Gujarat, followed by Maharashtra and Karnataka, are the leading states attracting significant investments in hotels and tourism industry, together accounting for about 61 per cent share, industry body Assocham said on Tuesday.

“Attracting highest amount of outstanding investments worth over Rs 34,800 crore in India’s hotels and tourism industry, Gujarat has emerged on top with a lion’s share of about 29 per cent amid 20 major states attracting combined investments worth over Rs one lakh crore in the sector as of financial year 2012-13,” the Associated Chambers of Commerce and Industry of India (Assocham) said.

This reflects upon successful campaign of the Gujarat Government to attract investors in its tourism sector, the Assocham study pointed out.

Maharashtra has ranked second with about 18 per cent share in total outstanding investments attracted by tourism sector, followed by Karnataka (14 per cent), Odisha and Andhra Pradesh (six per cent each).

“Clocking compounded annual growth rate (CAGR) of over 100 per cent, Gujarat has recorded significant surge in domestic tourist arrivals in the state which crossed the 2.4 crore mark in 2012 from a level of 1.1 crore in 2006,'' it said.

Tourist arrivals

Garnering a share of about 2.4 per cent in over 103 crore domestic tourist visits across India in 2012, Gujarat is emerging as ninth most-sought-after tourist attraction for domestic travellers.

However, the state ranks 15th in foreign tourist arrivals in India as it had attracted about 1.7 lakh foreign tourists in 2012, which was 1.6 lakh a year ago, thereby registering an annual growth rate of about five per cent.

“Building its tourism sector on the its core natural strengths, the Government of Gujarat should hold tourism fairs and festivals in foreign countries on a regular interval for showcasing its rich cultural heritage to lure foreign tourists in large numbers,” said D.S. Rawat, National Secretary-General, Assocham.

“The state government should develop tourism circuits through conjunction of sites as a package in order to offer the tourists a more complete experience,” he said.

Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Karnataka and Maharashtra are top five states with highest share in domestic tourist arrivals. While Maharashtra, Tamil Nadu, Delhi, Uttar Pradesh and Rajasthan are amid top five states with highest share in attracting foreign tourist arrivals.

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