Issue dated > 1 - 15 July, 2003  
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State Tourism Boards: ‘Banking’ On The Tourism Account

Viewing the growing potential of tourism as a revenue raker for the Indian economy, most states have started allocating increased funds towards their state tourism boards. Jyoti Koul outlines the efforts of some leading states in this direction

It took global travel adversities to realise that tourism could be one of the key economic drivers of the future for the country. ‘Better late than never’, India has finally woken up to the potential of tourism. A new-found enthusiasm has percolated down to the states, who have not only increased their budgetary allocation manifold but have invited private investment and promised government co-operation in developing tourism projects and related infrastructure. Some states have had a head start and have been more successful than the others, but, many more states are now joining the race to be coined as new tourism powers. The traditional tourism giants are reinventing themselves, while the newcomers have discovered the strength of niche marketing and innovative product offerings. So, is India poised at the threshold of a complete revamp in the thinking and strategy for the promotion of inbound tourism?

The Indian tourism market has started coming of age recently with an increasing business, incentive and travel market for both domestic and international destinations. Even governments are now realising the potential of tourism and its advantages and is banking on the product. With increased allocations for tourism development, India can expect a positive change. Almost every state in India with the augmentation of the budget is pursuing new projects, looking at developing infrastructure and aggressively marketing their ‘branded’ product. With the budgetary curve rising, tourism should recover at least by the end of 2003, setting the stage for the age-old target of five million tourists. Further, states are focussing on the development of new areas and are constantly upgrading their USP. Therefore, an upturn would come as a welcome relief not only to the industry but also to suppliers, service providers, and travellers alike.

In the following story, the effort of each state has been outlined in the promotion of tourism.

The ‘Leading’ Trio

Goa

This 365-day tourist destination is undisputedly among the top three states in the country that generates the highest volumes. Recognising the impact of tourism on the state’s economy, the government has granted a budget of Rs 36 crore for the year 2003-04. This in comparison to last year, is a marked hike of Rs 13 crore. Nevertheless, the emphasis this year will be on eco-tourism, backwater and hinterland tourism. Having already popularised the campaign, it plans to rope in tourists to Goa - 365 days of the year. Subsequently, to further increase tourist arrivals, the state is looking at organising road shows in European, Scandinavian and Gulf countries. Revealed
N Suryanarayana, director of tourism, Government of Goa, "During the year 2003-04, more thrust will be given on development of road network in existing tourism circuits and marketing of tourism in the state by way of publicity and promotion. The ‘encouraging increase’ in tourism budget for this year will enable us to market and package our products better."

In addition, to upgrade Goa’s USP as a complete leisure destination. The state has plans to invest in a world class golf course and set up two theme parks. It will soon acquire 150 acres of land to expand the Goa airport. To provide worthy accommodation to tourists, the state has formulated a scheme in the line of the ‘heritage hotel scheme’ of Rajasthan, wherein over 20 houses in this category have already been identified.

Kerala

Kerala better known as ‘God’s own country’ has proven its worth by the sheer number of tourist that the state attracts. Tourism in Kerala has recorded remarkable growth in the last few years; this could be substantiated by the number of foreign and domestic tourists visiting the state that has crossed two lakh and 50 lakh, respectively. Total employment generated in this sector both direct and indirect is about 11 lakh and the total revenue generated in the economy due to tourism is nearly Rs 4,000 crore, which is direct employment opportunities for over 10,000 people annually.

In an effort to enhance Kerala’s core competency; tourism has been considered a ‘prime industry’ and has played a lead role in the economic growth of the state. Tourism in Kerala has also played a significant role in providing employment and economic growth.

So, in view of its potential in generating employment, enhancing production and productivity and contribution towards development of the state, a growth model led by tourism will take the pinnacle of socio-economic development. Further, promotion and marketing of tourism products at national and international levels have been planned thereby making the state a premier global tourist destination. Kerala will also take steps to develop and implement effective market strategies to get better mileage and value for the money expend. This will be based on market analysis and consumer preferences.

Rajasthan

Rajasthan’s budget for the year 2003-04 was a big surprise. The state tourism budget has been reduced by Rs 6.5 crore totalling up to Rs 13 crore. In comparison, last year, its budgetary allocation was Rs 19.5 crore. Such a low budget for a renowned destination is indeed a surprise as it limits the scope for development. Although officials fail to comment on the decrease in the budgetary allocation but one must not forget that ministry of tourism has undertaken various developmental projects in its hands. Like Ranthambore, where the ministry is investing huge funds from its own kitty.

However, the state tourism is planning to focus on rural tourism and will develop ‘select few villages’. Besides, developing the Jaipur-Shekhawati-Bikaner-Jodhpur-Jaisalmer circuit. It is also looking at developing the Hadoti circuit with special emphasis on heritage and monuments. It will soon complete the developmental work of Mewar complex and start developing Elephant Village near Amer. Being amongst the top tourism states; its priority will be publicity and promotion besides infrastructure development. "We are about to appoint a strategic communication adviser to assist us in developing an overall and integrated strategy for promotion of the state," disclosed Arvind Mayaram, secretary tourism, Government of Rajasthan. On the promotional front, the state will also organise the Jaipur international heritage festival between January 7-21, 2004.

New Kids On The Block

Uttaranchal

If its zest continues, the state might actually give ‘Gods own country’ a run for its money. Having identified tourism as its most important industry, Uttaranchal has identified many new projects for development. From Rs 18 crore last year, its budget allocation for the current year is Rs 25 crore. The increased allocation of Rs 7 crore is mainly for infrastructure development, publicity and marketing, development of new destinations, rural tourism and to launch self-employment schemes.

Subsequently, Uttaranchal will also focus on pilgrim, adventure and eco-tourism. "We are intending to focus on rural tourism in a big way by developing tourism villages. We have also launched a self-employment scheme in the tourism sector. The state government would lay special emphasis on creation of way-side amenities, establishment of information centres and signage’s in the coming year," revealed N N Prasad, secretary - tourism, government of Uttaranchal, and chief executive officer, Uttaranchal Tourism Development Board.

As Uttaranchal has some well-known products, the priority is to develop infrastructure particularly on major yatra and trek routes. As Prasad puts it, "We are also trying to improve the connectivity within and outside the state. Steps are being taken to develop new destinations. A special emphasis has also been laid on the involvement of local host communities. Pilgrimage tourism continues to be a priority area."

The state has prepared a Master plan of Rs 212 crore for the development of infrastructure on the Char Dham yatra and this has been submitted to government of India for funding. A Char Dham Board has also been created under the chairmanship of the union tourism and culture minister, Jagmohan

The state has prepared master plans for several new projects seeking private sector investment. They could be listed as follows:

  • Establishment of a new ski resort at Dayara Bugyal, district Uttarkashi
  • Establishment of an eco-city in Hempur near George Everest Park
  • Development of an eco-tourism project on 200 acres of land at George Everest Estate near Mussoorie
  • A trek master plan
  • Master plans for development of new hill stations at Pauri, Khirsu, Lansdowne, Munsyari, Pithoragarh
  • Development of heritage properties, restoration and conservation of heritage properties like George Everest Cottage near Mussoorie and Rangers’ College in Dehradun
  • Master plans for development of three new airstrips at Gauchar (Chamoli), Pithoragarh (Naini Saini) and Chiniyalisour (Uttarkashi).

Realising the role of an effective marketing strategy, the state has also employed the services of an international public relations agency, which is creating the buzz through travel writers, tour operators and journalists.

Chhattisgrah

The ‘infant’ state with immense and unexplored tourism potential, has stepped into its second year of tourism operation. Its first tourism budgetary allocation last year was Rs 1.7 crore which primarily was spent on creating locational awareness about the state. In the current year, the budgetary allocation is Rs 10.5 crore that would focus on infrastructure.

According to Dr A Jayathilak, managing director, Chhattisgrah Tourism Board (CTB), "As the introductory phase is over, it is important to for a new state like Chhattisgrah to focus on developing tourist infrastructure. Therefore, we are working on the planning and development of roadside amenities for tourists and other various facilities."

However, Chhattisgrah is perhaps the only state thrusting upon the ‘complete experience’. Jayathilak further adds that, "Culture and heritage do form a very essential part of his travel. So, when we present Chhattisgarh to a traveller there is much more than just displaying the culture of one region or a particular era. The state has much to offer from anthropology to art to architecture and cuisine or simply exhilarating natural beauty."

"Consequently, the entire focus of the state government might not be just tourism but, we are definitely aiming at getting the most out of each paisa we spend. We believe that the state has huge potential to pioneer ethno-tourism and promote eco-tourism in the country. These are new concepts for the Indian traveller but are areas that have tremendous potential for development. Ethno-tourism will highlight the ethnic and tribal culture of the country’s biggest tribal district Bastar. Thus, Bastar will be developed as the hub in central India opening a new route for travellers to a destination lesser known. A substantial share of the increased budget is also being spent on its marketing strategy."

Been There…Done That…

Maharashtra

With its effective yet unpretentious, promotional campaign, India’s commercial capital Maharashtra or rather Mumbai is riding high on popularity charts. As it has been ‘moderate’ on the tourism front, the state has marked a remarkable increase in the budgetary allocation, this year. According to Prithviraj Patil, general manager, Maharashtra Tourism Development Corporation (MTDC), "The budget last year and over the years was Rs 10 crore, but this year, we got Rs 101 crore, which is ten times the normal amount. Out of the Rs 101 crore, Rs 55 crore is being pumped into the Ajanta Ellora Conservation Development Plan (AECDP), since majority work in the second phase is being carried out by MTDC."

The state has special provisions to develop the Shivneri and Konkan Riviera. For the Konkan Riviera, the central government has selected three places - Vijaydurg, Sindhudrug, and Jaigad that will be developed. However, MTDC’s specially allocated fund of Rs 5 crore will be invested in the development of coastal areas. These areas will be soon be selected and developed at regular intervals.

The state will also thrust on eco-tourism. "For eco-tourism, we will focus on the Vidharbha Region for historical and heritage development of the Marathwada region," added Patil. With regards to the upgradation of the Lonar region, MTDC has already invested Rs 1 crore.

The development of the religious centres will look into areas of sanitation and proper infrastructure, proper drinking water. These aspects will also pertain to the development of the fort regions. However, one of the top most areas that will offer the state a competitive edge is its premier product the ‘Deccan Oddesey’. The train is a state-of-the-art product that will aptly be launched by October, this year.

Karnataka

It is ironical that the ‘Theatre of Inspiration’ could not inspire its government to allocate sufficient funds, this year. The tourism budget for reasons unknown has been reduced. According to Vandita Sharma, commissioner of tourism, Karnataka, "The budgetary allocation for 2003-04 is Rs 17 crore. The actual allocation for 2002-03 was Rs 17.5 crore, but due to some reason, it was further deducted."

However, some top officials contradict the fact maintaining that there has been some increase in the budget. The official says that while the money allocated last year was Rs 1,749.00 lakh, it is Rs 2,340 lakh for the current year.

Beyond this confusion, Karnataka tourism is focusing on developing a few circuits. Lot of attention is been given to promoting Hampi, Pattadakal, Aihole, and Badami cave-circuits. The other areas of focus are beach tourism, eco-tourism, health tourism, religious tourism, and developing Coorg as stand-alone destination. "We are also developing a tourist facilitation centre at Banneragatta National Park and a one stop-shop-tourist induction centre at Bangalore. Emphasis is also being given on aggressive promotional and marketing strategies," informed Sharma.

Close on the heels of Maharashtra’s ‘Deccan Oddesy’, Karnataka tourism is seriously working on introducing a luxury train on the models of the ‘Palace on Wheels’.

Delhi

Delhi is pushing its tourism products like never before. Making an effort to move from a transit point to a full-fledged destination, it is looking at developing and upgrading its existing products. While the state’s budget has been hiked from, last year’s Rs 387.40 lakh to Rs 965 lakh, this year. The allocation has increased mainly due to the loan component of Rs 500 lakh for the development of the ‘Garden of Five Senses’ tourist complex. It has undertaken a special project for restoration of denotified monuments. The corporation has already restored about 30 monuments, which were in depleted condition. The corporation also plans to construct a trail joining all restored monuments in the areas and will be connected with the world heritage zone - Qutab Minar.

Development of a cycle trek is also on the anvil. In what could be the most significant step with regards to the safety of tourists, the government is planning to create a tourism police force. Realising that Dilli Haat has been one of its major sources of revenue. The corporation has decided to develop another Dilli Haat at Pitam Pura.

Besides, setting up coffee homes, which are synonymous with the Delhi of yore. It will also invest in the field of cultural tourism and will lay emphasis on organising various festivals. A great deal is being invested in the marketing and promotional strategies.

Tamil Nadu

The Tamil Nadu government, under ‘penetrated’ tourist sports has been targeted to set off for the next growth wave. For the year 2003-04, the allocation has been stepped up to Rs 26.79 crore, which is being termed as unprecedented budget allocation. The activities of the state are aimed at increasing tourist inflow and generation of more foreign exchange and employment. The huge amount will be pumped into infrastructure development and publicity. Among the mega projects Tamil Nadu will take up the integrated development of Kanyakumari during the current year - the cost of the project will be shared by the government of India spending about Rs six crore and the state government.

It will develop infrastructure at Yercaud, Parvathamalai, Sothupari, Kumbakarai water falls, Suruli falls, Elagiri, Kolli gills and Pachamalai under this scheme, drinking water, public convenience, rest sheds, light systems, restaurants, pathways and parking lots etc will be developed. Besides one of the important schemes that will be taken up during 2003-04 is development of Gangaikodachozhapuram in Perambalur district. The project worth Rs 163 lakh has been already taken up. As far as its marketing strategy is concerned, officials maintain that there has been a paradigm shift in the marketing and promotional approach. Therefore, the marketing efforts will be aimed at ‘forcing’ tourists to visit Tamil Nadu.

Reviving The Crowing Glory

Kashmir

Tourism is the best antidote to terrorism and this time around, Kashmir is back with a bang. After 15 years of death and destruction, it is limping back to normalcy. The government has put extra efforts to revive its tourism not only by allocating huge funds but also by ensuring security measures. Tourism has two important tasks, firstly, to make people visit the state. Secondly, clean up the Dal Lake - the tourism hot spot in Srinagar.

Hence, the government will be spending money on publicity and promotion. It will spend over Rs 100 crore on the ‘clean up’ of the Dal Lake. According to G A Mir, tourism minister of the state, Jammu & Kashmir, "Our prime focus this year is to make people visit Kashmir. For years, we have not received tourists but now we are taking tourism to people. We want emphasise tourism over terrorism and tourism is the only solution to curb militancy."

Mir further added that, "We have a good budget this year as there has been increase in the fund allocation and various centre sponsored schemes are going to back us up." The state is also laying lot of emphasis on infrastructure development. Kashmir will carry on a strong promotional campaign in India as well as internationally to lure tourists. This exercise is already producing results. The major focus area of the state will be pilgrim tourism focusing mainly on Amarnath and Vaishno Devi. However, the challenge now is to ‘retain faith of the people’. The moment it generates volumes, everything will fall in place. Paradise lost will be regained soon, if this zest continues."

Gateway to North East

West Bengal

Although, the state is not prime location any more yet West Bengal is the only active state in the North-East belt. It is also the gateway to the north-east and the north eastern states gain due to spill over impact. This year, the budgetary allocation from Rs 1081.79 lakh has been reduced to 410.79 lakh. However, it has identified two thrust areas that of the mountains and Sunderbans. Considering that the West Bengal Tourism Development Corporation’s (WBTDC) financial capacity is not very sound, the department has urged private promoters to participate in the tourism-related projects. West Bengal tourism is also scouting for new locations for development. The department has selected Gossaingaon in Cooch Behar district of the state, for its archeological importance and has requested the Centre for necessary funds. Once the funds are allocated, Gossaingaon will be developed into a tourist spot.

The state is also trying to develop the Dooars. A heritage spot is coming up at Bishnupur and the Centre has sanctioned Rs 5 crore for the development. Subsequently, the department also plans to develop an area close to the Kopai River, in Shantiniketan in Birbhum district.

In the conclusion, one could add that tourism in India has been riding on a new ‘high’ of priority. With the spotlight on tourism, it is imperative that India gets its act together to leverage the advantage of the current situation.

With inputs from Charmaine Fernz, Mumbai, Susan George, Chennai, Vyas Sivanand, Bangalore, Joy Roy Choudhury, Kolkata

The Budgetary Allocations
  • Goa: The budgetary allocation for the year 2003-04 is Rs 36 crore. A marked hike of Rs 13 crore in 2002-03
  • Rajasthan: Budget for the year 2003-04 has been reduced by Rs 6.5 crore totalling up to Rs 13 crore. In comparison, last year, the budgetary allocation was Rs 19.5 crore
  • Uttaranchal: From Rs 18 crore in 2002-03, its budget allocation for 2003-04 is Rs 25 crore, an increased allocation of Rs 7 crore
  • Chhattisgarh: Its first tourism budgetary allocation in 2002-03 was Rs 1.7 crore. In the current year, the budgetary allocation is Rs 10.5 crore
  • Maharashtra: The budget in 2002-03 was Rs 10 crore. This year, it is Rs 101 crore, a ten-fold increase
  • Delhi: The state budget has been hiked from, last year’s Rs 3.87 crore to Rs 9.65 crore, this year
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