|C O V E R S T O R Y |
527 million domestic tourism visits The tourism industry in India generated about US$100 billion in 2008 and that is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate. The Ministry of Tourism is the nodal agency for the development and promotion of tourism in India, also running the 'Incredible India' campaign. According to World Travel and Tourism Council, India will be the world's leading tourism hotspot, having the highest 10-year growth potential. The Travel & Tourism Competitiveness Report 2007 ranked tourism in India sixth in terms of price competitiveness and 39th in terms of safety and security. However, India's tourism sector currently lags behind less endowed countries and faces serious challenges including shortage of hotel rooms. In 2007, there were only 25,000 tourist-class hotel rooms in the whole of India. Among other factors hindering the growth of the tourism industry in India are stringent visa requirements and congested airports. Despite short- and medium-term setbacks, tourism revenues are expected to surge by 42% from 2007 to 2017.
Planning Commission estimates reveal that an investment of Rs 10 lakh (Rs 1 million) creates 78 jobs in the tourism sector and just 18 jobs in the manufacturing sector and 45 jobs in the agriculture sector. Considering the huge employment potential, and also due to the need to scale up supplies to meet the demand, the potential needs no reiteration. Sadly, there seems to be little concerted effort in this direction. The hotel industry, an integral part of the tourism sector, has been clamouring to be included just like airports, seaports, and railways, etc. In fact, under Section 10 (23) g of the Income Tax Act, hotels were added to the infrastructure list so that the interest received by financial institutions and banks for loans extended to hotels were tax exempted. However, the section itself was discontinued with effect from April 1,
“Incredible India” has strangely failed to move beyond familiar motifs. Tourists hardly know that India has hundreds of tourist attractions other than the Taj. PRAVASI TODAY | SEPTEMBER 2009
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2009