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Sikkim to allow greater private sector role in tourism

Ambar Singh Roy

Lately in Gangtok

PRIVATE industry is all set to play a bigger role in the tourism sector in Sikkim with the State Government deciding to restrict its role to that of a facilitator in this regard.

The State is hopeful of attracting Rs 150-200 crore worth of investment in its tourism sector within the next five years, according to Mr Karma Gyatso, Principal Secretary-cum-Managing Director of the Tourism Department of Sikkim.

Speaking to Business Line, Mr Gyatso said agreements have been entered into with two private sector partners for the setting up of a five-star eco-resort — at a place, which is a 45-minute drive from Gangtok — and a three-star hotel in the State capital.

A 15-year Tourism Master Plan and a 20-year Sustainable Development Plan prepared by the State takes into account a greater role for the private sector in the hotels and hospitality industry in Sikkim.

Mr Gyatso declined to divulge the names of the parties who would set up the eco-resort and the hotel.

"The State Government will henceforth confine its role to that of a policy maker and facilitator. We will also provide the land. All further investment that is required will have to be made by the private sector," he said, adding that the revenue model of the State was based on the rental income from the land that is leased out to the private parties.

All projects that are taken up would have to be eco-friendly. Besides, to address the issue of the educated unemployed, employment would have to be provided to locals.

Since last year, tourist arrivals in Sikkim have been devoid of any element of seasonality. Earlier tourists used to visit the State only during the summer months. Now, the hills have begun to beckon tourists even during the winter.

Last year, Sikkim attracted three lakh domestic and 25,000 international tourists. The growth in domestic tourism has been pegged at 20 per cent per annum even as the growth in the number of international tourists is stated to be 12 per cent annually. Direct and indirect earnings from tourism have been pegged at Rs 40 crore annually.

Several measures have been taken to facilitate sustained growth in the tourism sector in the State. Dak bungalows and rest houses were being upgraded and wayside amenities were being set up in all four districts of the State.

Village tourism and adventure tourism were being encouraged and new trekking routes have been identified. The State has invested in buying equipment needed for adventure tourism such a trekking, river rafting and mountain biking. These would be leased out to adventure sports facilitators in the private sector.

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