Karnataka mulls funding agency for tourism

The Karnataka Government is planning to create a separate corporation to raise funds to create and improve tourism infrastructure in the State.

Speaking on the tourism department’s budget demands in the Legislative Assembly, Karnataka Tourism Minister RV Deshpande said, “A separate corporation is planned with the sole aim of raising funds for projects instead of depending on the finance department for it.”

The State has identified new potential tourism arenas such as pilgrim sites, coastal landscape, wildlife parks, eco-tourism, wellness (medical) tourism – alternate lifestyle/ yoga, and adventure tourism.

The State government is also planning to come out with a ‘Karnataka Tourism Policy 2014-2019’ in two to three months. An Act on the lines of Karnataka Industries Facilitation Act is also planned for tourism sector to create conducive atmosphere by involving private players.

The proposed policy will encourage a shift in attitude – from regulation and control to empowerment, from patronage to partnership, and from linear government-lead structures to alliances with diverse stakeholders in the sector.

Deshpande said, “The final shape of the proposed corporation will be decided on before the policy is announced.”

According to the draft policy prepared by the tourism department, the government sees additional revenue potential of ₹83,000 crore (through direct and indirect taxes) and the investments of ₹73,000 crore with 50 per cent government funding (infrastructure, destination and mobility) is needed for providing a fillip to tourism in the State by 2024.

The government is also planning to hire consultants for every district. “The main aim of hiring consultants is to help us prepare project report and help deputy commissioners in implementing them,” explained Deshpande.

The draft policy states that there is a potential for 4.3 million new jobs in the sector, based on global norms of 10 per cent employment in tourism.

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