The Hindu Business Line : Tourisms and hotels: Thrust on infrastructure

To boost the tourism industry, the Government seems to be going the extra mile to give a fillip to the hospitality industry. To enhance India's standing as an international tourist destination, the Jaipur airport is to be upgraded to international stature (India will then have six international airports).

The need for an international airport in Jaipur was felt when the Pink City hosted AdAsia 2003. The increased interest for Rajasthan by the domestic and the foreign traveller is another reason for such a need.

Major hotel players that have a presence in Jaipur such as Indian Hotels, EIH and ITC Hotels would benefit. These companies derive a chunk of their revenues from international travellers.

In addition, companies that have a presence across Rajasthan would get a boost. Companies such as Bharat Hotels and Hotel Leela (which is developing its property in Udaipur) may also see increased occupancy. Though inflows may not increase immediately, it augurs well in the long run.

Another announcement, which could have a positive impact on the tourism and hotel industry, is the construction of six convention centres — two each in Delhi and Mumbai, and one each in Rajasthan and Goa. With business travel picking up, the dearth of convention centres is being felt. Such a move would pan out well as the MICE (meetings, incentives, conventions and exhibitions) market is largely untapped in India.

This thrust on infrastructure and investments on upgrading airport may result in increased inflows, which would remove seasonality of the tourism and hotel industry to a certain extent.

Another announcement, though minor, but could still have a positive impact on the travel industry, is the hiking of free baggage allowance — to Rs 25,000 from Rs 12,000 for travellers.

Also, the reduction of Customs duty by 10-percentage point to 40 per cent on baggage over the permissible duty free limit would also reduce the burden of the traveller. Combined with the sops previously given (a month ago), the outbound traveller has lot to be smug about.