTDC
guests, TOI, M, 22/1 1/0 J )

RTOC h a s challenged the j u ri s diction o f the C B I t o r a i d the Palace-on-Wheels

tra i n . In its plea the RTOC has said tha t i t is a u n i t of the state government and
the C B I has no right to i n terfere i n the work of the State Government undertaking.
The C B I b y raiding the tra i n and d eclaring the guests of the RTOC, who were
travelling i n the train as "ticketless traveller" was indu l g ing i n bringing d isrepu te
to the RTOC. I t has also complained against the seizure o f records of the Palace­
on- Wheels b y the CBI.

The State G overnment has also decided to restrai n the CBr from ta k i ng any d i rect
action a ga in s t any 'employee w i thou t ta king prior permiSSion of the State
Government. ( 'CBI flad 110 right to raid luxlIry traill', TOI, M, 1 2/12/01)

• · · •
C24 Civil Aviation ...,...,----"".........
'.... , ...
. ... , ..,...-___..
, ...
. ... 01
.....
...... _
".., "...___,...
__... ..
....,_
"...

Governme n t-run Airlines

The Government-owned Pawa n Hans Helicop te r Ltd is all set to g o global with
the acquisition of the coveted 150-9002 certi fication from the Uni ted Registrar of
Systems Ltd (URS). I t has a l ready received queries from Qatar a nd Bharain for
h i ring their choppers for o ffshore oil e x ploration and tourism . At present a few i ts
choppers are used for the p u rpose o f Tou r i s m a t Jammu, Meghalaya, A r u nachal
P radesh, Sikkim and Lakshadwee p (Pawm! Hans set to go global, TH, 1 8/1/0 1 )

Indian Airlines
Indian A i rl i n es (IC) i s looking at the possibility of implementing a "flex i-fare"
h i ke as against the n ormal a cross-the-board fare i ncrease. In a " flexi-fa re" system
the r a te of fare increase will depend on the sector the flight operates in as well as
the passengers' demand for a particu l a r rou te . I f IC decides to g o i n for a ' flexi­
fare' h ike, i t w il l be for the fi rst time tha t the d omestic carrier w i ll be intro ducing
such a syste m . The a i rline, however, has not fixed any d ate for i ncrea Sing its fare s .
The modali ties a re being worke d o u t and hopefully a decision should be taken
soon. (fA cOllsitiering 'flexi-fare' hike, TOI, M, 11/4/01)

I C and the N e p a l Tou rism Board (NTB) are w o r k i n g together to p romote package s
f o r Indian Tou ri sts v isiting Nepal. T h e m o v e comes i n the w a ke o f NTB's campaign
tha t w as l a unched in Delhi with the a nn o uncement of a three month 'Festival o f
L i fe ' t o show case the coun try's multifaceted a ttractions t o visitors w ith varied
i n terests from d ifferent countries. (IA to work Oll t packages for tourists to Nepal, BLI
2 7/4/01 )

They have i ntroduced the walk-in flights concept between Delh i and Mumba i .
T h e scheme assures a seat to a n y p assenger holding a n open ticket i f h e reports 30
minute s before the scheduled departure of the fl ight. The airline has a ls o introduced

26
'Desh Videsh', a scheme offering an assu red p ri ze on i nterna tional return tickets.
(fA introdllCCs walk-in sc/tcme, Bt, 1 7/8/0 1 )

IC w i l l be la unch i n g a short-term promo tiona l scheme, Desh-Vi des h - I I . Under this

scheme, passengers who travel o n IC d omestic network against Indian R upee
F a re s for a val ue of R s 75,000 / 1 1 0000 would be e l i gible for one/ tw o free return
i n ternational ticket o n any specified sectors and if the travel is to the value o f
90,000/ 1 30000, the p a ssengers have the choice t o redeem one / t w o I n ternational
re turn ticket in B u s i ness C lass. (IA imlcllillg Desh videsh-ll, BL, 1 6/1 1/0 1 )

I n a n e ffo r t to promote A i r C on n e c t i v i ty i n t h e N ortheastern reg i o n , the

Government has a g reed to p rovide an annual subsidy o f Rs 35-cr for the n e x t five
yea rs t o IC fo r the fli gh ts it operate s to the reg i o n . IC l ike other d o mestic a i rl ines,
offers subsi d ise d fares to the North-East, a l though its reach a nd connectivity a re
much more tha n the private ca rriers . ([ndiall Airlines to get Rs 35-cr as subsidy for
N-E operatioll, Ashwini P/zadnis, Bt, 1 8/1 2/0 1 )

I C h a s come o u t w i th a n e w package 'Flyaways'. The package cover s i tes o f

p il g r i mage, fitness a n d rel a xa ti on, originate from 1 1 s ta tions around I n d i a and
o ffers stay at 63 hotel s . The package inclu de s a i rfare, h o te l stay, s i g h tseei ng, mea l s
and a irport transfers . T h e main o n e s a re t o Srina g a r. Ja mmu, R ajasthan, Kerala,
Bodhgaya, Orissa and Goa . (Flyaways, TOI, M, 24/1 2/01 )

Air I ndia
Air I n d ia (AI) has decided to termin a te i ts general sales a ge n t (GSA) i n the U K
and a p po in t conso l i d a tors . T h i s move w o u l d resu l t i n higher revenue as well as
lower commission payouts for the Na tion a l Carrie r. Revenue generate d from the
U K region incl'eased by 20% d uring the first five months a fter appointment of
three. The savings o n acco u n t o f lower commission paid to the consol id a to r w orks
out to R s 5-cr for the five-month period as compa re d to the 20-cr that they were
p a y i n g the i r GSAs. (A-I flourishes in UK witII GSA removal, E T, 1 6/4/01 )

Tak i ng a c u e from I n terna tional A i r l i nes World wide, A i r India (AI) too has decided
t o retrench 142 overseas employees b y shutti n g and downsizing most o f i ts online
and o ffline stations abroad thu s saving Rs 2 1 cr. Al m an a gement has decided to
hand over pink slips to its overseas employees as i t could d o s o under i n ternational
l a w s . The stations, which the a ir l i n e p ro poses to c l ose down a re , B a rc e lona,
B u d a pest, Prague, Stockholm, Warsaw, Belgrade, Lyon, N ice, Boston, Montreal,
Manchester, Beirut, Ca i ro , Teh ran, Entebbe, Johannesbu rg, B l a n tyre, Gabarone,
Nagoya and Manil a . While those to be downsized are Brussels, Madrid, Rome,
Was h ington, Toronto, Birmingham, Lagos, Ta i pei, Auckland and Sydney. (AI to
retrench 1 42 overseas staff, ET, 1 3/1 0/0 1 )

A s a cost c u tting meas u re, A I i s p lanning t o d ra stical l y red u ce the n umber o f free
tickets i t issues . This decision follows a meeting w i th Top Officials and the C i v i l
Aviation Ministe r. I t a n n u a l l y issues about 3000 compl imenta ry tickets t o va rious
categories o f passengers l ike travel agents, media persons, travel w r i ters and
sometimes Government Officials. (A l to cut down on free tickets, TOI, M, 1 8/1 0/01 )

A larmed at the financial impact of the Sep t 1 1 th a ttacks in the US, w h ich dampened
the I n ternational Civi l Avi ation Ma rket, a lmost, 1 00 Executives o f A I's Engineering
Dep a rtment have decided on a 1 5% v o l u n ta ry salary cut, The cut will be for the
period Oct-Dec, 2001 . More AI e m p l o yees a re e xpected t o foll o w s u i t. (AI engineers
take voluntary pay cut, BL, 20/10/0 1 )
27
In a move to p revent the misuse of tickets by Air-India's (A-I) domestic passengers,
the a i rline is p l a n n i n g to p hotogra p h them while boa rding a n d keep the pictures
in its computer d a tabase. This is one among the few security meas ures taken u p
post-Se pt 1 1 th a ttacks . (Click a n d cleanse: A l pla n s t o C l l rb domestic ticket misllse,
Srin ivas Laxmall, TOl, M, 3 /1 1/01 )

Private Airlines
Pri v a te a i r l ines, Jet A i rways a n d Air Sahara, have for the first time edged out the
State-run I n d i a n Airl ines to take a lead the ma rket i n 2000 w i th a h igher combined
s h a re o f h a n d l i n g passengers. The two p r i v a te a i rlines together ca rried 7-mn of
the total 1 3 .3-mn domestic passengers last yea r. (Private airlines will IIllljor market
share ill lndia, Aparna Kalra, TO l. M, 13 /3 /01 )

The C i v i l Aviation Min istry has gra n ted no-objection certi fica te (NOCs) to a total
o f 13 non-sched u led ope rators d uring the past two years to start domestic a i r
serv ices in the coun try. The A i rl i nes w i l l only b e a l lowed to opera te i n d omestic
skies a n d not be a u thorised to use the b i l a teral a greements o f the government
w ith other cou ntries to fly i n te rn a tional flights . The compan ies tha t have been
given the certi ficates a re A fimac Associa tes, U nited Hel icha rters, Seabi rd Charters,
5 a m i\\ i a ti on, Madhya Pra desh Flying Cl ub, Su m m i t Av iation, Enbee Avi a tion,
North Airways, Jindal Strips, Wi ngs Avi ation, Bilakhia Holdngs and R.C. Avi ation .
( 13 private parties get permits to s tart domestic air services, B L, 2 1/6/0 1 )

Notwi thst a n d i n g the sluggishness i n domestic a i r tra ffic, a p p l ica tions o f fou r
companies t o commence operations a re being scrutinised b y t h e government.
Proposals being considered b y the Government for sched uled operation s a re
Ahmedabad Av i a tion a n d Southern A i r a n d for n o n -sche d u l e d a i r transport
s e r v ices- Th o m a s C o o k, F u tu r a Tra v els L td . , a n d S R C Av i a t i o n P v t . Ltd .
G overnment has p rojected a growth rate of 5-7% i n domestic tra ffic for the period
200 1 -05. (A ir traffic: Proposals of 4 cos being scnzt illised, R lIpali M l I kherjee, FE, 8/8/0 1 )

Jet A i rw a y s is l o o k i n g to boost i ts perce ntage o f overseas tra ffic through a

systema tic expansion of i ts d o mestic network and i ntroducing v a lue-added serv ice
for i ts international clientele. Jet Ai rways, which has recen tly expanded its domestic
network from 39 to 44 I n d i a n cities and p l a ns to a d d Agra to the l ist by the end o f
November i s expecting tha t this expanded network will increase i ts overseas tra ffic,
as passengers seek con nections to smaller a n d remote I n d i a n desti nati on s . Plans
are also under w a y to i n trod uce a major v a l u e a d de d c ustomer service for a l l
i n tern a tional p assengers trav e l l i n g on J e t A i r w a ys' connecting fl i g h ts o u t o f
M u mb a i . The passenger a ssistance p rogramme to be introduced inclu des recei p t
a n d d i rect transfe r of baggage t o the domestic a i rp or t following customs cleara nce.
(Jet A irways to woo fliers frolll abroad, Villlaia Vasall, B L, 2/1 0/01 )

In an e ffort to a ttract more passengers, A i r Sa h a ra (AS) today rolled out the

'Cosmos' frequent flyer p rogra mme. The p rog ram m e p romises to get the flyer to
the goa l o f getting a free ticket faster than any of the existing p rogramme o f rival
a irlines - IC a n d Jet Airways (JA) . The AS p rogramme offers the passenger the
o p tion of getting a Del hi-Mumbai-Delhi return ticket a fter 13 flights on the a i rline
a s compared to 20 flights on IC and 15 on Jet a i r l i n e . Further, the a ir l i ne is a lso
o ffering the p assenger the option of going abroad, w i th 23 re turn fl ights w ith the
a i rl i ne a llowing the passenger the option o f tra v e l l i n g to Disney l a n d . The a i rline
a lso o ffers a n u mber o f other I n d i a n a nd I n ternation a l Destinations, Prod ucts a n d
Hol i d a y Packages t h a t w ill b e a v a i lable t o passen gers w h o a re members of the
p rogra m m e . Passengers can enrol for the p rogram me e i ther at the t i me o f checking

28
i n , on board , through the m a i l o r o n l i n e . The Airline a lso o ffers a 1 , OOO-m ile
e n rolment bonus. ( A i r Sahara fa lllle/Ics freq ucnt flyer schemc, BI., 1 7/1 1 /( 1 )

The North Ind ian Stales of J am m u a n d Kashmir, Punjab, Haryana, U ttara nchal,
M a d h y a Pradesh, U tta r Pradesh and Himachal P ra d esh a re p l a nn ing to set up a
consortiu m to s ta rt a Regional A i r l i ne that w i l l connect new destinat ions in the
Northern Region. The states a re negotia ting w i th Jagson A i rl ines, which is opera ting
i n Northern Ind i a a n d connecti n g v a rious Tou rist Spots i n H i macha l Pradesh a n d
Utta r Prad es h . (NorthcrII slates plan t o s e t up consort ium for regiollal a irline, Kavita K
Bhaskaran, FE, 1 0/12/0 1 )

The Proposed Pol icy m ov e o f the G overnment of a ll o w i ng u p t o 4 9 per c e n t

Foreign E q u i ty i n t h e Do mestic Av i a tion Sector is u n l ikely to find a n y fav o u r w i t h
A i r S a h a ra . Seni o r A i r Sa h a ra Offi cials t o l d tha t t h e a i r l in e w o u l d not o ffer a n y
e q u i ty though i t may consider a tech n i ca l t i e - u p w i th a foreign a i r l i n e . T h e a i r l i ne
is to m a ke severa l more a n nouncements to sti m u l a te the ma rket by the end of the
mon th incl u d i n g a p ossibl e tie-up w i th a n i n te rn a t i o n a l a i rl in e to offer free
i n ternational tra vel to its frequent flyer members . Besides, the a i rline is to l a u nch
more freq uencies sllch as o ffer i n g a servi ce on the Ba nga l o re-M u m b a i a n d on the
M u mb ai -G oa sectors from the t h i rd week of this month . (Air Sahara /lot to offer
equity to fo reign firms, Ashwi71i Plzadnis, Bt, 1 5/1 2/0 1 )

Foreign Airlines! Investment

The Sri L a n k a n A i r l i nes i s keen to o p e r a te m ore se r v i ces from I n d i a . The
Operation a l Points tha t they have p l anned on a re Bangalore, Hyderaba d and KoehL
(Sri Lankan Airlines 10 operate more serv ices ill India, T.S .5ha llka r, TH, 9/7/01 )

Om a n A i r, Cochin I n te rn a tional A i rport L i m i ted a n d A I a re likely to a rrive a t a

consens us on the fine p rint of g ro u n d h a n d l ing pact p roposed for O m a n A i r
sched u le to Ned u mbasseri A i rport. Despi te t h e i n i t i a l d ifferences of opinion
between the a v i a tion m ajors, the i n d ica tions a re t h a t the p a c t i s to be signed on
the 26th J u l y 2 00 1 . (Olllal! A ir grou1ld-ha1l dlillg pact with AI l ikely tomo rraw, M Sarita
Varma, 26/7/01 )

T h e G overnment h a s o ffered Sa u d i Arabia, Yemen, K u w a i t a n d O m a n the option

o f sta rting Air Se rv ices to il j) d from the newly b u i l t Kochi Ai rport. These countries
h a v e been a p p roached as part of the commitment of the Prime M i n ister tow a rd s
the A i rport Project b u t a response from the a i r l ines h a s not yet b e e n rece i v e d .
( G u lf a irlines invited t o begin Kochi services, Asltwini Plladnis, BL, 2 7/7/(1 )

Even a s few Internation a l A irlines a re in the process of w i th d ra w i n g thei r code­

sharing a rrangeme n ts w i th AI, a few others l i ke Emi ra tes and M a l a ys i a A i rl ines
a ppea r to have gained g rou n d . Emira tes a nd M a l a y s i a n A i rlines have doubled
their c a p a c i ty l a s t y e a r fol lowing the code-sharing a greement w i th A i r-In d i a .
Tra ve l le rs t o and from I n d i a a re n o w finding i t convenient a n d cost-effective t o fly
to San Francisco from K u a l a L u m p u r a n d from D ub a i to Zurich or any other
E urope a n destin a ti o n . This follows the c a ncell a tion o f d i rect flights from I n d i a by
I n terna ti on a l A i rl ines . Besi des, Kuala L u m p u r i s being p rom oted a s a shopping
destination, on the l i nes o f Duba i . AI is l i kely to i n k a pact for code-sharing w i th
Tha i Airways before the end o f the month , tho ugh there' s no o fficial confirmation
on this. Code-sharing a rra ngements a re idea l to ensure the a irl i ne ' s p resence and
the a d di tion of ca paci ty i n new ma rkets w i thout deploying a i rcraft. A i r- I n d i a ,
which has ] 7 code-s h a ring a rrangements with 1 2 a irlines, h a d off- l a te i ncreased
i ts m a rket a ccess through code-sh a r i n g a rrangemen ts and the reven ue from these

29
a rrangements us a rollnd Rs 100 cr. (Global a i rl ines see-saw on code with A i r­
India, Kailash Rajwad ka r, FE, 1 8 / 10 / 0 1 )

Only 68% o f A i rl ines a cross the globe managed to post opera ting p rofits in 2000.
The estimated aggregate operating p ro fi t o f g lobal a i rlines stood at $l1-bn o r a
m e re 3 .3% of the g l obal schedu l ed a irlines' operating revenues of $328 .7-b n . (Just
68 pc airlines //lade profits ill 2000, A mbar Singh Roy, BL, 23/10/01 )

The Swiss Government moved in to reSClle the Country's National A irline Ind ustry
by agreeing to pay the Lion's Sha re towa rd the cost o f resurrecting m uch of
collapsed flag carrier Swissa i r. A fter m o re than a week of frantic talks between
the Government and lea d in g Swiss Compa nies, a total p ackage o f S fr 4.24 bill ion
($2 .58 b i l l ion) was p u t together at the last minute to salvage the national a irline
and its Zurich a i rport hub -a long with tens of thousan d s of j ob s . Under the
rescue d ea L smaller regional carrier C rossa i r will acquire two-th i rd s o f the fleet
and desti n a tions of 70-year old Swissair. The d ea l p ulls Switzerland's a i rline
industry back from the b rink, but a d rastic restructuring programme i s still neede d
f o r the new c o m p a n y i f i t i s to have a viable future i n a g l o b a l a i r l i n e i n d ustry,
where few firms show p ersistent p ro fits. (Swiss govt comes to tile rescue of Swissair,
Marcel Michelsoll, ET, 24/10/01)

lATA h a s asked B ri tish Airways t o w i th d ra w i ts c h e a p fa re v oucher scheme called

'Biggest Lowest offe r ' w i thin 72 h o u r s . Under the offer the a i rline was offering
vouchers to travel a gents who would exch a n ge them at the time o f ticketing. This
offe r was in violation with the billing settlement plan (BSP) as i t does not allow
a n y a i rline to u se its own vouchers. (JATA asks British A irways to withdraw airfare
scheme, TOI, M, 26/1 0/0 1 )

A n y American Passenger Carrier flying to a n d from S r i Lanka w i th stops in the

C o un try will be allowed to carry local traffic between I n d i a a n d Sri Lanka from
Jan uary 1 , 2007, a ccording to the open-skies a v i a ti on a g reement reached recently
between the US a n d S ri Lanka . The agreement, when fully i m p lemented, will
remove a l l restrictions on air services not only between the US a nd S ri Lanka but
also beyond each o ther's terri tory. This is fou rth such a g reement reached b y the
Bush Administration, after Polan d , Oman and France, u nd e r the US' 56th open­
s kies a greement. (US, Lanka illk open skies agreement, BL, 9/11/01)

Country Airlines Amt of Gov support Loss

US The whole civil $16-bn Cannot be estimated
avia tion sector
Japan Japan Airlines, All $2-bn To cope with rising
Nippon, Japan Air i nsurance costs and
System falling traffic

Canada Canadian Airlines $101 -mn Owing to general

losses associated
with 9 / 11 attacks
Switzerland Swiss Air Swiss Franc 4S0-mn To save the carrier
plus $ 2 .4-bn from bankruptcy
Belgiu m Sabena Loan before private
$ 1 1 4-mn
investment
Ind ia Air India & Indian Recu rring loss of the
?
Airlines Gov carrier.

(Crisis of cOllfidmce ill world aviation, A bh ijit Blzattacllaryya, BL, 1 4/12/01)

30
Disinvestment
The Government plans t o g o in for a fi ve-year lock-in period for the resale o f AI
and IC a fter priva tisation. In its clearance o f disinvestment in the two a i rlines, the
Cabinet Commi ttee on Secur i ty has insiste d on this c la use s o tha t no country gets
u n d u e benefit. The l ock-in period i s being introduced to ward off any perception
in the p ublic mind tha t the s a le o f the two a irlines could lead to any security ris k .
However, s u c h a clause w i l l not be p a r t o f t h e general disinvestment policy. I t w i l l
pertain t o only 'conspicuous cases' l ike A I-Ie . (Govt to go in for 5-yr lock-in period
for resale of AI, IA, Ravi Kapoor, FE, 2/1/0 1 )

Irked b y t h e delay on t h e p a r t of t h e C iv i l Avi a tion Ministry i n b ringing about

changes i n the aviation policy, the Disinvestment Department is believed t o have
decided to bring necessary amendments a s part of shareholders agreement for
'
Priva tisation o f A ir-India ( A-I) . While deciding against any rebid, the Department
of Disinvestment ( DoD) has p repared a cabinet note for the purpose, which would
help incorporate the changes in the policy needed for executing the selling p rocess.
One of the contentious issues that they perceive w o u l d be the granting of a i r
traffic rights t o t h e p r ivatise d enti ty, which has so far b e e n with the Government.
Under these traffic agreements, the National Flag C a rrier usua lly gets the right to
fly to d ifferent countries. I t was pointe d out tha t in the changed scenario A-I
should get the designa te d a irline status for d e ciding on destinati on under these
'bilateral' rights. This issue is considere d a must for Commercial Operation of the
A i rline and all the initial b idders are understood to have a sked the Government
t o settle this before calling for the final p rice b i d . (000 to bri1lg about amendments
in Air-bldia privatisatioll policy, TOI, M, 1 6/4/01 )

The DoD h a s also decided to insert a cla use in A I's shareholders agreement,
s ti p u l a ting that p roceeds from the sale of i ts s ubsidiary H o tel Corporation India
(HCI) will accrue proportionately to A-I's shareholders when the latter i s privatised .
This h a s been d on e to clear the roadblock for A-I Priva tisat i on as the sale o f HCl
was supposed to precede d i vestmen t in the N a tiona l Ca rrier. (AI to get HCI sale
funds proportionately, Ravi Kapoor & R upali Mukherjee, FE, 26/6/01 )

Mr. Priya Ranj a n Dasmunshi has called for appointmen t o f a fresh independent
global a dviser for d i sinvestment of AI while scrapping the present p rocess. He
a l s o u rged the G overnment to invite fresh bids for d isinvestment while clearly
stating the policies and conditions rega rding the ultimate managemen t control in
the sharehold e r 's a greement . ( DaS11l11llshi flays Al disinvestment, TH, 23/7/01 )

With relation to the A I d isinvestment, SIA is learnt to have estimated the equity valuation
of AI between Rs 400-500 cr (TOI, M, 1 0/8/01). Soon after their announcement on the
value of the a irline, they also made a statement with regard to its i rrevocable pullout.
The Airline cited the turbulent political environment and the forces hostile to the process
of d isinvestment in India's PSU as reasons for its p ullout. (SIA to pull outfrom AI bidding
blames hostile environment, Rohit Bansal, FE, 1 1/08/01)

The Government w a s thinking about increasing the eq u i ty for d i sinvestment of

AI, b u t at a l ater stage i t with d rew fro m the idea . The Govern ment has decided to
s ti ck t o its original plan of d isinvesting 60% equity i n A I o ffering- 40% to a
s tra tegic partner, 1 0% to the employees a n d the remaining 1 0% to the foreign
institutional investors . (No equity concessiolls to foreigners in A I, DH, 5/9/01, C24) .
The G overnment a l s o delinke d H c r from AI. A s compensation for g i ving away
HC!, the Na tional Carrier would get Rs 1 �O-cr. (AI gains jllst Rs 1 OO-cr frolll delinking
of HCI, E T, 1 1/9/0 1 )
31
____,_
' _____ �o
_
. f*WMI!�
The Ta ta G rou p has p ractica lly stopped d i scussion w i th Fore i g n A i rl i nes for a
Joint Venture to run the State Run AI for w hich they had showed their i n te rest. It
i s believed tha t they have not been able t o get a s u i table foreign partne r. The
possib i l i ty of the Tatas going in alone to bid for the G overnment Stake in A-I also
seems u n l i kely in the ilbsence o f sound technical expertise req u ired to run a n
a i rline. (Ta ta group Pllts bid for AT on back burner, Sourav Majumdar & Namrata
Sing/i, FE, 1 2/1 1 /0 1 )

With t h e Disinvestment of A i r India o ff, the A i rline Management plans t o p u t u p

a revised b us i ness p l a n before the Government for "re-vi talising" the airline, which
may include an i n fusion o f Rs, l ,OOO-crores from the sale of HCI . In the scheme of
things i s p rocurement o f new a ircra ft, leasing of two more a i rcraft, opening new
route s a nd i m p l ementa tion of the volu n ta ry reti remen t scheme (VRS), which w i l l
cut flab and b ring sa v i ngs f o r t h e a i rl i ne . (Disil/vestment Odd/ Rs WOO-a capital
infusion, AI to discliSS Hew business plim, Gargi Parsai, TH, 1 2/12/O J )

Plans a n d Polices
In a m aj o r shift i n policy, the G ro u p o f M i n isters (GoM) has recommended entry
o f Foreign A i rli nes i n Domestic Av iation, and a n i ncrease i n overall Foreign D i rect
Investment in ' C i v i l Aviation Sec tor' u p to 49 percen t . The Draft C i v i l Avi a ti o n
policy has proposed rai s i ng t h e Fore i gn D i rect Investment u p t o 4 0 per cent from
the e x i sting 2 6 per cent in the domestic a i r transport services . The G oM proposal
i s a step fu rther, Howe ver, equity from foreign a i r l ines i s not a l lowed, d irectly or
i n d i rectly, i n domestic a i r tra nsport a t p resent. It i s u nderstood tha t the p roposa l
was p u t befo re the Cabinet, a fter the GoM on foreign d i rect i n vestment, headed
by the finance minister Yashwant Sinha, recently cleare d i t . Interestingly, they
h a ve cleared the proposal despite reservations from the m inistry. NRIs and overseas
corporate bodies are permi tted to i nvest up to 1 00 per cent i n d omestic a v iation in
the p roposed pol icy. (GaM for foreign finns' entry ill aviation, Rupa/i Mukherjee, FE,
8/2/O J )

Apart from the F D I issue, the p o l i c y also p l a n s provi d e f o r a C i v i l Avi ation

Economic Regulatory Authority which will l ook into tari ffs charged both by a i rlines
a n d a ir p o r t compan ies a n d e n s u re consumer i n terests a re n o t in a n y way
j eopard ised . O f course the new pol icy w i l l not d i lute the rol e o f the Directorate
General of C i v i l Aviation (DGCA), which is the majo r regulator i n the sector r ight
now. The d ra ft pol icy clea rly d i fferentia tes between the two- while the economic
regu latory a u thority w i l l dete rmine tar iffs and rela ted issues, the DGCA w i l l be
the sole licensi n g authority for all technica l personnel and be res ponsible for
a i rw orthiness tests as well. The role o f the new regula tory a u thority is s i g n i ficant
s ince the government is looking t o d is i nvest b oth a irlines a s well a s a i rports ,

The policy w i l l a lso a d d ress other important issues l i ke allowing p r i v a te carriers

fly overseas which could ha ve a b i g i m pact on the business plans laid o u t by
those i n the race for A I and lA, Essentially the thrust in the p olicy will be threefold
- smooth d i v estment, synergy w ith the p roposed Integra te d Transport Pol icy
and taking a d ecision on a ll ow i ng e q u i ty o f foreign a i rlines in domestic skies ,
(Hitting all air pocket even before takeoff, Nandini Sell Gupta, ET, 1 1/5/01)

Investing in a i rports i n I n d i a has become even more a ttractiv e w i th the budget

a nnouncing a 10-year tax h o l id a y. The B anga lore A i rport Project and the p roposed
Shamsabad I n ternationa l A i rport a t Hyderabad a re the two projects tha t would
immed i a tely benefit from this New Propos a l . The move i s likely to make the long­
gestation p rojects attractive for i nternational players. India's only private a i rp ort,
32
the Ned u mbasseri Airport opera te d by Cochin I n ternati ona l A irport (CIAL) has
m issed o u t o n th i s ta x holiday s ince i t was commissioned last y ea r. The CIAL
plans to get a n e xemption for the project. (Landillg smooth at a irports, 1/3/01 )

The A A I has a l located Rs 260 cr. for investment in A i rport Development Projects
in the northeast during the ninth five-y ear p l a n . New terminals a re planned a t
Aga rtala, North Lak i m p u r while i t h a s a lready l a un ched a i r ter minals a t the
fol l owing p l aces: G uwahati, Silchar, I m p hal, Dim a p u r, Tez p u r and Tura . Mr Yadav
has also d i rected officials to see i f foreign a ir l ines are i n terested in operating
flights t o Guwahati, which i t would p romote as a point of cal l . (AAT mrmarks Rs
260-cr for airports in north-east, 8/7/0J )

The Government i s worki n g o n the Common User Terminal Equ ipment sy stem,
w hich w i l l enable p a ssengers a t a irports to check-in at any counte r for any airline.
The sy stem w i ll be i n tegrated with i m m i g ration and c ustoms to ensure that
passengers spend less ti me a t check-in q ueues. I n teractive Hotel Reserva ti on s
through this sy stem t o be prov ided b y tourist counters a re a l s o receiving the
a t tention of the M i n istry. (Easier dieck-in at airports, DH, 30/7/01 )

The Department o f Disinvestment will not p ress for a change i n the Civil Av iation
Policy to allow Foreign A i rlines to enter the Domestic Skies i f IC i s p u t on b l ock
a ga i n for strategic sale following an unsuccessful first a ttemp t by the Government
in this d i rection (BL, 7 / 8 / 0 1 ) . On the one hand the Government issued the above
statement while on the other hands, just a few day s la ter it has shown i nterest to
m ove ahead with the bilateral agreemen ts signed by them and also look for opening
o f Indian skies. This it plans to do concurrently w ith the d isinvestment o f A I and
IC D u ring the last y ea r, b i lateral a greements have been signed w i th 1 5 countries
providing for a total of 1 3 1 29 seats per wee k . With the vi�w to Promote Tou ri s m
i n t h e C ou ntry, the regulations f o r Operation o f Tou r Cha r te r F l ights have been
liberalised . Tourist Char.ter F l ights can now land at 1 2 I nterna tiona l A ir p orts in
the Country in add ition to Agra, Jaipur, Va ranasi and Port Bla ir. ('Govt. easing
bilateral air traffic rights policy, BL, 26/8/0 1 )

H a v i n g realised the role o f Avia tion in Promoting Tou rism, the Union Government
i s now try i n g to p u t up a hassle-free entry sy stem for overseas visitors w i th o u t
compromising on t h e security aspect. The tra d i tiona l sy s te m o f checking- b od y
frisking a n d ru,mmaging through personal effects w i l l soon b e scarped . Focussed
efforts a re being made to p rovide 'touch-free, hassle-free and foo l- p ro o f a irport
s ecurity w i th a high d egree o f p rofessional competence'. (TollchIree welcome to
tourists planned, BL, 24/8/0 1 )

I n a Major Liberalisation o f C ivil Aviation Regulations, the Government h a s a llowed

operation of tourist charter flights front India to overseas destinations. Till n ow
only b o und cha rters carry ing foreign tourists were a ll owed . The m ove comes at a
time when security concerns have been bogging d o w n aviation reforms and the
impact would be signi ficant in b ringing d own transport costs for tou rists o pting
to take cha rter flights . Tra vel companie s like Thomas Cook have been demanding
permission for operating o u tbound tourist cha rters.

A t the same t ime, airline companies especial ly A ir-India, Indian A ir l ines and
foreign ca rriers w ith l a rge-scal e o p e ra tions i n India w i l l encounter m o re
competi tion . According to the new regulat ions, a i rcra ft o w n ed by scheduled
o p e ra tors l ik e A i r-India, Indian A i r l i ne s and Jet Airway s c o u l d be u se d for
o u tbound charters . Simila rly, non-scheduled opera tors like Deccan Aviation or
33
______
______
__ ��O�J1���
Visa Air could also take part in charter services. Only m ulti-engine a i rcraft operated
w i th a minimum two p ilots would be permitted to operate on international routes.
O u tbound tour is t charters could be o perated with a i rcraft registered a b road too .
The Tourism· Dep a rtmen t w i l l m o n i t o r a l l o u tbound charte rs to ensu re that
rea lisation of p rescribed foreign c urrency remittances m a terialise in time. For this
p u rpose charter operators have to submit necessary d ocuments to the department.
All tou r opera tors, travel a gents and hoteliers reg istered w i th the tourism
department can opera te charters. Security clea rance would be requ i re d for all
such o pe r a ti on s . (Covt gives n od for o u tb o u n d charter flights, G Gan apatlly
S ubramaniam, ET, 1/10/( 1 )

In a significant j ud gment, the SC ruled tha t the foreign a i r taxi operators couldn't
allow the native companies p i lots to work for them without the "no objection
certi ficate" b y the e mployer. It u pheld the DGCA notification in 1 993, which
created a con d ition for the taxi operato rs that they would not e mploy anyone
a l ready serving any o f the national carriers without obta i ning a n o-objection
certificate from the employer. (SC /lars lA, Al pilots from joining foreign air taxis,
Rakesh Bhatllagar, TOI, M, 6/10/01)

In a maj or policy shift, t h e Government is now pla nning t o a l low foreign airlines
to pick up equity i n the domestic sector and to g o i n for technical tie- u p with
d omestic a i rl ines. The government is also considering a proposal to raise the FDI
cap in civil aviation sector- both d omestic and international - from the p resent 26
to 49 percent. (Equity for foreign airlines pla n ned, Gar; Prasad, TH, 8/1 2/0 1 )

T h e G overnment is i n favour o f establishing an independent economic regulatory

a u thority for civil aviation sector to consider a host of issues, inclu d ing the setting
.
up of aeronau tical cha rges for airports .

Sources said the Government is o f the view tha t there is a need to establish not
j ust service sta n d a rd s but a lso a p p ropriate systems of penal ties for violation of
stand a rds i n the d omestic aviation sector.

Another issue that the Government is considering is the need to ensure that a i r
service operators enjoy competitive access t o airports o n reasonable commercial terms.
(Economic regulator for aviation sector 011 cards, Ashwini Phadnis, BL, 1 0/12/01)

Leasing of Airports
The Emirates Groups' Dnata, a s part of a International C onsortium, has been
granted l O-year l i cense by the A i rp o rts A u th o ri ty India (AAI) to p rovide ground
and passenger handling services a t fou r o f the country busiest a i rports Delhi,
M u mb a i , Chennai and Thi ruvananth a p u r a m . Dnata's partners in the consortium
are UK-based Menzies Avi a tion Group Holdings (Asia-Pacific), the Indian Avi a tion
Company Interglobe Enterprise Lid, and Uni ted A irlines Dnata . The consortiu m
w i l l provide a i rcraft, passenger, cargo handling a n d ramp transportation. Work
has started a l re a d y on setting up stations at the four a i rports and the consortium
i n tends to be ful l y operational by September this year. The Indian Government
h a d Invited International Bids for a total of Nine A i rp orts. (Dnata services ill major
airports soon, Vimala Vaslll1, BL, 24/5/01 )

B u t the Cabinet has opposed this decision. M r Prasad h a s, in fact, asked the Civil
Avi a ti on Ministry to reverse i ts decision. The C abinet Secretary's Activism on this
issue a rises from the concerns raised by the country's defence establ i shment, which
says that the a w a rd to Dnata w ou l d pose "serious secur i ty risk" and h e has

34
_____
I1!1 __________ �DO_�
forma l ly taken up the issue w i th the PMO a n d the Home Ministry. (Cabinet secy
opposes ground lumdling COil tract to Dllata, P R Ramesh, 26/5/01)

I n t u r n the C i v i l Aviation Minister Sharad Yad av h a s sought t o a llay security

concerns in a wa rding of contracts for g ro u n d han d l ing facilities a t airports say i n g
t h a t h e would c oI1sult H ome Ministry be fore ta king a fin a l decision . H e , h owever,
said tha t there was no need for seeking the clearance of bidders for ground handling
facilities a t various ai rports from Cabinet Committee o n Security, w hich w a s a
must in the case of aspirants for Government stake in Air-India and Indian Airlines.
(Government to CO/lsult ilome ministry ot! airport contracts, FE, 28/5/01)

F i v e m a j o r Tra d e Union s h a v e s ought the i n tervention of the P r i m e Ministe r, M r

A ta l B i h a r i Vaj pay ee, to stop t h e e ntry o f foreign companies i nto g r o u n d handling
s ervi�es i n international airports i n the country anti have warned serious industrial
u n rest if i t w a s not stoppe d . In a joint letter to M r Vajp a y ee, the five u n i on s -
IIMS, BMS, A ITUC, CITU a n d INTUC) have said the Civil Aviati on Ministry 's
decision to allow the entry of foreign and p rivate p lay e rs into ground handling
services, despite A i r India's oppos ition, w a s p u rely o n commercial considerations
w ith no concern to nationa l security. (Foreign cos' mtry into airport ground handling
opposed, BL, 20/6/01)

The valuation of four a i rports of Delhi, Mumbai, Chennai a n d Kolkata, slated to

be leased out to p riva te p l a y e rs, is pegged at Rs 3,659-cr. This exercise has been
d on e by K PMG, financia l a dvisor a ppointe d by the A AI for long-term leasing out
o f these a irports. The objective o f 3D-y ear l easing is to Modernise The International
A i rports as per g l ob a l standard s . (Metros' airport valuation pegged at Rs 3,659-cr,
Jayan ta Ghosh, Tal, M, 3/7/01)

The d r a ft n o t e by t h e Cabinet on leasing o f Four Inte rn a tional A i rports a t N e w

Delhi, Mumbai, Chennai and Kolkata sti p u la tes a freeze on retrenchment f o r three
y ea rs a n d restricting a bidder to operate in either Mumbai or Delhi. The note
p repare d by the Ministry s a y s that the G overnment h a s the right to establish a
second a i rport b u t only a fter the traffic reaches a specific level at the original
a i rport. This i s being d one to allow the operato r t o earn returns o n his investment .
I t i s a l s o p ro posed tha t s e v e n d o m e s t i c a i rp orts a t B a n g a lore, Hy d erabad,
Ahmedabad, Cochin, Amritsar and G uwah a ti w ou l d be developed a s intern a tional
a i rp orts. Most of these a i rports a re loss making. The Government has also s pent
money on the u p grada tion o f some these Airports . Many towns a re also i mportant
tourist destinations, which have been earma rked for development.

The highlights of the note a re :

• A i rports t o be leased f o r a period o f 30 y e a rs

• Lease amount has to be paid in two p arts

• Aerona utical charges may be fixed a t the p revailing rates

• Necessary to establish service standards

(Ministry also wallts separate operators for Delhi, M umbai corridors, Leasing metro
airports: Cabinet 11llllls three-year ban on layoffs, R upali Mukherjee & Amiti Sen, FE,
1 8/1 2/01)

General
In a b id to encash the i ncreasing outbound tourist traffic in India, Thomas Cook
has sought permission from the Civil Aviation Ministry for operating o u tbound­
cha rted flights. A s o f now, the government d oes n o t a l l ow operation o f outbound
cha rters while inbound charters a re permitted w i th p rior permission.
35
 DO���� .
-------, -
; ------�,mO�!�
The Civil Aviation Ministry has forwarded the a p p l ic a tion of Thomas Cook to the
D i rector General of C i vil Avi a ti o n (DGCA ) . The a p p lication can be cleared only i f
the current a v i a tion policy i s a m en d ed . Besides Thomas Cook, other tour operators
w e re keen at o u tbound-cha rtered flights, a s i t would be possible to o ffer cheaper
pa ckaged tours for Ind ia n tourists by using cha r ter services. A s o f now all package
tours are conducted i n tie-up w i th interna tiona l carriers. Sou rces sa i d the number
o f charte r flights comi n g to India was stead il y decli n i n g especially i n significant
destina tions l i ke Agra and Triva n d r u m . The charter fli ghts have reduced to 466 in
2000 from 958 i n 1 99 5 . (Thomas Cook seeks govt permission for olltbound-chartered
flights, A rsdeep Seliga I & G Ganapatliy Subraman ia11l, ET, 1 9/6/01 )

Nine Airline Operators in Kerala have m e t w ith the C M to speed u p the p rocess
of Developmental Activ ities at the Three A i rp orts in the State for the scheduled
spurt in air traffic i n the coming tourist season. The thrust o f the Sta te Government
w i l l be on i ntroducing safe taxi services on the l ines of Mumba i A i rport. (Airline
operators in Kernla to rev lip flight sc/wdu les to meet tourism boom, M Sarita Varma, FE,
5/7/01 )

Travel Majors like Kuoni and Thomas Cook plan to start Tou r ist Charters o u t o f
India i n a year o r t w o . Kuoni i s consi dering b r i n g i n g i n charter f l i g h t services i n
I n d i a throug h i ts Netwo rk A i rl i nes- Edelweiss a n d N ova i r, w h i l e Thomas Cook
h a s sought permission from the Civil Avi a ti o n M i nistr y for opera ting o u tb ound
c h arter flights. (Charter fligills poised to power olltbolln d travel, ET, 2/8/01 )

A i r travel in the Country w i l l cost Rs 100 m o re from October 1 . I n d i a n A i rlines

and Jet Airways h a ve announced 'in s urance s urcharge' o f Rs 1 00 per sector o f
travel on tickets issued o n Ind i a n Rupee Fa re Travel, to m e e t the recently i ncreased
cost i n p u ts levied by i n s u rance companies. Th is Insura nce s u rcha rge will be $ 2
per sector for tickets issued in India o n d o l l a r fares for travel on d omestic sectors
of IA. (Air travel to cost Rs 7 00 more, D H, 1/1 0/0 1 )

A m i d s t heavy security, t h e A A I a n d BMC jointly b egan a m a ssive demoli tion

d rive o f the h u tments colon ies, bordering the Chha tr a p a t i S hi va j i I n ternational
A irport. There a re about 3000 h u tm e n ts i n the vic i n i ty o f the C i ty A i rp ort
(Hutmellts near Mllmbai A irport demolished, O f:{, 22/12/0 1 / C24) . The residents of
R a fi q u e N a g a r, a re n o w rea d y t o b e reha b i l i ta te d . T h e e n o r m i t y o f the
rehabi l i ta t i o n p ro cess i n i ti a ted a lm os t ten yea rs a go by the National Slum
Dwellers Federation ( NSDF) a n d SPARC has h i t res i d e n ts o n l y a fter thousands
o f fam i l ies w e re left h o meless fol l o w i n g last week demolition of a d j o i n i n g slums
o r a irport land . (Airport slllm-dwellers take off for greener pastures, A nshika Misra,
TOl, M, 24/12/( 1 )

C 3 0 Hotel Sector .......

.._ . ,--,"" . __.......
. .... ._
.... . ... .....
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, .... ...
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Plans and Policies

Convinced tha t the annual pre-bu d get p le a for ta x sops w i l l not bring a ny res u l ts,
the hospitality i n d ustry h a s m od ified i ts strategy of letting the Government collect
revenues from the i n d ustry b u t use it for i n frastructure development of hotels
and resta u ra n ts . The .idea behind the hotel industry's s tr a tegy for i nfrastructure
ta x is two-fold . F i rst, i t envisages s i m p l i fication o f the cur rent m u l ti-ta x struct u re .
Second, the industry wants to mount p ressu re o n t h e government t o utilise the
revenu e col lected from the ind ustry on i nfrastructure d evelopment. Lack o f
adequa te roads, a i rp o rts, r a i l connections, power supply a n d s a fe d rinking w ater
is often cited as reasons for sl uggish growth i n tourist arriva l s . (Cl!alllwIise taxes
for infrastructure: llotel industry, New Delhi Bureau, ET, 29/1/01 )
36
In spite of the criticism of the Hotel Industry the Department of Tourism has provided
an interest subsidy of Rs 8 .5 Cr to Priva te Sector Hotels in the year 2000-01 , under
the scheme for grant of interest subsidy to Hotel Projects. A total of 1 59 hotels have
benefited from the scheme during the year. According to official sources, the scheme
has become so popular among hoteliers tha t the budgeted 5-cr for 2000-01 w as
utilised by September 2000, and the allocation of funds had to be enhanced . The
Tourism Department has i ni tiated a stud y to ana lyse the present position by
conducting a n impact assessment report of the scheme. Recently, the number of
prescribed Fls tinder the scheme has been increased . The list now includes ICICI,
IDBI and SIDB! in addition to the Tourism Finance Corporation of India, State
Financia l Corpora tions and Sta te Industrial Financial Corporations. To make the
scheme more effective, efforts have been made to streamline the processing of interest
subsidy claims in the department and to educate FIs regarding proper submission.
of claims. (Privnte hotels get Rs 8.5-cr subsidy, Amiti Sen, FE, 2 1 /4/01)

The Hotels Sector is unlikely to see a n y l a rge in flow o f funds, despi te the
Government's recent announcement to allow 100 per cent foreign direct investment
(FDI) through the a u tomatic route . The Hotel Industry, which did not find even a
mention in the Union Budget, is sadd led w i th a tax structure that is detrimen tal
for any investment of any na ture to come in, leave a lone FDI . Previously, 5 1 per
cent FDI was a l lowed via a u toma tic approval while with FIPB a pproval this could
further be h iked to 74 percent Despite Non-Resident Indians (NRIs) being allowed
to undertake 1 00 'X. investments, the same did not yield any inflow except for a
single proposa l . (Relaxed FD! 1I0rl11S for llOtel sector may not spur foreign capital
inflow, Kailash Rajwadkar, FE, 1 7/5/0 1 )

Trends
The a verage room rates ( A RR) of hotels in India have fallen across the board in
the year 1 999-2000, over the p revious yea r. This is especia lly true of all metros,
w ith the exception of Chennai where the ARR increased . Even in cities like Delhi,
Patna . Jaipur, Kochi, Kolkata and Bangalore, the occupancies grew in the year at
the expense of their ARR. Hyderabad is the only exception where both the
occu p ancy a s well as A RR g rew in the year ended 2000 . Web-based H otel
Reservations hilve a lso shown a g rowth of 400'X, and in the Heritage Sector the
growth was as high as 600 per cent, according to a survey. However, direct enquiry
(57 .1 per cent) and travel a gents & tour opera tors ( 1 8 .7 per cent) continued to be
the m aj or source of reserva tions for Ind ian hotels. (Average room rates of hotels
decline, FE, 5/4/01)

Some unexpected destina tions have shown a growth i n tourism while the o l d
favourites a re showing a downtrend . Ci ties l ike Kochi, Hyderaba d , Mussourie,
Patna, Vishakha patna m have shown an increase in occupanc ies w hile others like
Ahmedabad, A urangabad, Chennai, Indore, J odhpur, Shimla a re going downhill.
Accord ing to a survey b y HVS InternationaL rooms' revenue, genera lly considered
to be the most important sourCe of a hotel's overall profitability represented 55 .9
per lent of total revenue across a l l hotels, a decrease from 57.5 per cent last year.
The hotels saw a gain in revenues from food and beverage at 27.8 per cent. (Tourism
shows growtil trends ill unexpected destillatiolls, Arslldeep Sehgal, ET, 8/5/01)

Foreign Hotel Chains a re thriv ing on the concept o f franchising i n Ind i a . More
than 1 1 0 p roperties in the m id-market segment a re expected to be operational in
India by the end of this year, a s compared to 45 p roperties in 1 999 b a sed on
franchising a lone. All Intern a tional Bigwigs in mid-market segment like Best
Western, Comfort inns, Quality Inns, Courtya rd by Marriott, Holiday Inns, Park
37
inns, Country Inns and Su its a re scouting for p roperties i n India, which a dhere to
their standards and can be used to lend their brand names .

Earlier, franchising developments were in more up market segments, with brands

such as Hyatt, Le Merid ien, Radisson, Regent and Ma rriott. Now, it is spreading
to the mid-market and budget sectors as wel l . There a re still many international
brands, which a re yet to enter India . Many international companies were currently
offering franchisees only in certain regions of the world but had not taken a
decision on entering into India. (Foreigl1 l1oteis to book into Indian franchisees, Arshdeep
Sehgal, ETt 30/6/0 1 )

Bangalore w a s the only City Hotel Ma rket in India t o register a n increase i n

occupancy rate and a stable average daily rate (ADR) between 1 999-2000 and 2000-
0 1 , according to the Bangalore Hotel Report brought out by Jones Lang LaSalle
Hotels. (Bal1galore "otels better plC/ced; report, Nina Varghese, BL, 21/8/01)

The Department of Telecommunica tions has a greed tha t the hotel s have been
overcharging its customers, w i thout p a ss i n g on the accruals to the service
p roviders. The hotels may henceforth, be forced to dic.rge only the actual call
ra tes from their C llsto mers, and drop the extra levy that is the norm a t present.
(Hotel stay? Let pholle calls Hot worry YOIt, Be 2 7/8/01)

The Tourism Department has made a strong plea to the Finance Ministry to remove
the levy of expenditure tax from Hotels, to which the ministry has given its
consent. The cen tre collects RS 300-cr p . a . from hotel expenditure ta x (HET) . The
HET is imposed on all hotel tari ffs whose room rate is above Rs 2000 for a single
room. It is still not clear when the HET will be completely abolished (Expenditure
tax for hotels may be scrapped, G Ganapatlty Sllbraman imll, ET, 1 4/9/01, C30). The
hosp i tality industry has also requested the government to defer tax collections.
The hotels are taxed on 3 counts by the a u thority. An expenditure tax of 1 0% on
the room revenue is levied b y the central government . A l uxury tax again on the
room tariff and sales tax on food and beverages by the Sta te Machinery. They
have also p ut forth requests to the State G overnment to e i ther reduce the l uxury
tax by half or to defer tax collecti ons. (Hospitality industry asks gOllt to defer tax
collection, Girislr Rno, ET, 2 4/9/01)

The N u mber of fndians a p plying for v i sas at the US-Embassy has p l ummeted
from last yea r 's levels after the H ij ac ked Plane Attacks in the US. Despi te a drop
in Delhi, the US consulates in Madras, which handles thousands of visa a pplications
from the InfoTech Centres, has not noticed a fall in numbers. (Indian visa applications
for us take a hit, FE, 2 1 /9/01)

The Intern a tional Corporate Travellers segment is expected to remain the largest
source of room night demand (RND) for the five-star delu xe and five-star segments
in India, even though a fter September 1 1 it has come under severe strain . But
heavy reliance of these segments renders their performance sensitive to economic
growth and FDI in India . The report says w ith many Indian and International
Chains tying up with loca l partners, the growth of hotel room supply is expected
to be driven by key cities l i ke Mumba i, New Delhi, Chennai, Bangalore, Hyderabad,
G oa and Jaipur. (MNC lock stays Oil Iliglz-end hotels, A ni! Urs, ET, 30/11 /01)

The Tourist's role i n t h e Hospi ta lity Industry the World-Over is undergoing a

change . Until a few years a go most hotel chains were banking on business travellers
to generate revenues. However, the scene is changing especially for hotels in
38
_________
" _
, ______ ��O_;C�
the below-th ree-star category. Though it is important to realise the growing role
of the tourist in the business mix, certain factors, exogenous to hotels, need to be
taken care of. Tourist travel into India has not been growing a t a rapid pace.

Though the number of tourist spots in India is m uch more than other Southeast
Asian destinations, the country does not a ttract tourists. Why? One reason is the
pricing system . The h igher cost can be a ttributed to the higher tax s tructure. The
Centre levies a 1 0% expend iture tax on hotels. The states a lso levy their taxes .

The other p roblem is the cou ntry's poor infrastructure . With travel becoming
increasingly competitive in the region, travellers will not only look for locations
but a lso consider the services a va ilable. Of these, the most important factors would
be increasing a irline capacity, p rovisions of c lean drinking w a ter and an efficient
inland transport system.

The solution could lie in targeting the domestic travel ler. Earlier, hoteliers were
not keen on a ttracting domestic travellers to their doorstep . One reason w as because
the d i fferential pricing system charged the foreign tra veller more than' it did the
domestic traveller. However, tha t system no longer exists, a nd, given the d rop in
foreign travellers, h otels have to turn to the domestic segment for b usiness . The
other option would be to target b usiness travellers.

Trends in occupancy and room ra tes

Location Avera ge Occupancy rate ('Yo) Average Rates ( rupees)

1 998-99 1 999-00 1 998-99 1 999-00

Mumbai 62 59.5 4306 3872

New Delhi 54.7 60.1 5506 461 6
Kolkata 5 1 .4 52.9 2829 2400
Chennai 64.7 58.7 1 932 2229
Bangalore 52 57.1 3081 1 349
Hyderabad 54.3 62.1 1 20 7 1 553

Source: FHRAI, (TraveIIers get choosy and price conscious, BL, 1 6/12/01 )

Excerpts from a n i nterview with Mr R. R a ngacha rl, Secreta ry-General, South

India Hotels and Restaurants Association

Recently we saw most of the cou ntry's big hotel c h a i n s e a rmarking funds for
expansion. G iven t h e state of t h e i ndust ry, why this expansio n now?

I agree that some of the leading chains in the country are expanding. I t is a good
idea as they are preparing for the futu re. Of late India is being branded as affordable
and it has lost its i mage o f being poor. In course of time, we expect I n d i a to become
an i mportant destinat ion on the t o u rist and b u s i n ess map. Seco n d , the bigge r
c h a i n s a re looking for possible conve ntion- re l at e d business. Once you bag a
convention, t h e capacity in terms of number of rooms should be h i g h . G ive n t h e
t i me requi red to construct rooms, t h e i n i t iative to b u i l d capacity s h o u l d be taken
now. Though it is a risk, the returns could be h i g h e r.

There seems to be increasing focus on budget hotels. What are yo u r views?

I ag ree that budget hotels are attractive. Eve n corporate a re c u tting down o n costs
and do not want to th row away money. We feel t h at t h e re s h o u l d be more medium­
n iche h otels. These hotels would b e more saleable to I nt e rnational and Domestic
C u sto me rs.

39
 DOCY!1,��
-------!1---- ...q-��.I�
Do y o u s e e any consol idation i n t h e in dustry?
In an industry such as hotels, mergers are difficult. Each h otel i s diffe rent in its own
right. The refore, a m e rg e r fair to both sides is difficult to atta i n . F u rther, the c l ientele
differs from property to prope rty. I n terms of consolidation, we see more management
c o n t racts and f r a n c h i s i n g h a p pe n i n g over t i m e . C h a i n h o t e l s l o o k for d i rect
participation i n the form of management contracts. I n fact, almost every chain has
set u p management contracts i n different parts of t h e country. ('Building tra veller
confidence, the key', Anup Menon, BL, 1 6/1210 1)

The year-end is w i tnessing domestic travellers flocking to hotels in destinations

like Rajasthan, H imacha l Pradesh and Utta ranchal to celebrate Christmas and
New Year. I t is unlike last year when a large number of travellers went ab road to
celebrate the New Yea r. Hoteliers a ttribute this gush in domestic bookings to fea r
of travelling abroad, lack of spending power d u e to recession, a n d the crash i n
stock m a rkets. They said most of the tra vellers either wanted t o g o t o nea rby
destinations, which were accessible by a ir or were a few hours d rive by roa d . To
make things more lucrative, hotel chains like the Oberoi Group, Welcome Heritage,
Taj Group and Choice Hotels have l a u nched p ackages to a ttract tourists from the
top-end to mid-segment categories to their leisure properties . (Year-end smiles on
hotel sector, A rslzdeep Seizgal, 20/12/01)

C orporate accommodation h unting could n o t h a v e g o t cheaper. With hotel room

rates falling like ninepins, especially 9 / 1 1 , it makes sense to give up expensive
leased apartments . The flip side is tha t hotels, dogged by low occupancy, have
found this a new and a ttractive m a rket to sell to .

As a result, an increasing n umber of MNCs a re moving their expatriate employees

from e xpensive rented a p artments to the competitively lower p riced serv ice
a partments and hotel rooms, a phenomenon creating havoc in the real estate
m arket. But more tha n the rates, the real clincher i s the big discounted of free
services these hotel rooms come with .

The Residency and The Mariott Have been popular. M a riott currently has 1 79
service apartmen ts. These 'flat-Iettes' tha t come wi th a l iv ing room, bedroom and
a kitchenette, a re on offer for $89 (Rs 4200) for a night. (Leased /tomes make room for
hotel i1l exec shift, MNCs move expatriate staff to hotel apartments as room rates crash
post US attacks, Curbir Singh & Lijee Philip, ET, 24/12/01)

C31 Resorts/country clubs/tim e shares " . " . " ". • ,.;. ; " . -, -

H ilton
UK-based Hilton International ha s a l ready identified four hotel & resort projects
in India in C hennai, Mumbai, Delhi while the fourth location is still under wrap s,
according to the company's p resident (Asia & Australia) Koos Klein . Hi l ton
International has announced its first initiative in the country, through a co-branding
and m a nagement deal w i th the Sanjay Khan-promoted Golden Palms R�sort &
Spa- a round 31 kms from Bangalore . The cha in has signed a 20-year contract to
manage the p roperty. As per the agreement, H i lton Internationa l would bring in
its g l ob a l expertise in total management- housekeeping, food & beverages,
information technology and marketing - to the property. (HiitOll Intc1'IIa tionai sets
sight on fou r locations in India, to co-brand Wit1l Salljay Khan's spa, FE, 6/2/01 )

ReI & its affiliates

Time-share companies induding RCT, had structured their Indian operators around
smaller players in the hospita lity sector, ensuring benchm a rk quality at chosen
properties w i th emphasis on resorts at holiday spots. The trend is generally the
40
____
____
__ �D_���
preferred style of vacationing by the domestic time-sha re clients. While domestic
time-share players a re yet to open their account at properties in big cities, tie-ups
with large hotel chains a re a lso few. RCI itself sporting j ust two locales (Goa and
Munnar) from Club Mahindra and one (Goa) managed b y Holiday Inn.

This could cha n ge in the next few months given the onset of over-capacity in
some markets such as No rth Mumbai, where a clu tch of premium hotels bega n
operation in the recent past.

The impact of major economies slowing down is felt more by young hotel chains
and new p roperties . Time-share tie-ups can help because a part of the room
inventory can be parked with a time-share company for an upfront payment and
business assured for a long time span . (Hotels may join IWllds witiz time-share cos,
making room in a crowded market, BL, 9/8/01)

RCI India Pvt Ltd., the body that enables timeshare owners to exchange holidays,
expects the timesha re industry in India to grow a t a rate of 24 per cent. The Rs
I ,OOO-cr timeshare industry, which got initiated in India in 1 992 when RCI opened
its subsidiary company in Ind ia, has been responsible for converting resorts into
offering p a rtial time··share facilities. The list includes the likes of Club Mahindra
a t Munnar and Holiday Inn at Goa . On the cards is Le Royal Meridien situated
nea r the Mumbai a i rport, which would have a lmost 20 per cen t of the hotel rooms
converted into timeshare facilities to offer a branded p roduct christened as 'The
Luxury Club'. This would be the first boutique five star hotel within the city
limits to offer ti meshare facilities in the country. (Timeshare industry growth outpacing
hotels: R CI chief, Plirvita Cizatterjee, BL, 1 7/1 1/01)

RCI says its business from India is actually on the rise since September 1 1 . And it
is a lso enthusiastic about fu ture p rospects that two of i ts companies b ased in UK,
RCI Consulting & RCI Management Services will make their entry into the Indian
market towards mid-2002 to help new developers to set up and run their resorts
in a p rofessional and profitable m anner. The timesha re major is a lso looking to
rope in some good resorts in Kera l a and Raj asthan into its netw ork.

The RCI India timeshare exchange platform has 50 resorts a ffiliated to it and over
40,000 owner families. In India since the timesha re user n umbers is on the rise -
about 1 ,500 member families on holiday per month now - RCI has taken some
bold decisions, beginning with dropping about 48 resorts from its network during
the last one year a s they did not fulfil the qual ity and service standards required
of a RCI-affiliated facility. It has also set up an association of resort developers
called Airda, which basically spells out of the code of conduct and self-legislation
for consumer p rotection. The move expects to m a ke u p for the absence of
Government regulations to govern the functioning o f holiday resorts in India
unlike countries like the US, Australia, South Africa, Europe which a re heavily
legislate d .

R C I has a lso made it manda tory for n e w entrant resorts t o i t s club t o take a n
insurance cover for its guests s o that for whatever reason if i t i s n o t able t o offer a
holiday - as promised in the timeshare contract with its members - the insurance
company relocates them to an alternate equivalent facility i mmediately.

Within India, Goa is the hottest holiday destination in demand from RCI timeshare
owners l a rgely because about 47 per cent of the members live in Mumbai. About
27 per cent live in the north and p atronise Shimla, Mussorie and Manali, while 14
41
________
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per cen t a re in the .so u th that p a tron ise Ooty, C oo rg , K o d a i a nd Yerc a u d .
Inciden ta l ly, India a s a Destin a tion C ountry is ra nked 1 9th on a list of desirable
destina tions worldwide by a recent Kuoni I n terna tion a l survey. The s tri fe torn Sri
Lanka has a h i gher rating at positwn eight while Austral i a is number five. (Post
Sept 1 1 , ReI claims to have ferried more tourists, Girish Rao, ET, 2/12/0 1 )

Forte Holidays
Mumbai-based Forte Holidays has l a unched a domestic holiday c a rd in 1 999 and
has a round 1 0000 members currfntly. The company has recentl y introduced the
card in the south and expects 1 / 3rd of i ts targeted members from this region . By
this November, the company plans to offer its d omestic cardholders an upgrade
to Interna tional Membership at a n add itional cost. Details of this need to be still
worked out. (Forte Holidays may remodel its domestic holiday card, 1 5/8/0 1 )

Other resorts
Toshali Resorts International (TRI) is p l anning to set up � round 9 new resorts
across India w ithin 201 0 . Each of these properties would be in the four-star category
a n d h a ve room numbers ranging from 50-75 . They have a l ready a cquired land, in
Ooty, Raniket, Koda ikanal a nd Bhubaneshwar and a re looking at options in
Bangalore, Goa a nd Sikki m . (Toslrali to set lip 9 more resorts across U:e country, ET, 1 /
9/0 1 )

Vani Vilas, the Oberoi G roup's Newest Luxury Re'sort adjoining the Ranthambore
Tiger Reserve i n Rajasthan was opened. The accommodation consists of l ux ury
a ir-conditioned tents, which have a private deck for sunbathing. A walled g arden
surrounds each tent, thereby ensuring complete p ri vacy. A speci a l feature of the
resort is the private therapy suites. I n a statement, the hotel will have tra ined
gu ides who would accompany the visitors into the reserve. (Oberoi resort opens at
Rallthambore, BL, 2 1 /1 1/01 )

The Ramapuram Holiday Resorts, which runs the Orange County i n Kodagu, has
p l anned to set u p a nother resort in Kabini with an overal l investment o f Rs 10 cr.
The Ramapuram group would raise 60 % of the finance required for the project
from fina ncial institutions while the rest would be met through internal a ccruals.
The resort would b e 35 per cent timeshare and 65% FIT (free independent tra v e l ) .
They a n ticipate tremendous scope for growth in K a b i n i as there were o n l y three
resorts and the demand was high . The group has also started a new company,
Tra ils, which will provide manage ment and operations consultancy to resorts.
C urrently, it h a s three p rojects on hand - the E agleridge resort in Banga lore,
Indus Va l ley in Mysore a nd the Kadavu in Calicut. The RCI Gold Crown a w a rd
was given to Orange County Resorts . This a w a rd is considered to be the highest
in the resort accommoda tion and hospita l i ty industry. (Ramapuram resorts set to go
to Kabilli, BL, 30/1 1/0 1 )

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Internation a l Air Transport Association (lATA)

lATA is p la nning to introduce systems for electronic ticketing in India in the next
two-three years. It is a l s o p la nning to set up a training centre as well as cargo
accounting and settlement system. Worldwide, 360 million paper tickets a re printed
costing close to $40 million. The cost of p rocessing an a irline p aper ticket is $10
whi le an e-ticket would cost a round $ 1 . Electronic ticketing in the domestic a irline
industry in Ind ia can commence g uite easily but for interna tional a i rlines i t may
take two to three years. (lATA plans e-tickctillg systems, FE, 1 4/6/0 1 )
42
The Association is bringing together a diverse panel of experts from Airlines,
G overn ments, International Organisations, Human Rights Groups and Commercial
Interests to delibera te on the matter of migration. Dubbed Human Tra ffic 200 1 ,
the meet, which will be held i n Atlanta o n October 1 5-1 6, w i l l serve as an open
forum to d iscuss the wide-ranging issues a ssociated w i th migration. The Goal of
the Meet will be to focus greater a ttention on the a ctual scope o f the p roblem and
to identify a p p ropriate solutions that can a d d ress the needs o f s ta tes while
recognising the contributions, concerns and capabilities of the air transport industry,
During the past 1 5 years, lATA has been involved in efforts to help a i rlines p rotect
themselves from this g rowing problem. To cope with this p roblem, which is
increasingly getting out of hand, lATA has, a facilita tion section that is actively
involved in the work of va rious internati onal bodies to ensure that the concerns of
the a irline industry a re recognised and understood . (lATA Oct 11leet to dwell on
migration woes, Harjeet Al1luwalia, FE, 24/6/01)

The decision o f most International C a rriers opera ting out of India to chop travel
tra de comm issions from 9 to 7% from January 1, 2002, may impact the quality of
serv ices given by the l a tter to the h i gh-yield f i rst class a n d business class
passengers, a p a rt from marginally hiking the economy class market fares. Tra vel
companies, ov�r 1 ,500 lATA a ccredited agents, a cross India have been up in arms
over the m o ve to reduce a irline com mission in order to economise on distribution
and marketing costs. However, airli nes still p ressing ahead w ith their decision
w ith most of them includ ing Air India, Indian Airlines, Lufthansa, British Airways,
Swiss A ir, Qantas and Singapore Airlines, having communica ted in writing to the
tra vel trade. Tra vel agents a lso invest on promoting airlines and their packages,
an a rea that may witness some changes now. (Travel agent commission cuts may hit
service quality, Girisl1 Rao, ET, 1 3/1 2/01)

Hotel Association o f India (HAn

HAl has come out with a set of illustrative guidelines for disabled-friendly facilities
to be provided by hotels in the country. Hotels have been asked to have exclusively
earma rked and sign-posted accessible pa rking spaces nearest to the entrance and
ensure tha t a ccessible routes in the lobby and public a rea a re free from p rotruding
objects tha t could be dangerous to g uests w i th visual impairment. (Hotels to become
disabled1riendly, TH, 5/5/01 )

Federation of Hotels and Restaurants Associations of India (FHRAIl

FHRAI and the Travel Agents Association of India (TAAl) have signed an agreement
to regu l a te a n d g uide interaction b e tween h oteliers a n d tra vel agents. The
a g reement, called the Code of Practice, is modelled on the Agreement on Code o f
Practice signed between the Internation a l Hotel & Restau rant Association (IH&RA)
and the U niversal Federation o f Tra vel Agents Associations (UFTA A ) .

According to t h e press release, the basic tenet of t h e a g reement is t h a t h otels shall

have a formal policy on matters such as commission to be paid to travel a gents,
maximum credit period allowed to travel a gents, cancellation of bookings and
cancella tion fee. The a greement a lso says tha t the hotels sha l l offer the TAAI
members terms and conditions, which a re not less favourable tha n those given by
them to their d i rect clients and others. (Hoteliers, travel agents agree to work together,
BL, 1 6/3/01 )

The FHRAI has u rged the Central government to form a C abinet committee to
ha ndle the problems faced by the industry. The committee should work as an
apex body a t the Centre to m onitor the industry and redress the tourism industry's
43
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grievances like high taxation, CRZ and inconsistency of Floor space index rules
from state to state, The federation has also ca lled for setting up of tourism councils
at the sta tes' level headed by the respective Chief Ministers. (Cabinet panel for
tourism sought, FE, 1 7/9/0 1 )

I n i ts Pre-Budget Memorandum t o the Department of Tourism, the Federation o f

Hotel & Resta urant Associations of India (FHRAI) has sought rationalisation of
the present tax structure both at centra l and State Level for giving a boost to the
Nation's Tourism Industry. (Boost tourism willi rational tax structure, says FH&RAI,
Raja Awastlli, ET, 9/12/0 1 )

Pride, Progress and purpose- forming the theme of this yea r 's convention o f the
A sian American Hotel Owners Associa tion (AAHOA) were manifest among
the nearly 3,000 members of the organisation who gathered here . The AAHOA
members together own more than 1 8,000 hotels, which have one million rooms
and a m a rket v a l ue of over $40 billion. This represents about 65'10 of the economy
lodging p roperties in the US a nd a lmost 40 per cen t of a l l hotel p roperties, paying
more than $7-hn in annual wages and employing 430'000 people in full and p a rt­
time. (Asiml-A mericans steal tile limelight in hotel sector, E T, 1 7/3/01 )

The Hotels and Restau ra n t Associa tion o f Northern India (HRANI) has la unched
i ts Travel Reservation and I n formation Centre (TRIC), w hich w i l l p rov ide
information on tou rist destinations and instant reservation services for hotels in
n orthern India to cater to domestic and international travellers . Along w ith normal
h otel bookings, TRIC plans to launch honeymoon packages, family holiday
p ac k a g e s, e d u c a t i o n a l a d v e n t u re and i n c e n ti v e group tours e t c . Other
programmes would i nclude religious tours, corporate picnics, outdoor team
building, yoga packages and spa holidays . (Hotel body lau nches travel information
centre, DH, 1 0/1 1/0 1 )

After years of ,disc ussi ons o n Ca pping Commissions, I n terna tional Airlines
opera ting out of India have finally decided to reduce the standard com mission
from 9 to 7%. This decision is to take effect from Sep 15th. A irfares a re l i kely to go
up if travel a gents decide to pass on the burden to passengers , The tw o l a rge
Travel Agents Associations, TAAI and TAFI have opposed this move saying there
has been no dialogue w i th them on the subject. (Inti airline cos cut standard
commission from 9% to 7'1.), Cuckoo Paul, ET, 1 5/8/0 1 )

I ATO has deman ded tha t benefits under Section SO-I A / SO-IB of the Income Ta x
Act should be made a va i l able to the tourism units too as they form a n important
part of tourism infrastructure and a re instrument a l in the development of tourism
and employment opportunities. They have sought infrastructure status for tourism
units such as hotels, travel agents, tour operators, convention centres and tourist
transport operators . (Tollr operators for IT benefits under Section 80-HHD, A m iti Sen,
1 3/2/01)

The Travel Agents Federation of India (TAFI), K a rnataka chapter, has called on
the Government to ease immigration and v isa regula tions to promote tourism ,
Spea king at a meeting called to d iscuss p roblems in the a irline industry, the
federation pointed o u t the negative e ffect of these res trictions were on a i r
passengers . (Relax curbs t o promote tOllrism, Tal. B, 30/12/0 1 )

44
__. ___________ " ��_IC��
Confedera tion of Ind ian Industry (eII)
CII has sought deregulation of domestic a i r services to stimulate growth of regional
a i rlines and increase connectivity to a reas tha t a re remote and need economic
development. Industry representatives s a id this in thei r reform a genda for
development and growth of air services p resented to the Ministry of C iv i l Aviation .
The six-pillar structure of reforms in the aviation sector includes infrastructure,
international a i r services, domestic air services, taxa tion , safety and regula tory
framework. The ell a dvocated a 'maste r plan' for infrastructure development
one, w h ic h outl ined which a i rports, would be developed as key internationa l
hubs . In the d omestic sector, t h e i nd ustry recommended d ismantling o f route
d ispersal system, ra tionalisation of a v i a tion turbine fuel by red ucing sales tax,
p romotion of s m a l l a i rcra ft for reg i o n a l a ir lines / shorter routes a n d more
competition by a l lowing more pla yers . Describing inte rna tion a l services as
importa n t for p romoting tou rism the ell suggested l iberal ised b i l a teral and
speedier priva tisation of Air India to correct the i mbalance in the demand and
supply scena rio. (ell seeks deregulation of domestic a ir services, TH, 2 1/3/01)

CII h a s asked the Government t o reduce the p resence of public sector i n the
a v i ation industry and encourage greater private sector participation through joint
ventures and a ll iances . I n a memorandum submitted to the Ministry of Civil
Aviation as a run-up to the 2002 Union Budget, the ell has o u tlined a seven-point
a genda for giving boost to the civil a v i a tion sector.

• Three or four interna tional a i rp o rts must be upgraded to interna tional standards
through private pa rticipation .
• The h igh cost of a v i a tion turbine fuel, which accoun ts for 40 per cent of an
a irline's operating cost, was a major constraint to India's competitiveness and
made small a ircraft operations unviable.
• The Inland Tra vel Tax needed to be reviewed a s i t adds u p to an a dd itional 1 5
p e r cent cost o f the a irfa re. It suggested t h a t either t h e IATT be abolished o r
a lternative l y a mechanism be established t o ensure tha t the entire a mount was
ploughed back into avia tion infrastructu re .
• The levy of customs duty on the import of a i rcraft h a d placed an additi on a l
financial b u rden . It w a s felt that the customs d uty of three p e r cent o n a i rcraft
and helicopters should b e with drawn and benefits similar to the shipping
industry be extended to the avia tion industry.
(ell for greater private role in aviatioll,)

In an effort to provide an impetus to the tourism indus try CII has called for
enhancing Plan outlay for tourism to 5 per cent from the p resent meagre level of
0 . 1 1 per cent, so that quality infrastructure can be b u i l t . In a b a ckground paper
for the second interna tiona l confe rence cum s howcase 'Indi a : Tou rism and
Heritage-C h a l lenge 2 1 ' , the chamber has said that though the incidents of
September 11 w i l l disrupt the stea dy growth of the industry, there is a need to
change strategy to face the crisis. Further it has said that the fears of a recession in
the i n d u s try a re "com pletely u nfounded ." C I I h a s also s u ggested tapping
international m arkets other than the convention a l ones and a lso focussing on
domestic tourism to give a boost to the sector. (Hike plan outlay for tourism: elI, BL,
1 6/1 0/01)

In a p roposa l submitted to the Tourism Ministry the C II has said the Draft Tourism
Policy should spell out a clea r roadmap achieving the objectives ou tlined with a
fixed time frame for implementa tion . The CII asked m inistry to come out with
c l e a r guidel ines for p r i v a te sector pa rtiCipation i n the tourism sector. The
45
 M. EU 0 �
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G o v e r n m e n t ' s i n te n t i on to p l a y a p iv o t a l r o l e i n t o u r i s m ma n a ge m e n t a n d
p r o m o t i on c o u l d s e v e re l y rest r i c t the scope a n d rol e o f the p r i v a te sector. C l I a l s o
recommended tha t the role o f the Govern men t s h ou l d idea l l y b e tha t o f a fa c i l i ta tor
w hi c h would take ca re o f a l l Inter- M i n is te ri a l co-ord i n a tion and l i n k a ges s ince
Tou r i s m was i n fl uenced by v a r iolls M i n istries, inc l u d in g E x terna l A ffai rs, F i n ance,
Home, C i v i l Avi a tion, Forests & Env i ro n m e n t, C o m m e rce; a s a l so the States .

For p r o m o t i n g b r a n d eq u i ty, the c h a m b e r recommended tha t the Centre promote

a com p o s i te Ind i cl b r a n d w h i l e s t<l tes b u i l d thei r o w n i n d i v i d u a l i d e n t i ty a n d
b ra n d i n the i n te rn a t i ona l market. Sta tes c o u l d a l s o i n vo l v e t h e p r i v a te sector to
evolve ma rketing ca m pa i g n s .

O n the i s s u e o f t a x a t i on, e l I s a i d there w a s a n u r g e n t need for u n i formi ty a n d

ra t i o n a l is a t i o n o f taxes a nd h o te l tariffs . The p r i n c i p l e o f m od era te ta xes, better
com p l i a nce a nd grea ter v o l u mes s h o u l d a l so be a p p l ied t o the tou r i s m sector. (Cll
seeks roadl11ap ./(11' t(lllri�/11 illdustry, FE, 25/5/O J )

C l I h a s c a l l e d for s e t t i n g u p a C a b i ne t C o m m i t tee o n Tou r i s m , u nd e r the

C h a i rm an s h i p o f N a tiona l Tou r i s m B o a rd to e n s u re rapid gro w th o f the sector. C l I
s u ggested t h a t t h e c o m m i ttee s h o u l d c o m p r i s e h e a d s o f a l l rel a ted a gencies
i nc l u d in g M i n isters from Depa r t m en ts such a s F i n a nce, External Affa i rs, Tou r i s m ,
C i v i l Av i a t i o n , S u r fa ce Tra n s p o r t R a i l vv a y, H u m a n R e s o u rc e , F o re s t a n d
E n v i ronment and I n forma t i on Tec h n o logy. Express i n g i ts b ro a d a g reement w i th
the Dra ft Tou ri s m Pol icy, i t h a s h ig h l i g h ted the om i s s i on o f H R D a spects i n the
p ol ic y. (CII IIIOotS Ilational board for tou rism promotion, 3 1 /8/0 l )

C I I h a s sa i d tha t ,1 u n i fo r m t a x structure i s essen t i a l t o m a ke I n d i a a Comp e t i t i v e

Dest i n a t i on i n the W o r l d Ma rket and a c a p o f 20''l." i n c l u s i v e o f a I I ta xes s h ou l d b e
i m p osed on t o ur i s m . I n a Memora n d u m t o t h e M i n istry o f Tour i s m c a l l i n g f o r
ra t i on a l i s a t ion o f t a x e s i n the sector, t h e c h a m ber h a s s a i d tha t t h e m u l ti p l e ta x
structure h a s a casca d i n g effect a n d a d d s up to 30-40';1" of the hotel b i l l , c o m p a red
to the overa l l 5-20'Y., combined taxes in Sou the a s t a n d E a s t A s i a n coun tries . (ell
calls for tax reforms to boost tOll rism, HL, 2 7/1 2/0 1 )

FICCI
F I CC I h a s mooted a 8-point a gen d a to revive the Tou ri s m I n d us try i n I n d ia from
the a d verse e ffects a fter the terrorist a t ta c ks . The a ge n d a is b a sed o n i m p ro v i n g
t h e emp l o y men t pote n t i a l o f t h e i nd ustry as w e l l a s genera ting FEE . T h e a ge n d a
i n c lu d e s :
• A ttrac t i n g US bou nd t o u r i sts to I n d i a ,
• Focus on domestic tourism,
• I d e n t i fy i n g pote n t i a l p acka ges a n d c i rc u i ts ,
• R a tiona l i sa tion o f ta x s tructu re,
• Tourism-friend l y t a x a v ia tion p o l i c y,
• I n frastructure sta tus for tou r i s m ,
• Rel ie f from the f i n a n ci a l i n s t i tutions to the i n d u stry a n d
• P o l icy i n i t i a ti v e s .
(nCCI moots 8-point agClldll t o revive tou rism illdlls try, R iclw MiS/I ra, Bt, 20/1 1 /IJ 1 )

World Tou r i s m a nd Tra vel Council

The WTTC h a s s u ggested tha t in o rder for the country's t r a v e l a n d t o u r i s m to
meet i t s full p o te n t i a l, the government needs to tackle a n u mber o f b a r ri e rs,
i nc l u d i n g ra i s i n g a w a reness of the s t ra tegic economic a n d job-cre a t i ng i mporta nce
of the i n d u s try. The stu d y brought out by them in c o l l a bo r a t i o n w i th OEF h a s

46
suggested tha t the government should l ibera l i se the visa reg i m e by abolish i ng
visas to m aj o r touri s m gen e ra t i n g cou ntries, a n d by o ffe r i n g v isa on a rrival for the
rem a i n i n g countri es . The council said that one of the m a j o r re<lsons Ind i a h a v i n g
one o f t h e fastest grow i n g dema nds f o r tourism serv i ces is a surge i n d omestic
tourism, which has g ro w n from 64 m n to 1 76 mn tourists i n the l a st decad e . ( Ease
visa norms to meet tOl i rislll potel l t inl, BL, S181m )

Expe r i en ce India Society

In a first ever effort to nl i Hket I nd i a as a brand, d o m estic hosp i t a l i ty m a jors Taj ,
Oberoi, I TC, Thomas Cook, K u o n i d n d SJTA Tra vels h a v e joi ned h a n ds with the
government to l a u nch an i n te rn a tional m <l rketing ca m p a i gn . The ' E x pe rience India
Society' formed under p r i v a te sector p a rtici p a t i on w ill work closely w i th the MoT
t o j o in t l y p ro m ote I n c h<l as a bra n d . (Hospitality 1l 1ajors joill hands with Centre to
market India, Rajeez1 !ayaswaZ, FE, 2 1/8/0 1 )

A l l the three <lp e x cha m be rs (CI t FICCI a n d ASSOCHAM) have hailed the d ec i s i on
to set up a tou rism a d v isory cou ncil that w a s announced a fter the meeti ng between
the PM, CMs <lnd the tourism m i n i sters . But they h a v e put forth thei r view of
whe ther a nother tou rism council i s re<l l l y needed and w h a t i s to be the scope of
this one . As pects th a t d id n ' t find a mention post the m eetin g w e re the v isa on
a r ri v a ls and the one-yeiH tax hol i d <l Y - both of which were a n tici p<lted b y the
chambers . It was also fel t tha t there should have been an i ntegrated pol icy between
the tour ism depa rtment and the c i v i l a v ia tion d e p a r tm e n t . (Tou rislIl meets fa ils to
ell t/wse i n d us t ry, B t. 2/1 I /(1 )

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Hotels

Hotel Corporation of I n d ia
I n order to compl e te the d is i n v estment of Hotel C orpora t i on I n d i a erI C I ) ahead of
i ts p a re n t, Air [nd ia ( AI ) , the Government may be fo rced t o resort to a 'slu m p
sale'. The s l u m p sale could see i n d i v i d u a l H C I p ro p erties being sold i n d ependently
a long w i th the e n tire <lSsct and H<l b i l iti es to the h i ghest b i d d er. HCr owns f i v e
properties i n M ll mb a i , Delhi, Sri n a g a r a n d R a j g i r ( B i h a r ) under t h e 'Cen taur brand
n a me, besi d es the flight cateri n g d i vision, a l l of w hich are to be d i v ested . (Covt
may have to resort to ,,[li mp sale for Hotel Corpn, Nitlzya Slibralllai1iaJl & As/Hoilli
P/wdnis, B t. 3U!410 1 , C3()). The p roperties h a ve been v a l u ed a t around Rs 650-700-
cr. Some of the Major I nternational Hotel Ch<l i n s that ha d originally showed i n terest
b u t h a v e now d ropped out of the race a re H i lton I nterna t i o n a l , Ra ffles H o l d i n gs,
the Ambass ad o r G ro u p <l n d Forte Group (Cen ta u r Croup propert ies valliI'd a t RS
650-700-cr, 8 bidders opt 0111 of m ct', Piya S i llgh, TO T, M, 8/3/0 1 , C30). I n d i <l n Hotels,
EIH Ltd and K a m a t H otels a re th e few d omestic hotels that had b i ds for the hotel
cha in . (Indian Hotels, fIN kt'CIl to acquire Hotel Corpora t /oll, Kailasl! [\ajwadkar, 231
5/01 )

The d ivestm ent of BCI h<ls h i t p ractica l l y come to a sta ndstill w ith b i d d ers asking
for w a rra n ties on 5<1 le p roceed for 5 HC] p roperties. Wh i l e a t the Government
level i t is fel t that the m a x i m u m wa rra n ty to the b id de r could b e g i ven a t 5'X, of
s a l e p roceeds, b i d d e rs have a sked for a h igher p e rcen tage. (HCf dives tment h its a
speed breaker, loytill /II CIIOSII, TOl, 8, 1 4/710 1 )

T h e d i vestment o f H C I has e ntered a deadl ock w i th the a d v isor a n d H C I officials

having d i ffered op i n io ns over the a moll n t of com p ensation d ue to the b i d d e rs,
47
________________ �?�C�
aga i n s t pend i n g l e g a l cases of the e m p l oyees w i th the H C I m a n a ge m e n t . The
c o m pe n s a t i o n w i l l b e g iven in terms of wa rran ties as a proportion to tota l sal e s
p roceed s . W h i l e t h e a d v isor J a rd i ne F l e m i ng h a s recommended tha t w a rr a n ty
s h o u l d be 20'7" of the tnt a l s a l e v a l ue, HCI offi c i a l s s a i d t h a t i t shoul d not exceed
5 '1;, o f s a l e proceed s . ([-ICl sale ri m s it;to roadblock, jayr mta Ghosh, TOl, M, 2 1 /8/0 1 )

T h e A i r I n d i a ( A I ) boa rd a p p roved t h e c re a t i o n o f d s p ec i a l p urpose v eh icle (SPY)

Tul i p Hospi ta l i ty Services P r i v a te Ltd (THSPL) - for fac i l i ta ti n g the d i vestme n t
of the Go ve rn m ent's equ i ty i n t h e J u h u Centa u r h o t e l property i n M u mb a i . The
SPY was crea ted b y Mr Ajit Kerkar's Tu l i p S ta r H o te l Ltd to a rr a n ge f u n d s for the
a c q u i s i t i on of Hotel Corpor a t i o n of I nd i a 's J u h u property. Mr Kerk ar 's f i rm h a d
w o n t h e b i d f o r tak i n g over t h e property by q u o t i n g R s 1 53 C r l a s t week. However,
t h i s move w a s consi dered to be i ll e g a l a s the e n t i ty tha t h a d p la ced the i n i t i a l b i d
a n d t h e one from w h i c h the f i n a n c i a l b i d w a s a ccep te d w e re separate. B u t h otel
o ffi c i a l s s a y a s l o n g a s the s a m e pa rty, wh ich p u t i n the i n i t i a l b i d , h a s a ls o p u t i n
the f i n a n c i a l b i d , i t shou l d n o t b e a m a tter o f concern . (A ir India Okays SPV for
[1I11ll hotel takclHl('J', A sll1uilli Plmdnis, BL, 2 1/1 1 /0 1 )

The M i n is try o f D i s i n vestment h a s a g reed t o e x te n d the d ea d l ine for the ful l a n d

fi n a l p a ym e n t of t h e p u rchase c o n s i d e r a t i o n for t h e H otel Corporat i o n o f I n d i a ' s
Cen ta u r H otel property in J u h u Bl'ach, M u m b a i . Tu l i p Sta r H otels Ltd w a s to
h a v e p a i d 10 p e r cent of the b i d price of Rs 1 53 cr to H C l a n d depos i ted the
b a la n c e 90 per cen t in a n escrow a cc o u n t on or b e fore December 2 1 , 20tH . Sources
s a i d t h a t the M o D h a s now a g reed to Tu l i p ' s p roposa l to pay the i n i t i a l 1 0 per
cent o f the bid p rice a mo u n t i n g to Rs 1 5 ,3 c r to I-ICI o n o r b e fore December 31,
200 1 . Besid es , certai n cond i ti ons h a v e been i m p osed for a ll o w i n g the Tul i p Star to
d e p o s i t the b a l a n ce a mo u n t of Rs 1 :37.70 c r by J a n u a ry 3 1 , 2002.

However, the M i ni stry has also m a d e i t clear that there s h al l b e no further extens i on
to s i gn the a g reements o f s a l e beyond J a n u a ry 3 1 , 2002 . Sources s a i d that the MoD
i s u n d e rstood t o have now p l a ced a con d it i o n tha t the b a n k g u a r a n tee o f R s 5 c r
c a n be enca shed b y A i r I n d i a i f Tul i p d oe s n o t make t h e p a y m en t a n d execute the
a g reement by J a n u a ry 31, 2002. (Tu.lip S tar gets /1lore time for Cnl tau/' pay1lll'11 t,
Asilwinin Plwdllis & K n Srivats, B L, 25/1 2/0 1 )

G re a t Eastern H otel
A nother hotel li p for s a l e is the G re a t Eastern H o te l (GFH) r u n b y the Wes t Bengal
governmen t . Severa l i ss u e s yet need to be resolved w i th Accor A s i a P a c i fic ( A A P )
w i th w ho m the Wes t Benga l G ov e rn ment i s negoti a t i n g f o r a p o s s i b l e h a n d -over.
Once the i s s ue of the p rotec tion of the S(JO-odd w orkers i s the G o v e rn m e n t w o u l d
then g o i n f o r a 30-year l ea se w i th A A P f o r res torati on o f t h e Hotel a s a F i ve-Sta r
Heri ta ge Hotel a lo n g w i th m a nagement contro l . (Great Eastern Hotel lwndover hinges
0 11 vns, tenancy issues, BL, 2 7/5/0 1 )

m::
ITC Ltd, owners of the Welcomgroup of h otel s, h as s o u g h t the g o v ern men t
permission for a foreign technical tie-up for i n ternationa l m arketing a nd reservation
of i ts hote l s . The group, w h i ch has a b o u t 1 5 h o tels in the c o u n try a l re a d y, has a
globa l tie-up w i th the Shera ton c h a i n for a few of i ts hote l s . (fTC seeks foreigll tie
lip for Welcomgrollp, TH, 4/1/0 1 )

I ts o ther p l a n s i n c l u d e t y i n g u p w i th a t l e a s t s e v e n new p roperties across the

c o u n try to step up i ts foc u s on c a te r i ng to the b u d ge t travel segmen t . In order to
pos i tion the cha i n e f fectively a cross d ifferent segmen ts, a new b ra nd in g p o licy

48
 DOCUMENJAUQ�
-------
, , ---,,--..-:1��IUgU!}
h a s been introduce. While super deluxe properties would carry the prefix 'ITc, the
sta r hotels would be brclnded as 'WclcomHotels', heritage p roperties posi tioned as
'WelcomHeritage' a nd the mid-ma rket 3-4 star hotels m arketed under the b anner
Fortune Pa rk Hotels (FPH) . (ITC to charm budget sector with FPH l ine, ET, 28 / 2/01)

They have a lso sta r ted a n innovative w a te r m a n a gement mechan ism in v i e w o f

t h e heightened pressure o n w a t e r s u p p l y in c ities . The group w i l l take lip wate r
m a na gement in a l l i ts units. To p repa re k e y consumers o n w a te r m a n a gement, i t
w a s necessary to focus a ttention o n hotels, power p l a n ts a n d p rocess i nd ustries.
[n Delh i , hotels consumed more than 12 mil lion I i t res of w a ter a d ay. UTe Hotels'
elwill takes !lp wilIer 1II1lJlllgl'lIlCl1t, B L, 1 5/5/( 1 )

Excerpts from and interview with S S H Rehman, M D , ITC H otels

What is WelcomJ awan all about?

The endeavour commenced initially with schemes evolved d uring cordial

exchanges between ITC H L and the Army_ This gradu ally t u rned into a
corporate endeavour. Realising the need for close co-ordination with the
welfare directorate of the Service H eadq uarters and also within the corporate
group itself , a separate chair for an advisor at the corporate office, manned
by a retired Brigadier, was set up in 1 9 7 7 .

What are scheme's corporate objectives?

The main objective is to provide opportunities to ex-servicemen for training

for a career in the hospitality industry assist them in their re-employment
and provide the service officers' wives an opportunity to train for a career i n
the hotel industry.

Could you elaborate on what is the Welcomspot?

The road network in our country m u st grow manifold. There is a need to

have stopovers every 1 00 -km, especially on the highways . The scheme
that envisages the tourist facility as a Welcomspot (for short-halt necessities)
or as a Welcomspot (for long-halt necessities) is on the anvil. The scheme
provides assistance by way of training for an ex-serviceman entrepreneur,
training for his key staff and assistance in creating the infrastruct ure and in
marketing the facility.

(,ITC Hotels' schemes for ex-servicemen have been mutually beneficial',

Huma Siddiqui, FE, 7/12/0 1)

I n d i a n Hotels Co Ltd . (IHCL)

[HCL that owns and m a n a ges the Taj Group of Hotels p l a n s to start opera ti ons in
the G u l f regi on. The comp a n y has secure d a 14-yea r m a na gement con tract for a 5-
star hotel in Dub a i from the Juma a l-Masjid G roup tha t has i n v ested $90 million
in it. A l so moving ahead on its initia tive of packaging a n d m a r keting cluster
destina tions where it opera tes hotels ( l i ke i t has d one in the case o f Sri Lanka­
M a l d i ves-Kera l a ) , Taj is pla nning a Middle East package combining Dubai, Oman,
Sanaa (in Yemen) and Egypt. Repositioning a nd u pgrada tion o f some o f the existing
properties is a lso on, w i th inves tments of close to $20 m i l l ion involved . (Taj maps
o u t $2()-mll o versells pla/l, Occptl njall Blzas, TOT. M, 7/2/01 )

49
__
__
__
___.
_ , ____ �D?_C���
They h a v e tied u p w i th t h e C h a u d h a ri G rou p o f N e p a l a s i ts s tra teg ic p a rtner for
f l oa t i n g i t s h ol d i n g com p a n y, Taj Asi a . T h e strategic p a r tn e r p l a n s to p i c k up 50%
in the j o i n t v e n t ure c o m p a n y ; the remfl i n i n g sta ke w i l l l i e w i th I nd i a n H o te l s .
T h i s fol l o w s t h e c o m p a n y s t m te g y to e x p a n d o p e r a t i o n s i n Sou th e a s t A si a n
c o u n tries, w here the p roposed h ol d i ng co m p a n y, Taj A s i a , w i l l a c t a s the v e h i c l e
f o r acqu i s i ti on s . T h e other res t r u c t u r i n g exercises o f t h e Taj g ro u p i s to r e d u c e the
n um ber o f i ts subsi d i a ri es from 7 to 3, they p l a n t o a c q u i re n e w p rope rties i n
M a n h a t t a n , E g y p t a n d Peru, p l a n s t o e x p a n d i n E u rope, stra tegy b e i n g t o b u y
i n to a f l a gs h i p b ra n d a n d g row i t . (II/diall Hotcls joins hands with Nepal g roup t o
float Tilj Asia, A I/ illt/ita Dey, 7/3/( 1 )

I n d i a n H o te l s h a s s i gned a MoD w i th t h e Arch a eolog ica l S u r v e y o f I n d i a for

p reserv a t ion, restor a t i o n a n d conse r v a tion o f the Taj Ma h a l a n d i ts e n v i rons u n d e r
t h e N a t i o n a l C u l t u re F u n d . T h e G ro u p w i l l t a k e u p s p e c i f i c p ro j e c t s f o r
conse r v a t i o n a n d p ro v i s i o n of better fa c i l i ties a t the Ta j Ma h a ! . The grou p w i l l
so u rce e x p e rtise from v a ri o us i n s t i t u tes, w h i c h h a v e con d uc te d s t u d i es o n the
m o n u m e n t . The Taj G ro u p h as a l rea d y been resto r i n g a n d conse r v i n g h e r i tage
p roperties l i ke the R a mb a g h Pa l a c e a n d J a i M a h a ! . (Indian Hotels to sprucc lip Taj
Malia I, 23/6/( 1 )

IHCL h a s gone i n f o r a m a j o r o rga n i s a t i o n a l res t ru c t u r i n g . T h e y a re working

tow a rd s:

• G e a r i n g u p for a con tem porary l oo k

• M o v e s to b e a t com p e t i t i o n from I n t e rn a ti o n a l C h a i n s
• To red u c e h ie ra rc h y l e v e l s f r o m 8 to 5
• P l a n s fora y i n t o b u d ge t segme n t u n d e r a n e w b ra n d n a me
• Sta ff c o m pe n s a t i o n to be m o re i n cen t i v e- l i n k e d .
(lndiall Holels goes for reFs tu s tlly aflmd il1 lite racL', A rsltdccp Sellsa/, E T, 7/7/01 j

A g u a d a H e r i m i t a ge, h a s gone on a two- p h a se ren o v a ti on . The f i rst p h a s e w i l l cost

R s l O-cr w h i l e a d d i n g 32 n e w rooms a l o n g w i t h a lobby a nd two new rest a u r a n ts .
T h e second p h ase w o u l d a d d a nother 32 rooms a t a c o s t o f Rs 5-8 c r . (Agllada
Hermitage goes }iJr rCtlovation, FE, 6/9/01 )

Taj GVK H o t e l s & Resorts Ltd, the R S 54-cr j o i n t v en t u re c o m pa n y be tween the

GVK group a n d Tatils, w h i c h i s c u rren t l y o p er a t i n g three f i v e-sta r hotels i n
H y d e r a b a d , h a s d ra wn u p p l a n s t o t a k e u p a m a j o r d i v e rs i fi ca t i o n . A s a p a rt o f
t h i s d i versi fica t i o n p rogr<lmme, the com p a n y p rop oses t o s e t - u p a h ea l th resort
w i th g o l f i n g f a c i l i ties a t H i m a y a tsa ga r, H y d e r a b a d a t an i n i t i a l i n v es t m e n t of Rs
1 7-cr. (Taj e VK plalls healtll resort ill Hydem/Jad, C . R . S I/kumar, B L, 1 5/9/0 1 )

C o v e l on g Beach H o t e l s (I) L t d . a nd Co roma n d e l Hotels Ltd . a re t o b e m e rged

w i th O r i e nt a l Hotels Ltd . A l l t h e c o m pa n i es a re p a r t o f t h e Ta j Grou p . The BOD
took a d e c i s i o n on the m e rg e r. A p ress release s t a t e d t h a t t h e p ro p os e d merger
w o u l d res u l t in cost s a v i n g a ri s i n g o u t o f combi n i ng resou rces in d i ffere n t a re a s
o f o p e r a t i o n s . I t w a s a n ti c i p a te d tha t post-merger, t h e re v e n ues o f Oriental h o t e l s
L td ., a s the m e rged e n ti ty w o u l d be h ig h e r by 1 5 ';{,. (Covelollg, corollltllldel to be
m e rg ed with Oriental Hotels, BL, 2 7/1 0/01 )

T h e l e i s u re h otels SBD (stra tegic b u s i n ess u n i t) of t h e Taj g ro u p h a s n o t s u ffered a

steep s l i d e in occu p a nc y r a tes post-Sep tember 1 1 , b e c a llse of the d i v i s i o n s ongoing
foclls on d omestic c l i e n te l e . C u r ren tly, the l e i s u r e d i v i s i on 's mix o f i n te r n a t i on a l
a n d d o mestic to urists i s 35:65 d u ri n g s u m m er, rev e rs i n g t o 65:35 d u r in g w in ter.

50
 The d omestic trc1Veller com ponen t is even n o w on the rise. P roperties £I t Rajasthan,
Goa £l nd Ker£l j ,l fetch the h ighest busi ness,

T h e Taj has three SBUs, comprising h otels i n the l u x u ry, busi ness £l n d leisure
segments. Luxury hotels that con trib u te most to IHCL' s b ottom l i n e a re a lso the
ones fa cing h ighest b u s i ness ad versi ty as fallo u t of the World Tra d e Center terrorist
a ttack a n d the conseg uent slow down in the travel a n d tourism trad e . The leisure
d i v ision contrib utes to roughly 20 per cent o f ' IHCL's revenues. Leisure p roperties,
which h a ve been renovated, i nclude La ke Palace - U d a i p u r, Ta; Malabar Kochl,
Fort A g u a d a Beach Resort Goa and Fisherm a n's Cove - Chen n a i . Broad ly, the
fra mework for posi ti on i n g a fresh t he group's l e i s u re p roperties was b a se d on
ren o v a tion, locale speci fic recrea tion and cuisine, cre a t i ng n i ch e p roducts, sell i ng
to corpora te c l i e n ts a n d d e v i s i n g p ro d ucts tha t o ffer a comple te desti n a t i o n
e x p e r i e n ce . I n t u n e w i th t h e d i v i s i o n ' s d omestic f o c u s , the ' Ta j H o l i d a ys '
programme for the forthcoming season i s ta rgeted spec i fica l l y a t the d omestic
m arket a n d is d esigned to p ro v i d e the complete h o l i d a y experience at optima r
costs. Schemes on o ffer i nclude zero per cen t EMI scheme w i th select b an ks that
a l low the customer to enjoy a holid a y and pay over a 6- 1 2 m on th - peri od . Interest
i s borne by the ho te L (Do1l1t'stic illsula tes Jlldiall Hotds, B t, 2 8/1 1 /( 1 )

IHCL i s substa n ti a l l y red ucing the nu mber o f cross-subs i d i a ry comp,l I1 ies i n i ts

• fol d , i n a b i d to i mp rove cash flows a n d bring i n a grea ter level of transparency.
At presen t IHCL ha ve 60 c ross-subs i d i ary compa nies a c ross the bo,l l .; ( ' , > m pan ies
w i th syne rgies would be merged to cut d ow n the n u mber of (0I11 I',1 11 I L'S, w h i ch
w o u l d assist i n strea m l i n i n g the entire opera tions.

The end o f 2003 wou l d compl ete the entire p rocess o f merging compa ll l " s A nother
logic of red u c i n g the number of co m p a nies i s to help b oost the s h a re f' r i , c' o f the
merged com p a nies. Merging of cross-s ubs i d i a ry com p a n i e s is the ;'[', ond step
towa rds restructuring ,1 CroSS the Taj gro u p .

Over the years, t h e l�lj g roup has s e t u p several o perating a rms u nd e r IHCL,
g i v e n the complexity i n volved i n fund i ng h otel p rojects . Even n ow, some of the
h o tels controlled b y the group a re owned b y subsi d i aries. For insta n ce, the Taj
Pres i d e n t in M u mb a i is ow ned by Piem Hotel s . As part of the restructu ring the
Taj group is l a y ing greater focus on food and beverages ( F & B ) , (II/diall Hotels to
clirtail l I ll 1l!ber of crnss- s u bs id ia ries, PrasallIla Upad l lyay 1 7/1 2/0 1 )
,

IHCL i s c o m i n g up w i th new h otel i n M a l d ives, u nder the Taj Asia umbrella . The
hotel, to be cal led M a l d i ve s Taj Exotica, would be l oc a ted on an i s l a n d called
Emboodhu Finolhu, 8 k m from M a le Interna tion a l a i rport.

Back h ome, IHCL i s planning to set up ' B u d get' h otels i n smaller c i ti e s and towns
in I n d i a . The company i s w o rk i n g on the p l a n a n d a model B u d g e t ho tel would be
i n i ti a l l y set li p e i th e r in Mumbai or B a n ga lore in the next t h ree to fou r months .

Depend ing on the d em a n d , the g roup w o u l d d ec i d e a fu ture course of a c ti o n ,

a d d i n g tha t the deta i l o f t h e B udget hotel concept i s b e i n g p l a nned out. (Tata
Fi rm s Eye Fore('{11 Pas tllres, India l l Ho tels plans to set up hotel in Maldives, Prasan na
Upadltyay, FE, 2 1 /1 2/0 1 )

A fter lOSing o u t i n the race t o b u y T h e C a r l y l e i n N e w York, IHC L h a s now s e t i ts

sights on The Lanesb orough, a 5-sta r deluxe h o te l in Lon d on . Though the v a lue
o f the property is n o t known, i nvestment b a n kers say i t could be the same a s
51
w h a t I H C L w a s re a d y to p a y for T h e C a rl y l e . T h e Taj G r o u p W Cl S w i th i n a
h a n d s h a k e of a cq u i r i n g The C a rl y l e i n October l a s t ye a r a t a p rice o f abo u t $ 1 43
m i l l ion (Rs 65R cr) b u t il d e l a y i n p u t t i n g toget h e r the s t r uc t u r e of the h o l d i n g
c o m p a ny, forced t h e o w ne rs o f t h e C a rl y le to a cc e p t t h e o ff e r m a d e b y R o s e w o o d
H o t e l s & R e s o r ts , In teres t i n g l y, The L a nesborou g h i s a Rosew ood p roperty. rTaj
Grol/p targets Londol/'s L(l11esiJOrollglJ for takeove r George Clleriall, E T, 1 7/1 2/(1 )
,

Leel a ve n t u rc
T h re e i n terna t i o n a l h o te l c h a i ns- R i tz C a rlton, Ori e n t a l M a n d a ri n a n d R a ffles
o w n e d b y the S i n g a p ore gove rn m e n t -are in race to p i c k up a m i n or i ty s t a ke in
H o t e l Lee l a Ve n t ure L td " w h i c h o w n s fou r f i v e - s ta r h o t e l s in the c o u n try. The
nego tia t i o ns come c l ose on the heels of the Le e [ ,l G ro u p d e c i d in g to ca l l off i ts
j o i n t v en t u re a g ree m e n t w i th the E u ro p e a n h o t e l c h a i n K e m p i n s k i G r o u p The
j o i n t v e n tu re w i th K e m p i n s k i w a s o n l y m a rke t i n g o n e . (TlJ rrc ill race to pick up
equ i ty ill teclil GrollP, Btliit( Kalesh, TO!, M, 2 6/2/0 1 )

They a l so h a v e p l a n s t o e x p a n d i n to t h e U S a n d G u lf o n c e i ts I n d i a - p rojects a re
compl e te o v e r the n e x t y e a r or t w o . I t i s l o o k i n g a t a l l ia n ces w i th lea d i n g h otel
c h a i n s l i ke t h e Ta j G ro u p for y ie l d i m p ro v e m e n t, j o i n t p r o m o t i o n s etc. The Leela
Pa l a c e i n B , m g a l ore i s expected t o be com m i ss i on e d in J u l y this yea r while the 90
room U d a i p u r properly i s l i h l y to be rea d y b y e n d - 0 2 , B e s i d es, the g ro u p i s
a c q u i r i n g l a n d in B a ke l , Kera la t o d e v e l o p a H ea l th Resort i n col l a bora tion w i th
a n I n te rn a t i o n a l C h a i n , M e a n w h i l e , i t i s p u tt i n g toget h e r marketing
p l a n s f o r i ts M u mba i , G o a a n d B a n g a l ore h o te l s . (Leela to check in US, Gli lf SOOl1,
Cirish Rao, ET, 26/4/01 )

Leela Ven t u re is e y e i n g a p re s e n ce i n H a m p i a n d H a s s a n i n K a r n a t a k a to form a

n e t w o r k c o n n e c t i n g t o u rists v is i t i n g G o a a n d B a n g a l o re to the H i s to r i c S i te s o f
H a m p i a n d Bcl u r. H a l e b i d , I t a l s o h o p e s to b a g 1 -2 ITDC p ro p e rt i e s i n Del h i for
w h i c h i t h a s b i d , W h i l e i ts U d a i p u r h otel w i l l b e rca d y by the m i d d l e of n e x t y e a r,
i t a l s o w a n ts to h a ve a p resence i n J il i p u r b u t w il l o n l y d o so a fter entering D e l h i
Prospects i n C h e nn a i a rc a ls o b e i n g l ooked a t (Leela Vel l ture for filmy illto Hfll1!pi,
.
Hassan, TO!, B, 1 7/8/( 7 )

Leela Pa l a ce i s a i m in g to rea c h an occ u pa nc y r a te o f 60'1., by Oc tober, They a re

a i m i n g to tiHget g ro u p - b a se d a n d c o n fe re n c i n g p a r t i e s to offs e t the d rop i n
tra v e l lers' s e g m e n t t o a c h i e v e i ts bottom l i n e i n a b o u t t h re e y e a rs w h e n i t becomes
fu l l y opera ti o n a l . ( Ledo Palace occupancy m i l' to see a h ike, BL, 2 8/9/( 1 )

The $ 1 ,5-bi I l i ol1 H o n g K o n g based M a n d a ri n O r i e n t a l H o t e l i s s e t to p i c k u p a

25% s t a k e i n t h e Leel a g ro u p o f h o t e l s for Rs 250-cr, A ccord i n g to i n d u s t ry sou rces,
the d e b t s in the Leel a group of h o t e l s a re m o re t h a n Rs 600 cr. M a n d a ri n h otels
w i l l i n ve s t betwee n Rs 225 and Rs 250-cr in p i cki n g up 2 5 per cent e q u i t y s t a k e ,
The c u r re n t m a n a ge m e n t d t L ee l a g ro u p h ol d s 80 p e r c e n t e q u i ty s t a k e w h i c h w i l l
come d ow n t o 5 5 p e r c e n t once t h e d e a l i s t h r o u g h (Mandarin Or/CIllal sci t o pickup
25% il1 Lecla, Rajll ilwl/stili, E T, 3/1 2/01 )

Obero! G ro up
The Obe roi G r o u p a n n o u n ce d i ts s u m me r p a c k a g e s a t a m e e t i n g cl t t en d ed b y
1 0 0 t r a v e l a g e n t s . T h e s tr a tegy s e e m s to b e to t a r g e t ' T h e u p p e r e n d o f t h e
d o m e s t i c t o u r i s t m d r k c t b y offe r i n g p a c k a g e s w h i c h a r e con s i d e red a t tr a c t i v e
e v e n w h e n c o m p a red w i th t h o se i n vol v i n g fore i g n d es ti n a ti on s . T h e g ro u p i s
foclls i n g o n a p a c k a ge c a l l e d Tr i d en t H o l i d a y s (Obe roi set t o w ou d omes t i c
touri s t s , 1 4 /4 / ( 1 )

52
As thei r ongoing expansi un and p romotional d ri ve, the g ro u p is set to open two
resorts in ] a i p u r and kick off i ts expansion plan i n Morocco by the end of this
y e a r. The company h a s f l oa ted a special p u rpose v e hicle, EIH International to
invest i n h otel p rojects abroa d . EIH Interna t i onal i s reg i s tered i n British Vi rgin
Isl a n d . (Oberoi group set to open two resorts in Jaip u r . . . s t a.rt expllnsion plan ill Morocco
by year-CIld, Rajeev Jayaswal, FE, 25/6/0 1 )

It plans to invest close t o Rs WOO-a ill tim'!:' 011 o i l -going a n d fll t u re hotel projects . As a
pllrt of this pla l l , E!f-J is C(Il 1 s t ruct il1g a luxury hotel in M o rocco, ill col/ll/Jom ti011 with
th!:' North Africa -based Oc:"/\ Grollpe, c n ta iling I/n illves t m e n t of $35-1117 1 . ( Promoters to
raise stake ill E l l ! through crccping tlC1l llisitioll, TH, 22/8/0 1 )

Bharat Hotels
Bharat Hotels Ltd has tied up loans worth Rs 300-cr to expand its hosp i tality business,
w i th a plan to a dd u p to four more hotels to its existing two properti es and two
under construc tion at M u mb a i and C oa . They have a l s o sent in thei r EoIs for 2-3
hotels of ITDC and H C r . mllOrat Hotels fo r J� s 400-cr expa nsioll, TOT. B, 1 0/9/( 1 )

B l a m i n g t h e ITDC for. not briefi n g t h e e mpl oyees . o f the A s h o k a Ho tel, Banga lore,
properly on the i r fu t ure, the n e w management o f the h ote l has d eclare d that there
will be n o retrenchment of workers a l though they can a v a i l the attractive voluntary
retirement scheme (VRS) . Mr Suri a l so said tha t though the h o tel i n d ustry room­
empl oyee ratio should be 1 : 1 .5, which means that for 1 82 rooms of Bangalore
Ashok, the employee s tre n g th should be a round 250 as a g a i n s t the c urrent 359 .
Most of these e m ployees could actually get covered in services th a t a re u s u a l l y
subcontracte d . Accord i n g t o the BHL promoter, in t h e f i r s t p h a s e of modernisation
ove r 18 m onths, the m a n agement p l a ns to renovate the entire hotel a n d i n the
second phase, go for expansion of the hotel b y a d d i n g more roo m s and fac i l i ti e s .
(No rctrcnc/lJllel1l of workcrs, sllYs new JJ1l71 Ii1gCJ1lCll t, Vo l u n tary retiremcn t scheme for
Hotel Asl1Ok, 0 ll, 25/1 1 /m )

The L a l i t-Suri pro mote d B h a ra t H otels Ltd w i l l h a ve to model i ts volunta ry

ret i re ment scheme ( V H S) for the empl oyees of Hote l Ashok Bangal ore on the
G uj a ra t pattern . As per the VRS scheme modelled on the Gujarat pattern, employees
of loss-ma k i n g public sector en terprises w i ll be e n t i tl e d to receive a compensa tion
e q u i v a lent to 35 d a ys sa l a ry for each com pleted year of service a n d 25 d a y s s a l a ry
pe r year of serv ice fo r the term of service left until supera n n u a tion, subject to
certa i n cond itions. Based on this pa ttern, the a verage cost of VRS for non-execu ti ves
would be about Rs 2 .7 l a kh, a n d about Rs 5 .1 l a kh for executives. Bharat Hotels
Ltd has also been given the freedom to ra tion a l i se overtime and manpower costs
in l i ne w i th i n d ustry tre n d s . (Hotel AsllOk VRS to follow G uja ra t 11/0del, BL, 7/1 2/0 1 )

Kempinski G roup of Pal ace Hotels and Resorts

The Group has d ec i d ed to set up ayu rvedic rej uvenation centres at all its prope rties
worl d w i d e . The p roject would be executed w i th the assistance of the Kerala-based
Softouch Ay urvedic Centre. (Kcmpillski adds llYlirilcdicfltlvour to its resorts, B L, 8/7/1J1 )

Kempinski H otels & Resorts h a v e s i gned a sale a n d m a rketing a greement w i th

Leela H otels i n Bangalore . Th i s is the th i rd Leela hotel, Kempinski entered into an
a greement, the fi rst two being Th e Lee l a Kemp inski i n Mu mba i and The Leela
Palace i n Goa . Foll o w i n g the a gree m ent, Leela ventu re would be able to run the
loya lty p rogram mes run by Kempi nski . The Kempinski Hotels would serve a s a
feeder ma rket by getting i nternational bookings throug h the i r network of 33 hotels
and resorts w orl d w i d e . In a d d i ti on to this, the staff a t Leel a ve n t ure w o u l d a l s o
53
______________ �DO_f��i�
get i n terna tional standard tra ining in hotel m a n a gement by the Kem p inski group.
(Leela Hotels B a l lgalore p a c t w i t h Kempillski, FE, 7/l l /( 1 )

L e Merid ien
Le Meri d i en Hotels & Resorts is looking at enterin g i n to m a rketing a l l i a nces for
i ts stand-alone hotel p roperties in Kera l a . This w o u ld be the first time in India
tha t Le Meridien would be entering into a m a rke t i n g a l l i ance for a hotel property
w i th o u t its brand n a m e . It is also i nvesting around Rs 52 l a khs to bring in i ts
i n terna tional reserva tion system ' Fortres' to I n d i a to enable o n l i n e reserv a t i on
w i th a l l h o tels in I n d i a to p ro v i d e rea l time qu otes (Le Mcridiell to for1ll marketing
allial� ccs fo r properties ill Kerala, Kll ilash R.ajwadka, FE, 2 6/2/m )

They a lso plan to set u p sel f-ca tering m i n i a pa rtm ents in the m i d -ma rket (budget)
segment in Ind i a . The compa n y is l ooking il t 1 7 l ocations, mos t l y small ci ties l ike
Oo ty, Ahmedabad, H y derabad a n d J a i p u r a mong others . A third pa rty w i l l incur
the constructi o n cost while Le Meridien would con tinue to manage and operate i t .
( L c Meridiell plolls jiJray i l l to a n apa r t m e n ts hotcJs, Ka ilash R..ajwa dkar, FE, 1 3/4/0 1 )

The Le Meridien Delhi i s looking a t ma rriages, the new l y la unched ' G a teways o f
I n d i a ' packages a n d getting m o re f l i ght crews t o stay w i th them t o boost re venue
generation a n d o ffse t the d o w n tu rn of the i n d ustry. The c o m p a n y has lost
some th i n g to the orde r of Rs 2 .5-cr a fter the post Sept 1 1 th a ttacks. (Special packagcs
fro11l Ie MeridicII, Ashwilli Plwdnis, 8L, 24/1 O/0l )

Le Merid ien Hotels and Resorts plan to add 1 0- 1 2 Hotel Properties in India in the
next four years . The group w i l l fol low the m a � a gemen t con tract route for i ts
proposed a d d i tions in I n d i a . (MeridicII draws lip expa nsioll plans, B L , 2 9/1 0/0 1 )

Best Western
The US-based Bes t Western I n te rn a tional, is eyei n g a m ajor sha re of the m u lti­
"
m i l l i on m i d-ma rket hotel i n d ustries, and w i l l stren gthen i ts presence i n the reg ion
b y bringing in over 1 5 hotels u nder its u m b rella d u ri n g this year. Best Western, a
key fra nchise b rand in the country, w h i ch p ro v i d es serv ices such as pricing
structure, qual i ty control, tra in ing, m arketing support and an i n ternational pla tform
to compete, has a l re a d y establ ished i t-s name in Mysore, M u n n a r, Hyderabad,
Kochi a n d Chenna i . (Mid-market hotel i n d ustry, Best Wes tern eyeing n orthern
regi o n , BL, 1 7 / 4 / 0 ])

Other properties
Howard Johnson I n ternational Inc, a m id-scale hotel ind ustry leader, has a nnounced
the s i g n i n g of a maste r franchise agreement w i th Monarch Hosp ital i ty Serv i ces
P r i v a te Ltd tha t calls for the developmen t of 15 h o tels in India over the next five
y e a r s . U n d e r the a g r e e m e n t , M o n a rc h H o s p i t a l i t y S e r v i c e s H o t e l i n
U d h a g a m a n d a l a m , C o i m b a to re a n d M a s i n ag u d i , w i th a total o f 1 3 2 rooms,
i mmed i a tely w i l l convert to the Howa rd Johnson ® brand . The company plans to
d e v e l op Howa rd Johnson h o tels i n Ko l k a ta, C h e n n a i , M u mba i , New Delhi,
Ba ngalore, Hyderabad a nd Ahmedaba d . Mona rch Hosp i ta l i ty Services will have
the a b i l i ty to use a network of global sales offices tha t reach m o re than 30 countries.
(Mitll ll n 's Monarch, US hotcJ elwin tic LIp, B L , 1 7/3/0 1 )

Hea ring i n the Cl ppea ls filed by M s . J a y a l a l i tha a g a i n s t h e r conv iction in the

Kod a i ka n a l Plea sant Stay Hotel case has begun in the M a d ras H i g h Court before
J ustice N D i n a kar w i th her sen ior K K Ven ugopa l con tend i ng that a n o te p u t u p
b y a n o fficial against relaxation of b u i l d in g rules a n d regula tions i n fa vour of the

54
_______...... DO_I��. !Ri
hotel to e n a b l e i t to c o n s t ru c t s e v e n a d d i ti o n a l f l oors w a s n e ver bro u g h t to her
notice . Had i t been b ro u g h t to her n o tice she w o u l d h a ve reconsi d e re d h e r decis i o n .
( H C h e a r i ng i n K ocl a i h o tel c a s e begi ns, DH, 1 0 / 1 1 / ( 1 )

Travel Agenciesl Tour Operators

Th o m a s Cook
The M o n o p o l i e s z m d Hes t r i c t i v e Tra d e Pra c t i c e s C o m m i s s i o n (MHTPC) h a s issued
a n ot ice t o Tholl1ils Cook for i n d u l g i n g in u n fa i r t ra d e p r a c t ices (UTP) . The
C o m m i s s i o n has a l s o d i rected T h o m a s C oo k to stop a d v e r t i s i n g fa l s e a n d
m is l ea d i n g c l a i m s i n respect o f i ts o w n tOll.rS w h i l e d i sp a ra g i n g the tours o f SOTe
T h i s n o tice h a s been issued t o p rote c t the i n terests of the consumers w h o genera l l y
a p p roach t h e to u r opera tors o r tra v e l a ge n ts fo r p a c k a g e tours a broa d , s ince i t i s
the book i ng season f o r the s li m m e r t o u rs a b roa d . A c o m p l a i n t w a s fi l e d b y K uo n i
Tra ve l ( I n d i a ) L t d . (MI\TPC notice to Thomas Cook, Bt, 1 6/2/( 1 )

A D e l h i b u s i nessm a n c l a i m i n g tha t h i s fa m i l y w h o w e re on a cruise o rg a n i s e d b y

Thoma s Cook w e re o ff-l o a d e d a t B a h a m as l a s t y e a r f i l e d a n other s u i t a g a i n s t t he
c o mp a n y . The MRTPC h a s soug h t repl y from T h o m a s Cook ( I n d i a ) w h i l e i ss u i n g
not ice t o i t . ( R s 30-lakll dOlllngc s u it nga illst Ti1011lns Cook, IE, 28/5/( 1 )

Th o m a s C o o k I n d i a Ltd ' s I n ternet s e rv ices d i v i s i o n , w w w.thom ascook .co . in . h a s

l a u nched a t r a v e l related conce p t- 'Virtu a l Tours' I t o ffers d e t a i l e d i t i nera ries a n d
d ow n l o a � a b le b roc h u res a n d i m a ge s o f T h om a s C o o k ' s s u m mer 200 1 tours,
covering E u rope, US, M a u ri ti us , the F a r East, A u s tral i a a n d N e w Zea l a n d . (,Virtual
tours' from Th o m a s Cook, BL, 20 / 2 / 0 1 )

B u t w i t h i n a s p a n o f t w o m o n t h s they h a v e d r a s t i ca l ly sca l e d d o w n i ts I n ternet

i n i t i a ti v e s . The t r a v e l and fore i g n exc h a n g e c o m p a ny, w h ich h a d p l a n ne d t o b u y
u p t w o t o t h ree d otcoms in t h e travel, tech n o l o g y a n d a ff i l i a te s pa ces a n d i n tegrate
them into i t s s i te at t h o m a scoook . c o - i n , to offer a c om p l e te travel portal for
c o n s u m e rs, h a s shelved i ts plans in th i s a rea (Thomas Cook t u rn s silY 011 a m bitiolls
Net plans, Yassir A Pitalwalla & C u ckuo Pnul, ET, 1 3/4/0 1 )

T h e C o m p a n y p l a n s to t i e lip w i th i t s U K-based p a re n t t o b r i n g i n 1 6 ch a rte r

f l i g h ts pe r w e e k t o I n d i a a n d w i l l offer p a ckage tou rs t o these h ol i d a y-ma kers.
Thomas C ook H o l d i ng s , U K , w i l l n o w bring some 40,000 p assengers a year o n i ts
s i x a i r l i ne s S u n Wor l d , F l y i n g Co l ours, I n s p i ra t i o n , JMC, B r i t i s h Ca l ed o n i a n a n d
Condor i n t o Goa a n d Ker a l a s ta r t i n g October this y e a r. The a gency h a s a l so a p p l i e d
fo r starti n g a n o u tbo u n d c h a r t e r serv ice from I n d i a , w h i c h i t bel i e ves, i s very
p rofi t a b l e . However, the proposa l i s s t i l l pend i n g w i th the m i n istry o f civil a v ia t io n .
(Tho1Jlas Cook /it's with pan' l l t to bring ill c!tll rter fligilts, Piya S ingl1, TO£. M, 1 9/5/( 1 )

E ve n a s E u ro p e 's second l a rge s t t r a v e l com p a n y, T h o m a s C ook, a n n o u nced t h a t i t

w i l l a xe 2,600 jobs a s i t faces a 1 2'X. fa l l i n b o o k i n g, i ts In d i a n a r m i s g e t t i n g re a d y
t o red uce i ts b ra nches i n t h e c o u n t ry a n d h a s n o t rul e d o u t a re d uc t i on in the
w o r k fo rce . The compil n y has l a u nched iln exercise to c o m b i n e some o f the 50
b r a nches that a re s p re a d across 16 c o u n t ri e s . In E u rope it h a s grou n d ed some
cha rters and c l osed 100 travel a gencies. (Tholllas Cook readies to m erge brn llc/ws,
Piya S ingh, TOT, B, 29/1 0/(7 )

MRTPC h a s m a d e a n i n terim r u l i n g a g a i n s t T h o m a s Cook on a case f i l e d b y Cox

& K in g s (I) Ltd and SOTC In il d v e r tisem e n t s p u b l ished d u ri n g Feb ru a r y Thomas
C ook h a s m a d e a d i rect compa r i s on o f thei r tours w i th t h ose o f C ox & Kings. B o t h
C o x & K i n g s a n d s u r c h a v e m a d e t h e c o m p l a i n t s ta t i n g t h a t t h e a d s

55
 DOCUMElSJ�UQN
----------- .....
- I IIII�IW!l IruR�
.. rr ..

m isrepresented the packages tour a n d therefore m isleading customers . The MRTPC

order has hel d tha t Thomas Cook's ad is false a nd h a d the effect of m isle a d ing
consu mers to m a ke wrong choice of tours . I t has a lso pa ssed a n i nj unction agai nst
Thom a s C oo k from iSSl1 ing s lIch ad v ertisements. (Thomas Cook ads lIlisled travel/ers;
MRTPC rulillg, TOl, M, 5/1 1/0 1 )

Cox & Kings

Cox and Kings, a l e a ding tou r operator, has a ggressiv e l y l a unched i ts Europe
'Duniya Dekho' 2001 package. They h a ve « Iso sta rted m a rketing p a c k a ges i n
South I n d i a . The company h a s expanded i ts d istribution to over 7 8 representatives
in the ca tegory of GSA a n d pa ssengers s a l es a gents. In the p a c k a ges care would
be taken to send guides w h o speak the same language, food h a b i ts l i ke J a i n meal s
w o u l d a l so be t a ken c a re o f . The c o m p a n y has i ntrod uced cru ises to t h e Baha mas,
Med i terranean, A laska, G reece and the Far East. I t also p l a ns t o i n t roduce Spain
a s i ts n e w destin a ti o n . (Cox a n d Kings IIIlVcils E u rope package, Nina Varghcse, BL, 3/
3/0 1 )

Kuoni
Kuoni Travel India Ltd . the whol l y owned s ubsid i a ry of the $2.3-b i I l ion Swiss
Company Kuoni Tra vel Holding Ltd . is all set to become the fi rst travel a n d
tourism com pany t o be l isted on Ind ian brochures b u t p l a n to w a l t t i l l t h e Sensex
s tabi l ises. The Company is also e x plori ng the pOSSibi l i ty of achieving growth
through the take over rou te . 'The first of these acquisitions is to happen soo n . The
process of d ue d i l igence in the s m a l l com pany has a l re a d y sta rted . Mea n while,
SITA World Tra v e l Inbound Division, a subsid i a ry of Kuoni Tra vel Holding Ltd .
has launched E-Hol i d a ys ( w w w.sita i nd i a .com) . A m on g the d i fferent ca tegories o f
i tineraries on offer u n d er the best sell e rs a re ' I n d i a for first timers', ' Re l i gious
enco unte rs', 'SpeCia l i n teres t', 'Off the bea ten track', 'Re - l i v e the past', 'Explore
a n d d iscoveries ' . (Klwlli Travel '!.ua itillg for rig h t t ime to tap ma rket, Swiss parcilt to
dilu te 25% stake, BL, 1 0/5/( 1 )

K u o n i I n d i a h a s a n n o u n c e d t h e t a k e- o v e r o f Tou r C l u b , a M u m b a i-based
desti n a ti o n management company special ising i n inbound tours to India from the
G u l f . Kuoni plans to a cq ui re six more com panies i n the incentive travel, a dventure
tourism a nd tourism b usinesses. (KllOlli India spreads willgs fu rther with TOllr Club
takeover, E T, 4/7/(1 )

In a b i d to strengthen i ts foothold i n . a dventure tourism, the G ro u p has showed

i nterest in acquiring Eco Adventure Tours, which speci a lises i n a rranging a dventure
a c t i v i ti es . It h a s been <lCti vely buying o u t com pa nies such as SOTe, S ITA Travels
a n d Tou rs Clubs. (Eco Advcllt!l rcs may tlltn I1cxt Klloni target, E T, 1 3/7/(1 )

I n a b i d to p ropel i tse l f i n to the b i g league in business travel in I n d i a , Swiss travel

major Kuoni w i l l acqu ire t w o Indian business travel compan ies next yea r through
i ts s ubsi d i a ry K u on i Tra v e l I nd i a . In a d d i tion, Kuoni India w i l l enter i n to a 50:50
j o i n t v e n t u re w i th an o verseas business tra vel firm . A l l three d e a l s w i l l be
completed by June '02 . Kuoni India also p l a ns to e n te r the d omestic travel m a rket
in M a rch '02. The company is currently in the m i d d l e o f setting u p a separ a te
d iviSIOn to ca ter to the d omestic I lldrket. The d i vision would be m a nned b y
m a rketing a n d opera ti ons sta ff, who a re c ur rently part of Kuoni I n d i a 's existing
workfo rc e . The company w i l l i n i ti a l l y focus on the NRI market i n the uS to
l a u nc h i ts domestic tra vel opera tions. (Kuolli sets eyes 011 Indian travel cos to expand
fu rther, Snigdha Sengupta, ET, 1 4/12/()] )
56
Other Agencies
As per a new rule the tra vel a gents ' com mission w i l l be c u t a t source. They
b e lieve tha t th is would seriously hamper thei r cash f low. Section 194 H of the
Finance Bill, 200 1 , which is now a w aiting the assent of the President requ i res the
d e d uction of tax at source a t the ra te of 1 0 .2 %. This includes a surcharg e of 2 p e r
cen t f r o m a l l commi ss ion or brokerage p a i d o r c re d i te d on o r a June 1 , 200 1 . Some
of the a i r l ines h a ve requested the B i l l i n g and Settlement P l an's ( BSP) In d i a o ffice
(an lATA body which controls a ir line ticket s tock a nd p ay m e nts from agencies to
a irl ines) to a m en d the software to inclu de a new column for TDS on sta n d a rd
commission to he col lected from a gents a n d a d d TDS to net rem ittance of a ir l i n e .
(Travel agen ts fret over TDS on commission, Nina Varghese, BL, 9/5/01 )

The non-core busin esses o f Balmer La w ri e & C o h a v e been identified for strategic
a ll i a nces, w h i l e the core businesses w ou l d be left u n touche d . Balmer Lawrie w i l l
be d e merged from I B P & C o Ltd from December 27 . While the core b usinesses
a ccou n t for 65 per cent of B a lmer L a w rie's tu rnover, the non-core businesses
a cc o u n t f o r t h e b a l a nce . T h e n o n -c o r e b u s i n esses i d en t i fi e d f o r s t r a t e g i c
p artnerships i n c l u de t o u r i s m , specia l i t y l e ather p e r fo r m a n c e c h e m i c a l s l i ke
synthetic tann i ng o i l s a n d fin ishing che mica ls, container fre i g h t sta tions, tea
blendi n g and exports. (Ballller Lawrie sees big gains from alliances, Sal/ tanu Sanyal,
B L, 5/1 2/01)

T h e RPG-co n trolled ret a il-agent Spencer & Company h a s decided t o s p i n o ff i ts

tra v e l business i n to a subsid i a ry. The move is p a r t of Spence r 's p l a n to give m o re
focus to the tra v e l business a n d get i n to the leisure segment a t a l ater d a te . (Spellcer
to hive off travel business as separate arm, FE, 2 8/9/01)

T h e n e w l y incorp ora te d Spencers Tra v e l Services Ltd . u n t i l recently a d i v is ion o f

Spencer and Co Ltd . has l aunched a n umber o f n e w travel p roducts t o complement
i ts core Gener a l Sales Agency business. The company was incorporated so that
there could be m ore focus on the travel business. They w o u l d dea l m a i n l y w i th
o u tb ound tours. Thei r m a i n t a rget g roup w o u l d be the I n d i a n trav e l ler and w o u l d
promote the Fa r East destina tions. T h e a d d ed a tt ra c ti on f o r m o s t Indian i s d u ty­
free shop p i n g which they plan to cash i n on. The company w i l l take c a re o f l a nd
arrangements, hotel accom mod a tion a n d s i gh tseeing, i f require d . (Spellcers Travel
unveils outbol/lld tOllrs division, Nona Varghesc, BL, 2/1 1/01)

The Modi group-owned Modi Tou r Services h a s a c q u i re d the US-based Uniglobe

G roup's m a s te r franchise rights to operate in I n d i a a n d Neighbouring Countries.
The Tour Servi ce intends to tap start- u p tra vel businesses besides e xisting ones i n
a n e ffort to e x p a n d i ts p resence i n the m a r k e t p l a c e . T h e business m od e l t h a t the
group is looking at w i l l strad d l e hotels, a i r li nes, c a r rental s and cruises. (Modi
TOllr bllYs LIS co francllise rights, Ratl/a BIll/sail & Ashwil1i Plzadllis, BL, 29/1 0/01)

General
Geiman Tra v e l a n d Tou r Operators a re up in arms against w h a t they c a l l the
u n fa ir, unjust a n d proh i b i ti v e entry fee for Foreign Tou r ists a t Major Monuments
i n I nd i a . The fee for v is i ts to m a n y o f I n d i a 's top tourist a ttractions has r isen so
d r a m a ti c a l l y in the past few months that m an y Germa n operators have been
forced to d rasti c a l l y tri m the i ti neraries of the i r tour p a ck ages o r charg e c lients
a fresh for tickets they thought had a l re a d y been booke d . (India gets too expensive
for German tourists, Manik Mehtn, ET, 9/5/01 )

57
Conso l i d a tion a m ong tra v el i n termed i a ries has resu l te d i n some tour opera tors
foregoing thei r m a rgins to o ffer cost-effective packages. The economic slowdown
worl d w i d e has been a b on anza for the outbound I n d i a n tourist resulting in lower
tour packages a s compared wit those o ffered last year and befo re .

Packages O ffered

Duration 2001 1 999

21 n ights 1 40000 1 70000
16 n ights 220000
Far E a s t 10 n ig h ts 40000 50000
A ustralia 16 n i gh ts 1 05000 1 40000

(Travel firms slash margins to lip sales, 1 /8/01)

Tra v e l a gencies i n Indi a a n d m aybe i n other pa rts t o o p l a n t o sca l e down their

growt h p rojections for the coming fisc a l a s tour groups from the US and E u rope
h a v e begu n cance l l a tions . Going by g l obal trends, in I n d i a , the i nbound leisure
segme n t i s expected to d rop by 75 per cen t a n d t h e inbound business travel by 45
per cent . In a d d i tion to this, major a i rl ines h a v e capped the agency comm ission,
which w o u l d mean tha t the main income for most Ind i a n travel a ge n ts would
a lso be red uced . (Trav e l a gencies in d o l d ru ms, Nina Varghese, BL, 2 / 1 0 / 0 1 )

C40 L abour i n the Tourism industry .• , ... . ... .., . " " "

A new report brought o u t by the Interna tion a l Labour O rganisation (ILO) say that
the Hotel, C atering a n d Tourism wo rkers ea rn on a verage 20% less than employees
i n other sectors. Taken together the hotel, cateri n g a nd tourist sectors prod uce
three to four per cent of gross d omestic product (GOP) i n most coun tries. B u t
m o s t o f the employees i n these sectors a r e unskilled, w o r k i n g i n p a rt-time o r l ow
wage jobs . Up to h a l f the workers in the industry a re under 25 years old a n d u p
to 70% a re w omen .

The study goes on to s tate t h a t the worst form of c h i l d labour i n tourism is seen i n
the s e x tra d e . Though t h e problem remains w i despre a d , t h e report poi n ts to the
grow i n g i n d ig n a tion of the i ntern a t i o n a l c o m m u nity a t this exploitation a n d
h i ghl i g h ts t h e increasing p a rt icipa tion o f intern a ti o n a l e m ployers a n d workers'
organ isa tions a nd the World Tourism Orga n isation in combating chi l d p rostitution
in tourism.

Other labo ur p robl e ms a ffecting the hotel, catering and tourism i n d us try a re h i g h
sta ff turnover, i rregu l a r w o r k i n g hou rs, l o w l e v els of u n i o n is a tion- less than 10
per cent a n d i n tense pressure on the e n v i ronment as to t o u r i s m reaches i n to
far-flung d estinations. (Exploita tiol/ ill tourism industry, BL, 4/4/01 )

. ....... \1)1.- j , tl

o • TOURISM PROMOTION AND TYPES OF TOURISM

' • . * . . .,. ) . , ::. \

' ! - , ' . . ..�

DOO Tourism volumes and patterns ' . •' �',...

This y e a r tour operators h a v e u pped the ante. A p a rt from specia l (read cheaper)
package d e a ls, they' v e w idened the focus to Includ e speci a l (re a d perso n a lised)
services - vegeta ri a n fares for the J a i n Community an early d inner' facility etc.
Alongs i d e these, a marketi ng b l i tzkrieg to promote Johnny-corne-lately destinations
( the Far the M i d d l e East and South Africa) has been l a unche d . Lit tle wonder

58
t h a t I n d i a n s e m e rge as the biggest e th n i c g roup on h o l i d a y in S i n g a pore. W h a t
these t r e n d s b a re o u t a re: O n e , t h a t t h e h i g h e r-end I n d i a n tou rist is incre a s i n g l y
a m en a b l e to internation a l t r a v e l a n d , two, m a rketing i n fl uences t r a v e l decisions.
Both, v a l u a b l e lessons for the domestic tou r i s m sector. A s m a l l p roportion, d ri v en
by a desire to e x p lore fore ign coun tr i es a n d c u l tu res, a re ' p u l l e d ' to holiday a b ro a d .
A l a rge n u mb er, however, are ' p ushed' b e c a u s e o f l a ck o f c h o i c e s w i t h i n I n d i a
Priv a te p l a yers a re t o b e encouraged t o a d d ress both downstrea m ( ticketing a n d
tra v e l a rr a n g e m e n ts ) a n d u ps trea m (acco m mo d a tion, loca l tra v e l , l e i s u re a n d
a d v en t u r e s p or t op tions) functions i n the touri s m c h a i n . H a nd i n h a n d goes a
p ub l i c sector fOCllS on i m p roved a i r, ra i l a n d roa d connectivi ty. (Inaccessible charms,
S top pusTling ItigTt-spemiing (ndiall tou ris t a broad, FE, 23/2/0 1 )

T h e N u m b e r o f I n d i a n s tra v e l l i n g a b roa d is i n crea s i n g h o u r l y. A n d tra v e l a n d

tour c o m p a n i e s a re ta k i n g fu l l a d v il n ta g e of t h e s i t u a tion, offe r i n g a l l k i n d s o f
options a nd s p ec i a l fea tu res t o the tra v e l l ers s o a s t o keep t h e n u mbers flow i n g .
From c r uises t o l a nd to u rs t o t h e m o s t exotic d es ti n a tions, t h e e n t i re w o r l d i s o n
offer t o t h e I n d iil n t r a v e l l e r today a n d a t a ffor d a b l e r a te s . I n d ustry insi ders s a y
th ere h a s b e e n a m a s s i v e i n crea s e of n e a r l y 3 0 0 p e r c e n t i n t h e n u mber o f I n d i a ns
ta k i n g to cruises in the l a st three yea rs . A n d most of these t r a v e l l ers a re first-time
v is i tors o f countries a b roil d .

Accord i n g t o t h e I n d i a O u tb o u n d M a r k e t R e p o r t o f t h e P a c i f i c A s i a Tra v e l
Assoc i a tion ( PATA), t h e k e y i n fl uen ces o n tra v e l d e m a n d h a v e been c h a n g es i n
socia l a ttitude d u e t o i n c rease i n a cces s ib i l i ty t o i n forma tion, a nd reach o f t h e
I n ternet, t e l e v ision , a n d m o v i es thil t a re n o w b e i n g shot i ncrea s i n g l y i n e xotic
l oc a l e s . The resu l t has been a 61 p e r cent g ro w th in t r a v e l b e tween 1 990- 1 999.
(Travel cos lise l ifes tyle Tures for hldiall t o u rists, Neha Kohli, FE, 1 8/3/0 1 )

The ongoing slowdown i n the I T s ector i s ta k i n g i ts tol l o n the b u s i n ess a ir t r a v e l

s e g m e n t . I T c o m p a n ies w h i ch contribu ted a w ho p p in g 30-35'X-, s h a re of the tota l
b u s i n e s s i n a i r travel revenues of Rs 7000 cr. Since Feb-M a r 2 00 1 , busi ness tra v e l
h a s decl ined b y 30-40% . (B usiness tr,lVel down 30% a s I T firms sends fewer people
abroad, A ll llbha Ghosh, FE, 8/7/01 )

Ind i a n Tou rist A.rrivil l s into Mal aysia h a v e grown b y 1 84% i n 2000 ove r the previous
yea r. I n d i a n s a l so stay there m u ch l on g e r when com p a red to tou r is ts from other
p a rts o f the worl d . A ro u n d 1 .32 l a kh I n d i a ns v i s i ted the coun try. N e a r l y 50'lu o f
them w e n t t h e r e f o r a v a c a t i o n . ( [n d ia n tou rists inflows ill to Malaysia up 1 84%, FE,
1 7/08/(1 )

T h e Te r ro r i s t S t r i k e s i n t h e U S o n S e p t 1 1 a n d t h e conseq u e n t on-going
reta l i a tory m i l i t a ry a c ti o n i n A fg h a n i s t a n h a s h a d a n a d v e r s e i m pa c t o n tou r i s m
th e w o r l d o v e r. I n d i a h a s b e e n no e x c e p t i o n a nd t h i s i s s h a r p l y r e f l e c te d i n t h e
fore i g n to u r i s t a r ri v a ls p l u m m e t i ng b y n e a r l y 29'X, i n Octob e r t h i s y e a r. As a
res u l t, t o u r i s t a rr iv a ls d u ri n g J a n u a ry -O c tob e r 2 0 0 1 s tood a t 20,22,605 h a v e
w o r ke d o u t t o a n e g a t i v e g ro w t h o f - 2 . 2 'X, a s co m p a re d t o t h e s a m e p e r i o d i n
2000. Th e res u l t a n t d e n ts o n fore i g n e x ch a n g e e a rn i n gs , h o w e v er, t i l l n o w h a s
b e e n m i n i m a l a nd m i x ed . Forex e a r n i n gs i n r u p ee - t e r m s d u ri n g t h e J a n u a r y­
Octobe r 2 0 0 1 p e ri o d h a s to ta l l ed R s 1 1 , 75 0 .0 8 cr, an i n c r e a s e o f 3 .3 % over the
s a m e p e riod in the p re v i o u s y e a r . ( TO l l ris t a r rivals s l u m p 2 9 '1<, in Octo ber, B L, 7/
1 1/0 1 )

I n d i a ' s Tou rism, l ik e i n the Rest o f the Worl d , i s w ob b l i n g b a d l y. Howeve r, u n l i ke

m a n y other coun tries, I n d i a 's e ffort to w i n b a c k v i s i to r confidence is m i n i m a l .

59
 LJM . 0 01m
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0 � , �""
o " �

Ca rriers such as A i r Fra nce a n d Bri tish A i rw a ys a d op ted a cre d o w hen they got
the Concorde flying at a symbol ic time a s a gestu re to rea ffirm their comm i tment
to b u s i ness tra v e ll e rs to the US. E ven as travel specia lists i n trod uce novel schemes
- a hotel in Scotland actu a l l y o ffered free rooms to pa trons as long as they
bought b reakfast (!), B As ' Biggest Lowest O ffe r ' tried for the fi rst time i n India,
sold l ow cost tickets to agents in cash . The scheme, n ow w i t h d rawn fol lowing
compl a i n ts from other carriers , a imed a t boostin g sa les a n d spee d i n g u p revenue
flows.

Even as the tourism i n d ustry i n India cries i tsel f hoarse asking the g ov ernment to
mduce taxes that a re fu rther thro t t l i n g b u s i n ess, the Singap ore Tou ri s m Boa rd
(STB) took the i n du stry b y s u rp rise when it annou nced a US$7 . 1 m i ll ion assistance
p a c k a ge . The p ac k a g e encou r a ge s c o m p a n i e s to con t i n u e d e v e l o pi n g n e w
prod u c ts a n d s e r v ices b y r a i s i n g the l e v e l o f s u p p o r t u n d e r t h e Tou r i sm
D e v e l o p m e n t Assistance Sche me (TDAS) from 30 p e r cent to 50 per cen t o f
q u a l i fy i n g costs.

Meanwhile, i n Austra l i a , New Sou th Wa les has l a u nched a $7 .647 m i ll i o n i n dustry

s u pport progra mme, which includes a World Hot Spot Events i n i tiative offering
Sydney and the s ta te as a l te r n a ti v es for I n ternational C o n fe rence Organisers
s w i tching even ts from u ns a fe l ocations.

The US Tra v e l I n d ustry Associat i on has l a u nched a $ 1 0 m i l l ion campa ign in m ajor
newspapers tha t hopes to i n s p i re people to s tick t o the i r tra v e l p l a ns, c a l l i n g
t r a v e l on o f t h e cou n tr y ' s m o s t b a s i c freedo m s . I n d u stry l e a d ers, i nc l u d i n g
c h i e f execu ti ves o f h o te l s, resor ts, tou r opera tors, a n d c r uise l i nes m e t t o d iscuss
m e a s u res to get p e o p l e tra vell ing a g a i n a n d to request about $5 b i l l io n i n help
for l os t b u s i ness . ([nnovation tile key t o get tourism o n t rack, Neeliml Mll t heIPs, ET, 1 /
1 2/01 )

I n the w a ke o f natura l a n d econom ic disasters l i ke the haze o f 1 997 (courtesy

l a rge-scale forest-fires in Indonesia), the financi a l mel tdown o f 1 998 and the s l u mp
i n the p rices of p ri m a ry commodi ties, Malaysia is now gear i n g i tsel f lip to boost
foreign exchange reserves through tourism.

S ince January 2000, M a l a ysia has been targeting the I n d i a n m arket through its
"Malaysia truly Asia" ca mpa i g n . Tourist arrivals from India a lmost trebl e d to
touch 1 ,32, 1 5 5 in cal e n d ar 2000 (from 45,323 i n 1 999) a n d a re expected to cross the
two- Ia kh s m a r k for 200 1 , a n increase of SOu/., over the p revious year. And the good
news is that the a verage I n d i a n tourist spends more on shopping than the avera ge
i n ternational one .

S i m u l taneousl y, tra n s i t travellers to Austra l ia were a llowed to spend two nights

i n Malaysia a n d this has been increased to five. I n terest in M a laysia was further
stimul a ted w i th the hosting of the Fo r m u l a One Grand Prix car racing at Sepang,
fol l ow e d b y the motorcycle G rand Prix i n October

To publ i cise these even ts, a 30-member Malaysian delega tion is on a road show to
five centres in I n d i a Chennai, Hydera had, Bangal ore, Mumbai and D e l h i . Apart
from i n teracting w i th members of the tou rism trade, a M a l a YSia fashion show i s
being o rganised a t e a c h of the f i v e centres i n the e v en i n g . (Malaysia SCI'S big spenders
ill India, 1 /1 2/(1 )

60
______________
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,f, . J!IJz1i1,h¥l .
DOl Domestic Tou rism '. .. �.,. '" t " , ,,, .. , ', :Ali"

International Tra vel House Ltd (ITH) plans to focus on the domestic leisure segment
to beat the d ow n turn in the tourism i n d ustry. They also plan to cash i n on the
n umber of ups and free indiv idual tra vellers ( FITs) on the Singapore and Bangkok
segments . The company has developed tour packages for va rious I n d i a n c i b es .
This would incl u de car a n d coach trips i n a nd a round a n d heritage centres. Another
segment that i t pla ns to explore is the MICE (meetings, ince n tives, conferences
and exhib i tions) (Fil1ding a way out, BL, 2/1 0/0 1 )

Views o f t h e a u thor o n h o w domestic tourism is the key to boost tourism in the

sta te :
Though there a r e n o defin ite estimates o f t h e impact o f Sept 1 1 \ h a ttacks o n the
country's inbound tra ffic, travel practi tioners believe tha t the fall has been in the
region of 25-30 per cent . The I n d i a n tourism i n dustry would h a v e coped with the
s ituation m u ch better had the coun try's d o mestic tourism been fully developed .
There e x i s ts a fai rly l a rge domestic tourist movement i n India b u t i t is movi n g on
i ts o w .n , w i th o u t G ov e rnmen t s u p p o r t . M o r e o v e r, w h a t e x i s ts is i n g ross
disproportion t o the vast potential India has. Glob a lly, large cou n tries such as the
US, China and Australia have developed a rob ust inbound tourism i n d ustry only
because o f a s trong d omestic tourism base.

Even though India's Domestic Tourism is still i n i ts n a scen t s tage o f d ev el opment,

the m ultiplier benefi ts a l read y accruing to the coun try's economy p resent a strong
case for all possible government and priva te sector support.

Consider the fol l ow ing:

• PKF Consultants, New Delhi have esti m a ted, on the basis o f d a ta compiled by

the National Sa mple Survey Organ isa tion ( NSSO), India's domestic tourist
movemen t at 320 m il l i on annually as comp a re d t o 2.64 m il l ion overseas tourist
arrivals into India .
• More pertinently, the recei pts from d omestic tourism a re 3 .65 times more as

compared to the receipts from international tourism: Rs 9 1 2 billion (der ived

from WTTC Tourism Satellite Accoun t i n g System b y PKF Cons u l ta nts), a n d Rs.
250 b i l l ion ( WTTC figures) respectively.
• Dom estic tou rism fuels rural demand which in turn coul d boost the overall

economic development a n d help the country achieve the d ream growth of 85

per cent of GDP.
• The World Tourism Orga n isation (WTO) and some other such bodies have
recognised travel and tourism as one o f the prime movers o f poverty alleviation,
especially i n the Least Developed C ou ntries (LDCs ) .
• Wor l d w i de, t h e Touri s m I n d ustry creates o n e i n 1 0 j o b s . Acco rding t o a WTTC
study, the Tra v el a n d Tourism econ o m y in I n d i a e mploye d 1 7 .7 m il l i on people
in the year 2000, w h ich is 5 .6 per cent of the country's total employment for
tha t year. If by the year 20 1 0 I n d i a n travel a n d t o u r ism were to generate the
same level of employment as the w orld avera ge , then a further 25 mi l l ion jobs
would be crea ted in I n d i a over the next d ecade through the Tra v el a n d Tou rism
Ind ustry.
• The development of d omestic tou rism could red uce the n umber of Indians
travelling overseas ( the government figures show that about 4 m il l ion Indians
tra vel abroad annual l y, and a re cou n ted a mong h ig h spende rs) a nd thereby the
fli g h t of foreign exchange.
• I t could level the troughs crea ted b y a seasonal i n ternational tourist a rrival
p a ttern: the tra d i tional tourist season i n I n d i a i s September to M a rc h . The

61
 DOCU
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N
7 �I�U O O O � I �
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- '- -" " -

summer and m onsoon months could be used to w oo a g re a ter n umber o f

domestic travellers.
• A hea l th y domestic tourism base could cushion the negative i mpact o f globa l

recession cycles a n d world crisi s . For example the shu tting down o f enti re
hotel floors or retrench ment d irectly res u l ti n g from a slowdown in the global
tourist flows could be prevented.
• Greater domestic tourist movement would increase cultural bonds, foster m utual

u n d erstand ing and promote n a tional u n i ty.

• It could give a kick-sta rt to Heritage Preservation.
• The infrastructure d eveloped for d om estic tou rists woul d , i n any case, benefit

i n ternational a rrivals as w e l l .
• T h e packages and i n frastructure developed for domestic tourists w o u l d be

appealing for the NRI in search o f his roots as well as those looking for leisure
options.
It w i l l lessen chances o f tra d i tional Indian culture getting eroded through western
tourist i nvasions. ([t's time we gave a leg up to domestic tou risIn, Madh u S u ri, E T, 29/
1 2/0 1 )

f " 1! tiM
0 1 0 Touri sm Promotion ... ... , . f .', .,. tn�

India's Myriad Tourist Attractions have ind uced a fairly la rge number of A rab
Nationals to v i s i t the country over the past few yea rs, w i th offici" I figures
estimating a 1 1 % growth in arri vals of Arab tourists in 2000 over the p revious
year. Another ad vantage w i th G ui f tourists is that they m a in l y travel between
May a nd Sep tember, which is normally off-season in Ind i a . The most p opula r
d e s t i na tions for G u l f nationals a re M u m b a i , M a h ab a l e s h w a r, G oa , Chenna i ,
Pondicherry, Bangalore and t h e h i l l stations, Keral a , Raj asthan, Lucknow a n d
H yd eraba d . Certa i n recommend ations h a v e been p resen ted t o the h igh-level
c o m mittee on Indian D ia spora, w hich visited the U AE recently. They i nclude
issua nce o f visa on a rrival, tempora ry l and ing permits for tbui'ists, i m p rovement
o f fac i l i ties at I n d i a n a irports, i ntroducti on o f a Dubai a i rp o rt-type Ma rhaba
(welcome) serv ice a t Mumbai and quick cl earance for v isitors, more a p artment­
type accommoda tion, A rabic c uisine, Arabic language g u i d es at tourist spots and
shopping a reas, a musement pa rks for children and construction o f more shop p i ng
malls of Intern a ti onal S ta n d a rd s . An Arab Langua ge Web s i te w a s being p lanned
and e fforts were on to boost I n d i a 's potential as a Conference Venue and for
Heal th Tou r is m . GOIRTO plans to participa t e i n several fa i rs i n the region in the
coming months, includ ing the major A rabi a n Tra v e l Market in D ub a i . (Bid to
promote tourist t mffic from Gllif natiolls, Vimaln Vnsan, B L, 3/2/0 1 )

India seemed t o have m tl d e a b i g i m ptlct ti t the A rabian Travel M arket for which
they had planned. Apart from Goa a n d Kerala tha t had a p resence a t the fa i r,
lead i n g tour opera tors from India and o thers connected w ith the tra vel trade were
p a r t of the G overnment of India Regional Tourism O ffice (GOIRTO) participa tion
in the Duba i fai r. In all about 25 Indian companies too part i n the show, held
'between' May 1 -4, tha t a ttracted 800 companies from 5 5 cou ntries . (Indian tourism
makes a mark in D u ba i fair, Mridllia Krishna, 6/5/01 )

U n ion Tou r i s m Minister announced that his Ministry would change its Promotion
Acti v i ties from pa per-based to e-based a nd i nitiate inform a tion technology
initiatives like websites, touch screen kiosks and CD-ROMs. The CD-ROM would
enable tourists to have a closer g l i m pse on the world h e r i ta g e centre . The
department would come out w i th virtual real ity recreation fac i l i ties at Major
Herita ge Centre s . S i m i l a r C Ds were being brough t out o n Konark, Taj Mahal,
Khajuraho and 600 other Tourist Destinations o f the Count r y a nd A d v enture and

62
Wil d l i fe . (To u rism m illisl ry will fows 011 I.!-basec/ promotion: Minis ter, CD-Rolli on Hampi
iallllclll.!L( D/{ 1 7 /3/(1 )

I n d ia n s seem to be i lrr i v i n g on the World Tourist Ma p . A clea r p o i n ter is the fact

t h a t several countries tourism boa rds h a v e opened offices in I n d i a to exploit the
h ug e s u rge of the outbound tourist tra ffi c . Sri Lan k a i s the l a test to join the
bandwagon. Austra l i a , Austria, Britain, Mauritius, T h a i l a n d and S w i tzerl a n d a re
the other mem bers of the g ro w i n g cl u b . The I n d i a offices' activ i ties incl ude public
rela tions, m a rketing, thematic a n d brand-b u i l d i n g a d vertising, and d issemination
o f d estina tion i n formation, briefing sessions for travel agents, p resentations a n d
travel trad e w orkshops, tactical i n i t i a tives, a n d trade l i a ison t o i n crease a w a reness
a mong the travel trade and the end -user. (Fish i ng for the I n dia n tOllTis t , More lind
more coun tries li re opening t heir tou rism offices i n Il1 dia t o claim a share of tllC o u t bo u n d
t raffic, F E , 1 8/3/0 1 )

FICC I organ ised a conference ' Look South ' a t K oc h i between t h e 3-4th o f April
2 0 0 1 to p romote tourism in Southern I n d ia . The Main Objectives of the Conference
were to m a rket Sou th India as a d esti nation of new millen n i u m , strengthen existing
synergies, providing international tourism linkages, addressing poli cy imped iments
and crea ting enhanced Tourism Consciollsness. The participa n t p rofile ra nged from
foreign and I n d i a n Tour Operators and tra vel agents, Central Mi nis try of Tourism
and C i v i l Aviation, Foreign missions in I n d i a , A i rl ines- Domestic a n d Foreign a n d
Major Hotel C h a i n s (TH, 3/4/01 )

T h e Meeting stressed the need for joint p romotion o f v a r ious destina tions i n the
South for Prom oti n g Tourism . Rea l is i n g the econ o m ic p oten t i a l of tourism, FICer
a g reed to act a s a l i n k between tourism-related i n d u s tries, go vernment a n d
i n ternational a gencies thereby faci l i tating inte rna tional networks in t h e region
and monitoring a n d assisti n g the Union and State Government in d es i g n i n g
tou rism -frien d l y policies ( BL, 5/4/( 1 ) . S o m e k e y recommendations t h a t c a m e out
were the cre a tion of ' Look South Forum' under the aegis of FICer, a progressive
taxation policy and ta king up the i ssue o f i mprovi n g air connecti v i ty of Southern
States w i th the Centre . ' Look South Forum' w i l l be org a nised b y FrCer between
the tourism a n d finance secreta ries of a l l the states of Sou th . The second m eeting
will be held in Hyderabad in Jan 2002 ( B L, 5/4/0 1 ) .

They a lso voiced there concerns about Sou th's predo m i n a n t i m a ge a s a ' temple'
d estin a tion, des p i te the v a riety on offer, lack of d i rect fl ight connections for
I n ternational Tra vellers, l i m i ted connectiv ity w ithi n states, lack of u n i form taxation
structure across the Southern States, a n d I nfrastructu re l i m i tations, :V1ai n tenance
of Destinations. (To1lrism industry looks 1 0 SOll th Illdill for fu t u re, Ch(mdrika Mllgo,
TOI, M, 3/4/01 )

I n a n effort t o Promote I nd i a a s a n I n ternational Tourist Destina tion and a lso

h ig h l i g h t the i nv es tment opportuni ti es w h ic h exist in the tourism sector, the
Con federa tion of I n d ia n I n d ustry (Cll) held i ts second three- d a y ' I n d i a : Tourism
and Heritage' con ference. The event was conceptualised to create a w a reness among
d o mestic decision-ma kers, ma rket p l ayers a nd d omestic tourists, and a lso to draw
the a tten ti o n o f i nterniltional entrepreneur s to the vast untapped tourism potential
w a i ti n g to be h a rnessed .

Rea l i S i n g that tourists p refer m u l ti -desti n a t i o n h o l i d a y s , CIT h a s tied up w it h

Utta ranchal as partner-State a n d i s also scou ting f o r a p a rtner-co u n try. cn official
menti oned tha t the joi n i n g of h a n d s w i th Uttara nchal seemed to be a na tura l
63
choice given the fact that the newl y-created S ta te h a d a l re a d y l a unched i ts tourism
poli cy a nd plans to t a ke u p an a ggressive position i n m a rketing i tsel f a s a tourism
desti n a ti o n . (To u rism summit to explore options, Ashwilli Phadnis, B L, 2/5/01 )

crr has roped i n K a p i l Development t o promote the tourism i n d u stry, w hich he

has accepted . ClI is a lso organising i ts Second I n tern ation a l Conference 'To u rism
and Heritage: Challenge 2 1 ', jointly w i th the m i nistries a n d external a ffai rs a n d
government o f Uttara nchal i n Delhi from 1 8-20 October. T h e three-day event w i l l
h a ve plenary session on 'Bus iness i n Tou rism ' . Tal ks a re o rg an ised o n ' Tourism:
The Hidden Potential In Youth A n d Women', 'The C re a t i ve Face O f Tourism ',
'Insi gh ts F rom O u tside' And 'Heritage In The I n formation Age'. (CII rapes i n Kapil
developmen t to promote t o u rism indust ry, FE, 1 8/8(0 1 )

Dr. S . Dabringer, Austrian Trad e Commissioner s a i d tha t I n d i a could learn a lot

from his country abou t the promotion 'o f tourism, w hich i s a major e a rner o f
fore i g n exchange. Tourism accoun ted for 60 per cent o f A ustria's GNP. L i ke India,
A ustria p romote d the public sector i n the beg i n n in g, b ut m os t o f them have been
p r i v a tised now, thanks to G l ob a l isation that was ushered in long ago. Since most
of the i n dustries were Multinationa l s . (Jlldia can learn about tou rism froni A ustria,
TH, 9/1 0/01 )

Tou rists cou l d b e looking a t A s i a a n d South East Asia i n cl u d in g Indi a w i th

increased i n terest i n the coming months because of reports o f rac i a l p rofiling i n
Western countries i n the a fterma th o f the U S a ttacks . Moves a re therefore under
way to project Indi a 's brand image as a sa fe a n d a ffordable destina tion offering a
p lethora o f Tourist Attractions. GOIRTO organised a series of e d ucational tours
for trav e l agents in co-ord i n ation w i th regional a nd I n d i a n ca rriers to enable them
to obta i n first h a n d knowledge of the 'business a s u s u a l ' situa tion i n Ind i a and i ts
tourist spots. GOIRTO a lso participa te d in the Musca t Interna t i o n a l Fa i r i n early
October, while a p romotiona l v is i t to Riyadh was a l s o made i n ea rly November,
with GOIRTO keen on focussing on the l a rg e Sa u d i Arabian m a rket. Currently,
the UAE is the m a i n m a rket i n the region, followed by Oman, B a h r a i n a n d K u w a i t.
Awa reness ca m pa igns h a v e a lso been h e l d i n o ther regional countries like Jord a n .
There h a s been a rising trend i n tou rist r i v a l s from the G C C a n d A s i a s ince 1 998 .
The West Asian region showed a g row th of 1 1 .9 per cent for the J a n u a ry-March
p e riod this y e a r. (India wooing tourists from G u lf region, Vi71lala Vasan, BL, 1 4/1 1/0 1 )

The M i n istry o f Tourism a n d C u l t u re h a s a nnounced t h a t the N a tional Tourism

Awa rd s would be given to v a rious categories of the Tou rism Industry. They a re :
Trav e l Agents a n d Tour, Tourist Transport Operators, Classified H o tels, Heritage
Hotel, Excellence in Wri ting / Publica tion, Excel lence in Essay Writing (General
Tou ri s m a n d N a t i o n a l H e r i ta g e a n d C u l t u r e ) , Tou r i s m f il m / a u d i o v i s u a l
presentation, Best tourism performing state w i th a sepa ra te a w a rd for the North
Eastern Region, Best m a i n ta ined tourism-friend l y m o n u m ent, Best m a intained
tourism-friendly Na tional Pa rk / Wi l d Life Sanctuary, Eco-friendly tourism project/
o rg a n i s a t i o n , M os t I n n o va ti v e a nd U n i q u e Tou r i s m Project, B e s t Tou r i s m
Educational Institution a n d Most Innovative Use o f I n forma tion Tech nology / Best
Tourism Website/ Porta l . (TOr, M, 22/1 1 (0 1 )

A s a sequel t o i ts 'Look South', a n Intern a tional Tourism Conference a rid Exhibition

on South India in April this yea r, the Federation o f I n d i a n C h ambers o f Commerce
& Industry (FlCCI) is a ll set to o rg a nise the second such conference a nd exhibition
on February 3-6, 2002 at Hydera ba d .

64
________
________
�D_�_���
The earlier Conference h a d concluded w i th a real is ation tha t the need of the hour
is to have a p ri v a te-public pa rtnershi p to aggressively m a rket South Ind i a as a
seam less tourism desti n a ti o n .

Fu rther, a t the behest o f s o m e of t h e Sou thern States s u c h as A nd h r a Pradesh a n d

K a r n a taka t h e thrust of t h e conference w i l l a lso be on R u r a l Tourism .

M o reover, this time the P l a n n i n g Commission a n d Finance M i n i s try a re a lso being

requeste d to pa rticip a te i n the conference.

A p a rt from the Governments of A nd h ra Pradesh, K a rn a ta k a , Kera l a , Pondi cherry,

Tam i l N a d u a nd A n d a m a n & N icobar Islands, which p a rtici p a te d last time, Goa
a nd Lakshwadeep have a lso shown special i nterest this time. (AP to host global
tourism meet, RiclJa Mishra, BL, 1 0/12/0 1 )

The South India i n frastructure m aster p l a n envisaged t o emerg e from the meeting
of Tou rism M i ni s te rs of a l l South I n d i a n Sta tes would enjoy i n p u ts from Tou rism
Experiences of Sri Lanka, Maldives a nd Mauritius . The Tou rism M i nisters of India's
Neighbo u rs in the South w il l be speci a l i n vitees i n the two-day conference in
Kovalam from J a n u a ry 2. Along w i th the representa tives of these governments,
tou rism m i n isters of A n dhra Pradesh, Tam i l Na d u , Karnataka, Pondicherry a n d
Kerala w il l consider h o w best these common i n terests could be util ised i n a v i a tion,
hote l and tour operator tie u p s and i nvestment i n basic a m e nities.

S A A RC travel ci rc u i t and joint travel circ u i t i n South India will top the a genda of
the J a n u a ry's conference. The meeting w il l a lso disc uss Inter-State Tra nsport a n d
Tax a t i on, South I n d i a n R a i l C i rc u i ts, I nter-State Border Roads, J o i n t P roduct
Development, Joint Human Resource D evelopment Programme, Joint Promotio n
a n d M a rketing a n d J o i n t Cruise C i rcuits. A p a r t from t h e M i n i s ters, Pol icy-Ma kers
l i ke D i rector General, Secretary aQd Other Senior Officials i n the Union M in istry
o f Tourism and Represen tatives of Travel and Tourism Tra d e in South I n d i a w il l
a l s o p artici p a te i n the conference. (Lanka, Maldives, Mauritius t o join tourism ministers'
meet, FE, 2 8/1 2/( 1 )

.. ..._
"... - _ . -_ _
....
011 Festivals - India "" ....'--_ _
.._. ",... .....--_ ......
._ .,.
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M umbai 's first shopp i ng festival, p atterned on the l ines of the one i n Dubai, is
being postponed by six months, as a u thoriti es here fear a poor response during
summer. The tra d ing comm u nity i n the city fears that the festival alone would not
serve a s a n a ttraction since the Mumbai event was not envisage.d a s a d uty-free
a ffair l ike the Dubai festiv a l . B u t the State Government is hoping that sale o f
handicrafts and ethnic items w ou l d prove to b e a b i g draw f o r foreign tou rists. The
State Government h a d a l read y begun the process of enlisting shops a nd boutiques
i n prepar ation for the 'Great Mumbai Bazaar 200 1 ' . Under a plan drawn up hastily
by the Maha rashtra Tourism Development Corporation, several i mportant areas of
Mumbai l ike Opera House, Linking Road and Fashion Street w i l l be promoted as
i mportan t shopping destinations for visitors from I n d i a and a b roa d . (Maharashtra
develops cold feet over shopping fest, Shiv Kumar, ET, 1 3/4/0 1 )

The W B G overnment i s p l a n n i n g t o cash i n o n the Sta te's b i ggest socio-religious

event by turni n g the Durga Puja into a Tou r is t A ttraction . The Government would
confine i ts p rogram m e to i mprove tourist traffic to i n frastructure d evelopment,
publicity, and d isse m i n ation o f i n formation and co-ord i n a ti o n of sectoral activities
to create con d itions conducive to private sector i nvestment in Tourism . The product
w o u l d be l a unched i n a s m a l l way m a i n l y to test the m a rket, from this year o n .
( DlIrga Ma t o drive tOllrist traffic, BL, 7/8/O J )

65
The UP Tou r is m Department p l a n s to org a ni se a Yoga Mahotsav from 1 5th 2 1 " a t
Mathura-Lucknow a n d from 22m1_28°\ Fen 2002 a t A l l a h ab a d-Va r a nasi-Sonebhadra .
(TOI, B, 30/10/0 1 )

Display Vans, Product Inflatable, Video Walls, R u r a l Theatres, Kisan Sabhas, a n d

Magic shows. I f i t w a s the M a h a Kumbh ea rl i e r this yea r, this t i m e r o u n d it's
t h e Pushkar c a ttle fa i r, a n a n n u a l event held i n N ovember, i n the town of Ajmer
i n R a j a s th a n . I n the rece n t y e a rs some b i g n ames h a v e been seen at t h i s even t .
The Corporate o f I n d i a perceives i t a s a n opportu n i t y t o promote their m a rk e t
b a s e i n rural I nd i a . T h e y b e l i e v e tha t t h e rura l m a rket i s prob a b l y the best
t r a d i n g groun d for d omestic a nd m u l t i n a ti on a l b r a n d s i n c ategor i es such a s soft
d r in k s, ice cre a m , s h a m poo a n d fa i rness cream , scooters, fans, w r i s t w a tches a n d
mosqui to repellents. A pa rt from spot sa les, corpora tes a l s o l o o k a t ensur i n g
b r a n d reca l l for a t least s i x m o n t h s a fter the event. (FMCC, conSllmer electronics
cos queu e lip for Pushkar fair, HLL, Pepsi, Parle, Electrolux, M&M to take part, Rat na
Bhusan, B L, 6/1 1/0 1 )

A ss a m w i l l organise a series o f tourism festi v a l s begi n n i n g w i t h the three-day

B r a h m a putra Beach Festival from J a n u a ry 13. (Tollrism festival, TOI, B, 20/1 2/0 1 )

A 1 6-day 'Island Tour i s m Festival' w i l l start i n A n d a m a n a n d Nicobar Islands

from 23ro December 2001 . A v ariety o f c u l tu r a l progr a m mes depicting the rich
heritage and tra d i tion of the country and the Islands would be presen ted . (Andaman
gearing up for tourism festival, B L, 22/12/0 1 )

T h e Dub a i Shopping Festiv a l (DSF), w h i c h h a d positioned i tself for t h e current

y e a r on the theme 'One world, One Fa mily, One Festival ' p u ts the I n d i a n Visitors
a t 45 per cent o f the tota l . India continues to be perhap s the biggest single m arket
for the combi n a ti on of b udget priced a u thentic p roducts, q u a l i ty gold ornaments,
e n te rta i nment and l i v e events. This year, the DSP has tied up w i th the cre d i t c a rd
major Visa a n d E m i ra tes A i rl i n es to offer e ntry v isas to I n d i a n travellers who can
use the c a rd to book and p ay for tickets . P reparing for the massive i n fl u x of
tourists, Dubai has b u i l t up capacity o f 36,000 rooms a n d an a irport tha t is
e q u ipped to h an d l e 22 m i l l io n passengers a n n u al ly. The a irport h a s d ra w n u p a n
expansion plan i n the second p hase t h a t can h a n d l e a n a dd i tional 2 0 m i l l i on
p assengers. (Dubai shopping festival all entertainment of sorts, C. A llall thakrisimall,
._-

TH, 1 9/2/01 )

Typology o f Tourism ------, ..,

. ....
'....
... .
..
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..
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"...
... .......
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...
.
-... ..-...
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.-

D20a A dventure Tourism

Russia sent its first Commerci a l Cosmon a u t to the International Space despite
opposit i on from A merican Space Offici a l s . The U .s . b us inessman, M r. Den n i s Tito,
was given a final a pproval by Russian Govern ment Commission to j oi n the Russia n
crew o n a 1 0-day flight t o the ISS o n A p ril 2 8 . Mr. Tito, w h o p a i d $20 m il l i on s for
the f l i g h t, n e e d e d t o u n dergo a e i g h t - m on t h - l o n g t r a i n i n g a t the G a g a r i n
Cosmo n a u ts Trai n i n g Centre n e a r Moscow. The U .S . space agency NASA h a s
strongly objected t o Mr. Tito's flight, cla i m i ng tha t h e w a s n o t read y for work
according to the rigorous ISS schedule, a nd could b e a h i n d ra nce aboard the
station. N ASA called for postponing his flight till October, but the Russians refused,
s a ying this w o u l d viola te the i r contract w i th Mr. Tito. (Russia defies U.S. on space
tourist, Vladimir Radyuhin, TH, 1 2/4/01 )

Loo k i n g a t i mmense possibili ty o f c a rrying Tourist to Space, Russia h a s n ow foun d

w a y to t a ke m o r e p a y i ng tourists t o space . Under a new p l a n , Russia n spacecraft
66
-----,-.------,,---D��-���1mr�
c a rrying tour ists w i l l n o t dock w i th the ISS b u t will just orbit the E a rth for the
d uration o f the flight.

Russ i a n a erospace a gency, Rosav i a kosmos hopes p ay i n g trips to the ISS would
resu m e a fter the Russ i a n a n d A merican space a genci es had worked o u t a set o f
rules for tourist m issions to a v o i d t h e repetition of fric tions over M r. Tito's tri p .
(Russia plans more space tourist trips, Vladimir Radyuhin, TH, 2 8/5/01 )

M i rC orp, a Netherla nds-based compa n y a n n ou nced its p l a n to l aunch the world's

f i rs t p r i v a te space s tation for tourists. The new station, M i n i Station 1 , w i l l cost
a b o u t $ 1 00-mn a n d is expected to e n ter the o rb i t b y 2004 . (Space station for tourists,
BL, 6/9/0 1 )

Russia w i l l send a second space tourist t o t h e I n te rn ation a l Space Station (ISS)

next year notwithstan d i n g objections from the A merican p artners in the proj ect.
Mr. Mark Shuttleworth, a South A frican b us inessma n , is p re p a re d to p a y about $
2 0 m i l lion for a l O-day space flight scheduled for n e x t April . (Second space tou rist
for ISS, Vladimir Radylllzin, TH, 1 0/1 2/0 1 )

D20b Recreation and Theme Parks ....."----..............----... ...,-0

'''....
..""' . ...._'....
, ...
.. -... .....
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,'
. ....."" �,

The A musement P a rks Industry, w hich is yet to enter the ta ke-off stage, looks set
for Health y G rowth . With an Investment of a round Rs 1 ,OOO-cr. a l re a d y h a ving
been m a d e in the i n dustry over the last d ecade a n d a h a l f, t h e I n d i a n Assoc i a tion
of A m usement Par ks and Industries (IMPI) expects fresh investments to cross Rs.
2,000-cr over the next three years . As yet the re a re n o i n d ications o f foreign p l a yers
entering this i n dustry. At best, fore i g n p articipa tion has been restri c ted to supply
o f e q u i p ment - Sanderson o f Austral i a , one of the l a rger equipment suppliers -
is p l a n n i n g to establish a base i n Ind i a a n d H a as of Germany is also li kely to enter
i nto a l l i a nces . As far a s revenues a re concerned, the i ndustry is characterised by
l on g gestation period s . The l a ment of the i n d u stry is the tota l lack o f government
s upport. The high ta xes associ a te d with the property a nd a fter d evelopment, the
ente rta i nment tax, which v aries from 0-65 percent, d a m pen the p romotion of the
i n dustry. (Amllsement parks cry for lzi.'ip, Ranmath S ubbu, TH, 8/1/(1 )

D 20d Heritage Tourism _. ' ,••

'. ", OT ... .... . .. .... .,

The A rchaeological Survey of Ind i a h a s d e c i d e d to m a k e a b o u t 34 n at i on a l

monu ments - including the Taj Mahal a nd Khajuraho tem p l es accessible t o the
d isabled . Ramps would be constructed at all 34 world heritage m o n u m ents in the
country. I n the first p ha se , 1 4 monuments woul d be covered a n d the rest would
be included i n subsequent phases. The ASI h a d set u p ra mps at the Red Fort,
Qutub Minar, Humayaun's Tomb a n d Janta r Mantar, all of which h a d been included
in the i ti nera ry o f Prof H a w k i ng, following a cla m ou r b y d isab i l i ty activists a n d
t h e media . When t h e A S I t r i e d to remove them a fter t h e completion o f Hawking's
visit, the Del h i High Cou rt s ta y ed the move. (Maneka asks for barrier-free cities,
trains ASI annOltHCeS ramps at 34 mOlluments including Taj to make them accessible to
disabled, Sreelatlza Menon, is, 1 2/2/0 1 )

The Ind i a n O i l Foundation (IOF), M i nistry o f C ulture a n d the Archaeological

Su rvey of I n d i a (AS!) jointly set-up the National C u lture Fund (NCF) to a d op t
monuments tha t a re p a r t of the World Heritage list. A t e a c h o f these si tes integra ted
p l a n n i n g a n d d evelopment would be i n i ti a ted ' to create a world class I n d i a n Oil
Found a tion experience.' Event u a l l y IOF i n tends to a dopt one Herit a ge Site i n
each a n d e v e r y sta te a n d U n i o n Territory. T h e I n d i a n Oil Foun d a tion a n d the
Archa eological Survey of I n d i a signed a memora n d u m of u n d e rs ta n d in g (MoU)
67
 D0.CU.M.E. M.TA U.01.�
--------- ---
,- ��IQJ ��
to th is e ffect last week for a doption o f Five Herita ge Sites. In the first phase five
heritage s i tes have been taken u p -Qutub Minar i n Delhi, Konark sun temple in
Orissa, Kanheri caves off Mumba i , Khajuraho i n Madhya Pradesh and Hampi in
K a r n a ta k a . The a rch a e o l o g i ca l c o m p o n e n t o f t h e i n te g r a te d p l an n i n g and
development i .e . conservation a n d preservation , will b e carried out b y the ASI
w i th funds provi ded by the IOF, channelled through the NCE Indian O i l has
pled ged the corp us o f Rs 25-cr. and a con t i n u i ng annual contribu tion of Rs 1 0-cr.
to the NCE The facilities planned include m usell:ms, exhibition baza a rs, d io ramas,
and walkth roughs, inside the m on ument area, colour coded p a th w ays, p hoto­
vanta ge positions, v is i tor friendly signage a nd i n specific cases night viewing
fac i l i ties . I m me d i a tely o u tside, o ther conveniences l i ke ca feterias, refreshment
centres, communication and banking fa cilitiesi souvenir shops etc w i l l a ttempt to
heighten v i s i to r comfort and delight.

To bring a u thenticity to the projects, the N ational Institute o f Desi gn (NID) has
been enga ged to develop the Qu tub complex and the Ta ta Consulta ncy Services
(TCS) . Similar conceptual stud ies a re underway for other prioritised s i te s are
underway. To su pport this caLlse, La rsen & Toubro Ltd has v o l unteered t o execute
the w orks ( n on-a rcha eological component) at the p roject s i tes at n o p rofit basis .
M / S Koura & C o . a legal consultancy firm is provi d in g the lega l serv i ces to 10F
free of cos t and the a u d itor's firm � / S Dinesh G oyal Associates is also offering
i ts serv ices free . (Advan tage Vis itors, E Jays/IreI.' K u rup, ET, 1/4/0 1 )

A S I h a s roped i n the IITs into the Heritage C onserv a t i on Movement . I t has

requested all the !ITs in the country to conduct a scien tific s tudy o f certa i n sensitive
monume n ts, w i th specia l emphasis on those l oca ted in qua ke-prone d istricts, and
suggest h ow the A S I can protect them from such Natural Calami ties . According
t o ASI D irector-General Komal Anand, the response o f the I ITs to the i r request
has been very encouraging. The n itty-gritties o f the project a re still being w orked
on. WTs roped in for conservation of heritage, TOI, M, 1 5/5/0 1 )

UNESCO i s studying the p rospect o f declaring Fa teh p u r Sikri, a n important tou rist
destination because o f i ts m onuments of the Moghul period, a world heritage site .
In recogn ition o f the cul tural i mportance of the recent exca vation a t Fatehpur
Sikri, UNESCO has i nv i ted the Archaeological Survey o f I n d i a ( ASI) to present its
d e ta ils a t a speci a l i nternational meet to be held i n Paris. (World heritage s t a t u s for
Fateltpur Sikri in offing, Naresh Belta ri Ma thur, TOl, M, 1 3/6/0 1 )

Following o n the same l ines a s the centre the Uttar Pradesh Minister, Mr Bajnath
Singh, has called on the Private Sector to Invest and C onserve Heritage S i tes in the
Sta te . The Government has identi fi ed 18 such Heritage Sites, which could be
developed i nto heritage sites / resorts, as there would be ample scope for trade,
commerce and business in the tourism sector. The State in a planned manner is
trying to bring b u i l d make to ensure the p r i v a te sector that they can invest
c o n f i d e n t l y h e re . The Government is s t r i v i n g hard to b u i l d req u i re d basic
infrastructure such a s roads, power, drinking water, and other facil i ties necessary
for a v ib rant and ecofriendly Tourism Ind ustry. The Chief Min ister sa id tha t 'top
priority ' was bein g accorded to the development of the Bundelkhand, the Buddhist
a nd Bra) circui ts . (UP seeks pvt fu nds to upgrade heritage s ites, BL, 23/6/01 )

The Government's d ecision to hand over the maintenance o f Taj Mahal to a private
pa rty and a similar p roposal w ith regards t o Red Fort h a s been challenged in the
Delh i HC on the grounds tha t the p ri vate agencies would exploit the monuments
more for c omm erci a l p u r p oses than up keep i n g them as p e r the rules and

68
________________
��o_�
g u i d e l i nes . The peti tion has been filed by the U n i ted C o m m u n i s t Party of India
( U C PI) (Private party mailltenallce of Taj cliallenged, TH, 2/7/01 )

The Delhi High Court declined to i n tervene in the issue of the C en tre s i gn in g the
MoU w i th the Ta ta group for the m a i n tenance o f the Taj Mahal, s a y i ng that the
company would not be getti ng any monetary benefi ts from the collection of visitors'
tickets . (HC declines to interfere ill Taj Malzal isslie, B L, 1 0/7/0 1 )

The U P Governmen t h a s decided t o .::o nsul t experts o n the en v i ronment from

v a rious parts of the country o n how to pro tect the Taj M a h a l from e n v i ronmental
d eg rada ti o n . The government i s worried because of the huge tracts o f land a lo ng
the Yam un a river tha t a re owned by p r i v a te pa rties . Initially these plots were
given to fa rmers- b u t over a period of time the o wnersh i p now l ies w ith b u i lders
w h o w i s h to construct h i gh-rise b u i l d i ngs. (UP allxio!ls to prevent higl!- rises behind
Tai, TO!. M, 4/8/01 )

UNESCO i s a ss isting a project ca l le d 'Preservation o f P a rs i-Zoroas trian Heri tage',

w h ich w i ll be l a unched soon . The p roject i s a i med at spurring i n terest in a n d
d ocumenting the heri tage s i tes a n d rel igious practices, the a r t a n d cra ft, the cuisine
and medical practice o f these Indians of I ra n i a n origins. (UNESCO project to preserve
Parsi heritage, Ratllottal1la Se11gupta, Tal, M, 1 4/8/01 )

A 4-Cr Comprehensive Plan has been proposed t o give Rajghat a face-lift. The
development would includ e colourful w a ter fountains, expansive l andscaping a n d
a j ogging track. With o v e r 20000 tourists visiting the m a usoleu m every d a y, t h e plan
a ls o proposes to set u p ca feterias and toilets i n the adjacent land while shifting the
p a rking space . (Rs 4-cr facelift for Rajghat proposed, Ajit Sahl, ET, 1 0/9/01)

Contin u i n g i ts efforts t o s a v e the h istoric Taj M a h a l a t A g ra , t h e S C h a s asked the

Central Poll ution C o n trol Board's m onitoring comm ittee to verify w hether 60 b rick
kilns w ithi n the 20-kms o f the Taj Trapezi u m h a s actually been c1ose d . (SC asks
CPCB to verify UP claims 011 'save Ta}' measures, DH, 3 1/10/0 1 )

Bodhgaya, which w a s nominated by the Indian Government earlier this year for a
p lace on the World Heritage List,· has not been able to acquire the cachet. UNESCO's
World Heritage Commi ttee d i d n ot ratify India's p roposal on the ground tha t a
Proper Management Plan d i d not accompany it. However, the Committee d i d clarify
tha t it w a s not rejecting the proposal, only "deferring" i t . This could mean that
I n d ia coul d red raft the proposal and re-apply for this status next year. UNESCO's
new rules a l l o w for only one n omi n a tion per country per year. The last cultural
s i tes to be liste d were H u m a ya u n's tomb and the Qutub Minar complex i n 1 993 .
Since then only one Indian site has made i t to the list the Himalaya n Railway in
Darjeeling. Tha t has brought India's tally to 2 2 World H eritage Si te s . Apart from
Bodhgaya, the herita ge sites rejected by the world heritage commi ttee in recent
times a re Sarnath, Sikandra , Dholavira and Bhimbhetka (civ il isation sites) . These
w e re turned d own beca u se the nominations were not properly d ra fted . <Bodhgaya
m isses a spot all tlu! world Ilcritage list, Gltnvallthi Balaram, Tal. M, 9/) 1/0 1 )

A People's Initiative s ta rted b y the J a i p u r chapter of INTACH to i mprove the c i ty

b y rebu i l d i n g i ts Heritage in the context of Tou rism, C o m m e rce a n d G l ob a l
Perspective. The a i m i s t o m a ke J a i p u r a World Heritage C ity. The Sta te Government
w o u l d be spen d i n g R s 500 cr for infras tructure development in the Pink C i ty. Out
of this Rs 50 Cr would be spent o n res toration of the heritage. The Government as
the Heritage Consu l ta n t has retained INTAC H . C onservation o f Water, Craft Sills,
69
Natural E n v i ronment, C u lt u re a n d Trad i t i on w o u l d be on the agenda for
C onservation Stra tegy. (Initiative to list Jaipur as World Heritage City, Prakash
Bhandari, TOI, M, 1 4/12/(1)

D20e Pilgrimage Tourism ' ! • ' . • ,"" .,. , , ' , ..,.. . ' " , ....
The entire database on Haj p ilgrims from India is to be p laced on Internet this
year in order to overcome some of the d i fficulties tha t have been encountered in
the past. Among other measures the Consula te General has given special focus to
the proper functioning of air charter operations for pilgri ms the first batch of
whom w i l l reach Jedda h from Kochi . A total of 1 ,20,000 Indians a re expected to
perform Haj this yea r of which a p p roximately 72,000 will have the services of the
Central Haj Committee and 40,000 through private tour opera tors. (Haj Pilgrimage
/ Data On The Net, A llthorities Upgrade Facilities, Kesava Mellon, TH, 25/1/01)

Kumbh mela 2001 - the largest Congregation i n the World - where 1 0 Million
Devotees took a holy dip in the rivers Ganga, Yamuna and at the Sangam, turned
out to be one of the most successful events organised by the government. The
Kumbh Mela town-ship itself was divided into 31 a dministrative and planning
sectors, to facilitate speedy action a nd for the provision of various services. Each
sector was provided with all the basic civic amenities like - d rinking water, health,
sanita tion, roads, electriCity, housing and shops a long with a police fire station a nd
a sector magistrate. (Malmkumbll: a l11aila success, Trapti Agrawal, TOI, M, 23/2/01)

Thomas Cook has decided to focus on rail-based p ilgrim travel as a major segment
for growth a nd will soon be offering a number of packages in a tie-up w i th India n
Railways. Pilgrim travel is the la rgest travel segment in the country w i th more
than 1 00 million Indians embarking on pilgri mages annually. Thi s concept will be
based on sim i l a r-lines as the p i l g ri m trains i n E u rope, wh ich p l y between
destin? tions like Bava ria in Germany and Lourdes in France w i th a doctor and a
priest accompanying the pilgrims. (Thomas on the pilgrim trail, TOl, M, 1 5/5/01)

The J&K G overnment is a l l set to introduce changes in the Ama ranth pilgrimage
format. A new counter for registration w i ll be opened a t Katra . One of the major
changes is with regard to the application form, which will be printed, in important
newspapers . (J&K Govt to modify format for pilgrims, Nishit DllOlablwi, IE, 30/7/01 )

A Parliamentary Committee has recommended setting up of a Central Fund Deposit

Scheme to enable the poor to undertake the Haj p i lgrimage. The committee also
suggested tha t pilgrimage should be operators through p rivate parties. (Panel
recommemJs scheme fo r poor Haj pilgrims, DH, 27/8/( 1 )

The Orissa Department of Tourism p u t forth a p roposal t o construct a watchtower

outside the precincts of the Jaganna th Temple here to enable non-Hindus to have
a glimpse of the 1 3th-century edifice but the move has been strongl y opposed by
the 'sevayats' citing security reasons. (Pltri officials oppose //love to build watchtowers,
TOI, M, 5/9/01)

The Centra l Haj Committee has compu terised its functioning w i th all information
r e g a r d i n g the a n n u a l H a j p i l g r i m a g e a v a i l a b l e on its w e b s i te
w ww.hajcommittee.com for the Haj pilgrimage of 2002 . This will enable a Haj
pilgrim to know well in advance about the flight schedule, accommodation at
Mecca and other deta i ls rela ted to Haj for w hich p i l grims had to go seek
information from different sources. (Website on Haj facilities set lip for pilgrims, TOI,
M, 1 9/10/01 )
70
--
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"
020f Health Tou rism. '" I '. ,,, ". ." .."
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The Wellness Boom in the US and Europe seems to h a ve suddenly d i scovered the
SOOO-year old Indian science for a long and heal thy life- Ayurveda- that is still
widely practised in India and Sri Lanka . A boom in Ayurveda Health Tourism
has developed in Germany over the past few years. Two-week cou rses at Health
Spas or Hea lin g Centres are on offer for prices of between 6,000 and 8,000 marks
($2,700 and $3,600). Far cheaper and very popular on the o ther hand a re trips to
India and Sri Lanka in combination with a beach holiday or cultural sightseeing
tours. A n u mber of Hotels now offer Ayurveda p rogram mes. This has a lso lead to
several travel a gencies offer such tours from Europe . (Ayurveda is how a tourist
attraction, Norbert Schnorbach, TOI, B, 25/5/01)

T h e Kempinski Group Of Hotels has reached a n understanding w ith a Kerala-based

ayurvedic company to introduce ayurvedic centres in all their hotels worldwide.
Kempinski Group of Hotels and Resorts d isclosed that the p a rtner that the group
has selected is the Softouch Ayurvedic Centre, which operates the ayurvedic centres
in Ashok Beach resort, Kovalam and Le Meredian, Kochi . Softouch will run the
ayurvedic treatment centres in the 40 Kempinski Group hotels located across the
world . (Ayurveda to go places witlz Kempinski, E T, 8/7/01 )

Ind ia 's Health Ministry i s pursuing an a mbitious p roposal t o popularise herbs by

constructing herbal p arks at famolls Heritage centre s . The Ministry of Health,
Tourism and the ASr would b e involved in the p roject. (Herbal tourism: A novel to
market herbs, heritage, FE, 4/8/0 1 )

C o me February, 2002 a n d the first 'ayurvedic village' in the Country w i ll be s e t

u p on 1 20 acres of l a n d in G urgaon near Delh i . The Rs l S0-Cr Project w i l l enable
people to access ayurvedic treatment from experts. An ayurvedic physician will
n o t only d i a gnose d iseases, but also consult a n astrologer to study the possible
effects of planets before prescribing trea tment .

T h e ayurvedic village w i l l house 6 4 cottages, and a S anskrit degree college.

There will an ayurvedic spa, a nature cure centre, a yoga centre, a health centre,
herbal gardens and ponds, too . (A natural prescription to revive ayllrveda, AS/10k B
Sharma, FE, 29/1 2/01 )

D20g Rural Tourism .• . . , ." ,.

r of . I II . Pi .,.....)2
I ) . ,, ". 111 r .. ".

FrCCr in a ssocia tion with the Udaipur Chambers of Commerce and rndustry is
orga n ising an Interna tional C onference and Exhibition on Rural Tou rism in India
on Sept 8-9 i n U d a i pur. The C onfe rence a ims at i n v o l v i n g Panchayati Raj
institutions in the Development of Tourism and Promoting Rural Tou rism a s a n
a venue t o achieve income, employment a n d economic stability. (FICCI t o host
conference all rural tourism, BL, 1 1/7/01 , D20g)

FrcCI in collaboration with the Union Ministries of Tourism & Culture, Rural
Development and Other Noda l A gencies has p lanned a l O-year p roject to market
and develop the concept of Rural Tourism . A. F. Ferguson for FICCI conducted
the s tudy for the p roject. The survey estimates tha t every one m i ll ion additi on a l
v i s itors to t h e country could transla te i n t o Rs 4300-cr of revenue for the ind ustry.
Besides, every one million of a d d i tional investment into the tourism sector has the
potential to generate 47 .5 j obs. And every direct j ob leads to the creation of another
.
1 1 ind i rect jobs. The com ponents identified in the study that could be part of
rural tourism include: heritage tourism, farm tourism, pilgrim tourism, adventure
touri sm and nature tourism. (Let's go rural, Preeti Mehra, B L, 24/9/01 )
71
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D20h Golf To urism I ! lui F _ I" .• I ' . " j lilt 4"" ," ., SI . ,PI _ ,.. ', UP.

Palmyra Springs Golf a nd Country Spa, a part of Madras Coun try Spa Ltd, plans
to develop a l O-hole gol f course on the o u ts kirts o f Chenn a i . The gol f course will
be a ttached to a spa, guest rooms, cottages, i n door a n d o u tdoor recreation covering
around 5 0 a c res (Golf cOllrse to spring lip near elzennai, Nina Vargllese, B L, 2 4/1/0 1 )

Currently there a re l ess tha n 1 00 gol f cou rses in Indi a w i th most o f them controlled
by d e fence services. Realising the need to have a public golf course of international
s ta n d a rd s for i ts citizens and tou rists to Belgaum and i ts neighbouring p laces, the
Belgau m Golf Assoc i ation (BGA) has taken up the construction o f an l 8-hole golf
course in an a re a o f a bo u t 1 70 a c res at Des u r, nea r Belgau m . The l a n d is owned b y
KSTDC, w hich h a s leased i t o u t t o the BGA on a long- term basis. The new golf
c o u rse will have a club house with modern facilities, rest a u ra n t, s wimming p ool,
g uest rooms, co ttages, health dubs, tennis, b a dminton, squash c ou rts, b i l l i a rd s
and p o o l tables, d riving range, golfing a ca demy, e t c . T h e cours e has been estimated
a t a cost of Rs 5-cr. (Now golf lovers have a new destination: Belgawll, Nallsl1ad Bijapur,
IE, 5/1 1 /0 1 )

020i Eco-touris1111 Wildlife Tourism_

, , ____
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For 1 9 yea rs, the N a n d a Devi sanctua ry has rema i n e d o u t of bounds. The Mini stry
o f E n v i ronmen t a n d Forests (MoEF) recently has decided to open the sanctuary: i t
plans t o a l l ow scientific expeditions o n a case-to-case basis. Trekkers and mounta i n
enthusiasts, however, w i l l s t i l l be k e p t ou t.

With this decision, the MoEF has rejected a report b y a n eight-member expedition,
which s u rveyed the sanctu a ry i n May this year, and which s u g gested that i t could
be selectively opened to trekkers a n d mounta ineers .

The Sanctuary is loca ted i n the Cha moli d istrict in U ttranch a l , has been decla red a
World Heritage Si te .

U p t o the e a rl y eighties, nearly 7,000 expeditions traversed the Sanctua ry. But the
wea r and tear began to tell on i ts fra gile eco-system, and the Government ba rred
v is i tors to the Sanctu a ry in 1 982 . (Scientists may get toehold in Nallda Devi, 50/11/
Jain, IE, 25/10/0 1 )
.
, ,
020j Cultural Tourism ...
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A three-da y sem i n a r on 'Strategic pa rtnership between Ind i a n Na tional Trust for

Art a n d C ultura l Heritage (Intach) w il l be held i n Kochi from 1 9'h July 2001 . The
Seminar would examine the variOlls facets o f a model framework for strategic
p artnership between the State Government and I n tach . The p roposal will then be
c i rc u l a ted to all Sta te Governments . (Meet all izeritage conservation, B L, 1 8(7/01)

040 Tou rism and Media '0 ... .• ,to Of ..I.,. • ", .. " . .. ·f ; ..,

Da tum Technologies Ltd . is to develop a n ERP p a ckage for the travel i n d ustry.
The tra ve l portal -- i n d i a travelhouse.com has been d i v ided i n to d ifferent
p arts l i ke tem ples, historical places, furest, s anctuar y, g a rd ens, lake a nd beaches .
I t a lso p ro v i des i n forma tion on h otels, c l i m a te, travel, a ccommoda tion, festivals
a n d c urrency conversion a mong others (Datum develops ERP for travel industry, N
Anand, IE 3 1 /01/0 1 )

H A RK (Han d y Audio Reach Kit), a N e w Electronic G uidance System (EGS) system

h a s been i n s ta l led a t the Red Fort's 'Nau b a t Khana', Diwan-i-Aam', 'Hya tt-Baksh
G a rd en', Shah Burj, H a m mam, Diwan-i-Khas, R a n g M a h a l , Khas Mahal a n d
72
 M u m ta z Maha l . The s y s tem is based on a d vanced technology a n d p rovides
a u toma ted bi-lingual description of v a rious parts of the mon u me n t on headphone
as the person goes near it. The EGS is proposed to be i n trod uced in a phased
manner at d i fferent monuments in the country. The next two m on uments i n the
n a tional capita l to have the facility will b e Qutub Minar and H umayaun's tomb.
(Red Fort visit made //lore memorable with EGS, ET, 21/5/01 )

Domestic travel sol u ti on provider Bird Group p la n s to launch a travel portal

..w ww.erah i .com .. at a time when most o f the travel portal s a re on the verge of
closu re. Bird group also owns 49 per cent e q u i ty stake i n Amadeus India, i ts joint
ventu re (JV) w i th Lufthansa Airline's parent company German Travel Services
(GTS ) . (New travel portal from Bird grollI', Rajeev layaswal, FE, 1 6/6/0 1 )

The Major C h u n k o f Tra ve l B u s i ness i s Corporate Tra v e l , b u t u n l i ke i n t h e

Wes t, I n d i a n Corpora te a re y e t t o take to web-b a s e d booki n g s . A n u mber o f
people w h o p l a n to t a k e u p l e i s u r e t r a v e l h a v e g o t o n to t h e n e t t o check-out
i n formation, connections, d e s ti n a tions, fares, etc. b u t the n umber of b oo k i n gs
i s s t i l l extremely low. The m a i n rea son p u t forth is t h a t most b i g a gencies h a v e
i m p la n ts i n their m a i n office . (Corporate travel /lot net-savvy yet, Nina Varghese,
BL, 9/9/0 1 )

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E • TOURISM, SOCIETY AND. IMl!lCtS>

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EOO Social Impact of Tourism ..... ,
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Goa, Pond icherry, Daman and D i u a re gettin g to be known as the booze havens of
the country, thanks to the soft liq uor taxation policy fol lowed by thei r loca l
governments . Though Goa is ma king a noise about it, so far a t l east, nothing
real l y has h a p pened . They have also become v ery popu lar tourist destinations
a n d get regula r customer from the neighbouring state s . Hotels too have rooms
fixed not a t a per day rate, but at 5-7 hour stretches. Daman & Diu especi a l ly gat
a n u mber of day-trippers from G uj a ra t as Gujarat i s a dry state. (Pack of fou r,
cheerleaders, TOl, M, 22/4/01 )

• • 'f ,.,
E01a Environmental Law and Policy '" ' , , , " p.
• ....'. . t, I

The Indian C ouncil of Forestry Research and Education (ICFRE) i n Dehra Dun has
prepa red a Forest Research Perspective plan for the coun t ry for the next 20 years
based on the p roblems identi fied a t the grassroots, ICFRE had funded or proposed
to f u n d Rs. 234-cr a l l over the country, i n volving 544 research projects. The
a gricultural u n iversities, forestry colleges, State forest depa rtmen ts, NGOs and
other recogn ised institu tions took up the p rojects . (20-yearforest researcll perspective
plan ready, K.Jeevan Clzillllappl1, TH, 1 5/7/0 1 )

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E 2 1 Tourist Police/secu ri ty ... . "" " f '" . , .

Tou rist Police Squads, which first made the i r a ppearance in M u mbai last October,
face their acid test this summer. With the c i ty w i tnessing a huge i n flow of domestic
a n d foreign tourists since M a rch, these squads are expected to work roun d the
dock, l ooking i n to the security concerns of tourists a n d p roviding them w i th on­
the-spot g u i dance. The police have special kiosks loca ted at the G a teway of India,
Na riman Poi n t, Girgaum Chow pa tty, Hanging G a rden, Juhu beach a n d the
Chhatrapati S h i vaji international a irport at Saha r. The rol e of the tourist pol ice is
merely to p ro vi d e a sense of security at the tourist spots a n d give g u i d ance i n
certa i n cases . The s q u a d w i l l also ensure that begga rs, p i m ps , e u n u ch s a n d
73
__
__
__
__
____
, . �DO�LC��
commercial sex workers d o not harass tourists. (Mumbai Darshan: A tale of six
squads and tourists too many, Somit Sen, TOl, M, 30/4/() 1 )

. .
E 3 0 To urism, Public Safe ty a n d Health .. . , '" • •. •I ' • ,.

Of late there has been a severe shortage of the yellow fever vaccine. Making full
lise of this situation a number of travel a gents have started issuing false certificates,
as it is mandatory for travellers travell in g to some countries in Africa and South
America. (Travel agents make hay as yellow fever vaccine is in short supply, Seema
Kapoor, TOI, M, 1 /9/() 1 )

.
E42 Commercia l Sexual Exploitation of Chil dren ,
I If " . , ., to • -

Labour Depa rtment Officials who cond ucted a surprise raid in severa l hotels in
Hassan rescued six child labourers and took action against the hotel o wners . The
o fficials rescued two children from Keralapura Hindu Military Hotel on Kasturba
Road, one child from Sudha Hotel in Park Road, two from Hotel Pushpak and
two from the Rajat Military Hote l . (Child labourers rescued from hotels in Hassan,
DH, 1 0/1/0 1 )

A local court heard t h e bail p l e a o f the Swiss Couple held i n India since December
16 last year for allegedly shootinb pornographic pictures of m inor children. The
couple, Willi am Albin Marty (58) and Losha ir Lily Marty (57), were produced
before a metropol i tan magistrate who remanded them to j ud icial custody till
January 22. According to the police, the couple lured the kids with money, attractive
clothes and free rides to perform sexua l acts for the camera . The movie was then
sold for a price to people abroad . (Court will hear bail plea of Swiss couple today,
TOI, M, 1 0/1/0 1 )

Despite the city police claiming that it h a s cracked the whip on child pornography b y
arresting the Swiss couple last December, incidents of slum a n d street children being
lured by foreigners to pose for pornographic videos and pictures a re on the rise,
social activists allege. These foreigners, they claim, are involved in a multi-bill ion­
dollar racket with a flourishing market abroa d . Despite the fact that the racket has
been in existence for over a decade, the police are lackadaisical about tackling the
problem . Social activists, however, complain that even when given a lead, the police
are uninterested in following up the issue of child sexual abuse . According to police
sources, child pornography is rampant in many parts of the country. Apart from Goa
and Mumbai, there is evidence that such rackets operate in other Indian states like
Kerala, West Bengal and Himachal Pradesh . (Cases of urchins being lured by foreigners
for portiograpJty on rise', So1tlit Sen, TOl, M, 7/2/01)

In a significant move to stop trafficking o f Muslim children to Saudi Arabia for

begging d uring Haj, the National Human Rights Commission (N B RC) has asked
Home Ministry External A ffairs Ministry and West Bengal Government to take
steps to p revent the p ractice.

The Commission, taking suomoto cognisance of a news report, has asked Central
M in istries and West Bengal to take up "preventive measures" to check the child
trafficking. The N H RC recommended tha t the people from the vulnerable sections
should be educa ted a nd made aware of the dangers of child trafficking especially
tha t o f the girl children. (Preven t child trafficking during Haj: NHRC, DR, 25/6/0 1 )

T h e Vishakapa tnam Police have arrested Paul A llen and cha rged him with child
abuse, unnatural sexual exploitation, escaping from police custody and viola tion
of Foreigners Act since he has n o valid documents to stay in the country. He runs
74
_____. _
. __________ ��o_.�
several homes for street children in five coastal towns b u t does not have a valid
l icense for a single home. (Home inmates face public ridicule, DH, 29/8/01)

Eric Rosser, one o f the 10 most wanted criminals o f the US was a rrested with a false
British Passport in Bangkok. Rosser is an admitted child molester and has a number
of cases a gainst him . (Piano-totillg paedophile, S11yam Blzatia, DH, 6/9/01)

In a well-organised racket, young boys have been p u t on the j ob to tab women

foreigners touring the temple city and showcase not only male prostitutes before
them b u t a l so provide accommoda tion as well . Senior Adm inistrative Officials o f
the region a re now grappling t o chal k o u t a strategy to crack these gangs a fter a
series o f complaints from tourists were received . (Children are being used in 'adult
games' in Varanasi, Pervez Iqbal Siddiqui, TOI, M, 1 3/1 1/0 1 )

E50 Touris m a n d Children _ , ___...

, ... _ ..
.. . . _...._
.... ... ___ "
."" ,""
.. __
,. ,...._....
...
.... ..
...
.. ..·._
. .rr
._

The President of the Karnataka State Hotels a nd Resorts Staff a n d Workers Union,
Mr. B.R.Shivshankar, has accused the Sta te Government of ignoring the plight of
child labourers in hotels and resorts. He tol d press persons tha t basic wages;
bonus, provident fund and leave were not guaranteed for these chi l d ren. Despite
working for more than 12 hours, they were not given p roper foo d . The Labour
Department had denied that there was child labour the State, but the Hotel Industry
continued to hire child labourers through contractors. The long working hours
and less p a y given to them were clea r examples of the existence of bonded labour
in hotels. In the State, the Hotel Industry had g rown tremendously, b u t child
l abour continued unhampered in Hotels and Resorts. (End child labour in hotel
industry, TH, 26/5/0 1 )

E71 National Parks and S anctuaries ...

....' ....
. . ____... ·_
.... _,... ._
, .... ..·
.....�
H___...
..._
. ·._...

Confirming fears of Environmentalists, the Centre has informed the Supreme Court
that the proposed Controversial Kotdwar-Kalagarh-Ramnagar highway would pass
through the bu ffer a rea of Corbett Tiger Reserve and did not rule out fel ling of
tree s . The S upreme Court had on April 9 had p assed a s ta y o rder w hen Wildlife
Protection Society b rought to i ts notice that the proposed highway would cause
i rrep a rable d a m a ge to the reserve and ecology. The Ministry e x p ressed the
a p p rehension that the passing o f a road through the buffer zone had the potential
o f blocking the migration routes and fragmenti ng the habitats o f wild animals.

The Supreme Court on A p ri l 9 had stayed the Controversi a l H ighway Project of

the Uttaranch a l Government from Kotdwa r to Ramgarh on the a l legation tha t the
proposed road would pass through the Corbett Tiger Reserve resu l ting in the
felling of thousands of trees. A th ree-judge Bench headed by Chief Justice A S
Anand had d i rected the Uttaranchal Government to immediately stop "construction
of the road passing through Corbett Tiger Reserve" and asked it n o t to fell any
t ree i n the Reserve. (Highway to cut through buffer zone of Corbett Park, SC told, DH,
2 1/5/01)

Environmentalists h a v e repeatedly expressed concern o v e r t h e l a rge scale dumping

of non-biodegradable ga rbage in the Nanda Devi Biosphere Reserve, a renowned
World Heritage site in the Himalayas. The 2000 sq km of encha nting a rea has now
been clea red of thi s p ol l u tion thanks to a recen t 'Clean Nanda Devi Expedition
200 1 ' of the G a rhwal Ri fles regiment of the Indian A rmy. In a unique record, the
40-member team has removed environmenta l ly hazard ous garbage, weighing more
tha n 800 Kgs, from the reserved a rea and airlifted it to Dehra Dun a fter successfully
sca ling Nanda Dev i . This is looked as a significant step to p reserve and main tain
75
 _________________ D�?_I����
the ecological balance of the reserve . (A rmy team clears BOOkg of garbage from Nanda
Devi, D H, 2 6/1 1/01)

. .
I
UJP t oIIi' I.. . ... 'I . , ,* t , U $I 'II d '• ••
I fd '\ n, II? ) ; 4,

G
!
- COASTAL REGIONS - ECOLOGY, DEVELOPMENT AND TOURISM
• III ) " i t I '

G I O Marine and CRZ Acts, Rules, Laws, Community rights, violations --­

A Workshop was organised by Nagarika Seva Trust and Equations on the Coastal
Regulation Zone. The participants of a workshop on coastal regulation zone from
fou r Southern Coastal States demanded that a status quo of activi ties should be
maintained and a moratorium should be dec l a red on any further clearance for
activities in coastal stretches until final isa tion of Coastal Zone Management Plan .
The p a rticipants who included NGOs, envi ronmental and consumer groups and
others expressed concern that the norms for regul a tion and p rohibition of activi ties
a l ong the coastal stretches tha t had been issued through the C RZ notifica tion had
been violated b latantly.

The Hotels and Resorts at MUT1.1deshw a ra in Uttara Kanna d a d istrict were a clear
instance of these violations where the construction had begun on an a rea located
a t zero meters from the High Tide LIJ le (HTL) . Similarly the Kakinada minor port
in Andhra Pradesh was situ ated on ecologically fragile CRZ a rea .

They demanded that there should be greater transpa rency in Coastal Management
aspects. The Coastal Zone Management a u thorities should be reconstituted with
a dequa te representation to volunta ry organisa tions working on coastal groups.
The Conservation plan tha t is to be evolved should keep in mind the Trad i tional
Livelihood Concerns based on the carrying capacity o f the a rea . (Moratorium on
coastal area activities sought, DH, 22/2/0 1 )

C M s a n d Tou rism Ministers of the Western Region States o f Mahara s tra, G ujarat,
G o a , M P a n d C h a tt i s g a rh a tten d e d the To u ri s m I n d u s t ry ' s 1 0th Region a l
Convention. They propose to start a Western Region Circuit to Sustain and Promote
Tourism w ithin the region. The convention a l so saw the seaside states push for a
rel a x a tion of the CRZ. (Coastal states to pUSll for relaxation of CRZ, Western region
tourism circuit proposed, DH, 2417/01 )

I n a Development tha t i s being p l a nned b y the Environmentalists, the Union

Minis try o f Env ironment and Forests is considering the revamping of the C RZ to
make it more region specific. (Bid to revamp CRZ is likely to r u n into stormy waters,
Vaishnavi C Slzekar, TOI, M, 25/7/01 )

GIOk Karnataka �-
:""'
!" ' -----.......
.... ".-----
' ...
....
.. ..... � .,.
.....
" ... ,.
....
.,._... , ....
.. . .,-_ _
... ,... ......-
......

A Gov ernment noti fication is n o w moving i n to the p ub l ic spotlight w i th

Environmentaiist Organisa tions a long the Karnataka Coastline seeking action
a ga inst those responsible for the non-implementation of the guidelines of coastal
dev e l op m e n t u n d e r the C oa sta l Reg u l a t i o n Zone ( C R Z ) n o t i fi c a tion . The
notifica tion declared coasta l s tretches o f seas, bays, estua ries, creeks, rivers and
backwaters influenced by tidal action up to 5DO metres of the high tide l ine and
the land between the l ow tide l ine and the h igh tide l ine a s a regulation zone and
imposed restrictions on the setting u p and expansion o f industries, operations or
processes in this a rea . Ten years down the road, a series Qf three surveys conducted
by Nagarika Seva Trust, a volunta ry organisation, has identified as many as 95
possible v iolations of the CRZ notification a long the Karnataka coast. Of these 95
76
 violations 1 9 pertain to the Tourism Industry (20%). (Action sO!lg/lf against violatioJls
of CRZ norms along KarTwtaka coast, BL, 1 3/2/( 1 )

G90 Coastal tourism .. , '" ••• I. II, .....,.. • ' •"

The Maha rastra State Government has written to a l l Chief Ministers of the Coasta l
States to seek their co-operation i n j ointly approaching the Cen tre for changing
the existing regula tion on development of the coastline, which were hampering
the development of tourism in these regions . (Call to develop tourism in coastal
regions, BL, 2 7/8/0 1 )

....' I'''. • .... 1)1 4 , '" t'( '. '$ n • •• ; 4 (Ii

K • KARMAlliA
• I, 1 '. ' I, It ) • Ii '. '11>1 ,

"
KIO Economy ul i:: 1 '11 Q ' I ·' U I .PI "" '" i ii

Ka rnataka's annual plan size for the current fiscal year has been finalised at Rs
8941 .56-cr with the permission for the sta te to go in for higher outlay if it cou ld
identify more resources a t a later sta ge. (Karnataka plan at Rs 8941 .56-cr, BL, 28/9/01)

K12 Infrastructure, power I " I , , • , ., ..,.,. • ' '" rr

The Newly floa ted special purpose vehicle, Bangalore International Airport Ltd
(BIAL) for the Devanahalli Airport has got into the work m ode by scouting for
more m inor pa rtners to j oin the p roject; and taking stock of the periphera l
in frastructure activities that should be in place at the site. In the months to come,
core activities for the airport such as power, water supply, communica tions will get
under w a y. These w ould be in place when the two finalist consortia, which a re in
the race for the project, submit their detailed project reports around Apri l . Getting
environmental clearances and geo-technical surveys will a lso be a mong i ts tasks.
(Hun t for Oevallalzalli a irport partl1ers begills, Madill/Illat/il 0.5., BL, 1 0/01 /( 1 )

The Karnataka State Cabinet has started negoti ating with a consorti um comprising
Si emens, Zurich A i rport a nd L&T for taking up the work on the Banga lore
Interna tional Airport. A commi ttee consisting of five experts has been given two
months time to negotiate w ith the consortiu m . The government had two options -
either to go for the consortium comprising Hochtief & Dusseldorf Airport or for
the Siemens-led consorti um. The Evaluation Commi ttee and Airport Development
Plan reports have placed the Siemens consortium above the Hochtief & Dusseldorf.
The Siemens-led consortium envisages an a irport a t Devanahalli with an initia l
capacity of 3 .7 m i l l ion passengers, and 1 40,000 tons of cargo . The existing a irport
has capaci ty o f 2.4 to 2 .5 million p assengers. (Sta te Govt to hold talks with Sie111 e lls­
led consortium 011 airport, OH, 26/6/(1 )

Malaysia's ARA Corpora tion has agreed to develop a n d opera te all the four minor
a irports in Karnataka that were offered for private sector investment in June last
yea r, ARA is the lone qualifying bidder tha t has offered to take up all the Four
Minor Airports at Mysore, Hubli, Bel l a ry and Gulbarga . The project esti mated at
$5.5 m i l lion (around Rs 25 cr) was p roposed on BOOT basis d u ring the Global
Investors' Meet and received nine expressions of interest . (Malaysiall firm keen to
develop four Kamataka minor airports, Mndhu 11latIJi OS, BL, 1 1/11(1 )

Home, Infrastructure Development and Civil Avi a tion Mi nister M Malikarj llna
Kha rge informed the Legis la tive assembly tha t negotia tions w i th the Siemens
consortium for taking up w ork on the proposed Bangalore International Ai rport
at Devanahalli w ould be completed by August end and the first phase of work on
77
 DOC:�j���. l1�
-------------,-
, --------._
[ ���.�
the project will commence a s per sched ule either in Jan or Mar 2002. (Devan/lalli
Airpart- first phase to begin in 2002, OH, 25/7/0 1 )

K20 Environment and enviro nmental issues •

I I, • " 0 " "

The Karnataka State Government intends to introduce amendments to the Forest Act
in the Budget Session of the Legislature. The Government was seriously considering
the inclusion of the recommendations p u t forth by the Dilip Singh Bhuria committee,
which highlights the need for people's participation in the management of forest and
village resources. (Forest Act to be amended, TH, 1 0/1/01)

The Joi n t Forest Pla nning and Management (JFPM) programmes implemented in
the Western Ghats and Eastern Pla ins with massive foreign a ssistance have not
yielded positive resu l ts and hence, a need to formul a te a new policy tha t is a trul y
participatory in Na ture a n d Sustainable, i s fel t by the Vil lage Forest Committee
representa tives, Non-Governmental Organisa tions and Researchers.

Partici p a ting in the State-level convention on "Pa rticipa tory Forest Management
Policy," the speakers said though the JFPM p rogrammes have created s ignificant
interest and a w a reness in the forest management a mong rural communities, it has
neither prevented forest degrada tion nor benefited local communities. ('Forest
management plans have not yielded results', Off, 1 5/12/01 )

K34 Bangalore ; i@ ... Pi *I • .-, . i . It, - ,.. pc . ..." .,.. t 1 , pc .. f ",

The Centre said tha t the A irport Restau ra n t a t Bangalore was p a rt and parcel of
the transaction for the Bangalore Hotel Ashok deal, w hich was clinched by the
Lalit Suri-promoted Bhara t Hotels Ltd . The Union Minister for Disinvestment, Mr
A run Shourie, said tha t the Informa tion Memorandum of Hotel Ashok Bangalore
included a l l the information concerning Airport Restaurant, Banga l ore. The
resta urant was being run as part of the hotel a nd , therefore, d id not warrant a
specific mention in the advertisement invi ting expressions of interests (EoIs ) .
('Bangalore airport restaurallt part of Hotel AS/10k deal', BL, 5/1 2/0 1 )

• ., or
K40 Karnataka Tou rism Policy a nd plans ' . .. " .•,,,,, , I .

The state is eyeing between Rs 600-700-cr in Private Investment to set up Hotels

and Resorts in select pla ces identified on its 300-km coastl ine and in i ts lush forest
zones . Azeezulla Baig, Director, Department of Tou rism pOinted ou t that Jungle
Lodges and Resorts O LR ) , which a l ready runs five p roperties in the state, will be
the nodal agency for p romoting ecotourism. JLR is currently in the p rocess of
p reparing project reports for the chosen areas- Tannir Bhavi, Belikeri (near Ankola)
(both in the coast) a nd in eco-tou rism, a n a rea near Jog Falls to construct
houseboats . The Hotel Industry has been making enquiries. Another option is
tha t the p roperties could also be operated as joint ventures w ith JLR. While
Karnataka has some of the most 'reputed ancient architectural sites', the catch is
that with link roads being in bad shape, no big p romoters w a n t to put money into
hotels in these regions. (Neighbour's slIccess wakes up a sleepy tourism dept, Kamataka
to capitalise 011 its pristine coastline and lush forests; heritage sites get the go-by, DeepanjaJi
Bl/as, TOI, B, 1 5/3/0 1 )

T h e High-Profi l e Cabinet S u bcommittee Comp rising Ministers h o l d i n g key

p ortfol ios constituted to facilitate co-ordina tion between various Departments on
Tourism issues will soon wind up and be replaced w i th the State Tourism Council.
The Commi ttee set u p during the Global Investors' Meet comprising ministers
H.K. Patil, RV Deshpande, H.C. Srikantaiah, Allum Veerbhadrappa besides Roshan
is giving a final shape to the report. With the wind ing up of the comm ittee, the
78
 DOCUJy1 E N-T�I1ClN
----------- ....;--J.I'���nO�(�
report will be considered by the proposed Council . The Council will have less
Government presence and more representa tion from a reas where it ma tters. It will
be made up of hoteliers, representatives from trade bodies l ike the Federation of
Karnataka Chambers of Commerce and Industry, tour and travel opera tors and
experts . (Elite panel to advise govt 011 tourism, TOl, B, 1 2/4/01)

The State Tou rism Depa rtment is seeking a l o a n of Rs 1 00 cr from Hudco to

develop Tou rism Centres in the Sta te . The loan would a lso be util ised for b uilding
up infrastructure for the Tou rism Dep a rtment in the State. A Cabinet decisi on
would soon be taken regarding ap proaching Hudco for the loa n . The Sta te
Government had identified tou rism centres along the Mangalore-Karwar coastline
tha t needed to be developed . The government is a lso planning to introduce water
sports in selected tourism centres. Global tenders would be floated and the work
of developing these tourist centres would be accorded to a single company.

Tourism Police: the Karnataka Government has decided to constitute a sep a rate
police force called as the 'Tourism Police' towards providing security to the tou rist
especially foreign tourists. The Government had decided to recruit a round 1 ,000
police o fficers for the Tourism Department

Privatisation: The Tourism Minister has stated that as people who operated the
tourism centres were not tra ined in to urism and hence the res u l t has been
unsatisfactory. The dep a r tment therefore suggested that the tourist centres be
priva tised . A M u mbai-based consul tancy a gency has been h i red to suggest w a ys
of priva tisation and the a reas in tourism tha t needed privatisation. The consultancy
f i r m h a d a l r e a d y g i v e n i ts re p o r t a n d the G o v e rn m e n t is s t u d y i n g i ts
recommendations . These recommenda tions would soon be tabled before the State
Cabinet for approval . (Developmen t of tourism centers, State govt to seek Rs 1 00 cr
loan from HI/dco, DH, 1 1/6/0 1 )

A Comprehensive Plan h a s been chalked o u t fo r the Devel opment o f Tou rism i n

North Karnataka regi on a n d w i l l b e taken up with the assistance of the Centre
and Financial assistance from Hudco to the tune of Rs 1 00-cr. (Development of
TOllrism in North Kanzatakn State govt proposes Rs 1 00-cr plan, DH, 28/7/01)

With nearly, 1 28 Centrally Sponsored Tourism Project remaining incomplete in the

state, the Union Minister Anath Kumar had requested the CM to organ ise a 1 -day
meet of the Centra l and State Tou rism Officials to remove the impedi ments in the
completion of these projects. During the last 1 0 years the Centre has sanctioned
1 76 tourism projects worth Rs 256 cr. while Rs 1 94 cr had been released. Only 48
have been completed . (Tourism: Krishna urged to convene meet, DH, 1 4/8/01 )

The Karnataka Government is keen to cash in on the sudden demand for Ayurvedic
from Foreign Tou r i sts and w i l l in troduce it in th ree o f i ts tourist resorts
(Bhimeshwa ri, Devba g and Kabini) in Karnataka . Figures released by the Planning
Commission ind icate tha t an esti mated 300000 tou rists to come to India specifically
for ayurvedic treatment and at p resent only Kerala and to some extent Gujarat
extent these facilities. (Tourism department to follow in Kernla's footsteps, Anita Rao
Kashi, TOl, B, 1 6/9/0 1 )

A s a part of a complete overhaul o f its image, the Tourism Depa rtment i t' i n the
l1
process of setting up a Tourist Helpl ine, which will work round-the-clock and will
I
I
be manned by a p rofeSS ional team . Informa tion will be prov ided in Kannada,
Hindi and English. A. F. Ferguson submi tted its report in which it hea v i l y critiqued
79
the w a y the KSTDC's Mayura G roup of hotels were run and recommended its
Privatisa tion (Tou rism dept plans to overhaul image, a round the clock hel pline
likely to a id visitors, Anita Rao Kashi, TOt B, 2 4 / 9 / 01 , K40). (Special police at
tOl/rist spots SOOIl, DH, 28/9/01)

KSTDC has invited bids for:

Instal lation of Pre-Fabricated House, etc . at Mysore, Srirangapa tna and Jog Falls.
Assistance from consu l ta ncy firms for the p urpose of m a n a gi n g its v a rious
properties on a management contract basis. (TOl, B, 1 9/1 0/0 1 )

With j u s t a little over two weeks to g o f o r the G l obe's Biggest Tou rism event
(WTM), K a rnataka was yet to finalise its Tou rism Strategy to be p resented to
Foreign Tou rists. At the same time, the Tou rism Department was clueless about
who represented the state. KSTDC and Jungle Lodges and Resorts Ltd. a re the
two organisations tha t will represent the state. Private com pa nies such a s Deccan
Avi a tion a nd Ea gleton G o l f v i l l a ge would also be p resen t. The other states
participating in the event a re Rajasthan, Goa and Kera l a . (No Kamataka strategy
yet for LOlldon tourism show, Anita Rao Kaslli, TOI, B, 24/10/0 1 )

The Sta te Cabinet h a s d ecided t o set up an Au thority for the overa ll development
of Jog Fa lls situ a ted a long the Western Ghats in Shimoga district. To start with, on
the a p p rova l of the Finance Depa rtment, the Government has e a rma rked Rs 3.5 cr
as seed money for the Jog fa lls development project. (Govt to set tip authority for
Jog Falls development, Cabinet a p p roves KSRTC's loan p roposal, DH, 24/ 1 1 / 0 1 )

The KSTDC h a s called for tenders t o p rovide catering and allied serv ices for
conducting tou r by tra i n . Applica tions a re invited from tou r operators approved
by Department of Tourism, Govt of Kamataka/ India possessing experience ill providing
catering and allied services to assist KSTDC ill conducting Bharat Darshan 2001 -02
tOllr. (oH, 1 4/1 2/0 1 )

K50 Tourism i ssues ' ' " .J • •" J ... ..�.,.. I * •"

Even tou gh much is spoken the tou rism p rospects of Uttara Kannada District, the
people believe tha t l ittle has been done by the district a d mi nistration to develop
tourism except to identify 40 tourist spots.

The Forest Conservation Act of 1 980 comes in the way o f developmental activities
in the district, accord ing to Ms. Marga ret Alva, Kanara MP. Although only 46 per
cent of the district is u nder forest cover toda y, over 80 per cent of the a rea has
been classified as forest region. Since most of the development a ctivities have to
be implemented in the classified forest region, they have to u ndergo a l l sorts of
' ordeals under the Act, before the land is released for the purpose . According to
Mr. Rav ind ranath Tagore, Director of Tou rism, the Coasta l Regula tion Zone (CRZ)
Act does not allow development of beach tou rism . When the Taj G roup proposed
to set lip a hotel at Majali, it was opposed in the n a me of environment. (Govt.
neglecting tOllrism development ill U.K. Dist., I<..S.Habbu, TH, 1 4/6/01 )

Tra vel agents, tour operators and other persons associated with the hosp ita l i ty
ind u stry have come under one umbre lla to form the Karn a taka Tourism Forum
with an aim to make Karnataka, South Ind ia's tourism ca pita l . The Forum is to
promote adventure and eco-tourism a part from other tourist destina tions in the
State in associa tion with the Depa rtment of Tou rism . (Forum to Ilelp boost tourism
in State, DH, 1 50/(1 )

80
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A group of cooperatives in Dakshina Kannad<l has p lans to make tourism a ffordable
to the common people. The Riverview Coopera tive Resorts Ltd . was the first
venture in the tourism sector and a i med at crea ting fa cili ties for b ringing quality
tourism closer to the budget tourist segment. The ven ture would sta rt with a
beachside resort near the confluence of Nethra vati and Arabian sea . (First co-op
vellture in tourism sector, TH, 2 4!7/(1 )

The p rom oters o f Orange C o u n ty h a v e se t lip a new d i v i s i on t o p rovide

management and consultancy services in the hospitality sector in the country. The
new division would ta ke up p roject mana gement, ma rketing and sled contract.
The company has a lrea dy tied up with two resorts for hand ling their m arketing
and sales opera tions- Ka davu (Kozhikode) and Eagle Ridge (Bangalore ) . (Ormlge
Cou n ty sets lip arm for consllltal1cy services, FE, 1 1/9/0 1 )

The KPCC M in ority Cell tried t o revive the issue o f t h e leasing O ll t of the
Bakharabad Wa kf p roperty on Sa nkey roa d here for the construction of the ITC
group's Windsor Manor Hotel 28 years ago, and has u rged the CM to take steps
for instituting a CBI probe into the matter. (CM u rged to order probe into lease of
wakf propert�1 for hotel, TH, 1 2/9/( 1 )

The Biggest ever Reservoir of the K a rn a taka State wh ich is under Construction,
the Almatti d a m, is set to turn in to a Major Tourist Attraction with a Rs 30-Cr
Amusement Pa rk Fea turing Wa ter Sports, Rope-Way and Botanical G a rdens to
come up on the d a m si te . A b i rd sanctua ry, to be housed on an island on the
reservoir, wiII be an ad ded fea tu re. After the comple tion of a l l the works, the park
wiI I be given to priva te comp anies . The idea is to develop the a rea as a Tou rism
Hub . Historical Tourist Destina tions l ike Gol G lI mbaz, Badami, Pa ttadaka l, Aihole
and Kudala Simga ma a re al\ situa ted within a distance of about 60 kms from
Alma tti . (Park, bird sallctllary to adam A I/JIatti dam, B S Satisil K umar, OH, 1 7/10/01 )

The Ka rna taka State Hotels and Resorts Sta ff and Workers Union staged a dharna
in front o f Mahatma Gandhi Sta tue on November 20'" demanding minim u m wages
for workers of hotels and resorts and to protest the a lleged assault on a hotel
worker by his employer in the City. Mr Shivashankar, President of the Workers
U nion s a id tha t h undreds of workers employed in h otels and res()rts a cross the
state have been denied minimum wages, PF and other benefits . The dharna is
being o rganised to h ighlight the problems faced by the workers in hotels and
resorts . (Hotel workers' dhama all November 20, OH, 1 6/1 1/01)

As p a rt of i ts C i ti zen Friendly Initia tive, t h e K a rnataka Sta te Road Transport

Corpora tion (KSRTC) has opened a rest room and dormitory faci l ity a f the Kempe
Gowda bus-stand in the City for the benefjt of traveIlers. "Ya tri" which has been
set up at a cost of Rs 70 lakh , is the second in the series a fter " Aaramadhama", a
rest room, opened th ree years ago. About 28 rooms have been buil t in 1 4,000 sq ft
a rea . Besides, a 90-bed dorm i tory has also been opened . ( KS RTC opell� overnight
rest ro011ls for commllters, DH, 2 1 /1 2/(1 )

While the leading coopera tive ba nks have been offering personal loans in the
range of Rs.5, 000 to Rs.25, 000 only, the Tumkur Hotel Owners' C red i t Coopera tive
Society has been p roviding persona 1 loans up to Rs.75, 000 . The objective of the
society, which was establ ished in 1 975, is to facilitate hotel and restaurant business
,
in Tumkur. Th i s is said to be a un i q ue feat in the field of coopera tion. The society
has 1 54 members a nd is graded " A" by the G overn ment. Sta rted w i th 57 members
a nd Rs.37, 600-share capital and Rs .70, 500 deposits, the society has lent Rs.77.26
81
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• A M us ical FOll nta in a t Raja's Seat a n d
• Improvement o f facil i ti es a t t h e Nisargadhama Resort, b y i ntroducing elephant
rides a n d other com forts
(Plans to make Kodagu 1II0re attractive to tourists, K.Jeevan Chill11appa, TH, 1 7/2/01)

; "i( ,._ . , i�1 4 • I", ) l ... . _ • . • �.""8i O k AI II ., ,.. ..

L -
KERALA
J i . . 1 I

L1l Planning n*t@ i .... "!" lU, i. "... '" f,iIIlo" l)III* ,.,. . ' . ',

The New United Democratic Front ( UDF) Government in Kera l a w i l l focus on

a ttracting Private I n vestment i n key sectors s uch as Ind u s try, Power, Educati on,
Inf ra structure and Tou rism as pa rt of the strategy to resolve the Development
Crisis i n the State.

The Government w i l l b ring in a reg u l a tory mechanism to rel a te the Development

of Tou rism destinations in the State to the i r 'carrying ca pacity'. The partnershi p
w i th the p ri v a te sector for t h e g rowth of the Tou ri s m Sector w i l l b e strengthened .
(Kaaia to litre pvt fUllds in key sectors, BL, 30/6/0 1 )

I d uk k i i s emba rking o n a Major p roject to c rea te a p l anned towns h i p . Tou rism i s

being l o oked a t a s a K e y Developmental Tool for t h e township t h a t is being
planned. Idukki, which has tourist a ttractions, l i ke Munna r, Eravikulam, Thekkad y,
e tc a i m s at h av ing a susta i nable a n d eeo-friend l y p la n ne d tow n sh i p a n d to b e
crea ted on a b U i l d-opera te-tra n s fe r (BOT) basi s . T h e y h a v e received a l l the
necessa ry c l ea ra nces . A ro u n d 50 a c res o f l a n d w i l l b e provided to p r i v a te
entrepreneu rs to unde rtake remunera ti ve p rojects under ROT The v a riolls p rojects
e n v isaged i ncl u d e hotels, shopping complex, cyber p a rk, a i r strip, rock ga rden,
games centre, a rt g a l le ry, bio-tech part and convention centre, among a few. Ildukki
embarks on fOWl/ship project IInder BOT basis, Ajayall, FE, 1 9/9/0 1 )

Lt2 Infrastructure ta
......._ _______
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The Governments of Kerala and Ma laysia have signed a pact on road construction.
The compa n y would u p g r a d e a n d w iden the e x i s ti ng 58-km s tretch o f the
Saba rim a l a roa d Jnd construct a new road between Kotta y a m a nd Chertal a . (Keraia,
Malaysia pact for road COllStrllCtiOIl, B L, 1 1/3/(1)

T h e C i v i l Avia tion M i n i stry i s a l l s e t to s i gn fresh bil a tera l a g reements t o a l l ow

m o re for Foreign A irlines to the Cochin Interna tiona l A i rport. The request h a s
come from the PMO. It is bel ieved tha t more foreign a i r l i nes a re needed t o operate
from Cochin keeping i n m ind two factors - l a rge n u mber of Kera l i tes working in
the G u l f a nd e l sewhe re and to enable h i gh - v a l u e E u ropea ns to travel d i rectly to
a n d from the Ci ty. A t p resent, nine coun tries a re i n terested to ini tia te b i l a te ra l
talks for the Coch i n A irport. They d rc Sri Lnnka, M a l a ys i a , Oman, Yemen, Kuwait,
UAE, Sau d i A rabia, Singapore and Qa ta r. (Fresh bila teral for Kochi airport soon, TOI,
B, 27/5/01 )

Cons i d ering the importa nce o f i n l a n d w a te r t r a n sport a s a n a l ternative a n d

s u p p l ementa ry m ode of tra nsport, t h e Keral a Government h a s identi fied three
wa terways in the Sta te for Developing I n l a n d Wa ter Tra nsport a long w ith Road
Transport. The Project has a l re a d y been taken up w ith the World Bank and a
d e ta i l ed report was being p repared th rough a cons u l ta n t . The Three Wa terways
i d e n t i f i ed for d e v e l o p m e n t a re A l a p p u z h a - K o tt a y a m (23 k m ) , A l a p p uz a ­
Changanassery (28 k m ) a n d Kotta y a m-Va i kkom (42 k m ) .

84
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•

The places to be widened in these stretches had been identified and d redging
qua ntity was estimated besides bank p rotection w i th vegetation, night na vigation
a ids, mod ification of b ridges and maintenance d red ging. It as a lso decided to
underta ke rep a i rs to 23 b ridges and three jetties in these a reas. (Kerala to develop
three waterways, BL, 2 7/1 2/0 1 )

L40 Kerala Tourism policy a n d plans .. . , . '. . I ". . �\.,.

The Kerala Tourism Development Corporation (KTDC) plans to reopen the Bolgatty
Palace . Thi s comes close on the heels of i ts launch of w a tersca pes, the backwater
resor t at Kumarakom and Tea Cou n ty at Munnar. The two-century-old hotel, one
of Ind ia's oldest heritage properties at Koch, has undergone extensive renovation
and up grada tion . The old World Charm has not been tampered w i th in the .
course
of its renovation . (KTDC to reopen heritage hotel, BL, 1 4/2/01 >

The Keral a Chief Minister, Mr E.K. Nayana r, has stressed the need to improve the
Infrastructure for Promoting Tou rism .in the State. The Government ha d initia ted
various steps for the Promotion of Tourism Industry in the State . The Government
had spent a round Rs un o cr with the Joint Participation of Private Sector for the
Development of Tourism. A Tourism Promotion Project with an esti m a te of Rs 1 70
cr had been submitted for the a pproval of the Union Government tha t included the
Development o f Na tiona l Waterway No.3 be tween Thiru vananth a p u ra m and
Kasaragod . He pointed out that the Union Government had prioritised a scheme for
the construction of an 1 8-hole Golf Course of International standa rd at Kochi under
the centrally sponsored scheme. Tourism Resorts Kerala Ltd. (TRKL) a fully-owned
subsidiary of KTDC has been authorised to invite pre-qualification bids from reputed
master p l anners and consultants in India a nd abroad to conceptualise and detail
out the master plan. tKTDC maki1lg great strides with new enthusiasm', BL, 20/2/0 1 )

TRKL is a lso plan ning a n A i r Ta xi Project linking popula r destinations i n the

Sta te . To begin with, Helicopter or other A i rcraft services will link d estina tions
such as Kovalam, Ponmudi, Kuma rakom, Thekkad i , Munnar and Kochi . The
feasibility report on the p roject is being p repa red by ICICI-Kinfra . The Company
has a l ready floated joint ventures w i th the Taj a nd Oberoi groups . It is now looking
a t p roposa ls for Joint Ventures with Hotel Cha ins l ike Leela and Banyan Tree to
set up tourism projects in new destina tions across the State. (Tourism Resorts Kerala
pia/IS air taxi project, B L, 1 9/3/0 1 )

The World Tra vel and Tou rism Council (WTTC) will now b e involved actively in
th� development of infrastructure and marketing of tou rism in Kera l a . The WTTC­
India Initiative has formula ted an action plan for implementation together with
the Kerala Government so as to assist the State in becoming a global success story
in the tourism sector. The collabora tion a i ms at developing Kerala into a premier
destina tion . The decla ration will establish a partnership between WTTC and the
Kerala G overnment, which will bring together the innovation and responsiveness
of p ri va te industry and the responsibility of the private sector to facilita te the
sustainable development o f tra vel and tourism industry in the State. It would a lso
help i n recognising the potential of travel and tourism to stimulate socio-economic
growth, spread wealth a nd create jobs in the Sta te .

Areas identified for support include formulation of international ma rketing s trategy,

infrastructure development, human resource development and strategic planning.
WITC w ill also work together with the Kerala Ministry o f Tourism develop a tourism
sa tellite account to measure and communicate the full impact of the industry on the
Sta te. (World body to promote tourism in Kertlia, BL, 2 2/3/01 )
85
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Kerala is p roposing to introduce a legislation to streamline the growth of tourism
and relate In frastructure in the Sta te. A draft legisla tion is under p repa ra tion that
would lay-down norms for construction at tou rist sites. The law would restrict the
number of hotel rooms according to the "carrying capacity of each place". The
Centre for Ea rth Science Studies is conducti ng a scientific study to ascertain the
amount of tourist traffic that each spot can sllsta i n . The law would a lso restrict the
heights of build ings and specify the look of their facades too. No building would be
a ll owed to rise above the height of a coconut pa lm. The facades would have to
reflect the " traditional a rchitecture" and should "jell" with the surroundings. The
law would a lso lay down stringent norms to protect the fragile envi ronmen t of the
State. To boost 'Tourism' in the Northern part of the State, the Government is
thinking o f openi ng up the several Wi ldlife Sanctua ries, curren tly not open to the
public. (Kerala to lay dowlI norms for tOll ris11l ilifmstrllctllre, BL, 1 7/5/01)

There were rumours that the KTDC hotels were being sold to the Taj group of Hotels.
But it was later made clea r by the Government that there was no proposal before the
Kerala Sta te Government to hand over any of the properties of the State-owned
Kerala Tourism Development Corpora tion to the Taj group. The UDF Government's
policy would be to retain and strengthen public sector units while creating a liberal
climate' for p rivate investment in all key areas sllch as tourism, information technology
and biotechnology. (,No //love to hand over KTDC hotels to Ta/, Bl., 28/6/( 1 )

A new Bill ti tled Tourism (Conservation, Preservation a n d Trade) Bill, t o regulate

the whole gamut of Tourism-rela ted opera tions in Kerala, is li kel y to be tabled in
the next session of the Assembly. With this, Kerala will be the fi rst state in the
country to frame a piece of legislation aimed at regulating various kinds of busi ness
connected to tourism . The Bill, env isages the streamlining of all Tourism-Rela ted
Operations including the Classifica tion of Houseboats and Ayu rvedic Trea tment
Cen tres. (Kernla 11I1lY table TOll rism Bill, Gll idelines for hOllseboats, ayu rvedic trca t7llCI1t
centres plmmed, Mmwj K Vas, IE, 3 1 /7/0 1 )

A MoU has been signed between I C and the Department o f Tourism, Kerala, t o boost
Tourism in the State. The MoU, valid for three yea rs, is to see IC tie up with variolls
hotel properties in the State to formalise Holiday Packages. Furthermore the Government
will appoint IC as its General Sales Agent (GSA) at all foreign stations where the airline
has its offices. IC will develop packages sllch as health packages and backwater packages.
(Kerala will be first to frall/e tourism Bill, BL, 1 1/8/01)

The Kerala Government has kicked-off a yearlong 'Tourism Awareness Campaign'

which aims at creating and mai ntai ning a positive orientation towa rds tourism
and hosp i tality among the people. The campaign will have a ctive pa rticipation of
all the 1 4 DTPCs in the sta te. KITTS will also conduct trai ning p rogrammes for
those connected with tou rism . The other objectives include cre a ting pla tform for
e x press i n g a n d excha nging ideas a b o u t tourism and to i m p ress upon the
i m po rtance of the sector for employmen t opportunities. ( Kera/Il bid to meet crisis on
tou rislll front, BL, 2 1 /9/01)

The Dra ft Paper o f Tourism Vision-2025 p roposes to increase tourism ea rnings by

1 0'Yo The d ra ft promises tha t a t least one-tourism p rod lIctS would be developed
•.

and p romoted every yea r. 200 hote l rooms to be a dded every yea r in each sta r
ca tegory. The p rime objcctive of the d ra ft was to p resent tou rism as a core
competency sector. It a lso cnvisages disbursing backwater-based tourism activities
to the Malaba r region by developing the needed i n frastructure . (Kera/II targets 1 0%
11111111111 tou rism revellue growth, FE, 13/9/( 1 )

86
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The Kerala Government convened a meeting o f a l l the Major Tour Opera tors i n
the State t o discuss steps o n how t o overcome the crisis on the tourism front. The
meeting will look i n to many suggestions in this respect, including ways to a ttract
tourists from Europe, G u l f a n d from w i thin the coun try. (Kerala kicks off tourism
campaign, BL, 2 1 /9/0 1 )

The Tou rism Department, in its b i d t o ma rket Ayu rveda a s a p a r t of its Tou rism
Package, has p repa red a scheme for classi fying ay urvedic centres a ttached to hotels
a n d tourist resor ts . Presently several of them were opera ting on their own terms
and often flouted s a fety a nd hea l th regul a tions. The a y u rved ic centres would be
classi fied under to broad ca tegories namely, 'green leaf and o live l e a f ' .

As part of the State's Tourism Pla ns, tal ks were on f o r Promotion and Development
of Fort Kochi, Ma ttancherry a n d Cherai beaches. With the coming of the Goshree
bridges linking all the islands off Kochi, the Depa rtment would take lip the
construction of a boa t b a y funded entirely by the Tourism Dep artmen t . Work on
this w ould begin soon investing Rs 70-lakh for the boat race pavi lion a t Alappuzha .
(Plan to classify Kerala aylll'veda centres ready, FE, 5/1 0/0 1 )

T h e Keral a Government h a s requested the Cen tre t o introduce on-the-spot Tou rist
Visa facility in the State for Tourists from Select Countries. The Government wants
the facility to be provided in the Thi ruvan a n thapur a m Interna tiona l Airport. The
facility is now available only in the four metros in the country. Apart from this,
the Centre has been favourable to the Tou rism Projects submi tted by the State a n d
some o f them have a l ready been sa nctioned . (Keraia requests eel/tre for on-tile-spot
visa facility, BL, 6/10/( 1 )

The Kerala Government is expecting a whopping Rs 5,000 cr o f priva te sector

investments in the Tourism Sector in be next five years. The state has decided to
give thrust to joint sector Development of Tourism in the State a nd at the same
time concentrate on eco-stlstainability. This Joint Development, whereby the state
will ideally invest a round 26 to 33 per cen t equity a n d act a s the facilita tor and
the p rivate pa rticipant would p u t in majority of the fun d s a s well as manage the
properties, could be in two a reas-development of destinations as well as stand
a lone p roperties . Among the Major Projects iden tified by the stale include a 200-
a c re small-hil l near Thenmala, 1 2,500 hectares h i l l station in Vagamon, a p a rt from
integ ra tion of beach and backw a ters in Beka l .

The S ta te Governmen t has a ppointed Florida-ba sed P K F consul tants t o make the
Master Plan for the next 30 yea rs Development in Vaga mon . Meanwhile, it has
h i red Ta ta Consul tancy Services to study the ca rrying capacity of most of the
existent and future holiday destinati ons in the s ta te . (Kcmin pillS IlOpes Oil Rs 5,000
privnte fl/ llds for tourislII, FE, 3 0/1 0/(1)

The Kera l a Government is proposing to h ol d a meeting of the CMs a nd Tourism

Ministers of a l l the Southern Sta tes to formulate a p l a n for Tourism Promotion in
the South. One of the key issues to be a d d ressed i s v a rying tax structures in the
four sta tes a nd the need for a n uniform one. The Tourism Infrastruc ture in Kerala
'
has a ttracted investment over Rs 1 000-cr a nd the Government h a s a well-defined
policy on joint ventures with the private sector. Ayurved a and the backwaters a re
the two ma in pla tforms on which Kera l a plans to p osition i tself . Tw o New Hill
Stations a re also being developed a n d will b e p ublicised a fter a ca rrying capacity
assessment is carried o u t . (Kerala bid to promote tourislII ill South, BL, 3 1/10/01 )

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KTDC is to enter into a tie-up with Ind i a n Railways for special packages to tap
the domestic tourism segment. The Indian Rai lways w ill a t tach a 3-tier A / C coach
w i th the weekly Nethrava thy-Thiruvan an th a puram Express, via the Konkan rou te
a nd the KTDC w i l l offer these rail passengers a weeklong tour package a t various
destina tions in Kera l a . Designed on the l i nes of Palace-on-Wheels, this is the first
such a ttemp t by any tourism corpora tion in the county. At p resent two packages
being offered by KTDC to the Tourists . The tourists a re e ntitled to s ta y in the
p rime p roperties (Aranya Niwas, Tea County, Hotel Sa m udra, Bolga tty Palace
a n d Wa terscapes) of KTDC and also the Taj Properties ( Residency, Coch i n and Taj
Garden Retreats a t Varka la and Kumarako m ) . Intersight Tou rs and Tra vels, Kochi
has been m ade the marketing agent of this package. If found viable, similar tour
packa ges l i ke Thiruva n a n tha pura m-Chenn a i , Thi ruva n a n th a p u ra m -Delhi a n d
Thiruvananthapura m -Kolkata will b e extended t o other p arts of the country. (KTOC
to team lip with Rlys to tap domestic tourism, 1 7/1 1 /0 1 )

KTDC has a nnounced three special holiday packages comprising s tays i n KTDC
resorts a t prime loca tions, complimentary food, resort activities a nd games.
• The first o f these p a ck a ges designed for d omes tic tou r i s ts , " E xclusive

Escapades", targets the prerr. i u m segmen t.

• Economy packages under "Va lLi.:' Vacations" offer opportunities to d iscover the

a ttractions of the Sta te while staymg at KTDC resorts i n various destinations.

• U A ge Halt", the thi rd package on offer, is a b lend of the best o f ayurvedic
rejuvenation therapy at the luxury resorts owned by KTDC . Oil massages,
medicated ba ths, herba l d iets, yoga and m ed i ta tion extending for periods from
four days/three n ights to 15 days / 1 4 n ights. (KTOC's three Hew !toliday packages,
BL, 20/1 1 /OJ)

Ms Padmaja Ven ugopal, chairperson of KTDC, has refu ted a llegations that she was
orchestrating moves a l ong with the Tourism Minister K V Thomas a nd ATCC general
secretary Gulam Nabi Azad to hand over the Pathira manal island in Alappuzha
district to the Oberoi group for tourism development. Ms Ven ugopa l said quoting a
Government order tha t it was i ndeed the previous LDF Government which decided
to hand over the Pathiraman a l island i n Alapp uzha district to the Oberoi group
and that she had no u ndue i nterest in i t . Regarding her trip to the London WTM,
Ms Venugopal said she had led one of the smallest State Teams in the Country to
the Meet. The Keral a pavilion was well a ppreciated a n d her team had bagged
Tourist Bookings worth Rs 14 lakh and preli m inary talks were held for investments
worth Rs 25 C ron�s . (Padlllaja refutes charges Oil tourist project, OH, 2 1/1 1 /0 1 )

The Kerala Tourism Depa rtment is t o have a Scien ti fic Study underta ken b y the
World Travel and Tourism Council (WTTC), which have several partners . With
Kerala as i ts first partner state in the country it has launched the Tourism Satellite
Accounting. This is the first time that such a study is being u ndertaken in the
"coun try by a n y individual state. The total cost of the s tudy is est i m a ted to he
$40,000 . The state governme n t had offered to supply a ll the necessary d a ta based
on which the council would 'look at how best to address policy development in
areas such as infrastruc ture tra ining, technology and taxa tion .

The stud ies would look into the key economic factors like GDP, ind ustry dema nd,
employment, capital investment a n d visito r exports The study would look into
environment i m pact, human resource availabili ty a n d the other potential areas of
Kerala . (WTTC launches tourism research project in Kaala, 1 1/1 2/0 1 )

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Keral a 's efforts to include Sri Lanka, contigu ous sta tes, a n d regi onal econom ies in
tourism promotion u nderlines how regional cooperation based on practica l real ities
can d rive growth. The sector focus is commendably p recise: touris m . N otable, too,
is the i ntent to su pport tourism aims by coordinating with others in in frastructu re,
and service-rela ted a reas l i ke ma rketing and human resources. This is a n excellent
insta nce of an "optima l " economic sector being fi rs t identified by all the existing
players of an a rea. They will ta ke ma tters forward since there is u n d er-u til ised
potential. Such a process is far m ore assured of success than macro regional
cooperation efforts based on a poli tica I "decl ara tion of inten t ' .

The regional cooperation model must be applied to other parts of India too. Tou rism
is simply waiting to be further developed along the Ajanta-Ell ora and Va ranasi­
SarnathBodhgaya-Rajgir-Nalanda circuits, to n a me j us t two. India a l rea d y knows
that huge n umbers of Japa nese, a n d other:

Buddhist, tourists a re a WC1iting i n frastructure, and other upgra d es in these circ les.
So this is the time to encourage pri vC1te businessmen, municipa l i ties or ci ties to
access non debt creating funding from all those who have C1 w i l l ingness to visit
spots. Tha t such ca pitC11 is ava ilC1ble was proved by the 1 988 sanction of funds by
Japan's government for pl aces associC1ted Lord Buddha's n a m e . (Tou r de force. fT,
31/1 2/01 )

LSD
"
Tourism/Tourism issues in Kerala • -\", , . " ,.
The Kerala Sta te Ind ustrial Development Corporation (KSIDC) has drawn up plans
to set lip a 'hol istic hea l th v i l l a ge' i n a ssociation with Ma tha A m ri tha na lda Mai
Trust. The Rs 250-cr village is planned to be set u p at the I ndustrial Growth
Centre of KSIDC in Kozh ikode. Accord ing to KSIDC officia ls, the village will
p rovide comprehensive treatment u n der the various systems of a l ternative
medicines to patients from all over the world . (KSIDC to set up hea lth village, BL,
1 9/2/01)

Kerala has been repositioned as a destina tion for the global up-ma rket tourist. No
other destination in India in the recent past has attracted so much media a ttention
and accla im-as Kera l a in the last yea r or two. The National Geographic Traveller, in
a millennium col lectors' issue, which was researched for almost three years, identified
Kerala as one of the 1 0 parad ises i n the worl d, and the only one in I n d i a . The World
Tra vel C1 nd Tourism Council, has chosen Kera l a as one of its pa rtner Sta tes . The
pa rtnership is expected to bring together the initia tives of the private industry and
responsibility of the public sector to fC1cil itC1te sustainable tourism development in
Keral a . (God's OWIl coul/try beckons elite tou rists, BL. 30/4/(1 )

Hotel iers a re eyeing Kera l a i n a big way to set u p l u x u ry properties . While the Taj
Group a l ready has six properties, the Oberoi Group is i n the p rocess of setting up
two properties in the next three years. With the domestic tou rism increasing i n
Kera l a b y fou rfol d a n d inflow of foreign tou rists doubling, the chains have every
reason to invest. The Oberoi group has ea rma rked Rs 1 5- cr for setting lip these
hote ls a n d a lot of NRls a re also settin g up hotels. (Hoteliers flock to Kerala now.
A rshdeep Sehqal fT, 1 4/6/()1 )

I n a Major Expansion d r i ve the Abad group o f Hotels has emerged a s one o f the
l argest plC1yers on the Kera l a To urism Scene. The Compa ny is in the p rocess of
execu ting h a l f C1 dozen new projec ts under the Group's brand u mbrella in the
current year. (Abad gnJup allWllX largest ill Kerola tourism scene, S Sa11lmdokumar. ET,
20/7/01 )
89
 DOCl!1.j�E.�. 'UQN ..

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.)-' ���� �
The Cochin-b ased Royal Group of Hotels i� p l a n n ing to build a three- star bea ch
hotel near Cochin . The shipping division of the group has also recentl y signed a n
agreement with Tylos Ferry service tha t is opera ting a passenger ship between
Duba i a n d Cochin to be its genera l sales agent in India for ti cketing and port
h a n d l i n g . (Royal Crollp pla n ts three-start /leach !tote/ Ileal' Cochin, FE, 2 9/7/01)

SIDm has enhil nced the capital outlay for fi na ncing service sector p rojects in
Keral a from Rs 1 0-cr to H.s 25-cr. the in terest subsidy for hotel p rojects would now
be ava i l a b l e in respect of 5mBI loans. (SlOB! hikes capital olltlay for Kcra/a servicc
sector projects, 13 L, 1 3/8/01 )

G u l f ca rriers a re set to enter Kera la skies in a big way in the comi n g months and
expected to pose sti ff com peti tion, while a t the same time offer wider choices for
Kera l a-bound expa tria tes . Keril l i tes form a round 45% of the passenger tra ffic on
the G u l f-India sector. (More carriers set to Ctlter Kerala, BL, 28/8/0 7 )

The fa l l-ou t of the US-Ta l iban face-off h a s h i t the Tourist I n flow t o Kera l a . In a bid
to con tinue Tourist I n flow, Kera l a will be attempting to wean Domes tic Tourists,
who a re bound to the US or Europe . Overa l l Kerala saw a 1 07(l(, growth last year
i n the nu mber of tourist i n flow. To promote 'Tourism in Kera l a ' to the Domestic
Segment, KTDC and p rivate players in the Sta te h a ve jointly organ ised a n umber
of road shows. ( US Toli/lol/ face-off to !til ke tourislIl, FE, 2 6/9/( 1 )

The sudden spate of ca ncel l a tions from the overseas Tourists h a s a ffected the
Tourism Economy of the Sta te as well which had cla imed tha t the US-A fgh a nistan
war would have l i ttle impact on the State . In the thick of Tourist Season, Air
Traffic in the Sta te has nose di ved by 40 percent. In Star Hotels i n Kumara kom
and A la ppuzha, which spea rhea ded the high-income ca tegory tourist infl ow, this
yea r saw its inflow down by 60%. Accord ing to Avia tion sources, the only sector
where the fa l l was rel a tively low W,lS the G u l f-Kera la to-a nd fro.

Kera l a ' s Tourism Dol l il r glea n i n gs

Yeil r Reven ue (Rs cr)

1 99 1 28 .28
1 992 59 .75
1 993 1 05 .72
1 994 1 1 6 .11
1995 1 58 .76
1 996 1 96 .38
1 997 227 .33
1 998 302 .08
1 999 416 .07
2000 525.30

Source: Kerala Government

(Kerala tOll rislII crestfal/ell despite S to te' govt bravado, Air travel phobia !zits business,
M Sa ri ta Varl1la, FE, 1 6/W/IJ1 )

The first cha rtered fl ight o f the season la nd ed a t Kera l a w i th its full passenger­
loa d of 300. The cha rter, comprising mostly of tra vellers from the U n i ted Kingdom
and Fran ce, WilS the combi ned effort of fou r Europea n travel companies Manos,
JME, Jewel-In-Th e-Crown a n d Check-It-Out. It was the first time that these fo ur
m u tu a l ly competing travel m a jors in Europe h il ve organised the trip . They came
together mainly d u e to the high risk in solo tours . The will operate trips once a
90
week till J a n u a ry. The Kerala Touri sm Depa rtment i s also hopeful of rece i v i n g
m ore Cha rter Tourists t o the State. (Tcllsion ease il1 K erala tOllrislII a s first charter
lands fu ll-load, FE, 6/1 1/(1 )

Shah R ukh Kha n a n d Juhi Chawla ha ve been roped i n for 'The Grand Kera la
Fest i v a l ', a month-long tourism extra v aganza being organised in Kochi by Kerala's
Department of Tourism, i n assoc i a tion w i th Zest-Connect. Ms Ra kshin PateL Senior
Vice-Presi den t and General M a n a ger, Thomson Con nect, adds tha t the idea is to
turn the festiv a l i n to a yea rly even t. The events that a re a part of the festival a re
"tai lor-made to s ll i t both Domestic a n d I n tern ation a l Tourists as well as the h uge
l ocal populati o n . A lso on the ca rd s a re an art a n d hand icra fts fa i r, a food festi v a l,
helicopter rides over Koch i a nd a range of water sports. The Ernakulam Chamber
of Com merce has u rged a l l commerc ia l establishments in a n d a round the c i ty to
particip a te i n the venture by offering d iscounts . (Star-call ill God's own cOlln try,
SGilkar Radflllkrisfmllll, Bt, 10/1 2/( 1 )

LSI Coastal Tourism ...,...

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The Kerala State Government has cha l ked out ambi tious Rs 1 54 .67-C r w a ter high
way p rojects from Ka sa ragod to the Sta te Capital , w i th i1l1 a i m to exploi t the
immense potential of Backwa ter Tou rism . Once the 620 km-long w a ter h ighway,
ha v i ng three tunnels a t d i fferent p l a ces, becomes a reali ty, tourists can tra vel from
one end of Kera la to the other in hOllse boats .

I f fund:; were m a d e a v a i lable o n time, the p roject would b e completed within two
yea rs . For l i n k i n g major ri vers in certa in a reas to get conti nua tion of the wa ter
highway, an esti m a ted s u m of Rs 57 .58-cr would be spe n t . (I� s 7 54.6 7-cr waler­
fligfm1lly project, Bl., 1 3/1/( 7 )

The D i rector o f Kera la U rba n Development Projects h a s i n v ited a ppl ica tions for
pre-qual i fi ca tion of consulta n ts for planning a n d desi g n i ng the 'Theera patha m '
urb a n development p roject at the cost o f Rs 9 5 0 cr i n Thi r u v a n a n th a p u ra m . The
project, p roposed to come up over 1 6.50 sq km a l on g the 1 6 .5-k m stretch of
Pa r v a t h y P u t h a n a r, a m a n - m a d e c a n a l fl o w i n g d o w n the m i d d l e o f
Thi ruvana nthapura m , w i l l connect two importa n t tourist cen t res -the A kkulam
picnic s pot within the c i ty lim its and Kovala m beach tow a rds the south . The
stretch a lon g Parva thy Pu tha na r from Akku lam to Kov a l a m is p roposed to be
developed i nto a neighbourhood townsh i p w i th fac i li ties for trade a n d commerce,
housing, pa rks a n d open spaces, sports, recreation, tourism a n d cul tural centres.
The project would be impleme n ted with privil te parti cipation. Recrea tionill facilities
i nclude a Water Theme Pa rk, Wa ter Recreati on , Tra ffic Park, Video G a m e Pa rk,
Food Kiosks, H.esta u ra n ts, a Performing Art Centre, a Gallery a nd an Open - A i r
Thea tre. (Rs 9S0-a nllllli walkway projcct for Thinll'allIlll tJwPU rIl lll, Vi,lSOIl K i f ria 1 1 , 151.,
29/1/01 )

L51a Backwater Tourism . ...

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The Taj Group of Hotels has chalked out Rs 100-cr I n vestmen t plan for Kerala, the
l a rgest ever by the group si nce i ts entry i n to the State o ver a d eca d e ago. 1n the
first phase of the p roject. a d d i tional rooms would be constru cted a t the Taj Ga rden
Retrea t, K u m a ra ko m a t a cost of a round Rs H)-cr. An a d d i tional i nvestment o f
R s 40-cr would b e made on the n e w p roperty t o be developed a t Munnar a n d
a nother 40-cr to be spent on the resort a t B a ke l . (Taj group plalls lIIajor investment ill
Kcmla, BL, 2/1/( 1 )

91
________________ �O_I� I

The Kerala Tourism Devel opment Corporation (KTDC) also plans to set to launch
"Wa te rscapes", a luxury backw a te r resort, at Kuma rakom, the Sta te's La test
Tou rism Hotspot. Designed by renowned a rchi tect, Mr. Gerard da Cunha, the
resort is s p read over seven acres of lakefront p roperty a n d houses 40 independent
cottages on sti lts, of which 21 are a lready function a l . Built at a cost of Rs. 7 . 1 6 cr,
the resort fea tures a reception which can be accessed from the la ke by a walkway
on stil ts; a multi-cuisine restaurant, again on s tilts, swim m i ng p oot kids pool,
bar, a mphitheat re, a i r-cond itioned conference hail and a n Ayu rvedic centre. (KTDC
to opell luxury resort at KlIlII.arakol1l, BL, 9/1/01 )

Kochi-based A ryan Resorts Rivers Resorts (P) Lid is to launch a New Project
a long the Cha lakkudy River in Th issur District. The 5.6 cr. p roject will see a n
exclusive tourist enclave coming u p o n the banks o f the river a nd a cruise a long
the 25-kms stretch of the river. (Aryall Rivers resorts to lau n ch project to promote eco­
touris11l, Ajayall, FE, 1 7/7/( 1 )

One of the few Tou rist places tha t h a v e not been affected greatly by the global
recession is Kumarakom. The occupancy of the hotels is going full . But the economy
is still low as the dollar r a tes cha rged for foreign visi tors a n d rupee rates for the
domestic counterpart v a ry greatly. Consequently, the cu rios, a n tiq ues and a r tefact
shops have a l l but downed the i r shutters. The elaborately costumed ready-to­
order K a thakali a n d other cul tura l a r tists a re still waiting to perform but there
have been no takers . (KlilIlarak01ll defies recession, c.f.Punnatlzam, B L, 20/1 1/0J)

·
L51b Kovalam .&, '. '''' 4 . V4L t.. ""'�'" , -, "* . ... ... . ...

Universa l E n te rprises, one of the two major tourism industry players in Maldi ves,
has firmed up its India investment plans. The group has completed the groundwork
for a la rge p roperty in Kerala to kick off i ts operations in Ind i a . The p roposed
property in Kerala is planned to be set lip nea r Kovalam, w i th an i nvestment o f
$5-mn . The p roperty w i l l have 1 00 rooms to beg i n w i th . The m ove will m a rk
U n iversal's serious foray i n to the Indian tourism sector a n d is a lso expected to
give a f i l l i p to Kovalam that has in the recent past witnessed a d rop in tourist
a rrivals. (Kovalalll lures Maldivian firm, Joe A SCa/'ia, ET, 1 4/6/01 )

L52 Pilgrim Tourism ... ......

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L52a Sabarimala at i 1 4 ... rn " & ; I 1 M 1IIli • •., .,.. . ...n. . .... "

One of the key issues the Travancore Devaswom Board (TDB) wants to be resolved
through this year 'Dev a p ra shna m ' is whether the hill shrine can be kep t open for
d a rsha n throughout the year. At present, the temple is kept open for d a rshan for
133 days a yea r. With the i nflux of pilgrims grow ing to u n m a na geable levels the
TDB has been contemplating the idea of brea king trad i ti ons and permitting darshan
throughout the year. It goes without saying tha t the m arket forces operating in
Sabarima la have desired this for q u i te a long time.

The issue of keeping the temple open throughout the yea r is n o t to be seen merel y
as one perta i n i ng to convenience in managing the i n flux o f pilgrims. Nor is i t
solely a ma tter of breaki ng a tradition . The i ssue h a s to be seen against the tact
tha t the shrine is situated in an a rea, which has great ecological significan ce. I t
wil l b e calami tOllS t o a llow policies perta ining t o such a n a rea t o b e influenced
entirely by the dema nds of the m a rket forces . (Sabarimala: IIwrkef forces, threatening
tradition, ecology? TH, 1 4/4/( 1 )

92
 PI -------
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The government has announced v arious s teps for the benefit of pilgrims a t
Sabrimala including a 600-mt permanent b a rricade a t Chandranandan Road,
temporary fly-over at Mara kkoottam, oxygen p a rlours at hilltops and 24-hour
casual ty services at v arious places en route to the p i lgrim centre. (Steps a nnounced
for Sabrimala, IE, 22/9/0 1 )

L55 Eco - Wild Life Tourism ...

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The Kerala Tou rism Department is set to l aunch the Thenm a l a Ecotourism Project.
The first p hase of the p roject has been completed. The p roject, spread over the
high ranges of Kollam and Pathanam thitta districts, w i I I have three components,
namely, eco-friendly general tourism, ecotourism and p ilgrimage tourism. The
Tourism, Irrigation and Forest Departments a re jointly implementing it. The project
is b ased on an environmental study conducted by Kerala Forest Research Institute.
(Kerala to launch eeo-tourism, BL, 2 9/01 /0 1 )

to, • •'" . . ..

M40 Tou rism policy and plans ... " , . • iiI"" " . .... ''''
A New Tourism Policy for the state is being formulated w ith special focus on
infrastructure. The Government had studied the Tourism Policies of Kerala, Sikkim,
MP and will be incorporating some o f the better aspects o f these policies. (New
tourism policy under way, BL, 1 0/8/01 )

The DoT i s in the process o f empanelling a d vertising agencies with i n ternation a l

affi l ia tions for Tourism Promotion Overseas. Dr V . Varaprasada Rao, Commissioner
of Tourism, said that some of the agencies being considered a re O&M, Grey
Worldwide and HTA .

The Dep a rtment is also u pgrading facilities in 1 6 p laces of Tourism Interest. The
centres have been identified by the District Collectors in p l aces such as Top Slip,
Poompuhar Mahabalipuram and Udagamanda l a m . Priority has been given to
p ublic conveniences, approach roads, l ights, d rinking water, rest sheds, parking
lots and landscaping.

Some of the projects sanctioned a re the development of Pulianchota i i n Tiruchi

district, v i l lage tourism at Srunkundram, Kancheepurain d istrict, a nd A rj unas
Penance, Mahabalipura m . The Government a lso sanctioned Rs 55 l a kh for the
tourism sector under the H ADP. It includes providing facilities at the Kodanad
View Point, Dolphin's Nose, Lamb's Rock, Doddabetta a nd Lady C a nning Seat .
There would b e a meeting o f t h e Tourism Ministers of t h e four southern States i n
the first week of January t o work out a policy to interconnect the southern circuits.
The Government was holding a series o f meeting w i th the Centre on the CRZ
(coastal regulation zone) and was trying to persuade i t that the regulations need
to be relaxed as seven projects on this stretch a re stuck. (TN plans tourism blitzkrieg
abroad, BL, 20/12/0 1 )

Through attractively printed books, booklets, C D ROMs a n d v ideo clippings, the

state is a l l set to p resent i tself more than j ust a site-seeing spot for tourists from
India and abroad . For this, professional help is being sought at an interna tional
lev e l . V Varaprasad a Rao, state tourism commissioner, along with professional
help and support from modern communication technology, leads the tea m .
93
______

__
__
__ �D_O��
Dr Rao told that the tourism department was plann ing to seek the a ssistance o f
p rofessional travel write rs a n d tourism experts and reputed a dvertising agencies
to communicate what Tam i l Nadu offers and where to look for what. They are
also exploring the possibilities of marketing tie-ups with tourism companies and
organisations in Tha iland, Japan, Malaysia, Singapore and London . Companies in
Japan, Thailand and London have responded and their proposals h a ve been
submitted to the government for approva l . Others too a re expected to come online
soon.

A rrangements a re a lso being worked out w ith states like, Kerala, Karnataka,
Andhra Pradesh, Rajasthan, West Bengal, Maharashtra and the Union Territory of
Pondicherry for mutual p romotional tourism.

Their efforts a re being supported by substanti a l budgetary a llocation. Against just

Rs 33 cr in 2000-2001 , the state tourism department has a provision of Rs 1 7-cr in
.
2001-02 and Rs 5 cr for publicity alone.

The nnmediate culmination o f these efforts would be the Chennai Festivai, planned
for December 2002-January 2003, in association w ith the Confederation of Indian
Industry (ClI) and South India Hotel and Resta urant Association .

The temple-centered tour packages of TTDC a re a major attraction. The TTDC

a lso runs 54 hotels in the state a nd h a s c a l l ed for private entre p reneurs to take
some of them on lease . The department is a ls o a ppointing s k i l le d gUides to
take visito rs to the Western G h a ts , Coromandel C oast, C a u very, Poompu h a r,
etc . On its b eh a l f, the Annama l a i Univers i ty h a s even starte d a course i n guide
tra i ning. (Ta m il Nadu plans to make tourism 'a spiritual experience', Joseph Vackayil,
FE, 1 5/12/01)

MSO Tourism issues in Tamil Nadu , . I I ,... . • "\I;" • I .

There will be five new hotel p rojects coming up in Chennai in the next two years
in the three sta r business h otel categories. M a rket sources pointed out that a ll the
new p rojects, which have come up, a re in the three star categories with rake rates
being in the region of Rs 1 ,000 to Bs 1 .200 per night. Thi s p ricing will ensure that
the hotels do not fa ll into the State Government's 25 per cent luxury tax net. This
has been a major incentive to opt for three star classifications according to industry
sources . Other segments l ike resorts and· leisure a re dependent on inbound tourism
and i n frastructure, which has not yet taken off. (5 three-star hotels coming up in
Chennai, Nina Varghese, B L, 3/5/01)

The 2001 edition o f Chenna i city survey released recently by the hospitality
industry consultants, Pannell Kerr Forster (PKF) shows tha t the Chenna i hotel
market has rem a ined flat in 2000-01 . Room occupancy increased by just over .9%
while room ra tes decreased by 1% in a ll categories of hotels . (Chennai hospitality
industnJ s tays flat, BL, 26/9/01 )

The Tam i l Nadu Tourism Development Corporation a n d the Tiruma la Tirupathi

Devasthanams have signed an agreement whereby the TID w il l issue speci a l
entrance tickets to TIDC tourists enabling them to h a v e d a rshan in t w o hours.
Hitherto they had to wait for anywhere between 10 to 48 hours which adversely
a ffected the TIDC trips as they had to be cancelled a n u mber of times. (Quicker
darshan for Tam il Nadu tourists, TOl, B, 30/10/01 )

94
 1r t II .....
M51 Hill Tourism -...., "' �l' , I e ... ." . it .. . r QiJj:..". fII ' _"",,_. .. ·•

M51b Kodaikanal II , 1 .. ," . n 1 !t., . « ..� """ • • ' . ... , . '"

The l ake o f Kodaikanal that is v i sited by about nine l akh tourists a year m ay be
dead before long unless sustained long-term restoration p lans are taken. The w a ter
level of the l a ke w i th a perimeter o f 4.8 km has gone down from 1 1 mts to 8 mts .
Sewage and e ffluents from the surrounding residential premises and h otels h ave
drastically reduced the oxygen content in the w a ter, l i terally asphyxiating marine
l i fe of the l a ke and fouling the water. Atmospheric pollution h a s destroyed the
trees a round the l a ke . At least two projects to revive the dying lake - a Rs. 1 5-cr
desilting plan and a master plan under the national lake conserva tion programme
- are g a thering d ust. It is fel t tha t to save Kodaikanal from the e xcess tourism,
l a rge-scale commercia l cultiva tion and poaching needs a j oint e ffort o f volunta ry
organisations a n d v arious government departments. (A dying hill lake screams for
help, BL, 30/1 1/01)

• b f - ) Ij

Infrastructure
About 1 500 families of more than 1 0 villages are faced with losing their homes,
land and their right of l i velihood a s the government o f AP plans to acquire about
5000 acres to build the international a irport in Sha m shabad. The Shamshabad
I ntern a t i o n a l Airport L a n d- losers Wel fa re Assoc i a tion p o i n ts out tha t the
government was dea l in g a double blow to the a ffected people. Not only i s it
d isplacing them, but is offering a pittance of Rs . 45,000 per acre a s compensation
whereas the preva iling market rate is between Rs 1 6-22 l a khs per acre . (Problems
and trauma of displacement, R Akhiles/lwari, DH, 24/01/0 1 )

The Andhra Pradesh Government, which has i dentified the tourism sector as a
growth engine, has called upon the Union Government to pave the way for a n
'Open Sky' policy t h a t will facilitate d i rect investments in the aviation sector,
bring in a dd i tional flights, as a lso expedite the growth of this v i t a l sector in the
c o u ntry. The Government p l a ns to c o n d u c t road s h o ws a n d s t a ti on sta te
representatives in some targeted countries to a ttract tourist inflows. (Naidu for
'open sky' policy to attract investments, BL, 3/2/0 1 )

Andhra Pradesh government h a s c re a ted a n exclusive 'Hyderabad Airp ort

Development A u thority' (Hada) for speeding up the process of grounding the
proposed international a irport a t Sha mshabad, 30 km away from Hyderabad, and
t o develop the surrounding areas on par w ith international standards. The a u thority
would pave the way for speeding up of the land acquisition process for the project
The government has identified 5,000 acres for developing the first phase of the
international a irport and released Rs 10 cr. It has so far a cquired 1 ,800 acres. (AP
gets airport development authority, M Enosh Jeremiah, ET, 4/10/0 1 )

The Andhra Pradesh Government a n d the GMR Vasavi-Malaysia Airport Holdings

Berhard (MAHB) consortium, a re awaiting the Central Government nod for certain
concessions to go ahead w ith the project.

The developers had requested the State Government to consider tax concessions,
w hich w ould facilitate the consortium to bring down the total project investment.
Based on this representation, the State G overnment had petitioned the Central
95
____
____________ �O_f��
G overnment for concessions (Sops sought for Intl. airport in Ap, V Rishi Kumar, BL,
.

7/1 2/01 )

Tou rism plans and Policies

The Andhra Pradesh Tourism Development Corporation has over the l ast few
months invited a number of Expression of Interest (EOI) for variou s activities that
have been p lanned from Corporate and Developmental Organisations . The activities
planned in the state are:

1 . Development of Bhavani Island, Vijayawada: An eco-tourism project. (Invitation

of EOI for development of Bhavani Island, ET, 6/1/0 1 )
2 . Development o f tourism facilities a t Kalyani Dam . (Development of Lake View
Resort, BL, 1 6/2/01 )
3 . Construction, operation and maintenance of a lux u ry cruise (Luxury cruise for
AP Tourism Corpn, BL, 22/2/0 1 )
4. A n Oceana rium: Sea Life Theme Park
5. A 'Eco-Park'
6. A 'Health Retre a t & Resort' A Golf Course cum Resort, ET, 1 7/5/01 )

A series o f a greements have been signed by the Andhra Pradesh Government

with the Duba i Government, including an accord on co-operation in the tourism
sector, is a imed at creating a 'win-win' situation for both sides, thereby boosting
economic development . Both sides w i l l set up a task force immedia tely and
members of these groups will exchange visits on a regular basis. Promoters will
a lso exchange visits to p resent touristic and rel a ted projects. (AP to gain from
Dubai's tourism expertise: Naidu, Vimala Vasall, BL, 1 7/1/0 1 )

The Andhra Pradesh Government has given a new thrust to the efforts of promoting
tourism to Buddhist heritage sites in the Sta te as part of its overall strategy to increase
revenues through tourism that it recognised as a growth engine, next only to
information technology. A lot of funds will be needed to improve and provide
necessary infrastructure in the form of better roads, telecommunications, hotels, motels
and efficient means of transport such as buses, taxis, train connections and air flights
to a ttract foreign and domestic tourists. As the State Government is incapable of
providing these facilities on its own, it wants to involve the private sector and play
the role of a facilitator by co-ordinating the efforts of different players through leasing
land a t concessional rates and sorting out procedural problems if any. (AP thrust to
promote Buddhist heritage sites, J. Nanda Gpoat, BL, 1 7/3101)

The Governor has launched the BO-Iakh twin-decked pleasure cruiser, Bhagmati,
of the APTDC, in H ussain Saga r Lake . Similar projects would be taken up at
Sris a ilam, Nag� rjunasagar and Bhavani Islands reservoir at Vijayawada to promote
tourism. (Pleasure sruiser for Hussain Sagar lake BL, 1 3/8/0 1 )

The Government o f India a n d the AP Government h a ve decided t o raise a n AP

Tou ri s m B h a v a n in Hyderabad to P romote Travel a n d Tour i sm through e­
Commerce . The State Government w ou l d provide land and the centre Rs 5 cr. An
Integrated Tourism Development Project would be taken up w ith the help of WB/
A D B / O EC D . A s a p a r t o f the p roj e c t , V i s a k h a p a t n a m , A r u k u a n d
Bheemunipatna m would b e developed. The estim a ted cost o f the p roject i s R s 250
cr., B L, 25/810 1 )

The Department o f Tourism a nd Cultu re h a s paved the w a y for the introduction

of the Keral a Ayurvedic Medicine Systems in the state by Santhigiri Ayurveda
96
_________II ______ ��_�
and Siddha Vaidyasala of Thiruvananthapuram a t 'Pragati Sparsh', a hea l th village
at Proddutur. The centre w i l l be launched on September 20th• Similar Health Resorts
w i l l be p romoted in p l a ces such as Vishakapa tn a m, Tirupa ti, Srisailam and
N agarjunasagar. (Ayurvedic centre coming up in A p, BL, 7/9/01 )

A n d h r a Pradesh Government h a s c rea ted an exclusive 'Hyderabad Airport

Development Authority' (Had a) for speeding up the process of grounding the
proposed International Airport at Shamshabad, 30 km away from Hyderabad, and
to develop the surrounding a reas on par with International Standards. The authority
would pave the way for speeding up of the land acquisition process for the p roject
The Government has identified 5,000 acres for developing the first phase of the
International Airport and released Rs 10 Cr. It has so far acquired 1 ,800 acres. (AP
gets airport development authority, M Enosh Jeremiah, ET, 4/10/01)

The Andhra Pradesh Government and the GMR Vasavi-M a la ysia Airport Holdings
Berhard (MAHB) consortium, a re awaiting the Central Government nod for certain
concessions to go ahead with the p roject.

The developers had requested the State Government to consider tax concessions,
wh ich w ould facilitate the consortium to bring d own the total project investment.
Based on this representa tion, the State Governmen t had petitioned the Central
Government for concessions.

As of now, three imposts-foreign travel tax, passenger service tax a nd the interna l
travel tax a re going t o the Centra l Government p ool without the States benefiting
from them. Since the Governmen t has embarked on the infrastructure project, if
these taxes a re extended to the State Government, this would help bring down
overal l investment on the project. (Sops sought for Intl. airport in AP, V Rishi Kumar,
B L, 7/12/01)

Andhra Pradesh G overnment has a ppOinted a dvertising a gencies Mudra and

McCann Erickson among others to create campaigns for promoting Andhra Pradesh
as a tourist destination in a l l the Major Indian C ities. With that p u rpose, the State
is planning yearlong festivals in d ifferent cities i n the State . C u r rently it is
promoting 'Visakha Utsav' - the four-day festiv a l it is holding in Vishakapatnam
from December 22 t o 25 in all the metros. (AP tourism ropes in Mudra, McCan for
facelift, FE, 1 4/12/01)

Tourism issues
Taking a cue from the Centre, the Andhra Government is p l a nning to privatise
maintenance of heritage b uildings, in order to boost tourism and protect the
monuments from decay. There a re about 500 heritage monuments in the State,
which a re under the control of Department of State Archaeology and Museum.
The decision to entrust m a in tenance o f some of these buildings to corporate houses
has been taken at a meeting of the Tourism Promotion Board chaired by CM N
Chandrababu Naid u . Negotiations with the corporater would be initiated once
the ongoing exercise of formulating the guidelines is completed. (Andhra Considering
Private Upkeep Of Its Heritage Sites, S Bachan Jeet Singh, IE, 6/1/01)

As many a s 26 citizens have given their consent t o be part of the Paying Guest
Accommodation scheme that has bee n mooted by the Tou rism depa rtment . The
scheme was part of the efforts to promote Andhra Pradesh a s tourist-friendly
S tate and to showcase i ts cultural heritage. A committee set up for this purpose
scrutinised a l l the applications and selected nearly 26 owners. The next step that
97
 DO,C.YM"AE�
� , :�,'
_______11 -'-
- --....._
I ��l!Il!l
the committee would take u p would b e the inspection of the houses . (Hyderabadis
to play host to tourists u nder scheme, S Bachan leet Singh, IE, 1 4/3/01)

TMI-Nusantara Consultants, the Malaysian p roject consultancy and management

major is exploring the p ossibility of a $100 mn investment in hospitali ty, technology
and infrastructure project in Hyderabad . (Malaysian co plans $ 1 00-m investments in
Hyderabad, M Somasekl1ar, BL, 22/8/01)

Citizens Against Pollution (CAP), an environmental action group, has charged the
AAI with initiating expansion work of the existing Hyderabad International Airport
w itho u t conducting p roper s tatutory p ublic hearing and mandatory EIA . They
contended tha t the expansion of the runaw a y w a s detrimental to the people l i v ing
in the Secundrabad area and some parts of Hyderab a d . (Opposition to Hyderabad
airport expansion plan, BL, 2 7/9/01)

Five countries and 160 corporates have so far confirmed p articipa tion in the "Great
Mall of Hyderabad', a month-long shopping festiv a l to be held from October 1 3 .
Major corporates i n the country, including BPL, LG, Tata Cellular, Samsung, Nestle,
H LL and Coca Cola would be setting up their sta l ls on the grounds of the National
Academy of Construction (NAC) the venue of the festival. A 1 0-acre site at the
NAC grounds has been entirely sp;11ced u p where live closed and two open
pavilions were being erected.

Over 150 special b uses .and a special train between Falaknuma and H a feezpet
railway stations in the city would b e introduced for the convenience of the people
visiting the m a l l . (160 cos to take part in shopping festival, BL, 1 /1 0/01)

A review of the month-long G re a t M a l l of Hyderaba d , which c a m e t o a c lose o n

November 1 4, had shown t h a t the first a ttempt b y the State Government to
promote an i n te rn a ti o n a l shop p i n g event w a s not a fai l u r e despite several
u nforeseen d i scouraging factors . The mall, which was organised by Ogilvy Live,
a n event m a na gement company, in collaboration w ith the Andhra Pradesh
Department of Tou rism, was projected a s the roy a l Indian shopping a dventure.
The Sta te Government played the role of a facilita to r w i th no specifi c investments
and Ogil v y Live had invested about Rs 18 cr. Despite factors such as the Sept
1 1 'h a ttack and the 24-hr strike b y the road corporation a round 11 l a kh visitors
from I n d i a a n d abroad v i s i ted the fest i va ls . A total of 1 096 retail o u tl ets
p a rticipate d in the event. (Great Mall concludes, not a failure despite odds, J Nanda
Gopal, BL, 1 6/11 /01)

T h e Andhra Pradesh Tourism Department and t h e Nizamabad District Tourism

Promotio na l C o u n c i l Organised a F i v e - D a y I n d u r Utsav-2001 to p ro m o te
ecotourism, religious and a dventure tourism from Oct 24th . The festiv a l was
organised to i mprove the economic activi ty of the district in the long run and
every year 1 -2 districts will b e encouraged to conduct festiv a l s such as this one.
(5-day tourism festival at Nizamabad, BL, 24/10/0 1 )

'Visakha Utsav', a 4-da y tourist festival scheduled for Dec 22-25, w i l l focus on the
sandy beaches and culture and art of the region. The festiva l is being organised
by the State Tourism Dep artment in Vishakapatn a m . Water sports, flower show,
e thnic craft mela, music and d ance festival and a heritage show have been pla nned
during the four days. The State has planned to p romote the festival on a Nati onal
level through a series o f road shows in Ca lcutta, Hyderaba d and New Delhi in the
coming weeks . (Vizag to host 4-day tourist festival, BL, 1 9/1 1/01)
98
________________ �DO_�
Andhra Pradesh w a s plann i ng to involve private sector in a big way in the
Development of Buddhist sites to a ttract Overseas' Tourists. Of the over 1 40
Buddhist sites in the sta te, 22 had been identified 7 as having tourist i mportance
a n d s te p s w e re being ta ken for development of infrastructure there . Ta ta
Consultancy Services (TCS) h a d been a sked to p repare a detailed plan for
development of these sites. (AP seeks pvt sector aid for Buddhist sites, DR, 22/12/01)

Pilgrim Tourism
The long-pending proposa l to provide cable car facility from Tirupati to Tirumala
would be a reality in the next two yea r w i th the APTDC s ta rting to evaluate
technical bids filed by 5 consortia to take up the Rs 70-cr p roject. (Tirumala cable
cars to be a reality in two years, R Pritltviraj, IE, 24/8/01 )

The State Government decided t o request the Centre t o declare the Air Space
above the Tirum a l a h i l ls, as 'No Fly Zone' in view of the perceived threa t .
Simultaneously, the State Government h a s identified 1 73 p l aces in the State as
'sensitive' and decided to beef up security. The 'sensitive p laces' include Defence
Insta l l a tions in the C i ty, Domestic a n d Intern a ti o n a l A i rp orts, Putta p a r thi,
Secretariat, MLAs quarters, High C ourt and the State Assembly. (No fly zone mooted
in Tirumala hills, IE, 11/1 0/01)

The Department of Tourism and the Tirupati Municipality p ropose t o develop a

'Family Entertainment Centre' a t Tirupati in an area of 2 acres w i thin the Tirupati
Municipal Park at a distance of about 3 km from the proposed Tiru p a ti Visitors
Zone. It is envisaged tha t the project would offer enterta inment for the whole
fam ily, based on advanced technology covering concepts such a s a cyro zone for
snow based themes, an oceanarium, a v irtu a l rea lity complex, an interactive robot
complex etc. An EoI has been invite d . (ET, 1 5/10/01)

Chief Minister Manohar Parrikar has ruled against introducing casinos in the Goa
w a ters . He denied giving any permits to anybody to introdu ce casinos on the Goa
coast. The casinos a lready in operation had received l icences d uring the Congress
regime. He a d m i tted that his Govern ment on rea l ising a uctioned the Panaji
dockya rd off river Mandovi tha t the vessels required anchoring faci lity or a base
to halt. When licences were given to vessels to run casinos, it w a s the duty of the
government to p rovide them the anchoring facility. (Goa says 'no' to casinos, TR, 4/
1 /0 1)

The Goan Government has decided to d isallow financial aid from abroad, for the
restoration of monuments in Goa under the state's heritage list. Priva tely owned
archaeological sites and buildings a re, however, free to accept foreign grants,
provided these have the Central Government clearances. In the official l ist o f
protected monuments here a re the Chapel of O u r Lady of the Mount a t O l d Goa,
and the Saptakoteshwa r temple at Narva, North Goa, both of which are undergoing
extensive restoration being funded by the Portuguese Fuandacao Oriente (Orient
Foundation). (Goa bars foreign aid for heritage, DR, 22/01,01)

A high-powered w o rking group tha t met i n Goa has decided o n p rinciple t o set
up a g ol f course. The final decision would be taken once the interested p arties
have sent in their proposals. The group has also finalised on the master plan for
99
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. J�� ,n�
sustai na b le development of tourism in Goa for the next 25 years. The Consulting
Engineering Services, Delhi, who have drawn the master p l a n, have suggested
diversions from beach tourism to eco-tourism, heritage, adventure, rura l , business,
science and controlled tourism zone. (Navhind Times, 9/6/01 )

The sand dunes that added to the beauty of Goa are disappea ring fast, triggering
fears of Serious Environmental Fallout. These Mounds have been created by Nature
over Thousands of Years and play a crucia l role in the ecosystem. Scientists say
sand dunes check underground marine ingress (which makes freshwater wells saline)
and prevent loose sand from blowing into houses a long the coast. They a lso help
tame the fury of the elements. Already there are complaints tha t loose sand blowing
on to the roads along the coast is causing vehicles to skid and experts say i t is only
a matter of time before vegetation a long the shore i s a ffecte d . (Disappearing sand
dunes worry GOll'S nature lovers, Frederick Noronha, ET, 1 /7/0 1 )

The G o a State Infrastructure Development Corp . Ltd . h a s invited Eols for the
m anagement and development of the Miramar, C a langute and Colva beaches.
The private firms would be allowed to Develop Leisure and Recreational Spaces,
Jogging Tracks, Roadside Pay N Park and Undertake the Development of Wa ter­
Sports Activities a n d / or similar Recre a ti onal Activities on demarcated spaces on
the beach or landside . The facili tit5 are to comply w i th the CRZ requirements,
TOI, B, 1 4/9/0 1 )

The attacks on the U S a n d US's retaliation have s e t off panic Signal s in Goa's
tourism ind ustry. Cancel lations in foreign i nd ividu a l tourists and group inclusive
tourist have a l ready begun. A n umber of hotel's occupancy rate depends on charter
tourists during the tourist season, as this is going to slowdown they plan to look
a t a ttracting the corporate domestic clients. (Afgan events hit Goa tourist traffic,
Devika Sequeria, BH, 26/9/0 1 )

C a ncellations o n the inbound charter business in early October have meant tha t
t h e t i n y coastal state w i l l n ot s e e t h e u s u a l i n fl u x of English, German and
Scandinavian tourists . The i nbound travel business has been hit a t a time when
the government has recently permitted domestic travel companies to operate
outbound charters. The industry expects business to be signifi cantly lower by
anywhere between 20 to 40 percent during the peak season, which runs from
October to April. The inbound charter market is estimated at around 85,000 visitors.
Of these the l ion's sha re- 80,000-head for G oa while the rest head for Keral a .
Although the charter-handling busi ness is cha ra cteristical l y l ow margin a n d
estimated a t a round $5-$ 1 5 per holidaymaker, travel companies a re a ttracted by
the volumes a s well a s bargaining power it gives them, especially to negotiate
w i th hotels and other travel-related services . (Goa's beaches denuded of tourists as
charters get hit, TOT, M, 1 6/10/0 1 )

G oa trance, LSD a n d ecsta sy : a heady mix of techno music w i th synthetic drugs.

This was the fashionable combination at the rave parties of the late Nineties, and
i t sent hordes o f young tourists from Israe l and E urope to Goa . The music still
rema ins h ugely popular. But the drug tide has turned once again, and charas and
ganja a re back in fashion here in a big way, says the A n ti Narcotics Cell (ANC) of
the Goa police. The profile of persons arrested in the last two years is a lso a
revela tion- Israelis and Kashm iris who were prominent among the peddlers
a rrested here in the early nineties, are virtually off the list of offenders today.

The growing numbers of Himachalis and Nep a l is (five in the last nine months)
a rrested recently is also a p ointer to the source of the weed that finds i ts way into

100
 ___________1_1
M ENJAIlClN
--'--'.-Ji_J]t� DOCU
�� �U�
this sta te . Himachal Prad esh, Nepal, East Uttar Pradesh and Bihar a re the chief
areas of supply.

The focus of peddling drugs internal l y and making contact with the foreigners
has now shifted to Keral i tes, a la rge number o f whom are employed as waiters in
G oa ' s coastal res ta urants . (Ganja, charas make a comeback in Goa, Devika Sequeira,
DH, 5/12/01)

Going by the current recessiona ry trends, tourist a rrivals in Goa could d rop 50
percent to 50,000 tou rists against an a verage inflow o f 1 00,000 in the p revious
years. It is estima ted tha t the reduction o f 50,000 foreign tourists w i l l see a loss of
600,000 room nights from November 2001 to April 2002 . According to Goa Tourism
Department officials, around 40 per cent o f the sta te's pop u l a tion sole l y depend
on income from tourism.

The U K-based consultancy, McCluskey & Associa tes International, has prepa red a
strategic development plan to promote tourism in G oa . The report has outlined
certain short-term rescue measures and l ong-term promotiona l activities that would
help Goa regain its lost glory.

The report says that Goa has to slash the cost of stay with immediate effect and as
a destination i t has to be priced competitively to compete w ith other Asian
countries l i ke Thailand, Indonesia and Malaysia .

The chal lenge facing the tourism industry i s to exhib i t what h a s been inherited
from a long and colourful past . The fusion o f Asian and western culture dates
back to the d a ys of European colonialism . Also the age-old evolution of Goan
dance, music, festivals, and carnivals can be recreated and ma rketed to p rovide a
stunning artistic attraction for visitm s . Goa can also be showcased as an outdoor
holiday destina tion w ith acti vities such as w a ter sport, hiking, sai ling and fishing.
(Goa' s tourism spirits may be in for a lift', McCluskey report proposes cutting cost of
stay, shedding cheap-paradise tag, Meella Nichan i, 21/1 2/0 1 )

, I " p l4 , 16 ..

S'f!ATES
1U '" at J ! • p '_.... . 1 . .. , " ...."' ...." ) , ..

QOO NORTH EASTlRN

Is , f '
'
, ... . • r . ) 4

Assam's overall annual plan is pegged at Rs 1 8 1 0 cr for 2001-2002 . A reas tha t

have received a ttention a re a griculture, i rrigation, industries, education, heal th,
transport, tourism, sericulture, handicraft and handlooms. (Assam annual plan pegged
at RS-lSl O-cr, BL, 26/7/01)

The Civil Aviation Ministry has identified six-feeder routes to the Northeastern
regions . Alliance A ir is to operate the 50-seater a irlines . The p roposed service would
be operated to cover places such as Shillong (Meghalaya), Kamalpur (Tripura) and
Tezu (Arunachal Pradesh) . (Improving air links to Nortlzeast, BL, 1 3/8/01)

LI , " ,m '.. It ..II q .• p' I IU·1 , ') , . '" ) .. . .,1 Itt

,

.· S10 EASTERN INDIA

, . .. ' " I!"

Sikkim
Sikkim has been awarded the Nation a l Award in recognition of its efforts to
PromoteTourism in the State . The CM, Pawan Chamling, has declared Tourism as
a prime sector vis-a-vis Government Policy. In 1 997-98, the State had p repared a
101
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I S-year Master Plan for Tourism. As far as the Government is concerned, direct
revenue from Tourism is rather small- 5-7':-'0. But what lends it grea t importance is the
fact that it has given rise to jobs in related industries, such as hotels, taxis, tour
operators, etc. The State is acting as a facilitator to tourism while leaving the actual
execution in private hands. The Government is also trying to develop the infrastructural
set-up of the State and a re constantly undertaking p ublicity through press and other
media. (The state is only a facilitator, Thomas P Abraham, ET, 31/1/01)

One of the key points that emerged from the conference led by the Sikkim PM
was the potential that Tourism holds for Sikkim . Neighbouring Bhutan has set a n
example in focUSSing successfully o n High-Va lue Tou rism, whilst keeping a check
on the numbers of tourist a rrivals. The policy maximises revenue, does not overload
the country's nascent infrastructure and is a lso conducive to preserving the unique
eco-system and cultural endowment . Sikkim, too, can p rofitably follow this path.
Sikkim has another advantage. It l ies astride one of the earliest trade routes linking
India to Tibet that passes over the Jelep La and goes on into Yatung. (Reviving the
Tibet rOllte via Sikkim will give tourism a boost, Ravi Bhotalingam, FE, 14/3/01)

Seeking a major partnership w ith the Confederation of Indian Industry ( C l I ) in

the new a venues of d ev e lopmenta l process in the State, the Sikkim Government
has sought fresh investments in a reas such as education, tourism, health, hydel
power and food- processing sectors . Showcasing the many incentives offered by
the State Government to private entrepreneurs in both new and tra d i tional
industries at an interactive session organised by the C on federation of Indian
Industry (ClI). Chief Minister of Sikkim, invited the private sector to corne . (Sikkim
seeks pvt funds for power, tourism, BL, 30/5/01)

Ori ssa
The Orissa Government proposes to set up a Forest Lodge C orporation, on the
lines of K a rnataka's sta te-owned chain of resorts, J ungle Lodges and Resorts
Limited . The purpose is to bring under its wing a l l rest houses of Forest Department
tha t a re not being mainta ined properly by the department. Besides, the Orissa
Tou rism Department is trying to put the spotlight on i ts best-known assets­
Bhubaneshwar, Sun Temple at Kon a rk and Jagannath Temple at PurL In add ition
to Konark being its Unique Selling Proposition, they plan to celebra te 1 00 years of
i ts scientific conserva tion . The State is keener on playing the role of a fac ilitator
than getting bogged down w ith deta ils. They a re looking a t encouraging joint
ventures w ith the corporate sector. They have a l ready leased out their p roperties
and p ropose to continue w i th it. As a first step in this d irection, Special Tourism
Area projects a re expected to corne up nea r Puri on an estima ted 3,000 a cres of
land w ith an initial sa nction o f Rs 5-cr from the Government. A w a ter sports
complex is a lso being d esigned at Purl to encourage w a ter sports. (Showcasing
tourism to sl!ed calamity-prone state tag, A nita Rao Kashi, TOI, B, 1 0/6/01)

The Orissa Gove rn ment has banned construction o f Buildings a nd High-Rise

Apartments within 1 00 meters of Historical Monuments p rotected by the AS! and
the Sta te A rchaeological Depa rtment (SAD) . The new Act, known as the 'planning
and building standards regulation-200l ', which carne into force from October 2 1 ,
a lso prohibits multi-storeyed buildings in 1 8 revenue villages identified under the
Heritage Zone in and a round the State C apital . I t also restricts construction of
high-rise buildings w ithin 300 meters boundary lines of Old Temples and Historical
Monuments, protected by the ASI and the SAD. The buildings in such cases should
not exceed seven meters in height. (Orissa bans construction of bllildings in heritage
zone, B L, 1 9/1 1/(1)
102
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" _!��� QU�i
The Orissa Government is planning to introduce helicopter services for tourists to
visit Puri, Kona rk and the Chilka Lake, The Government had already acquired
1 ,000 a cres of land in the Sipasarubali Mouza on the seashore in the outskirts of
this pilgrim city where a speci a l tourism are a (STA) had been concei ved , The land
acquired will be utilised to develop an aqua-park and a multinational company
had been entrusted w i th the work. A five-day festival has a lso been organised by
the Hotels and Restaurants Association o f Orissa in collaboration w i th the Central
and State Tou rism Departments, Eastern Zona l C ul tural Centre, Kolkata and song
and d rama div ision o f the Central government. (Chopper services for Puri, Konark
tourists, BL, 26/1 1/01)

West Bengal
Sanjeevani Projects, a Kolkata-based real esta te developer, has conceptua lised and
started working on an innovative idea called Vedic Village. Spread over 1 00 acres,
the Ved ic Vil la ge would have individual houses, resorts, v i l la s, a club and a n
a yurvedic health centre . The Vi llage would have fou r major components . The first
part would comprise farmhouses a long with a natu ra l agricultural farm. The second
p ortion would be a resort spread over 20 acres. The thi rd component would have
a club with about 500 members and the fourth competent would be a craft village.
(Sanjeevani's Vedic Village to give a 'taste of nature', BL, 1 0/1/01 )

Saha ra India Pariw a r has embarked upon a Rs 900-cr tourism p roject in association
w i th the Government o f West Beng a l . The p roject envisages promoting and linking
Sundarbans and Teesta Valley with the na tional tourist circuit a n d setting up a
five-star club-cum-hotel in Kolkata. The components of the tourism p roject include
floatels, bay resorts, luxu ry l aunch facilities, catamaran services, coastal cruise
l iners and c ru ise boats, a mong others. The Teesta Val ley complex would have a
golf course, wooden chalets and faci l ities for w ater sports. The m a ster plan for the
entire p roject would be read y within the next few months. (Sahara India plans Rs
900-cr tourism project for Bengal, BL, 9/2/01)

O n l y five per cent o f t h e domestic and foreign tourists who visit India every year
come to West Bengal while Delhi and Mumbai jointly account for 90 per cent in
terms o f tou rist traffic. This, despite the state having some of the most v aried and
a ttractive tourist destinations in the world like the forests o f Sunder-bans, the
hills in Darjeeling, the sea beaches o f Digha and the wildlife o f the Dooars. The
main reason cited by Mr Bezbaruah for this dismal performance lie in the state's
failure to p romote tourism effectively. The State spends just over Rs 1 1 -cr annually
for the development of tourism. (West Bengal fails to attract domestic, foreign tourists,
Dl1 iman Chattopadhyay, TOI, M, 31/5/01)

In a bid t o mop up additional revenue t o the State Exchequer, the West Bengal
Government is relinquishing its previous orthodox a ttitude towards privatisation and
c urrently considering a p l a n to hand over tourist l odges to v a rious p rivate
entrepreneurs. Stating that the Government has a ccorded a thrust on exploiting the
tourist spots in the state, the district magistrates have been a sked to identify
unidentified potential Tourist Spots in the state for their inclusion in the Bengal
Tourism Map. The State Tourism Department is working out a plan for better co­
ordination of Major Tourist Circuit Routes in Nepal, Sikkim, Bhutan and Darjeeling
besides the famous sea beach at Digha . (WB t 0 privatise tourist lodges, D H, 9/6/01)

Deta iling the action plan d rawn up to speed up development of basic in frastructure
facilities in the State, the West Benga l CM a nnounced th a t the Government of
Malaysia had recently proposed to take up c onstruction of the Kolkata-Haldia
1 03
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and Kolkata-Kulpi expressways on a turn-key basis through their special purpose
vehicle c a l led C onstruction Industries Development Board (CIDB) of Ma laysia .
The MoU w ith CIDB would be signed soon . (Bengal to sign MoU with Malaysia for
expressways, BL, 1 2/1 1/0 1 )

520 North India . ,...

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Uttaranchal
The Uttaranchal State G overnment has constituted a Tou rism Advisory Boa rd to
make policies for Integra ted Development of Tou rism i n the newly formed hill
State. Headed by the State Tourism M i nister, M r Ked a r S ingh Phonia, the 36-
member board would have tourism director as i ts secretary. Sources said the
Government would consider several p roposals for the economic development of
the State through Tourism, especia lly rel igious tourism . (Govt forms tourism advisory
board, BL, 22/01/0 1 )

The C e n t r a l G ov e r n m e n t h a s a s k e d t h e U t t a r a n c h a l S ta t e t o p re p a re a
Developmental p a c k a g e and to focus on Tou r ism, Da i ry Fa r m ing, A n i m a l
H usband ry, Forests a n d Minerals (TH, 5/8/01 ). The Department o f Tourism i s to
go ahead and develop the Sta te into an Interna tional Tourist Destina t ion. The
Government through its various agencies will be undertake developmental projects
to create New Tou rist Locations and Facil i ties and upgrade/ renovate and remodel
the existing ones . In this context o ffers were invited for services such as archi tects,
tourism p roject developers, restoration experts, agencies for p reparation of master
plans, agencies for p romotion of eco-tourism, wildlife tourism and adventure
sports, publishers of travel, etc. (TOT, B, 1 3/08/0 1 )

The Gove rnment is p l a nning t o issue notices to the I n d i a n Mountaineering

Foundation (IMF) a nd Two Foreign Tourist Companies for Viol a tion of Wildlife
Laws d u ring an expedition to the Nanda Dev! Biosphere Reserv e . The expedi tion
was to look into the feasibili ty of re-introducing adventure tourism in the area .
(Expedition team violated laws, TE, 25/8/0 1 )

Uttar Pradesh
The new dra ft industrial policy of UP
• Plans to rope i n SIDBI in p roviding loan facili ties for specific activities i n the

tourism sector for which loans a re generally not available from other a gencies
• Private sector participation in tourism sector would be inv ited and existing

Sta te- owned facilities would be privatised on a l ease or out-right sale basis.
• A hotel city is to be developed in Noida .

• In specific locations in the newly carved sta te of Utta ranchat capita l and power

subsidy shall be made available for investment i n the tourism sector.

• . L a nd b a n k b e i n g c reated i n Tou r i s t Spots for fac i li t a ti n g p r i v a te sector

inves tment
• Promotion of Spiri tual Tourism w i th specia l emphasis i n Interna tional Markets.

• Medi tation and Natu ra l Thera py Centres to be set up by Private Sector.

• Immigration formali ti es to be simpli fied at Va ranasi and Agra Airports .

• Heri tage zones t o created a n d promo ted extensively.

• Private a irlines would be facili tated i n setting up their opera tion s .

(UP draft industrial policy push to tourism sector, Ashwini Phadnis, BL, 1 7/8/01 )

Jharkhand
The State Government of Jharkhand for the p repara tion o f a Maste r Plan and
P romotion of Tourism has circul ated a notice. The New State of Jhark h and, a ims
at developing the scenic beauty and thereby promoting eco-tourism, besides,
1 04
further developing the facilities a t its famous rel igious centres, to make the state
an a ttractive tourist d es tina tion . In this regard, the Dep a rtment of Tou rism,
Jharkhand, has invited applications from consultants / agencies wi lling to undertake
the job of preparing a perspective plan with a time frame of 20 years for developing
sustainable tourism in the State. (IE, 23/2/02)

Himachal Pradesh
The Himachal Pradesh Government has d ecided to i n tegra te tou rism w ith
Ayurveda to give a boost to the two sectors . Various centres a re being set up at
popular destinations in the State where tourists can a ccess a yurvedic therapies
and herb a l treks a re being identified to enable tourists to get a glimpse of the rich
h e r b a l reserves of the H i m a l a y a n region . The H i m acha l Pra d esh Tourism
Development Corporation (HPTDC) has decided to provide hea lth package to
tou rists at its popular hotels in collaboration w ith three Delhi-based companies.
Initially, the facility of treatment through natu ropathy, ayurvedic massage and
steam bath would be p rovided a t hotels in Shiml a , Manali, Dharamshala and
Dalhousie. (Himachal Pradesh bid to boost tou rism, BL, 2 8/5/01 )

821 Jammu & Kashmir .' 1 . • • , . , '. ' " • II.... .,.. • II ' ... . , ., • ••

Tourism in the State was a l ready down w ith continuing militancy a nd vi olence: the
earthquake of Guj a rat has come as another big blow to the hotel industry in the
state. Gujarat and Maharastra a re the Country's two States sending l a rgest number
of tourists and pilgrims to J-K. Guja ratis place the Vaishno Devi shrine and Kashmir
v a lley in top priority to v isit during v acation . Occupancy figu res of various hotels
show tha t the number of pilgrims from other parts of the country too has come
down. (Cujarat quake IlitS Kashmir IlOteliers, Rakesh Rocky, IE, 2 0/2/0 1 )

Past three years: 7 1 ,68-foreign tourists

4 19047- d omestic tourists
Pilgrim tou rists to Mata Vaishonodevi- 1 45,00,01 2
(Tourist arrivals, Jammu & Kashmir, BL, 1 5/3/01 )

The cave shrine of Amarnath in Kashmir has also been put on the net like many
other pilgrim sites. The State Tourism Department, which handles a rrangements for
the annual pilgrimage, plans to introduce online registration of pilgrims, either this
year or from the next year positively. At present, the registration of pilgrim;; is done
at six centres across the country. At present, prospective pilgrims have to travel long
distances to reach the nearest registration centre and then spend hours completing
the travel formalities. These include filling up various forms, submitting a medical
fitness certificate a nd providing photographs (for the identity card and records) .

The fact that as many as 24 States and several Union Territories d o not h a ve any
facilities to handle registration means the p resent system is heavily loaded in
favour of people l iv ing i n the v icinity of the registration centres. Even for people
who live in c ities w ith registration centres, i t may be easier to go to the nearest
cyber c a fe than the nearest centre. Those unfamilia r w ith the Net can pay a fixed
fee to the cyber cafe staff and get the needful done. The photographs and medical
certificates can both be scanned and tagged to the registration form or sent to a
central ised location by post. (J&K hopes to speed pilgrims' progress, Sant Kumar
Sharama, TOI, M, 5/5/0 1 )

The State Government and the Union Ministry o f Tou rism a n d Culture jointly
held a three-day 'Sindhu Darshan' festival at Leh i n Ladakh from June to P romote
Tou rism. The festival, offering a kaleidoscope of Indian culture and performing
105
a rts, w as a i med a t projecting river Sindhu as a symbol of multi-dimensional cultural
identity and communal harmony. With a view to create awareness about the festival
o f N a tional Integration, exhibitions were organised in Nagpur and Pune, among
other ci ties in the country. (Festival to boost tourism from June 1, BL, 1 0/5/01 )

"
530 Western India '" .. , . . • 'I! ' .. "I, '>' .. " 10"

Madhya Pradesh
The Madhya Pradesh Government has been forced to scrap its plan to privatise
hotels and restaurants run by the State Tourism Development Corporation (MPTDC).
The reason being that none of the major hotel chains evinced interest in the deal .
And what the small-time operators offered was far lower than the offset price.
Tenders inviting bids for 30-year renewable lease of all the 42 hotels and restaurants
run by MPTDC were floated on December 1 999. The Government was hoping to
garner a round Rs 80 Crore from sale. The idea was to eventually wind up the
MPTDC by offering VRS to its 8S0-odd employees. The privatisation was described
as a "logical fallout of economic liberalisation and need for the state to w ithdraw
from a l l non-essential activities" . After unburdening itself of the job of running
hotels, the government would concentrate on developing the hitherto unexplored
tourist centres . (MP govt move to sell off lwtels lias no takers, Dn 1 2/6/01)

CII has urged the MP Government to develop a Master Plan for p roviding better
i nfrastructure, connectivity to to u rist destinations, tax rationalisation and tourism
development so as to make the s tate a favourite tourist hub. The State is a l ready
working towards this by establishing better connectivity with Maharastra, Gujarat,
Goa and Rajasthan . The Government was a lso contemplating on whether to invite
p rivate companies to take up the maintenance of herita ge monuments.

The World Famous 'dty of temples' Khajuraho in Ma dhya Pradesh is l ikely to be

connected by the Palace on Wheels by the middle of next year. The State Tourism
Minister, Mr Ajay Singh, announced that w i thin a month his department would
sign a contract with the Railway Ministry to link Delhi-Gwa lior-Jhansi circui t
w i th t h e Palace on Wheels. However, t h e execution o f the scheme would take
a nother six to eight months. The state would p rov ide b asic infrastructure for
execution of the p roject. The state government would focus i ts activities on
p romoting wildlife and cultu ral tourism. The State Government had also entered
into an agreement with the World Travel and Tourism Council (WTTC) for the
Promotion of Tourism in the State. Madhya Pradesh is the third state after Rajasthan
and Keral a to become WTTC partner. Without having any financia l obligation, the
a g reement would enable the State to get i ts tourism global ly p romoted by the
Council, which had a chain of International Hoteliers as its members. Besides, the
council would a lso identify the potential for Tourism and C reate a Tourism Satellite
Accoun t to give publicity to the State's tourism sector. The Tourism Department
would hold a meeting w i th the M adhya Pradesh finance corporation (MPFC) by
the end o f next month to take steps to p rocure loans for Heritage property owners
to develop Heritage Sites . The Department would give an interest subsidy of five
per cent u p to a loan of Rs 1 .5 cr and three per cent up to a loan of Rs 5 cr, to
p ri v a te parties who would offer their Heri tage p roperty a s collateraL (Palace on
Wheels link City of Temples, B L, 1 9/1 1/01)

Maharashtra
The Pune Vyaspeeth, an organisation floated by the Rajya Sabha M P, Mr Suresh
Kalmadi, has taken up a p roject, which will p romote the city as the destination
for the d iscerning tourist. They a re now chalking out a plan, which will see the
city's corporate houses; hospitality sector, tou rism experts and a rtists join hands
1 06
to transform the city into a marketable tourism destination . (Pune- destination for a
discerning tourist, Sudlta Menon, BL, 2617/0 1 )

Rameshwar Va ibhav Development Private Ltd. R s 2 1 50-cr International Tourist

City at Pen-Alibagh in Raigad d istrict of Maharastra has run into trouble following
rejection of its appl ication for overseas commercial b orrowings (OCB) by the
External Commercial Borrowings Department under the Min istry of Finance . (OCB
denial puts tourism projects off tlte track, BL, 30/7/0 1 )

Achievements listed by the Maharastra tourism depa rtment for the p ast two yea rs:
• New tourist-friendly policies underway

• Decision taken to start ' Deccan odessey', a super luxu ry tourist tra i n

• Launching the mega event "The G reat Mumbai Bazaa r-2002' in January 2002

• Conservation measures for Ajanta & Ellora caves w ith the help of Government

of Japan
• Development of Lonar Crater (Buldhana) and Sindhudurg-Thane-Raigad coastal

l ine.
(Maharastra touches a new Iligh in the 2 years of Democratic Front governance, B L, 1 8/
1 0/01 )

Rajastan
Major Na tional and International Hotel Chains have showed interest to develop
the Jal Mahal Palace and the Mansagar Lake. The contract is worth more than Rs
80 million . The project has been floated by the Jaipur Municipal Corporation
(JMC) and has attracted top notch chains l ike The Oberoi, Le Meridian, lTC, Roya l
Group of Hotels, Park Hotel and Tulip Internationa l . The proposed project includes
a rchaeological conservation and development of tourism i n frastructure for Jal
Maha l. It would a lso involve the restoration of the monument a nd developing
recrea tional facilities in the a rea surrounding i t . Another i m portant objective of
the p roject is the ecological restora tion of the Mansagar Lake, which is h ighly
silted d ue to the wastewater coming i n from nea rby residential neighbourhoods.
The project would involve improving w a ter qual ity and keeping i ts level more or
less constant so that wate r sports can be promoted there. (Major Iwtel chains line up
to bag lake palace contract, Soni Sinha, ET, 24/1/0 1 )

The Rajasthan State Government h a s decided to implement the Tour ism Act, 1 995
to check touting business and for p rovid ing better facilities to foreign tourists.
The Act was formula ted in 1 995 but due to unavoidable reasons was not taken
forward . The Government has now decided to place the a m ended a ct before the
Assembly committee for approval . The State G overnment has a lso sanctioned a
sum of Rs 1 3 l a kh for renovation and restoration of Patwa-Ki-Havel i and Ga ri­
Sar-Ka-Ta lab. (Govt to implement Tourism act, BL, 1 1 /6/0 1 )

Indian Airlines h a s signed a memorandum of understanding w ith the Rajasthan

Tou rism Development Corporation (RTDC) for Promoting Tourism in the State.
The MoU will see IA tie up with va rious h otels, including 'Heritage hotels' and
'Pal a ce on Wheels', through RTDC to forma l ise holiday packages. In turn, RTDC
w i ll a ppoint IA as i ts general sales a gent (GSA) at a1\ foreign stations where the
a irlines have an office . IA and RTDC will j ointl y promote the packages. lA, as p a rt
of its ongoing efforts to p romote d omestic tourism, has introduced 'Raja sthan
flyways', a special holiday package for the Delhi-Jaipur-Jodhpur-Delhi and Delhi­
Jaipur-Udaipur- Delhi sector.

107
__
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Meanwhile, the a i rl in e a l s o p l a n s to s i g n s i m i l a r M o U s w i th the tourism
development corpora tions of Kerala, And hra Pradesh, Madhya Pradesh, Gujarat,
K a rnataka, Tamil Nadu and the States i n the Northeast. (fA signs MoU to promote
tourism in Raiasthan, BL, 1 5/6/01)

The State Government plans t o bring o u t a N e w Tourism Policy soon with the
objective of establishing tourism as a peoples' i ndustry and p romoting sustainable
and eco-friendly tourism i n the sta te . Tourism is a l ready a part of the m ission
a p p roach recently adopted by the sta te government. The mission statement vows
to ens u re optimum utilisa tion of the rich tourism resou rces of the sta te to generate
employment, especially in rural a reas, to preserve and Scientifically manage the
rich historical and cultural heritage. Rajasthan ranks third in foreign tourist a rrivals
and seventh in domestic tourist a rrivals. (Making tourism a people's industry, Abha
Sharma, DH, 3/9/0 1 )

The Hawa Mahal finds i tself i n a dilapidated sta te. The entrance t o t w o of its five
storeys has already been banned as a measure of cauti on . The gradual decline has
been due to its improper maintenance and neglect. The State Tou rism Department
had mooted a proposal to hand over upkeep of h i storic monument i n p rivate
hands, yet no concrete decision has been taken so fa r. (Hawa Mahal is as fragile as
'hawa', DH, 4/1 1/0V

G uj arat
The ea rthquake in Gujarat has dealt a severe blow to at the Tha r Desert thi s year.
An abrupt cancellation of the much-publicised Desert Fe&tival - which w a s to be
held between Februa ry 6 and 8 - has led to a sha rp decline in the number of
foreign and domestic tourists to this town. More than 80 per cent of the tourists
p lanning to visit Jaisalmer have reportedly cancelled their bookings in local hotels.
The l osses to the tou r ism industry in J aisalmer a re estima ted at a staggering
Rs . 5 .5 crores in this current tourist season alone. (Quake lIits tourism in Jaisalmer,
Mohammed Iqbal, TH, 2 6/2/0 1 )

The Conservationists have protested aga inst the action of the Forest Depa rtment
to open a 10 km stretch of roa d through the G i r Sanctua ry. While the Forest
Officials insist that the road has been opened to allow Hindu p ilgrims to pray to a
shrine, conserva tionists fear the Government Decision could a ffect the a rea's
ecosystem. (Opclling of road thro ugh Gir sanctuary creates stir, ET, 12/8/01)

S40 Union Territories _.0..;....

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Pondicherry
The Pond icherry A d ministration is follow i n g the step of Andhra Pradesh by
i n i t i a t i n g talks w i th p r i v a te opera tors to opera te fli ghts from the a irport.
(Pondicherry wants private operators, TOI, B, 1 6/9/01)

Daman & Diu

The A d ministration of the Union Territory of Diu, on the coast of G ujara t, has sent
a p roposal to the Centre for decla ring the isla n d a 'non-industry zone'. The Diu
a d mi nistration is now determined to focus on developing the island solely as a
Tourist Centre. A t p resent, Diu lacks infrastructural facilities b y way of approach
roads from Na tional Highways and a Railway link but w ith the conversion of
Verava l-Rajkot section to b road gauge, they a re expecting an increase i n the arrival
of tourists . The upcoming Pipavav Port rail link would a lso be helpfu l . (Diu hopes
industry-free tag will promote tourism, R R Goswami, 5/4/01)

108
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When the Economic C risis struck Asia in 1 997, Tou rism sank along with financial
ma rkets . But record-bre aking numbers of visitors in many Asian countries last
yea r signal tha t the region is ma king a comeback as a vacati on destination . An
estimated 1 4 .5 m illion travellers a re expected to visit Hong Kong this year, bringing
in nea rly $8 billion to the l ocal economy. Many Asian destinations doubled the
a verage glob a l tourism growth of 4.5 per cent, making the region the fastest
growing tourist destination in the world . But not a l l a re as were successfu l .
Indonesia a n d the Phil ip p ines s a w tourism growth stagnate a s l o c a l unrest
prompted tourists to stay a wa y from p otentia lly dangerous a reas. The World
Tou rism Organisation expects the number of vacationers from the region to double
in the next 10 years, and to double again by 2020 . And their Asian neighbeurs a re
likely to be the first ports of cal l . (Asian Tigers bounce back in tourism sector, B L, 2 7/
2/01 )

South Asian and Southeast Asian countries a re p romoting themselves aggressively

as tourist destina tions . Airl ine companies and tou rism promotion boards have
j oined hands to offer festive d i scounts to customers a t rock bottom prices . The
a ttempt is to garner share of 3 .7 m i l lion Ind ia n touri sts visiting abroad every year.
Tra ve l and Tourism spending by Indian residents stood Rs 587.4 b i l l ion i n 2000.
Tra vel spending in India, which w itnessed a 1 5 percent decline month-on-month
post September 1 1 , has seen a 7.3 per cent growth during period between September
1 1 to November 1 7, 2001 .

The Malaysian and the Australian Tourism Development Boa rds a re currently
h osting roa d shows in India to p romote their countries as p otential tourist
a ttractions. The Singapore tourism board is looking to turn Kuala Lumpur into a
shoppers para d ise', on the lines of Singa pore and Dubai . The Sri Lankan tourism
board is offering a package of two to visit the island country a t the price of one .
(BI., 28/1 1/01)

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Sri Lanka
Sri Lanka, is positioning i tself a s a p rime eco-tourism destina tion. According to a
booklet listing the prime eco-tourism sites in the country produced under the Sri
Lanka Tourism Cluster formed under the USAID Competitiveness Initia tive, the
world's first w i ldlife sanctuary was located in the island. The booklet eval uates
nine sites, six of which a re p rotected a reas and three projects, according to a set of
criteria on which eco- tourist ventures should be b u ilt, recognised by the World
Wildlife Fund and the Interna tional Ecotourism Society, among others . (An eeo­
tourism destination, Nirupama Subramanian, TH, 4/2/01 )

To revive tourism the Sri Lankan Tourist Board has come out with a n offer package
for two to visit the exotic isle of Sri Lanka a t the price of one. The offer is valid from
November 1 to December 20 . The first-class package is for Rs 21 ,000 from Delhi and
Mumbai, a n d its 1 6,600 from Chennai, which is inclusive of a irfare, stay and
breakfast. Further, the special package includes two a i r tickets (economy class) on
Sri Lankan Airlines, Airport Transfers and Star Class Accommodation on bed and
breakfast basis (twin- sharing) . (Lanka package to lure tourists, BL, 6/1 1/01)

109
__________________ D�9_�
Nepal
A Nepali mountaineering organisation has been encouraging sherpa climbers to
collect garbage dumped on Mount Everest. The organisation will pay the sherpas
for the trash that they bring down. The exact a mount o f l itter d u mped at d ifferent
campsites on the 29,035 ft Everest is not known, but climbers say tonnes of j unk
discarded by mountaineers every year need to b removed from camps. (Nepal will
pay to keep Everest clean, Gopal Sharma, Asian Age, 26/1/01 )

'Festi v a l o f Nepal' was launched on May }>t in K a thmandu to showcase the

country's rich cultural diversity. Being the first of its kind, the festival is being
organised by the Nepal Tou rism Board . It a ims to a ttract tourists, especia lly from
Ind ia . Some of the highlights of the festival included the national folk dance
competition tha t could present ethnic dances from d i fferent pa rts of Nepa l, and
the Mithi La d ance fes tival from the " Land of Sita " . Other events in the festiv a l
included the Nepal-Tibet Cha llenge Walk organised by the Himala yan Mountain
Hike, the Sola r Power festival to p romote eco-tou ris m, international food festival,
the Phewa boat festival a nd other -a dventure sports . (Festival of Life', from May 1,
TH, 2 7/4/0 1 )

I n a move to a ttract more mountaineers t o the country, Nep a l h a s opened nine

new mountains to foreign climbers. The peaks range from Lhotse M i dd le peak
(8,413 in) the highest a mong the new, to the lowest Thorang peak (5,751 in) . Every
year thousands of western mountain climbers come to Nepal to try to scale these
peaks . Tourism, including mounta ineering, brings in $ 1 68 . 1 m il lion in 1 999, the
latest year for which figures a re available. (9 Himalayan peaks opened to climbers, IE,
1 7/5/0 1 )

The Nepa lese Govern ment is p reparing to open a nother 6 0 N e w Peaks fpr
Mountaineering in the next spring season starting i n March 2002. The move w a s
to coincide w i th 2002 being observed as " intern ation a l mountaineering yea r " . Thl:
Horne, Defence and Tourism Ministries would make a final approv a l of the pl;; <l k:;
j ointly. The height o f the peaks that a re being opened range from 60()O tp 8flOO
meters and a re mostly situated in Kanchenjunga, Annapurna, KhuT;,;) l1, Lam t;, ng
and Mustang Himalayan regions . The five pea ks tha t we re not opei-,cd lasl yp.ar
desp ite the recommendation of the Ministry a re a lso included in the j ",t�W list. (60
new Himalayan peaks to open, BL, 26/1 1/0 1 )

Nepal plans t o open 1 03 new mounta in peaks a n d offer special packages t o boost
the declining tourism industry. The government a lso a nnounced tha t n o )iais,)l1
officer would be required to climb peaks below 6,500-metre height, which will
reduce the cost o f mountaineering by about $1 ,000 per tea m . Reducing visa fee
a n d concession in a irfare are some o f the other incentives being introduced to l u re
international v isitors, p a rticu l a rly neighbouring Tndia.

Nepa l is a lso observing the "Intern a tional Yea r of Mountains" in 2002, which a lso
coincides with the golden j ubilee celebration of the firs t successful ascent to Mt.
Everest b y Tenzing N . Sherpa and Edmund Hilary in 1 95 3 . (Nepal to open over 1 00
peaks to attract Indian tourists, TOI, B, 26/12/01)

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In a Join t Effort to Promote Tou rism in Malaysia a nd Singapore, the respective
Tourism Boards of the two countries have formed Malaysia-Singapore Tourism
C ouncil . The Council has earma rked $3 million for p romotion a l a ctivities, for a
three-year p eriod in seven countries w i th Indi a being one of them. The focus of
110
 DOC UMEWAOO�,
--------------
. 1-��l!I�
the Council on India does not come as a surp rise, as a survey conducted by the
Council indicates tha t an Indian travel ler spends $332 per d ay-thus, emerging as
the top spender in Singapore bea ting the American, European, Australian and the
Japanese counterparts . As per the statistics released last week, Singapore reached
a new high of 3,46,355 Indians (ranked 9 th ) v isiting d uring the yea r 2000,
registering 20 .1 percent increase over last year. (Malaysia, Singapore bullish on
tou rism, FE, 25 / 1 / 0 1 )

Singapore
The Singapore Tourism Board held its Meetings; Incentives, Conventions and
Exhibitions (MICE) seminar in Bangalore to p romote Singapore as a destina tion for
business meetings as well as tourism. Singapore, ranked as the 5th largest convention
venue in the world, is also the most p referred convention site worldwide. This city­
state has retained its position as Asia's top meeting p lace for the 1 7th consecutive.
Besides conventions, Singapore is also a favourite venue for Incentive groups and
exhibitions. (Singapore promotes itself as business meet venue, DH, 21/3/01)

The Singapore Tourism Board has drawn u p 101 ways of promoting tourism in the
country. 55% of Indian visitors a re repeat tourists. The campaign ' live i t up in
Singapore' will last over two years. The trend is that more Indian women in-groups
of two-four prefer to travel south�ast Asia. There was a 25% increase of Indian
women to the country from last year .(2000) . The STB has a lso tied up w ith the
Malaysian tourism board to promote the two countries together. The MTB-STB, with
a fund of US$3 million, is marketing the region in 7 countries around the globe,
including Indi a . (Singapore devises new tOllrism pitch, A njali Prayag, BL, 1/7/01)

Malaysia
Tourism has become the second major foreign exchange earner for M a laysi a .
Tourism a rrivals declined from 7 .46 million i n 1 995 to 5 .55 mill ion a t the end o f
1 99 8 . This w a s because of the haze and the financial crisis. The government then
decided to re-vamp the ministry of arts, culture and tourism as tourism could
assist in boosting the economy.

The a reas o f concentration following the economic crisis w ould be three pronged .
They would focus their a ttention on market areas tha t were unaffected by the
economic d ownturn, look at regiona l destinations tha t would generate the flow of
traffic to Malaysia immedia tely and to focus on our domestic tourism. (Marketing
Malaysia, Hugh & Colleen Gantez, TOI, M, 3/4/01)

Since 1 999, the Malaysian government began a serious initiative to tempt Indian
fam il ies to make Malaysia a s the favourite destination . As a p a rt of i ts continued
initiatives the government plans to have zero tax on as many items as p ossible
which tourists love to b uy and by trying to make all branded items the cheapest.
They a lso plan to open a visa office at Bangalore. Malaysia earns $ 4.5-bn from the
tourism industry and seeks to m a ke it one of the main pillars of the country's
economy. (Bmlgalore to have Malaysia visa office, Deepak K Upreti, DH, 25/9/01)

Despite the economic slowdown, Malaysia is experiencing a growth in its tourist

a rrivals from Asian countries including India . In order to keep the momentum
and a chieve its target of two l a kh tourists from India this year, the Malaysia
Tourism Promotion Board has joined hands with Malaysian A irlines and the private
sector of tha t cou n try to bring a road show to Ind i a . This is in a d dition to the $1
million mass media campaign i t is running in the country this year. (Malaysian
tourism looks up amid economic slowdown, FE, 2 7/11/01)
111
____
____
________ �DO_,�
Malaysia - Truly Asia, is the new slogan adopted by Malaysian Airlines and the
M a laysia Tourism Promotion Board to lure Indian tourists to their coun try. The
Malaysian o ffer includes three International Events l ike the G rand Prix, the G reat
M a laysia sale <1nd Colours of M a l<1 ysi a . (Malaysia lures Indian tourists in 'Tru e'
style, IE, 1 6/12/01)

Thailand
Hoping to cash in on Tourism, the Tha i a rmy plans to open many of its camps to
foreign visitors. It p roposed that stays a t b ases shou l d be incorporated into
Thailand's n a ti onal tourism action pla n . The once a ll-powerful Tha i military owns
large tracts of the country and its b ases were often situated in scenic areas. Several
years ago, the a rmy o pened some of i ts b ases for one-d ay tours feat u ring
demonstrations in j u ngle surviva l . Visitors were put through some basic milita ry
training. Under the new p lan, to be implemented next year, the focus would be on
overnight or longer stays for foreign tourists, especially from Europe and Japan .
(Army camps for tourists, BL, 28/1 1/01)

China
China is to build a stone cave house hotel w i th 248 cave dwellings in seven rows,
which is to be the l argest structure of i ts kind north West China's Yan'an . It would
be built by pieces of stone and is estimated to cost about US $600,000. The Hotel
would surpass the current world record holder, the Yan'an University, which has
226 cave houses in six rows. (China to build cave hotel, TOl, B, 1 5/10/01)

Hong Kong
Gearing u p to woo and increase interaction w i th Indian tourists Hong Kong
Tourism Board (HKTB) plans to focus on India this year as a p rime and developing
m a rket. The HKTB has been focusing on increasing the Indian travel trade's
awareness o f Hong Kong as tourist destina tion through m ajor trade acti v ities
including regular quarterly product seminars, travel marts, buyer-seller meet
inviting Indian travel a gents.

Hong Kong saw 1 ,3 1,368 Indian Tourists d u ring last yea r, recording a significant
22 per cent growth from the p revious period , HKTB had recently initiated a two­
year tourism p roject titled 'City of Life - Hong Kong is i t', envisaging w i de range
of events, activities and programmes, to promote it as a p opular tourist destination
in Asi a . (Hong Kong targets India as 'prime tourism market', ET, 1 7/4/01 )

India, wh ich recorded a growth of 25 . 1 % i n M a y this year a s compared t o last

year, continues to be one o f the fastest growing m a rkets for Hong Kong, During a
press briefing the regional Director of HKTB said tha t the Board plans to put in
m ore resources into the Indian m arket to further p romote HK. (HK targets Indian
tourists, B L, 24/7/01)

T40 Middle East/West ICentral Asia ..

.._'"_" ___.,... . ___.
. .,.
.... , ....
.. ""
. a;� _.
.,. .
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. ,

Dubai
Emira tes passengers can now avail over 280 hotel offers in 74 cities a round the
world, w ith the new stopover program me for 2001 -2002. Bookings for a l l class of
travellers can be made through travel agents for any length of time, There would
a lso be n o additional charge even if there were a change in exchange rates. (Stop­
over offers in hotels for emirates customers, BL, 1 6/9/01)

Figures from t h e Department of Tou rism and Commerce Marketing, Dubai show
that tourism from India to Duba i has been growing a t 22% p .a , The DTCM also
112
___________
,, _
,, ____ �DO_�
p lans to further its actiovities in its Mumbai p romotion a l o ffice. As per a MoU
signed between DTCM and GoI, AP, eight l arge tour opera tors would v i si t the
state to a ssess i ts tourism ma rketing potential in Dub a i . (Indian tourist trail beelines
Dubai, Deepanjali Bhas, TOI, B, 26/9/( 1 )

Saudi Arabia
There was no such thing a s a tourist v isa for this country, a t least until recently.
Saudi Arabia is one of the m ost conserva tive societies and has l ong been reluctant
to w elcome needless visi tors . But as part of the new economic reforms, policy
ma kers a re cautiously exper imenting w ith new ideas, including tourism . Musli ms
from a l l over the world come on p ilgrimage to the holy sites in western Saudi
A ra bi a . But their visas a re restricted to Mecca and Med in a . It w il l be a while
before the Kingdom l iberalises its cumbersome visa procedures and m akes it easy
for outsiders to travel i n the country. But the experiments w ith tourism here
suggest their intentions to be in tune w ith the new Iiber a l i sa ti on p ol icies. (Saudi
Arabia opens up, slowly, C. Raja Maltan, TH, 22/01/01 )

Russia
Russia is a l l set to issue 72-hour entry visas at A i rports in Moscow, St. Petersburg
and some regional border p osts. Currently, visitors m us t get v isas in their home
country, a p rocess tha t can take weeks and lead to often frustrating encounters
w ith the p ost-Soviet na tion's bureaucracy. (Russian airports to issue tourist visas,
BL, 1 7/5/0 1 )

Japan
Indian IT professionals will soon have the w orld's second largest IT spender,
Japan, ushering them i n . Japan is set to loosen the country's i m m i gration laws for
IT p rofessionals and usher in a H I B visa -style of i mmigration system, w ith quotas
for v arious countries. They expect a round 6,000 IT p rofessionals in v arious Indian
companies to be w orking on Japanese projects in India by 2003. (Japan to ease visa
rules to woo India. Prasenjit Bllattacharya, ET, 8/1 2/0 1 )

South Africa
South Africa is being v iewed as an a lternative destination to the US and Europe
a fter the September 11 a ttacks on the US. There were an increased number of
enquiries from segments like film crews, school chil d ren and honeymooners. The
South African Tourism road show that is on i ts third s top, a fter Mumbai and
Delhi, has received positive response from the Indian travel agents. A recent survey
conducted on the tourists travelling to South A frica revealed tha t 71 per cent of
them went there for shopp ing. The tourism department a l s o plans to develop a
number of Heritage Sites associa ted w ith Mahatma Gand h i . (Destination S Africa,
B L, 1 1/10/( 1 )

T60 Europe ......,

. ,_1 ___. ...
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Switzerland
Sabena A i rl ines has launched specia l promotional Swi tzerla nd tour packages in
association w ith Swissair and Swiss tours for supporti ng travel agents i n the
South due to the US a ttacks. (Sabena Airlines offers special tour packages to Switzerland,
FE, 25/9/01 )

Germany
Holidays for Germans a re going to become more expensive as tra vel a gents. Tour
operators and airlines have increased their rates a fter the Sept l l 'h a ttacks . (Holidays
no longer cheap, BL, 30/10/0 1 )
1 13
______________ �_F3c��
The German Ministry is willing to widen and relax i ts green card norms for
Indian professionals and visas for their fa milies. This is a follow-up to the interest
showed between the two countries to improve its IT interaction . However a number
of ma tters such as l ong term green card, short term work permits and fast-track
electronic processing stil l need to be sorted out. (Germany to ease visa regulaticms,
BL, 31/1 0/01)

Finland
Bucking the recent drop in air travel, tourists are expected to visit Finnish Lapland
in record numbers this winter, drawn by reindeer rides, Santa Claus and the
A rctic region. Despite the September 1 1 a ttacks in the US, tour organisers a re
expecting more than 45,000 visitors by a ir, tip 1 0% from last year during the
w inter season . Most of the visitors a re expected to come from B ri ta in, Japan,
Russia and Germany. (Festival cheer beckons, BL, 25/1 1/0 1 )

France
A record 75-Million tourists visited France in 2000, confirming the country's
position as the w orld's p remier tourist destin a tion . The number of foreign v isitors
increased for the fifth year running, up 2 .7% over the figure for 1 999. (Tourism
record, IE , 11/2/01 )

Spain
The Spanish Tou rism Board p lans to p romote S pa i n as a tourism destination in
India by strategically using its Asia Pacific office in Singapore . The government is
looking a t new ma rkets, mainly in the Asia Pacific region a nd Indi a . The N a tional
Touris t Office (NTO) will be working with travel companies, and has tied u p with
Cox and Kings to promote Spain . The Indian outbound tour m a rket has been
growing steadily over the l ast few years. (Get set for a Spanisl! interlude, Nina
Varghe§e, B L, 6/3/01 )

United Kingdom
Britain is seeking the help of Bollywood's film fraternity to fight the impact of the
Foot and Mouth d isease on UK Tourism. Their a nswer to bring back tourists to
the country is the newly published Bollywood M ovie M a p of Britain targeted a t
r ich Indian film fans. The m a p is p ublished b y the B ritish Tourist A u thority (BTA)
a nd aims to cash in on the 400% increase in the number of Bollywood films shot
in the U K . It shows how India's filmmakers have developed a taste for British
castles and stately homes a s exotic l oca tion backdrop s . The BTA is distributing
55,000 copies in India and the Middle East. (Britain seeks Bollywood help to save
tourism, Shyam Bhatia, D H, 23/4/0 1 )

Scotland
As a par of i ts p romotional gimmick, Visitscotland, the Scottish tourist board
offered on sale a hundred luxury holidays for just £ 1 0 each as part of a "summer
sale" promotion to boost the Scottish tourism industry in the wake of the foot­
and-mouth crisis. The breaks usual ly retai l for around £ 1,000, a hund red times the
sale price . They hope that this move will give a major boost to the tourism industry.
(BL, 2 7/6/0 1 )

T70 North A merica _

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The Consulate General based in Chennai, has a llowed certain companies to b e

enrolled i n t h e C onsulate Genera l's Business Express Program s . Under this
programme, employees of companies (mostly executives or key technical personnel)
headqua rtered at Chenna i and residing in Chennai Consu l a r District, being sent
1 14
________..... �o_�
for a temporary stay in the US for business purposes need not be present d uring
visa interviews. Chenna i Consula r District comprising the sta tes of Tamil Nadu,
Andhra Pradesh, Karnataka, Keral a a nd the Union territories of Pondicherry and
Lakshadweep islands. (US consulate launches new programme for business travellers,
TOI, B, 2/5/01)

A number of American tourists criss-cross Europe in record numbers. Since the

l aunch of the euro two-and-a-ha lf years ago in electronic form, the new currency
for 1 2 European countries has weakened by more than 25 per cent against the
dollar, making hotels, services and goods that much cheaper for visiting Americans.
When euro notes and coins a re rolled out at the start of 2002, US tourists will get
another bonus the hassle of changing money at every new border will d isappear.
For Americans travellin g in the euro zone, the convenience the euro should bring
w i l l be noticeable - price transparency for goods and services from country to
country, and relief from the bother and fees involved in exchanging money multiple
times w hen crossing borders. (Euro removes barriers for dollar tourists, BL, 2 1 /6/0 1 )

American companies i n India have become extremely vigilant in all respect a n d are
keeping a dose watch on the events in and around Afghanistan . Though there has
been n o official restrictions imposed on them either by the US embassy in India or
their respective headquarters they have decided to keep their travel schedules to
the minimum. The top executives of the American companies are not undertaking
any casual trips and a re restricting their movements only to business requirements.
(US cos cut down 'casual' travel, Ambarisl! Mukherjee, BL, 9/10/0 1 )

A growing number of U S hotels have extended their heavily d iscounted ra tes

through the end of the yea r in response to prospects of a sustained travel crisis.
About h a l f of the 3,600 hotels represented by online b ooking service- H otel
Reserva tions Network h ave now extended their post-attack rates, which run 20-
30% below pre-attack levels. Most hotels initially adopted a w a i t-and-see approach
to the situation, guaranteeing heavily d iscounted rates introduced a fter the a ttacks
in New York and Washing-ton only through the end of September. When it became
dear that the ongoing travel crisis that saw occupancy rate plunge a fter the a ttacks
would continue m any extended those rates through the end of October. (Hotels
extend discounts through end of tile year, Doug You ng, ET, 1 4/10/01)

The US Embassy has announced tha t non-immigrant v i s a a p p licants can n o w

m ake a ppointments f o r their visa interviews beginning N o v 1 " . The a p pointment
system will a llow visa a p p l icants to bypass the visa line and proceed to their
interview without delay. Appl icants can book their appointments three months in
advance . These appointments can be made over the Internet or by any travel
agent. (US Embassy move to cut visa queues, BL, 31/1 0/0 1 )

To increase Tou rist Traffic, the Department had first promoted Chicago to its
residents to travel a round the c ity. Now, in its l a test bid to a ttract visitors, the city
is asking residents to show out-of-towners around . The city's tourism department
has kicked off 'Chicago Greeter', a free service for visitors who want to see the
city through the eyes of people who live in i t . Similar to New York's Big Apple
Greeter and Austra lia's Melbourne G reeters, 'Chicago G reeter is previewing this
month and then w i ll start again d u ring spring. American and United A irlines will
help ma rket the programme and provide some of the greeters. (A homely sight
awaits tourists, BL, 5/11/01)

115
____
____________
___ D�p_,���
T80 C aribbean/Central and Latin America ...
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Cuba
For centuries, Cuba 's economic fortunes depend ed on the annual sugar harvest.
But with the colla pse o f the Soviet Union a decade a go, C ub a lost i ts socialist
financial p artners and p referential trade. Throughout the 1 990s, the sugar ha rvest
reg u larly yielded less than h a l f the record 8 5 million metric tonnes collected in
1 970. Sugar sti l l remains important to Cuba, but tourism is now the island's No. 1
source o f foreign currency. C uban officials say tourism generates $2 b i l lion in
annual revenue, fol lowed by sugar a t $550 million . Nickel p roduction brings in
about $300 million a yea r according to government figures. (Tourism sweetens Cuban
economy, BL, 1 2/6/0 1 )

Caribbean islands
The slump in leisure travel a fter last month's a ttacks in the last month's a ttacks in
the USA has brought "catastrophe' to the C a ribbean Tou rism Industry. The drastic
d ownturn in travel had resulted in massive cancellations, sharply reduced hotel
occupancy rates and at least several hund red-job losses in the tourism industry,
which is a major foreign exchange earner for more tha n half of the sta tes of the
region . The Tou rism Operators "nd investors were likely to adopt a "wait-and­
see" strategy while they considered the impact of the US military response to last
month's strikes a nd lingering fea rs of i.Jrther a ttacks. (Caribbean leisure travel sector
in trough phase, Magdalena Morales, ET, 1 2/1 0/0 1 )

T90 Pacific ......

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N ew Zealand
Tou rism New Zealand, a Government-funded body to Promote International
Tourism, is on a road show in Indian metros to increase the awareness o f New
Zealand as a holiday destination. Though the actual numbers a re not l a rge, India
is considered as one of emerging ma rkets for tourism to New Zealand . New
Zealand has been attracting a number of film crews from a l l over the w o rl d . Last
year 60 films ..yere shot in the country. (The lure of Kiwiland, BL, 6/3/01, T90)

Fiji
Fiji's tourism industry lost over $ 1 23 mill ion in gross revenues last year d u e to
the cou p . In a d d ition, hotel and other tourism sector p rojects wo rth some $80-mn
have been put on hold or cancelled since the coup, reflecting the loss of confidence
in Fiji by investors.

It is fu rther bad news for the South Pacific Island nati on, w ith the economy
forecast to decline by eight p e rcent this yea r. Tou rism receipts have been Fiji's
major source of foreign currency earnings since 1 989. The industry p rovides
employment d i rectly and indirectly to an estimated 40,000 people, which is 1 5
percent o f Fiji 's total labour fo rce . Its share of the gross d o mestic product (GDP) i s
a round 1 7 per cent. (Coup cost Fiji tourism $ 1 23-mn, IE, 1 0 / 4 / 0 1 )

116
 ______________ ��O_5�
I ... b " ".. F . ,. ,) til" . 4t fI',_ 1 It
I! " "',:;/', " " _ �'!' }'!' ''' _� .�"':.,�" i"!!' '''
'1lJNl'ERN1TfONAL.,.Ecoal!)'
, .. ... ., • '4 -:1 " , �(. 10 .... .

'•• •, i1 1 ' • Ii ' If"'''" " ) , II' ,_ 1 , ,

, " '.

U 3 1 G eneral Agreement on Trade i n S ervice , . , '" 1 0) ; "• • •

Heal th, telecommunica tion, air transport, construction, tourism, engineering,

accountancy and architecture have been identified by the government alon g with
software and computer-rela ted services as the key a reas in which India would
press for l iberalising of visa regime at the forthcoming WTO negotiations on
services. (India to press for opening lip of visa regime for 11 sectors, ET, 20/8/01 )

While developed countries are fully geared for the on-going mandate d negotiations
on the services sector under the WTO aegis, developing countries a re being a ffected
by the absence of sufficient data and market intelligence on the sector. The committee
report underlined the need to set up a services task force on the lines of the IT task
force to examine services exports and WTO-related issues. An institute for services
trade should also be set up in associa tion with a pex chambers l ike Fieo, ClI, FICCI,
ASSOCHAM, PHD Chamber of Commerce and Industry etc for conducting surveys.
The report recommends that bilateral data for trade in services with India's major
trad in g p artners be collected on a p riority basis for important services, particularly
with the help of mandated surveys and concerned industry associations. (Panel
suggests task force for service exports, S Vellkitacizalam, BL, 1 8/09/01 )

A study on India and G ATS sponsored by ICRIER has called upon the government
to initi a te reforms by encouraging p ri v a te sector p a rticipa tion (fo reign and
domestic) in the in frastructure services sector to enable India to emerge a s a major
e x p orter of some of these services in the global market. (Pvt participation
infrastntcture stressed, 27/9/01 )

China h a s a nnounced tha t foreigners w ith senior management or technical

experience as well as those who have 'in vested heavily' will be a llowed to stay in
the country "perma nently " and enter China without a visa . In a sign tha t China
was opening up further, Beijing also announced tha t foreign tourist groups could
get visas on a rrival at designa ted ports of entry from January 1 , 2002 .

China, which formally joined the World Tra d e Organ isa tion (WTO) on November
10, not only needs foreign talent to come into the country but encou rages its
citizens to go overseas. (Chiml relaxes visa rules, Amit Ba mah, TH, 24/11/01)

ZOO Statistics _'_11_______....

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Net receipts under the foreign travel account (Rs cr.)

90-91 94-95 96-97 97-98 98-99 99-00

Receipts 2613 7424 1 0232 1 0880 1 2604 1 3 1 66

Payments 703 2570 3049 5339 7326 9268

Net 1910 4854 7 1 83 5541 5278 3898

117
�oreign Tourist Arriv<lls (Jan-Jun)

Month 1 999 2000 2001 Percentage Change

2000/99 200 1 /00

Jan 253 1 25 266972 289 1 90 5 .5 8 ,3

Feb 241 881 25472 1 2660 1 4 5 .3 4 ,4
Mar 227 1 5 1 235326 244073 3.6 3.7
Apr 1 65627 1 8741 9 1 93993 13.2 3 .5
May 1 40 1 68 1 5 1 344 1 54360 8 2
Jun 1 53225 1 63 7 1 6 1 62756 10.1 -3.5
Total 1 1 8 1 1 77 1 264498 1 3 1 0386 7.1 3 .6

Foreign Exchange Ea rnings (Jan-Jun) i n Rs cr

Month Foreign Exchange Ea rnings Percentage Cha nge

1 999 2000 2001 2000 /99 2001 /00

Jan 1 290 .28 1 350 .4 1 627.85 4 .7 20 .5

Feb 1 250.31 1 36 1 .33 1 472 .69 8 .9 8 .2
Mar 1 1 4 1 :4 1 1 1 85 .2 7 1 335.7 3 .8 1 2 .7
Apr 1 064 �45 1 00 7 . 1 1 1 1 28 ,55 -5.4 12.1
May 870.67 773 ,25 845.02 -11 .2 9 .3
Jun 942.88 870 909 .3 -7.7 4.5
Total 6560 6547.36 73 1 9 . 1 1 -0.2 1 1 .8

Source: Press Inform a ti on Bureau

(Slump ill tOllrist arrivills in June, Bt, 6/7/01 , 000)

Tourist Arrivals (Lakhs) Foreign exchange ( Rs . C r.)

1 999 1 1 .8 1 6560
2000 1 2 ,65 6547
2001 13.1 731 9

(Foreigll TOllrist A rrivals, TO!, M , 1 1/7/01 , 000)

Net earnings from tourism ($ m il l ion)
Period Earnings Spending Net
1 997-98 2914 1 437 1 477
1 998-99 2993 1 743 1 250
1 999-00 3036 2 1 39 897
2000-01 3 1 68 2874 294
2001 -02 (Apr-J un) 718 724 -6
Source: R B I, (Tourism llO longer a net forex earner, Bt, 2/1 0/01, COO)
Goa
G row th in Tou rism
Year % Growth
1992 7.30'Y"
1 99 3 8 . 1 7°;')
1 9 94 9 .32°;',
1 995
1 996
1 997 5 . 72%
1 998 3 .00(�·"
1 999 I .Bn'lIo

1 18
 DOC UME�J�!lQN
----------. -.I-II_��.�
� rowth in Foreign Tourist Arrivals
Year % G rowth
1 992 55.00%
1 993 40 .50%
1 994 23.00%

� ccommoda tion Av ailable

Year # of beds
2001 1 4505

Tourist Arrivals
2000
I 1 267000

(Grappling witiz tile tourism plan, De'vika Sequeira, DH, 1 7/7/01 )

Kerala

2000-2001 Tourist Arrivals Thiruv avanthapuram Kochi Thissur

Domestic 5.11 mn 81 0527 1 376892
Foreign .21 m n 82908 558 1 9
Total 5.31 mn

(Big gains i n fund-dry spots stun Kerala touriS!/!, M Sarita Varma, FE, 22/8/01 )

1 99 1 1 99 2 1 993 1 994 1 995 1 996 1 997 1 998 1 999 2000 20m'

Approvals
I Actual
5.3 38.9 88.6 1 4 1 .9 320.7 3 6 1 .5 548.9 308 . 1 283.7 370.4 1 40.9

3.5 1 7.9 32.9 6R 2 103 9 1 64.3 1 33 .4 1 68 7 1 93 4 80.1

FIgures In Rs bIlhon
inflow 6.8

Up to June

Top ten sectors

A pprovals during August 1991 to June 2001, Rs billion
Sectors Approvals
Fuels 704.2
Telecom 531.1
Electrical equipment 257.7
Tra nsportation 190.1
Service sector 1 64 .3
Metallurgical industries 1 45
Chemicals 1 24 .5
Food processing 88.4
Hotel and Tourism 48
Textile 33.8
(Foreign direct I1lves tmen t m Indw, Bt, 9/9/(1 )

1 19
______________ -----D�2_,��
Tourist Arrival in India
2000: Foreign tourists: 2 .62 million a n d foreign exchange: $ 3 .28 billion.
1 999: Foreign tourists: 2 .48 million and foreign exchange: $ 3 .04 billion
% i ncrease of tourists: 5 .7'1., and % i ncrease of foreign exchange: 8 . 1 %,
2000: Domestic tourists: 1 75 million.
1 999: Domestic tourists: 1 68 million
(Foreign tourist arrivals lip 5 . 7%, BL, 6/01/0 1 )

Month Tourist A rrivals Reven ues ( m il lion USD)

N u mbers % Change Amount 'Yo change

Oct-DO 226531 3 .23 244 2 .70

Nov-DO 276254 5 .95 302 -

Dec-DO 2808 1 3 1 .65 365 20 .86

Jan-Ol 283750 1 .05 360 - 1 .37

Feb-01 262306 -7.56 324 -10

M a r-Ol 248965 -5,09 292 -9 .88

Apr-01 1 85338 -25.56 246 - 1 5 .75

M ay-01 1 5 1 098 - 1 8 .47 1 84 -25.2

Jun-01 1 65267 9 .38 198 7.61

Tul-01 I 2C'"'S93 25 . 6 1 261 3 1 .82

Au 34 -6.68 291 1 1 .49

Sep-01 1 6 3 1 76 -1 5 . 77 -30.24

Oct-01 1 6 3 1 92 0 .01 1 71 - 1 5 . 76

Nov-()1 20571 3 26.06 234 36 .84

Source : CMIE (Hotel industry, Few takers for Indian hospitality, A n up Menoll, BL, 1 6/
1 2/0 1 )

1 20
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A Statement of Concern

As EQUATIONS enters its 1 7th year of experience and existence in critiquing tourism
issues in India, it is challenged by several concerns on the horizon today, a scenario
that is likely to persist and extend in both magnitude and implications as we approach
the 2 1st century.

Towards a Critique: Some Statements

In the context of neo-colonisation

• tourism has to be viewed in the context of a development model which has a

political c'baracter;
• tourism development has taken place along with increased elitism, a uthoritarianism,

militarism and various forms of Stilte repression in different p arts of the world: all
of these a re threats to the culture, economy and empowerment of communities;
• tourism development along with globalisation process threatens the sovereignty of

a nation (in the broadest definition of 'na tion';

• tourism e u l ogises a certa in consumptive a n d luxurious l i festyle wh ich is

unsustainable by any means;

• tourism promotes net outflow of capital to global market economy espeCially to the

so-called developed nations;

• tourism is based on the objectified view of the world where beaches, sanctuaries

and so on a re seen as objects of pleasure which negates the sanctity of the objects as
well as of possible meaningful relationships between peoples' and their environments.

.
u p ...., I,U .,.. w' , I. Uf. ," P1I "'� ') *PI .J .. • ; ,$I It •• , _ I . .... ......

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EQUATIONS seeks a world where weal th, resources and benefits are much more
equitably distributed between North and South. Our vision of tourism fits within that
framework. While there is no one transposable model which will work in all situations,
we a re working toward tourism which

• bring economic benefits directly to all segments of the host community, pa rticularly
including women and indigenous peoples;
• is subject to local, democratic control, so that communities a re making their own
decisions about how tourism should be permitted and regulated;
• is integrated into other community activities, so that it is culturally appropriate and
sensitive to the inequi ties between hosts and guests;
• enriches both host (economically, developmentally and in terms of control) and
guests (culturally, re-creationally) .

This is in contrast to many current tourism models, which a re imposed from the
North, require the extensive use of i mports, are overly commercial ised, and reinforce
inequities rather than challenges them.

EQUATIONS sees tourism not as a means to bring Southern communities into the
Northern mainstream, but rather as one of the ways to work toward a more just world.

121
11 , b � ..., $ .... ,,.. + , '* .. ,.' .. ". tJ h � !t Ii It , l , p1

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The varying roles that EQUATIONS plays includes advocacy, centre for infonnation
resources, educator, watchdog, helping hand, publisher and producer of materials.

At the local level

• focus on a particular place or issue
• documents the tourism movement itself
• conduct surveys with local groups
• produce background material on pa rticular situa tions
• facilitate scientific research on environmental and related issues

At the national level

• EQUATIONS identifies itself as an Indian group, not a global one
• EQUATIONS historical role is as a pioneer who put tourism on the agenda of the
national development debate.
• EQUATIONS provides research and publications and is a resource centre .

At the international level

• Provide direct support for local action in South Asia
• Provide resources and information for local action elsewhere develop training and
seminars for groups worldwide
• Participate integrally in the new global tourism structure when it emerges.

Infonnation Collection and Dissemination

• Collaborate with local groups to collect information /inform them about parameters
and standards
• Produce brief fact sheets in Basic English so they can readily be translated, and
some in local languages
• Produce guidelines for assessing tourism from different perspectives

Lobbying
• Make the concerns and interests of local communities visible
• Empower them to lobby for themselves a nd training
• Offer workshops on fundamental tourism issues.
• Provide "how to" sessions on: participatory research, communications (including
how to publish a newsletter and present a udiovisual programs), options for strategy
(including legal options)
• Tailor each subject to the particular group's situation and priorities.

Monitoring
• Learn about hotels entering India, including their investments, corporate behaviour
elsewhere, and structures.
• Monitor tourism policy, and legislation which will a ffect tourism issues
• Network with others who can be "eyes and ears"
• Follow global development that a ffect tourism
• Produce an annual audit showing how tourism in India is faring, from a critical
perspective.

122
 I "
,J ( " ;11 " 11'1'.,1 ' iii III U. , ... _ ,,. . , •• ., J, ....H 'Lba It I W" . " • i t(

Source Index
.' , . , , ,. 11 . .. .. ) . . . . " ..

BL Business Line
FE Financia l Express
ET Economic Times
IE Indian Express
DH Deccan Herald
TOl .B Times o f India, Bangalore
TOl.M Times of India, Mumbai
TOLD Times of India, Delhi
TH The Hindu
NT Navhind Times, Delhi
GT Gomatak, Goa
HT Hind ustan Times
EH&C Express Hotelier and Ca terer
ET&T Express Travel & Tourism
TP Travel Plus

Readers a re welcome to write to us for any of the material listed in the U pda te,
though we request contribu tion towards photocopy and mailing expenses. The
d a ta at the end of each item indicates the source. Please refer the source index for
abbreviations used.

EQUATIONS (Equitable Tourism Options) Seeks to situate the tourism critique w ithin
the overall development debate. Our activities include documentation, publications,
research and supporting individuals and groups involved in concerted action on tourism
issues.

1 23
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