The Hindu Business Line : Incredible India needs credible policy focus

Major resources must be diverted to develop the domestic tourism segment, to offer opportunities for the local people and an experience of Incredible India to the visitors.

Tourism in India has had a a bumpy ride, trying hard first to find an identity and then distancing itself from being tagged the privilege of the affluent.

Tourism, for long perceived as a luxury, is now being rediscovered in a new avatar — a business model, an avenue of learning, enjoyment and relaxation, and an independent sustainable economic activity.

The Government, too, has realised its enormous potential as a revenue earner that can create wealth and employment. As a consequence, tourism has gained high visibility and even established a credible lobby to influence policies for its growth. Amidst all this opportunity there is confusion and conflict in the manner of driving its strategic development.

No meaningful research

There have been no planned and meaningful market research programmes to evaluate and analyse the tourism market in terms of its earning potential.

The tourism market transcends a multiplicity of socio-economic groups having diverse cultural leanings. If one is to look at the entire mid-income group (estimated around 750 million), the disposable incomes and lifestyles cover a wide spectrum.

One end has enormous spending capacity while the other extreme just about manages a reasonable quality of life. It is significant that a large portion of the mid-income segment spends as much as the foreign tourist on travel and lifestyle and can be the driver of domestic tourism.

But for this the country's macro tourism policy needs to make a paradigm shift, to align itself with the realities of the socio-political environment.

Now, too much money and too many people are chasing small and niche elitist segments of the tourism market. Resources need to be diverted to promote the huge latent segment. The development of popular destinations can be achieved with low capital outlay.

By developing the existing modes of travel — chiefly, the large rail and road network — the domestic tourism market can be expanded dramatically to make India a top tourist destination of the world.

The tourism policy cannot be divorced from the country's long-term economic objectives.

This calls for dovetailing the tourism policy to such government programmes as the Bharat Nirman Yojana, the development of Tier-2 cities and so on.

The tourism promotion plan should leverage these schemes and develop new attractions and themes.

Two-level strategy

The tourism strategy should operate at two levels. The long-term part must address such major issues as world-class airports, quality hotel rooms, development of associated tourism infrastructure and connectivity.

In the short- and medium-term, hundreds of popular destinations must be given the face-lift needed to attract tourists. Efforts must be made to create an `accommodation pool' by inviting all stake-holders to join in and participate in the growth of tourism.

The government must offer incentives to attract investments in tourist projects, especially, those located in the rural and semi-urban areas. This will also help inclusive development by increased levels of economic activity and create jobs for the local populace.

Public private partnership

The funding of tourism projects must be done through Public Private Partnerships, where the government takes care of the socio-cultural infrastructure, and private enterprises invest in capacity building and service enhancement.

The government should also rationalise the tax structure to make the hospitality and travel industry more competitive and attractive for the consumer.

India's tourism potential is well-known. Its development can create income opportunities for local people and give visitors — from within and abroad — a real experience of `Incredible India'.

(The author is Chairman, All India Resort Development Association, and can be contacted atanil_rathor@vsnl.net)