The Hindu Business Line : SEZ status for tourism

The Government must consider according SEZ Status to tourism and related sectors, to enable the setting up of the tourism infrastructure urgently required.

According to studies, nearly 3,00,000 hotel rooms are required in the next five years, at a huge investment of thousands of crores of rupees, especially with the Commonwealth Games to be held in New Delhi in 2010, and the proposed new Delhi International Airport. In all, 27 regional airports and 500 new airports are coming up in various parts of India by 2012.

Naturally, hotels will have to be set up near these airports, with nine planned near the Delhi Airport alone. The hotel industry and the tourism sector, as well as related areas must be made attractive for investment. One way this can be done is by giving SEZ status to tourism, so that it would attract investments made; otherwise, we may fall short of the infrastructure required by 2012. The Government of India, Ministry of Tourism, itself, through its tourism companies, must participate in the development of tourism facilities in India, as nearly Rs 2,00,000 crore will be invested and this requires a competent supervisory body to ensure that proper Special Export Zones are set up.

The Ministry of Tourism could identify some nine States for promoting tourism growth, some in each region.

The growth of tourism is likely to be faster in the Tier 2 and Tier 3 cities, which are set to witness phenomenal growth, while the metros may record sustained development.

The Government could give SEZ status for 20 years for the tourism sector’s rapid growth and to enable it to achieve the objectives laid down in the country’s Eleventh Plan. These include projected hotel room requirements of another 3,00,000 hotel rooms by 2012, with an investment of Rs 2,00,000 crore.

Raju Chandran e-mail