Issue dated > 16 - 31 January, 2003  
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PHDCCI Presents Solutions To Punjab Government

Naveen Sharma - Chandigarh

V N Dalmia

In a bid to tap the tourism potential of the state both socially and economically, PHD Chamber of Commerce and Industry (PHDCCI) has recently put forth suggestions to the Punjab Government. The said white paper also bears suggestions to create separate divisions for international and domestic marketing while highlighting the USP of the state.

Speaking about tourism in Punjab, V N Dalmia, Chairman, Tourism & Civil Aviation Committee, PHDCCI said that “Punjab symbolises the vision of a glorious heritage characterized by the patriotic and vibrant culture of its people. Famous for its artisans, folklore, folk dances (Bhangra), cuisine, green fields and holy shrines, Punjab is a lucrative tourism product”. Throwing light on this untapped potential, he said that “The basic reason behind this is that Punjab lacks a framework of incentives, the authorities are clueless on what commodities or services to tax. They lack basic know how of what luxury tax and tourist transport tax should be. According to Dalmia, first of all Punjab needs to have an aggressive marketing strategy to make its presence on the country’s tourism map and should combine resources with the Government of India and with the neighboring states. Joint promotions are the call of the day. Exposure of Punjab as a tourism product to both the trade and the media is required.

Dalmia propagated that new projects in the tourism sector should be exempt from luxury tax for a period of eight years. Similarly multiplexes should be exempted from paying entertainment tax. Luxury tax should be caped at 5 per cent for existing hotels. A reduction in the transport tax and land conversion charges is required. It was also brought to attention that the Punjab Government’s Tourism Department should have separate divisions for international and domestic marketing and sufficient funds should be allocated for their budget.

Considering that Punjab is predominantly a heritage and cultural destination, the Chamber organized a two day Tourism Conclave at Patiala in collaboration with the Indian National Trust for Art and Cultural Heritage (INTACH). The main objective of this meeting was to make the state government focus on tourism. According to Dalmia “Such conclaves have done wonders for both Madhya Pradesh and Rajasthan, where Madhya Pradesh had promised to reduce transport tax and Rajasthan had increased their tourism budget and also assured to reduce luxury tax and transport tax. Similarly, drawing the attention of the chief minister of the state, who assured an increase in the tourism budget and incentivised entrepreneurs to come to the state and invest in tourism. Dalmia further confirmed that it was decided at the end of this conclave to set up a Joint Working Group- with PHDCCI, INTACH and Government of Punjab to review and monitor the progress on a quarterly basis.

“PHDCCI has also set up a standing committee of northern region tourism secretaries. So all the state’s tourism secretaries have come together on a platform provided by PHDCCI to coordinate and jointly regulate tourism promotion activity.

Dalmia further informed that the chamber had been taking up the problems concerning tourism industry with various agencies, including Central and State Government departments, Ministry of railways and civil Aviation. Tourism is a multi-dimensional activity and its future growth will depend largely on the coordination between the key players-the central government, the state government and the private sector. He said that the private sector will have to play a greater role in the development of tourism infrastructure and the future of the Indian tourism scenario will depend largely on the partnership between the public sector and the private sector. “There is need to develop a mechanism for coordinating the individual activities of PHDCCI and other organizations dealing with tourism and the government agencies for concerted efforts in developing tourism in the states” concluded he.

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