India Tourism: Anual Report 2008

Ministry of Tourism Annual Report 2007-08

1

ANNUAL REPORT 2007 - 08

Ministry of Tourism Government of India

2

3

CONTENTS Sl. No.

Chapter

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

Tourism - An Overview Ministry of Tourism and its Functions Major Initiatives and Achievements during 2007 Future Strategy for Tourism Development Development of Infrastructure and Destination Management New Tourism Products Development and Regulation of Tourism Industry Human Resource Development Publicity and Marketing Overseas Activities Promotional Activities undertaken by Domestic Offices Research, Analysis, Computerisation and Monitoring International Co-operation India Tourism Development Corporation Limited Welfare Measures Progressive Use of Hindi An Overview of North Eastern Region Gender Equality - The Prime Concern Vigilance Activities Departmental Accounting Organisation Important Audit Observations Implementation of Right to Information Act, 2005

Annexures I II III IV V VI VII VIII IX X XI

4

Organisational Chart Indiatourism Offices in India Indiatourism Offices Abroad National Tourism Awards - 2006-07 Projects Sanctioned in the States /Union Territories (up to February 29, 2008) Incentives Presently Available to Hotel & Tourism Industry Hotel Management Institutes and Food Craft Institutes affiliated with NCHMCT Grants-in-Aid Released to Autonomous Bodies during 2007-08 (up to February 29, 2008) Foreign Tourist Arrivals and Estimated Foreign Exchange Earnings for the Last Ten Years Surveys & Studies Summary of Important Audit Observations

Page No. 6 10 14 20 26 30 34 40 48 52 56 62 70 74 80 81 84 86 88 90 96 97

100 101 102 103 104 105 107 108 109 110 112

5

Tourism - An Overview thereby creates a durable social fabric. By adding value to culture, tradition, heritage, nature, environment and ecology, tourism puts a premium on their preservation and protection - a prerequisite for sustainable development.

Tourism has been pivotal in social progress as well as an important vehicle of widening socio-economic and cultural contacts throughout human history. A wide array of interests - entertainment, sports, religion, culture, adventure, education, health and business drives tourism. With the advancement of transport, communication and improvement in general economic well being the demand for tourism has increased concomitantly. 2.

6

Tourism is both cause and consequence of economic development. It facilitates business contacts, widens markets and helps diffusion of growth impulses across territories to promote broad based employment and income generation. Investment in tourist infrastructure adds to economic growth, catalyses generation of income and employment, which in turn, leads to further growth in demand for tourism and stimulates subsequent rounds of investment in a virtuous circle.

3.

Tourist expenditure generates multiple effects with extensive outreach along its value chain. Adding to the demand for a variety of goods and services, tourism offers potential to exploit synergies across a large number of sectors such as agriculture, horticulture, poultry, handicrafts, transport, construction - the sectors, where growth of income has favourable impact on poverty alleviation.

4.

The development strategy for tourism is in itself an agenda for sustainable economic and social progress. Through increased contact it helps to promote cultural cohesion and social bonding and

5.

From the Five-year Plan perspective, initiatives required for the development of tourism synergize with the development efforts needed to accomplish a number of other goals like employment generation, poverty alleviation, environmental regeneration, advancement of women and disadvantaged groups.

6.

While the Government plays a crucial role in making provision for tourism infrastructure and skill development, such initiatives catalyse private enterprises to come forward and invest in this sector. Private firms also see considerable benefits to their business in Public-Private Partnerships.

The Trends The share of India in international tourist arrivals has progressively increased from 0.46% in 2004 to 0.49% in 2005 and further to an estimated 0.52% in 2006 and 0.55% in 2007. Foreign Tourist Arrivals (FTAs) rose from 3.46 million in 2004 to an estimated 5 million in 2007. Tourism makes a significant contribution to India's foreign exchange earnings, which grew from US$ 6.17 billion (Rs. 27944 crore) in 2004 to an estimated US$ 11.96 billion (Rs. 49413 crore) in 2007. The share of India in world earnings from tourism registered an increase from 0.98% in 2004 to 1.21% in 2006. Domestic Tourism too has grown phenomenally over this period. The number of domestic tourists in India has risen from 366.23 million in 2004 to an estimated 462 million in 2006.

8

9

1 1.1

Ministry of Tourism and its Functions

The Organisation

Ministry of Tourism of the Government of India, as the nodal agency, formulates national policies and programmes for the development and promotion of the tourism sector in the country. In performing this role, the Ministry co-ordinates the activities of various other Central Government Ministries/agencies, the State Governments/Union Territories and the private sector representatives. Smt. Ambika Soni, the Union Minister for Tourism and Culture, Government of India heads the Ministry. The Secretary (Tourism), who is also the exofficio Director General (DG) of Tourism, provides the executive directions to the Ministry. The Directorate General of Tourism, which is an attached office of the Ministry, has 20 field offices within the country, 13 overseas offices (one new office in China has recently been sanctioned) and one subordinate office/project, i.e., Indian Institute of Skiing and Mountaineering (IISM)/Gulmarg Winter Sports Project (GWSP). IISM conducts various ski and other courses in the Jammu & Kashmir Valley. The overseas offices promote the market for Indian tourism abroad. The domestic field offices are sources of tourist information. They are also responsible for monitoring the progress of implementation of field projects in their respective jurisdictions. The latest organisational chart of the Ministry of Tourism is given in Annex-I. Annex-II lists the locations of the tourism offices in India under the Ministry. Annex-III shows Indiatourism Offices abroad.

1.2 Role and Functions of the Ministry of Tourism As the nodal agency for the development of tourism in the country the Ministry, apart from coordinating and supplementing the efforts of the State/ Union Territory Governments, plays a crucial role in catalysing private investment, strengthening promotional and marketing efforts and in providing trained manpower resources in the sector. In this context, the Ministry handles the following main functions: (i)

Overall Review of the Functioning of the Field Offices

(xi)

Vigilance Matters

(xii)

Official Language: Implementation of Official Language Policy

b. Incentives

(xvii) Overseas Marketing (OM) Work

c. External Assistance

(xviii) Welfare, Grievances and Protocol

d. Manpower Development e. Promotion & Marketing

The Directorate General of Tourism is responsible for the following functions:

f.

(i)

Assistance in the formulation of policies by providing feedback from the field offices

(ii)

Monitoring of plan projects and assisting in the plan formulation

(iii)

Co-ordinating the activities of the field offices and their supervision

(iv)

Regulation:

g. Growth Strategies (ii)

Planning

(iii)

Co-ordination with other Ministries, Departments, State/ Union Territory Governments

(iv)

Regulation: a. Standards

a. Approval and classification of hotels, restaurants, Incredible India Bed & Breakfast (IIB&B) units

b. Guidelines (v)

Plan Co-ordination and Monitoring

Infrastructure & Product Development:

Research, Analysis, Monitoring and Evaluation

(i)

International Co-operation and External Assistance:

b. Distribution of Tourism Products

a. International Bodies b. Bilateral Agreements c. External Assistance d. Foreign Technical Collaboration

(v)

a. Policy b. Strategies c. Co-ordination d. Supervision (ix)

Assistance for Parliamentary Work

(x)

Establishment Matters of the Directorate General of Tourism excluding those of Group 'A' Officers and those requiring the approval of Secretary/ Minister.

1.3

Advisory and Co-ordination Mechanism

In order to advise the Government on various tourism related policy matters and to give impetus for the development and promotion of tourism in the country, the Ministry of Tourism, Government of India has constituted a “National Tourism Advisory Council”, headed by the Union Minister for Tourism & Culture. The composition of the Council is as follows: Chairperson: Union Minister for Tourism & Culture Members: (i)

b. Finance Secretary c. Principal Adviser (Tourism), Planning Commission

a. Guide service

d. Secretary, Culture

b. Complaints and redressal (vi)

e. Secretary, Urban Development

Infrastructure Development:

f.

a. Release of incentives b. Tourist facilitation and information c. Field publicity, promotion & marketing

e. Conventions & conferences

Representatives of the Ministries/ Departments of Government of India: a. Secretary, Tourism

Inspection & Quality Control:

d. Hospitality programmes

10

b. Setting standards and guidelines (viii) Publicity & Marketing:

b. Approval of Travel Agents, Tour Operators and Tourist Transport Operators, etc.

a. Central Assistance

Human Resource Development: a. Institutions

(xiv) Budget Co-ordination and Related Matters (xv)

Investment Facilitation

(vii)

(xiii) VIP References

(xvi) Integrated Finance Division

(vii)

National Council for Hotel Management and Catering Technology (NCHMCT); and the Institutes of Hotel Management.

(x)

a. Development Policies

(vi)

(ii)

Establishment Matters

All policy matters including:

India Tourism Development Corporation (ITDC) is the only public sector undertaking under the charge of the Ministry of Tourism. The Ministry is also in charge of the following autonomous institutions: Indian Institute of Tourism and Travel Management (IITTM). National Institute of Water Sports (NIWS) has merged with the IITTM.

(viii) Legislation and Parliamentary Work (ix)

(ii)

Foreign Secretary

Experts in the field of Travel and Tourism Management, etc.: a. Shri Valmik Thapar, Conservationist, 19, Kautilya Marg, New Delhi 110021. b. Shri Vikram Oberoi, Joint MD, The Oberoi Group, 7, Sham Nath Marg, Delhi-110054.

11

c. Dr. Mohan Thomas, Medical Director of the Cosmetic Institute, 169, Lily Villa, Sant Andrews Road, Off Turner Road, Opp. Macronells Roof Garden, Bandra West, Mumbai-405050.

l.

(iii)

d. Shri Suman Dubey, Secretary, Jawaharlal Nehru Memorial Fund, N-125, Panchsheel Park, New Delhi-110017.

b. PHD Chamber of Commerce and Industry (PHDCCI) c. Associated Chambers of Commerce and Industry of India (ASSOCHAM)

Shri Ajeet Bajaj, Adventure Tour Operators Association of India, Community Shopping Centre, 1st Floor, B-1, Vasant Kunj, New Delhi-110070.

d. Confederation of Indian Industry (CII) e. Travel Agents Association of India (TAAI) f.

g. Shri Aman Nath, Co-Chairman Neemrana Hotels, 12, Jaipur Estate, Nizamuddin East, New Delhi-110013. h. Shri Ranjit Barthakur, Chairman, Globally Managed Services, 6th Floor, Mumbai Educational Trust, General A K Vaidya Chowk, Bandra Reclamation, Mumbai400050. i.

j.

Ms. Uma Gajpati Raju, Moving Pictures India Co. Ltd, 739/1, M.G. Road, Parsvnath Arcadia, 3rd Floor, Sector-14, Gurgaon 122001, Haryana. Shri Jose Dominic, MD and CEO, CGH Earth, Casino Building, Willingdon Island, Cochin-682003.

The President of each of the following Associations: a. Federation of Indian Chambers of Commerce and Industry (FICCI)

e. Shri R.K. Krishna Kumar, Vice Chairman, Taj Group of Hotels, Bombay House, 24, Homi Mody Street, Fort, Mumbai-400001. f.

Shri Nikhil Alva, CEO, Miditech Pvt. Ltd, 121, Udyog Vihar, Phase IV, Gurgaon122015, Haryana.

Indian Association of Tour Operators (IATO)

g. Federation of Hotel and Restaurant Associations of India (FHRAI) h. Hotel Association of India (HAI) i. (iv)

Experience India Society

Minister/ Secretary, Tourism of various States/ UTs could be invited as Special Invitees, as and when necessary.

Member-Secretary: Additional Director General (Tourism), Ministry of Tourism, Government of India.

k. Shri Rupin Dang, MD, Wilderness Films India Ltd, 1 Factory Road, Ring Road South, Near Safdarjung Hospital, New Delhi110029.

12 10

11 13

2

Major Initiatives and Achievements during 2007

2.1 A summary/ excerpts of major initiatives and achievements discussed in various chapters in this report is reproduced below, subject-wise details are given in the respective chapters.

(i)

2.2 International Recognition The efforts undertaken by the Ministry have borne fruits through a series of international recognitions: (i)

India has been unanimously elected as the Chairman of the Executive Council of the United Nations World Tourism Organization (UNWTO) for one year in November, 2007.

(ii)

India bagged the World Travel Awards - 2007 in three categories, viz. (a) World's Leading Destination Marketing Award for the Incredible India Campaign, (b) Asia's Leading Destination, and (c) Asia's Leading Tourist & Convention Bureau.

(iii) India has been awarded Favourite Country of the Year in the Conde' Nast Traveller Readers' Travel Awards - 2007. (iv) The Ministry of Tourism has won the Pacific Asia Travel Association (PATA) Grand Award for Marketing pertaining to the year 2007. (v)

Travel Trade Gazette (TTG), Asia Travel Group has chosen India as the Destination of the Year in the 18th TTG Travel Awards - 2007.

(vi) Presspace (French National Syndicate for Print Advertising) has selected the Taj Creative of the Incredible India International Media Campaign 2006-07 as the best foreign advertising creative in French Newspapers. (vii) Incredible India TV Commercial received The Golden City Gate-2007 Award (Das Goldene Stadttor-2007) during ITB-2007 at Berlin, Germany. 2.3 International Campaigns The Ministry has launched successful international campaigns through leading print and electronic media showcasing India's rich and diverse heritage and tourist attractions. The following campaigns were launched during 2007 in the global and domestic markets:

14

(ii)

The International Media Campaign - 2006-07 Phase II was conducted during January 2007 in major print and in-flight TV channels targeting European audience. The campaign was undertaken to coincide with the World Economic Forum at Davos and the International Tourism Bourse 2007 (ITB - 2007), where India participated as a Partner Country. A focused Print and TV Campaign in the UK market was undertaken to provide publicity for the “India Now” event, an India centric celebration organized in collaboration with the Mayor of London.

(iii) A Media Campaign was launched in the print and electronic media as well as on buses, taxis and outdoor panels in Central London during the “India Now” event. India was the theme at the Regent Street Festival held in September during the “India Now” celebrations. (iv) Four major Print and TV Campaigns in the international markets, Asia Pacific Region, Europe and Americas Region and a Global Online Campaign have been launched. (v)

A Print Media Campaign was launched to coincide with the Singhe Khabab - Sindhu Darshan Festivalorganized at Ladakh.

(vi) India participated as a Partner Country at the International Tourism Bourse (ITB) 2007, held in Berlin. As a Partner Country, India organized a spectacular cultural programme. Niche segments including Wellness and Medical tourism, Adventure and Youth tourism, Business tourism were showcased at various platforms at the ITB. (vii) To coincide with the September session of the UN General Assembly, the Ministry of Tourism and Culture and Confederation of Indian Industry (CII) organized the Incredible India@60 - a fourday celebration that took India's extraordinary beauty and cultural diversity to New York. The focus of Incredible India@60 was cherishing democracy and celebrating diversity on the occasion of 60th Anniversary of India's Independence. This provided a unique opportunity to capture the minds of global leaders by projecting the best of India's economy, culture, heritage and art forms.

(viii) Incredible India@60 was conceptualized as a complete experience to showcase India's economic dynamism and highlight its growth and vibrancy. The celebrations comprised a sand sculpture of Taj Mahal in Manhattan, cultural performances from the different regions of India, demonstration and display of Indian handicrafts, handlooms and textiles, music concerts, art exhibition and Indian food festivals. The events were spread out across different venues like the Lincoln Center, Bryant Park and South Street Sea Port. (ix) India had a visible and effective presence at the World Travel Market (WTM) - 2007, held in London. An India Pavilion was set up with the participation of State Governments/Union Territories and Travel Trade representatives as co-exhibitors in the Pavilion. 2.4 The Ministry of Tourism took several initiatives for developing bilateral and international co-operation for the development and promotion of tourism. Following are the major highlights: (i)

(ii)

w

Joint Working Group Meetings on Tourism with Greece, Egypt, Russia, Thailand and Germany were organized during the year. 'India-China Year of Friendship Through Tourism' was launched in New Delhi to promote tourism between the two countries. A joint logo to mark and publicize “2007” as 'India-China Year of Friendship Through Tourism' was released. The Chinese version of the Incredible India website a s launched and India's tourism literature was produced in the Chinese language.

(iii) The first meeting of India-ASEAN Tourism Ministers was held in Bangkok, Thailand on January 22, 2008, wherein Terms of References for the India-ASEAN Joint Working Group were adopted and initiatives to enhance co-operation in areas of manpower development, promotion and marketing were identified. 2.5 Infrastructure Augmentation The Ministry has sanctioned 165 new projects and utilized Rs. 460.00 crore in the current financial year for the upgradation of infrastructure facilities at important tourist destinations and is focusing on the development

of destinations/circuits of national importance. Mega destinations/circuits and projects for NalandaBodhgaya-Rajgir, Varanasi-Sarnath, Agra, Delhi, and Kurukshetra have already been sanctioned. 2.6 Efforts to Overcome Shortage of Accommodation The upsurge in tourist arrivals intensified the Ministry's efforts towards augmentation of tourist accommodation. The Ministry brought out guidelines for the classification of Apartment Hotels, Timeshare Resorts and Guest Houses. Capital Subsidy for 43 budget category hotels and Interest Subsidy for 86 budget category hotels were authorized by the Ministry. 146 new hotel projects with 12623 rooms were approved besides proposals for Foreign Technical Collaboration along with new cases of Foreign Direct Investments. The Ministry of Urban Development has now liberalized the operation of Guest Houses in National Capital Territory of Delhi as per its Master Plan 2021. On the request of Ministry of Tourism, Ministry of Urban Development has rationalized the conversion charges that are levied on the Guest Houses. The excessive demand led to planning for an inventory of budget category rooms, bringing into its orbit spare rooms that are available with various houseowners, who are willing to use them for tourist accommodation. These facilities are classified as 'Incredible India Bed & Breakfast Establishments', under 'Gold' or 'Silver' categories. The scheme facilitates availability of rooms at affordable costs for the common tourists, who desire to stay with Indian families and experience Indian culture combined with authentic Indian cuisine. To motivate house-owners to apply for this scheme, an integrated publicity campaign was launched. Such registered houses are being promoted through the e-commerce platform of the 'Incredible India' website. 2.7 Domestic Campaigns A nation-wide campaign “Sare Jahan Se Achcha” coincided with the celebration of 60th Anniversary of India's Independence that sought to arouse interests among country people to travel within the country. The 4th Phase of “Atithi Devo Bhava” was launched aiming at sensitization and education of stakeholders and general public in the value of preservation of monuments and places of tourist

15

interests. All these campaigns were undertaken in leading TV channels, print publication, FM radios and popular cinema halls across the country. Four more campaigns during 2007-08 aimed at promotion of North East, Jammu & Kashmir, Rural Tourism and Adventure and Wildlife Tourism. 2.8 Rural Tourism (i)

(ii)

The Ministry has taken initiative to bring rural tourism artisans to a national platform by organising their participation in Dilli Haat, India International Trade Fair, Delhi; and Toshali National Craft Mela, Bhubaneswar. The rural tourism site 'Aranmula' received PATA Gold Award for the year 2007.

2.9 Medical Tourism In two important international events - one in the International Tourism Bourse (ITB) at Berlin held in March 2007; and the other, in a separate session organized during the New York Times Travel show in February 2007 - the Ministry promoted the image of Indian healthcare services and invited investment into India as the new emerging healthcare destination. Further, a new category of visa has been introduced for foreign tourists who are willing to come to India for medical treatment. 2.10 Adventure Tourism In 2007, the Indian Institute of Skiing and Mountaineering, Gulmarg had conducted 5 water skiing courses with assistance from the Ministry of Tourism. 2.11 Other initiatives The most important issue connected with tourism growth is the issue relating to visa. The issue of visa on arrival to tourists was taken up with the Ministry of External Affairs and Ministry of Home Affairs. As a sequel thereto, the Advance Passenger Information System to facilitate security clearances has already been introduced on a pilot basis in Air India Flights coming from various locations to Delhi. The Ministry of Home Affairs has decided to grant Long Term Tourist Visa of 5-year duration with

16

multiple-entry facilities carrying a stipulation of 90 days on each visit, to the nationals of 18 select countries, viz. France, Germany, Luxembourg, Netherlands, Belgium, Finland, Spain, Switzerland, Norway, Iceland, New Zealand, Japan, South Korea, Argentina, Brazil, Chile, Mexico and Vietnam. On the request of the Ministry of Tourism, Tourist Police Force has been deployed for helping the tourists in the states of Andhra Pradesh, Karnataka, Goa, Kerala, Maharashtra, Himachal Pradesh, Rajasthan, Jammu & Kashmir , Uttar Pradesh and Delhi. Acting on the recommendation of the Ministry of Tourism to increase the rate of abatement on package tour services, the Ministry of Finance has issued a notification prescribing the rate of abatement as 75% compared to 60% earlier. 2.12 Initiatives for Quality Tourism Manpower Development The Ministry endeavours to create institutional infrastructure to train manpower needed to meet the growing demand of the hospitality industry. The Ministry took initiative to sanction new Institutes and upgrade some from the existing ones. The Ministry sanctioned 8 new State Institutes of Hotel Management, Catering Technology & Applied Nutrition and 4 new Food Craft Institutes. One Food Craft Institute has been upgraded to a Hotel Management Institute. In addition, the Ministry sanctioned applied training centres/ executive development centres in 4 Institutes of Hotel Management (IHM) to bring them up to the international standards. Skill development programmes have been introduced in the ITIs in collaboration with the Ministry of Labour and Employment, Government of India. Yet in another programme, “Earn While You Learn”, the trainee-students have been encouraged to work as student-volunteers to inculcate enriching field experience in the tourism industry while, at the same time, combining earning with learning. A very special initiative on the part of the IHM Chandigarh was to support the Mid-day Meal Programme of the Union Territory Government of

Chandigarh by catering meals to 49 schools. 2.13 COMPACT The COMPACT, a package for the computerization of accounting system, has been introduced in most of the areas in Pay and Accounts Office. 2.14 India Tourism Development Corporation Limited (ITDC) The financial performance of the ITDC improved in 2006-07 vis-à-vis 2005-06. The turnover in 2006-07 has been Rs. 561.75 crore (provisional) as compared to Rs. 373.64 crore in 2005-06. The profit before tax increased from Rs. 51.57 crore in 2005-06 to Rs. 68.77 crore (provisional) in 2006-07. However, due to the closure of duty free shops and rooms in some hotels for upgradation, the turnover during April-December 2007 was less at Rs. 312.63

crore (provisional) as compared to Rs. 362.65 crore (provisional) in April-December 2006. 2.15 Tourism is a multi-sectoral activity. Considering its tremendous potential in income and employment generation, the Ministry of Tourism has also undertaken initiatives to remove the existing bottlenecks through inter-ministerial consultations. These efforts are aimed at bringing about the enabling regulatory and policy framework that can ensure that tourists get a world class experience. All these efforts are aimed at creating appropriate infrastructure, human resources and facilities that will make India achieve new heights in tourism. 2.16 In order to encourage and recognize pursuit of excellence in tourism related activities, National Tourism Awards are presented by the Ministry every year. Different categories for which awards were presented in 2006-07 are at Annex-IV.

3

Future Strategy for Tourism Development

3.1 Tourism is one sector that has shown consistently high global growth in recent years. India too achieved spectacular success in tourism with a growth rate that surpassed the global average. Consequently, India's share in the world tourist arrivals continued to increase from 2002 onwards. Despite this upward trend , in terms of size, the share is still low at 0.55% in 2007. The challenge, therefore, lies in increasing this share. Furthermore, foreign exchange earnings from tourism in India rose substantially from US$ 3 billion in 2002 to an estimated US$ 11.96 billion in 2007. The share of India in world tourism receipts scaled from 0.65 per cent in 2002 to 1.21 per cent in 2006. As in the case of foreign tourist arrivals, India's share in world tourism receipts, though increasing, is still low. Domestic tourists in India constitute a large number and is growing rapidly. Considering the benefits that tourism brings, the Ministry of Tourism, Government of India is continuing with a multipronged development strategy with a view to achieving even higher growth of quality tourism in the near future. The medium-term strategy for the development of tourism in India has been outlined in the Eleventh Five Year Plan document of the Planning Commission. The development agenda of the Ministry is on track to implement these strategies. The Ministry aims to achieve 10 million foreign tourist arrivals and over 500 million domestic tourists in 2010. It is expected that tourist flow of this magnitude will lead to accumulation of additional foreign exchange to the tune of about US$ 9 billion and about 15 million additional jobs. This will require action on two fronts: achieving quantum expansion in cost effective tourist infrastructure; and diversifying tourism products and international source markets to cater to diverse tourist preferences and to reduce seasonality in foreign tourist arrivals to promote round-the-year tourism. The broad elements of future strategy, the seeds of which have already been sown in the developmental plans and programmes of the Ministry, are as under: 3.2 Diversifying the principal source markets for foreign tourists In addition to bringing about an increase in the total number of tourists, diversifying the source markets for foreign tourists would reduce the seasonality in international tourist arrivals. Efforts are on to tap new

20

potential overseas source markets from where the present level of inbound tourists into India is low. The promotional and marketing strategy will expand and strengthen to create more awareness, interests and visibility to achieve this goal. The principal source markets, as at present, will be diversified to include countries like South Africa, Israel, Spain, China, Japan, South Korea, Australia, Brazil, Argentina, etc. Efforts will also focus on increasing tourist arrivals from countries with large size of Indian Diaspora like South Africa, Mauritius, Kenya, Malaysia, Fiji, etc. Simultaneously, efforts will be needed on the domestic front to create world class infrastructure and services and other logistics including improving air connectivity. The Ministry of Tourism has taken up issues with the Ministry of Civil Aviation on the following three fronts: (i) (ii)

Modernizing metro and non-metro airports; Augmenting direct international air connectivity with non-metro destinations; and

(iii) Encouraging domestic and foreign carriers to increase air seat capacity from long haul overseas market. Possibilities would also need to be explored to start direct air connectivity between the source countries and India wherever such connectivity does not exist and as a result, intermittent transit-halts interrupt and prolong the journey. The requirements of frequent hopping on the way may divert tourist preference in favour of intermediate tourist destinations. A related concern would be to ensure that air travel to and within India becomes cost competitive in comparison to competing overseas destinations. The avoidable elements that add to travel costs and make travel unattractive and uncompetitive vis-à-vis other destinations would need to be identified and removed through suitable policy measures. This would call for the rationalization of tax measures at the Centre and the States from tourism perspective. Finally, facilities and quality of services in the domestic and international airports need to be upgraded to world class standards. Quality and connectivity of railways would need to improve since domestic travel complements international travel. With regard to the railways, the initiative will focus on increasing direct rail connectivity to world heritage sites and other important tourist destinations; introduction of new luxury trains; improving infrastructure like sanitary conditions in and around important railway

stations; upgrading in-train services; provision of budget hotels by the railways in all major metro cities, etc. The Ministry of Tourism has requested the Ministry of Railways to explore the possibilities of introducing luxury tourist trains on Public-Private Partnership basis in identified tourist circuits and destinations. 3.3 Addressing shortage of tourist accommodation Seized with the concern for addressing acute scarcity of hotel accommodation, the Ministry has already introduced the innovative Incredible India Bed and Breakfast (IIB&B) scheme all over the country. The Incredible India Bed & Breakfast (IIB&B) units are being treated as non-commercial units in the National Capital Territory of Delhi. Government of India provides five-year tax holiday for hotels. Steep escalation of room tariffs in India is an indication of increasing demand for tourist accommodation. If such a condition prolongs, the tourists being priced out may opt for an alternative destination in another country. This might have long-term implications in terms of potential loss of future stream of tourists in favour of competing tourist destinations. The crisis requires an immediate and aggressive response. Over and above, there is an urgent requirement to meet the demand for additional rooms in the wake of the XIX Commonwealth Games 2010. Apart from the IIB&B scheme, the Ministry has proposed several measures to combat the crisis. These include proposals for the Central and State Governments to convert selected government properties into Heritage hotels and making use of vacant land in the government premises including surplus lands available with the Airports Authority of India and the Indian Railways for developing hotels. The Central and the State Governments are also encouraged to set up land banks and create Single Window facility for the investors in tourism projects. Expeditious allocation of land by the land owning authorities at the Centre and in the States remains a key to finding an early solution to the problem. The State Governments would also need to consider various tax incentives and exemptions in their respective jurisdictions to attract investments in tourist accommodation. Operation of Guest Houses has already been liberalized in the National Capital Territory of Delhi as

per the Master Plan 2021 of the Ministry of Urban Development. The conversion charges that are levied on the Guest Houses have also been rationalized. The goal would be to reach at least 1,50,000 rooms of approved quality by 2010. 3.4 Road connectivity An important thrust area for the present, which will also remain a priority in the future strategy, is the construction and improvement of roads that connect important heritage and tourist sites, and the development of roadside amenities. The Ministry has prepared a list of such important roads and furnished the same to the Ministry of Road Transport and Highways to spearhead this process. 3.5 Development of tourist destinations and circuits Identification and development of tourist destinations and circuits will continue to remain the central plank of tourism development strategy in the country. The Ministry has identified mega destinations/ circuits of national importance and already sanctioned projects for Nalanda-Bodhgaya-Rajgir, VaranasiSarnath, Agra, Delhi and Kurukshetra. Development of world class infrastructure in these destinations and circuits is going to remain a key area of focus in tourism development strategy. The Ministry's support to such infrastructure projects takes two forms: financial assistance to the States/Union Territories; and financial assistance to projects to be implemented on Public-Private Partnership basis. Each of the schemes has a separate ceiling of maximum assistance. In the latter case, the scheme is meant to assist Large Revenue Generating Projects to be implemented in Public-Private Partnership as well as in partnership with the semigovernment agencies; the quantum of assistance is determined through competitive bidding process. Tourism being a cross-cutting sector, building synergies with other ministries and sectors will be critical in achieving efficiency and speed in the development process. The effort is on to synergies with the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) of the Ministry of Urban Development, which is being implemented in 63 selected cities in the country for the integrated development of infrastructure services, urban renewal, basic services to the urban port, asset

21

management and urban governance. Convergence with the JNNURM will ensure that there is no duplication and would maximize the impact of investments on infrastructure. An important high level forum to achieve consensus and co-ordination among various infrastructure related ministries, the Committee on Infrastructure, chaired by the Prime Minister, includes Ministry of Tourism. The Committee is expected to play an important role in the Ministry's endeavour to secure co-ordination with other ministries in the implementation of its policies and programmes. An undertaking by the beneficiary State Governments/Union Territories provides for the management and maintenance of the tourism assets created with the assistance from the Central Government. Regular and periodic inspection and review of the centrally funded projects by the senior officials of the Ministry of Tourism constitutes the key oversight mechanism to ensure quality implementation and timely completion. The impact and effectiveness of various schemes are evaluated by independent professional agencies. 3.6 Promoting new tourism products and improving existing tourism products Efforts to promote new tourism products like Rural Tourism, Medical Tourism, MICE, Adventure Tourism, etc. will continue as parts of the future strategy for tourism development along with strengthened efforts to develop sustainable beach, coastal and cruise tourism. Heritage tourism would be expanded, in possible cases to integrate within the circuit, nearby culturally rich villages and towns, and crafts villages. Rural tourism has potential to flourish on India's “intangible heritage” or “soft culture” that includes folklore, music, dance, local crafts and arts, sports, events, etc. Special interest shopping tourism could also be encouraged as a tourism itinerary to achieve higher tourist-spending on India's crafts, jewelry, handlooms, etc. that would help revival of India's traditional arts and crafts that support the livelihoods of the community of rural artisans and craftsmen. With the growing popularity of India's fashion designing abroad, opportunities for shopping tourism has widened. A blend of fashion designing and

22

rural crafts can be showcased in dedicated shopping centres to attract tourists on a buying spree. Likewise, India's wide variety of traditional cuisines is a source of tourist attractions that can be packaged and marketed by developing “culinary tour routes” for special category of tourists keen on authentic tastes and cuisines. In order to give a boost to cruise tourism, issues regarding improvement of infrastructure in identified ports have been taken up with the concerned port authorities. Finalization of a cruise tourism policy and development of dedicated cruise terminals at important ports have been proposed by the Ministry of Tourism. 3.7 Development of quality manpower Considering the shortage of trained manpower in the tourism sector, the Ministry is supporting additional Institutes of Hotel Management in the States and providing financial assistance for the modernization and capacity enhancement of the existing ones as also of the Food Craft Institutes. As a future strategy to meet the growing need of quality manpower in this sector, the Ministry has proposed to involve the Industrial Training Institutes and Polytechnics to impart skill training in this sector. The Ministry also proposes to introduce Hospitality education and training as an optional vocational course at +2 stage in schools and as a separate discipline at the under graduate level in the universities. Revised guidelines have been issued by the Ministry for the training of Regional Level Guides thereby making training and selection of the guides more competitive and effective. A new category of premier guides has been introduced to cater to the upper echelon of the foreign tourists and discerning tourists with specialized interests.

pursued vigorously by the Ministry of Tourism and will continue to remain important elements of the future strategy for tourism development. Initiatives, some of which have already been launched and the others could be planned for the future are: targeting new source markets like Italy, Spain, France, Germany, Korea, Japan and China; publicity in regional languages in some of these countries; to promote India as a summer retreat for students of schools and colleges in Europe and North America during their summer break; forming new bilateral alliances, increasing visibility through participation in major international events, etc. Future strategy also envisages greater use of the tools of Information Technology like Internet and e-commerce, both for publicity and web-based services. 3.9 Streamlining procedures The Ministry of Tourism has proposed actions by the concerned ministries to reduce time taken for issuing visas, introduce “multiple-entry” long-term tourist visa and for providing visa on arrival facility in possible cases. At present, there are some 18 countries having the facilities of “multiple-entry” long-term visa. The Ministry has also requested the Ministry of Home Affairs to review and examine the possibilities of relaxing the restrictive permit policies that are applicable to exotic and adventurous tourist destinations like North East States, Jammu & Kashmir and Lakshadweep. Since important tourist circuits are spread over a number of States and UTs, multiple tax regimes apply in different States as tourists move from one entry point of a State to another. The Ministry has emphasized the need for rationalization of road and transport taxes and introduction of zonal permits for tourist vehicles.

The Ministry has mooted the concept of tourist police, a special category of police specially trained to assist tourists, and proposed that State Governments may create such a force. At present, only some states have “tourist police”. 3.10 Tax, incentives and concessions The Ministry of Finance, in the Budget proposal 2008-09, has proposed to grant a five-year holiday from income tax to two, three or four star hotels that are established in specified districts which have UNESCOdeclared 'World Heritage Sites'. The hotel should be constructed and start functioning during the period April 1, 2008 to March 31, 2013. 3.11 Research and analysis As at present, continuous research and analysis will feed on policy decisions of the Ministry from time to time through evaluation of the existing schemes at work and exploring potentials for new policy options. Market research, based on collection, collation and analysis of data will continue to support tourism marketing strategy of the Ministry. Efforts are on to strengthen statistical base to support research and analysis. Initiative is being taken to obtain more differentiated statistics on tourist profile like segregating NRI and non-NRI tourists. States are being encouraged to compile and furnish districtwise statistics on tourists. Finally, safety and health and environmental preservation will continue to remain key concerns while formulating tourism development strategy for the future.

The Ministry has a scheme for Capacity Building for Service Providers (CBSP) to impart basic training to service providers, majority of whom are in the unorganized sector. The scheme would continue as a future strategy to ensure quality service at the lower segment of tourism and to widen opportunities for decent employment for this category of service providers. 3.8 Promotion and publicity Promotion and publicity, both domestic and overseas, through print and electronic media are being

23

24

25

Then

4

Now

Development of Infrastructure and Destination Management

4.1 Infrastructure Development holds the key to India's sustained growth in the tourism sector. Therefore, the Ministry of Tourism has been making efforts to develop quality tourism infrastructure at tourist destinations and circuits. The following schemes have been implemented to achieve this objective.

component of rural tourism infrastructure development. For each project (identified rural tourism sites) under this scheme, a maximum of Rs. 50.00 lakh is sanctioned to States/ UT Administrations.

The State-wise number of tourism projects sanctioned and amount released for the year 2007-08 (up to February 29, 2008), which includes the projects sanctioned for infrastructure augmentation of destinations and circuits are at Annex-V.

In order to facilitate capacity building, thereby enabling low-income village communities to develop the required skills for tourism industry, the Ministry of Tourism, in partnership with the UNDP, is implementing the Endogenous Tourism Projects linked to the Rural Tourism Scheme of the Government of India.

4.2 Scheme for Product/Infrastructure Development for Destinations and Circuits

4.3 Scheme for Assistance to Large Revenue Generating Projects

Under this centrally sponsored scheme, the Ministry of Tourism extends Central Financial Assistance to the State Governments/ Union Territory Administrations for Product/ Infrastr ucture Development in Destinations and Circuits for tourism projects. The projects are identified and prioritized in consultation with the State Governments/UT Administrations for improving the existing as also for developing new tourism products. 100% Central Assistance is given under the scheme for identified projects for development of major destinations/circuits to world standard and also for rural tourism infrastructure development. The Ministry provides Financial Assistance of Rs. 5 crore for the development of tourist destinations and Rs. 8 crore for the development of tourist circuits to States/ UTs. The upper limit of financial assistance has been increased to Rs. 25 crore and Rs. 50 crore for the development of identified major tourist destinations and identified major tourist circuits, respectively to world class infrastructure.

The scheme of Assistance to Large Revenue Generating Projects seeks to encourage Public-Private Partnership for the development of tourism infrastructure. Projects include tourist trains, cruise vessels, cruise terminals, convention centres, golf courses, etc. that are eligible for assistance under this scheme.

The Ministry of Tourism has identified destinations/circuits as mega projects out of which projects for Agra, Varanasi-Sarnath, Bodhgaya-RajgirNalanda, Delhi, Kurukshetra and Hyderabad (Charminar area) have been sanctioned so far. This is an on-going process and is based on the national/ international importance of destination/ circuit, number of visitors, potential for growth, etc.

Fatehpur Sikri

Bodhgaya

4.4 Creation of Land Bank for Hotels The Ministry of scheme for augmenting country by purchasing authorities and building Partnerships.

Then

Tourism has introduced this hotel accommodation in the land from the land owning hotels through Public-Private

Now

Then

4.5 Assistance to Central Agencies for Tourism Infrastructure Development The Ministry of Tourism has introduced this scheme with a view to ensuring tourism infrastructure development through Financial Assistance of the Ministry for tourism sites/products owned by Central agencies like Archaeological Survey of India, Port Trust authorities, ITDC, etc.

Ajanta-Ellora

4.6 Externally Aided Projects The projects for the development of infrastructure at major Buddhist sites in Maharashtra are aided by external funding from Japan Bank of International Cooperation (JBIC).

Then

Now

Socio-economic benefits of rural tourism percolate down to rural community under the

26 Mahabalipuram

Now

28

29

5

New Tourism Products

5.1 Rural Tourism To showcase rural life, art, culture and heritage at rural locations in villages and to benefit the local community economically and socially as well as to enable interaction between tourists and local population for a mutually enriching experience, the Government of India decided to develop and promote rural tourism. The Ministry has partnered with the UNDP for Endogenous Rural Tourism as pilot projects for capacity building. Within prescribed limits, the hardware projects are funded by this Ministry and the funds for capacity building were provided by the UNDP through this Ministry. The software component was implemented with the involvement of an NGO/Gram Panchayat identified by the UNDP in co-ordination with the District Collector and the local community. The Ministry also extends the scheme of Capacity Building for Service Providers (CBSP) to other rural sites beyond those covered under partnership with the UNDP. The focal point for each site is the District Collector for ensuring convergence with other Yojanas and Schemes. The project implementation is monitored by the Project Standing Committee chaired by the Joint Secretary (Tourism). Field visits are conducted by the Ministry of Tourism-UNDP Teams. To monitor the projects, the National Workshops and Regional Review Meetings have been held regularly where initiatives were taken to further strengthen the scheme which included home-stay with food, guidetraining among the local youth, enhancing the role of women, linkage with tour operators and encouragement of the foreign students to stay with the rural host community, etc. In some sites, e.g. Hodka, Pochampalli, Kumbhalangi, Karaikudi (Chettinad), Aranmula, Raghurajpur, tour operators are involving such communities within their groups. UNDP has created a panel of architects to advise, guide and provide design inputs for site hardware work plan with sensitivity to the local environment using local skills, material and style. In many sites, the architects have been able to give new dimensions which are based on local skill, material and style. To give exposure and to make available outlets to the products created by the local rural artisans, efforts

30

have been made to provide platform in the following forms: (i)

(ii)

In Dilli Haat, in 2006, artisans were called from various rural sites to sell their products for 3 days. Similarly, in 2007 during Deep Utsav, artisans were called from the sites which are ready for marketing. Artisans participated in India International Trade Fair (IITF) and were able to sell their products.

(iii) The rural tourism website has been revamped and provides features which have been incorporated in the upgraded website. (iv) The rural tourism sites which are ready for marketing have now been up-loaded. Some of the broad features incorporated facilitate linkage between potential visitors and site service providers; hyperlink with other advantageous websites, faster download, all round animation, display of visuals as a slide show, upgrading of video quality and display of video clips highlighting art and craft process, etc. Feedback received indicates that the rural sites are becoming popular. (v)

The website focuses on each rural community with emphasis on the role of women as the principal stakeholders with their attribute of art, craft, culture and natural heritage.

(vi) Some of the sites like Chaugan, Samode, etc. have their own brochures for the publicity. 'Aranmula', the rural tourism site, has won the PATA Gold Award - 2007, in the culture category. 5.2 Medical Tourism Medical Tourism is gaining momentum and the following initiatives have been taken to promote this segment: (i)

The Ministry of Tourism, Government of India par ticipated at the Inter national Tourism Bourse (ITB) at Berlin, where India was promoted as the new emerging healthcare destination.

(ii)

The Ministry of Tourism participated in New York Times Travel Show in which there was also a session organized by the Indiatourism Office, New York, Indian High Commission

and Confederation of Indian Industry (CII) to promote Indian healthcare services and invite investment into India.

5.4 Adventure Tourism (i)

Development of Adventure Tourism is a part of the policy for the diversification of tourism products in India. A set of guidelines on safety and quality norms on Adventure Tourism as Basic Minimum Standards for Adventure Tourism activities was formulated to cover land, air and water based activities including mountaineering, trekking, hang-gliding, para-gliding, bungee jumping and river-rafting. Financial assistance is extended to various States/Union Territory Governments for the development of various adventure tourism projects and infrastructure facilities required for trekking, rock climbing, mountaineering, aero- sports, winter/ water related sports, trekker huts, wildlife viewing facilities, etc.

(ii)

Financial assistance was provided to Andhra Pradesh, Dadra & Nagar Haveli, Kerala, Madhya Pradesh, Mizoram, Tamil Nadu, Arunachal Pradesh, Sikkim, Haryana, Rajasthan, Karnataka, Lakshadweep, Chhattisgarh, Assam, Andaman & Nicobar Islands, Uttaranchal during 2006-07 for the purchase of water sports equipment like kayaks, canoes, paddle boats, fiber glass boats, hovercrafts, water scooters, etc.

(iii) A new category of medical visa has been introduced which can be given for a specific purpose to foreign tourists coming to India for medical treatment. 5.3 Cruise Tourism (i)

(ii)

Cruise Tourism is a fast growing sector globally. Experience in the Caribbean, Latin American and South-East Asian countries indicates that huge amount of foreign exchange can be earned by providing the right policy environment and infrastructure for the growth of cruise tourism. The global scenario for cruise shipping is picking up very fast both in terms of fleet and passengers carried. India, with its vast and beautiful coastline, virgin forests and undisturbed idyllic islands, long historical and cultural tradition of architecture, theatre and performing arts, is a high potential tourist destination for cruise tourists.

(iii) The cruise tourism potential in the country should be assessed from the medium-term and long-term perspective with details of foreign and domestic stakeholders. The following constraints would need to be addressed: a.

Development of major terminals

b.

Development of non-major ports

c.

Rationalization of duty structure for import of vessels

d.

Development of inland water cruise

e.

Rationalization of the laws pertaining to cruise shipping and streamlining of their implementation

(iii) With the Ministry's assistance, 5 water skiing courses were organized in Indian Institute of Skiing and Mountaineering, Gulmarg, Jammu & Kashmir in 2007. (iv) Financial assistance for the construction of Double Hull Boats, Jetties, Cruise Vessels, etc. was extended to Kerala, Andhra Pradesh, Dadra & Nagar Haveli, Tamil Nadu, etc. The Ministry made special efforts to promote Inland Water Tourism by providing necessary infrastructural facilities.

31

32

33

6

Development and Regulation of Tourism Industry

6.1 To ensure sustained growth and high standards of quality in tourist facilities offered by the private sector, Central and State Governments have made several incentives available. The Central Government incentives include: (i)

d.

Interest Subsidy Scheme Hotel projects of one to three star categories outside the metropolitan cities of Mumbai, Kolkata, Delhi and Chennai will get an interest subsidy of 3% on loans taken from the approved financial institutions like Tourism Finance Corporation of India Ltd. (TFCI), IFCI, State Financial Corporations, Industrial Corporations, ICICI, IDBI, SIDBI, HUDCO and Scheduled Banks. A subsidy of 5% is available if the location of such projects is in the Travel Circuits and Destinations identified for intensive development as per National Action Plan for Tourism. The scheme envisaging higher interest subsidy to Heritage hotel projects discontinued with effect from April 1, 2002; however, interest subsidy continues for the projects approved earlier.

(ii) Revised Scheme of “Incentive to Accommodation Infrastructure” To encourage growth of Budget Hotel Accommodation and to increase the inventory of rooms for the promotion of tourism in the country, a revised scheme of “Incentive to Accommodation Infrastructure” has been introduced to provide incentives to new approved hotel projects in one, two, three star categories and Heritage (basic) category hotels in the country. The details of the scheme for grant of Capital Subsidy are as follows: a.

34

of Tourism, Government of India from April 1, 2007 to March 31, 2008.

The scheme would be effective for the first year of the 11th Five Year Plan i.e. up to March 31, 2008 on an experimental basis. The first phase would be up to March 31, 2008.

b.

The scheme will be applicable throughout the country.

c.

The scheme would apply to all hotels in one to three star and Heritage (basic) categories where the hotel projects have been commissioned and classified by the Ministry

e.

f.

g.

The incentive will be in the form of capital grant of Rs. 2.00 lakh per room subject to a maximum of Rs. 30.00 lakh to one star hotel, Rs. 3.00 lakh per room subject to a maximum of Rs. 75.00 lakh to two star hotel, Rs. 3.00 lakh per room subject to a maximum of Rs. 100.00 lakh to three star category hotel projects. In the case of Heritage hotels, where the investment is required mainly for the refurbishment of existing building, which includes creation of additional facilities and accommodation, the incentive will be available only for the lowest category i.e. Heritage (basic) of Rs. 3.00 lakh per room subject to a maximum of Rs. 100.00 lakh. The amount of incentive will be released to the concerned hotel after completion of its classification in the said category. Hotels availing of the capital subsidy under the scheme can apply for upgradation in classification beyond three star category; and Heritage (basic) only after a period of eight years from the date of initial classification.

The hotels have been asked to ensure that they function in the same category for a period of five years from the date of initial classification.

years, the review of which is undertaken by the Committee set up for the purpose with representatives from the Ministry of Tourism, Government of India, State Governments, Federation of Hotel and Restaurant Associations of India, Hotel Association of India, Indian Tour Operators Association of India, Travel

Agents Association of India and the Institutes of Hotel Management. There were 1437 hotels with 84327 rooms on the approved list of the Ministry of Tourism up to December 31, 2007. The break-up of these hotels by different star categories is given below:

Star Category

No. of Hotels

5 Star Deluxe

100

21100

85

10311

5 Star

No. of Rooms

4 Star

116

7986

3 Star

482

22028

2 Star

204

6184

1 Star

54

2871

Heritage

78

2333

3 Star Apartment Hotel

2

110

4 Star Apartment Hotel

1

44

5 Star Apartment Hotel

1

100

5 Star Deluxe Apartment Hotel

2

259

5 Star Timeshare Resort

1

62

Silver B&B Establishment

81

216

Gold B&B Establishment

51

180

Guest House

1

40

To be classified

178

10503

Total

1437

84327

6.2 Approval and Classification of Hotels To conform to the expected standards for different classes of tourists, especially from the point of view of suitability for international tourists, the Ministry of Tourism maintains a system of approval of hotel projects linking them with various incentives and benefits. Classification of hotels under the star system - in six categories - from one to five Star Deluxe and Heritage Hotels (introduced in 1994) is undertaken by the Hotel and Restaurant Approval and Classification Committee (HRACC), set up by the Ministry of Tourism. To ensure that these hotels maintain the requisite standards, the Ministry re-classifies them every five

To expedite the ongoing process of classification/ reclassification of functioning hotels in one, two and three star categories, five Regional Committees were set up in Delhi, Mumbai, Kolkata, Guwahati and Chennai to conduct regular inspection. Revised and simplified guidelines for the classification of hotels and approval of hotel projects came into effect from March 24, 2003, the salient features of which are as follows: (i)

Project approval valid for 5 years.

(ii)

Classification of hotels is valid for five years from the date of issue of order or for reclassification, from the date of expiry of the last classification subject to the fulfilment of other conditions.

(iii) Existing classified hotels and new projects have to adopt environment-friendly practices and facilities for the physically challenged persons. (iv) Segregation of smoking and non-smoking areas in hotels has to be made besides complying with other requirements of the provisions under “The Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003”. 6.3 Heritage Hotels The popular concept of Heritage Hotels was introduced to convert the old palaces, havelies, castles, forts and residences built prior to 1950, into

35

accommodation units as they reproduce the ambience and lifestyle of the bygone era. The scheme is to ensure that such properties, which are the landmarks of our heritage, are not lost due to decay but become financially viable by providing the required room capacity for the tourists, while at the same time creating interests among them in tradition and heritage of the place. The Heritage Hotels have also been sub-classified in the following categories: Heritage (basic): Covers hotels in Residences/ Havelies/Hunting Lodges/ Castles/Forts/Palaces built prior to 1950. The hotel should have a minimum of 5 rooms (10 beds). Heritage Classic: Covers hotels in Residences/ Havelies/Hunting Lodges/Castles/ Forts/Palaces built prior to 1935. The hotel should have a minimum of 15 rooms (30 beds). Heritage Grand: Covers hotels in Residences/ Havelies/Hunting Lodges/Castles/ Forts/Palaces built prior to 1935. The hotel should have a minimum of 15 rooms (30 beds). Heritage Renaissance: Covers hotels in Residences/ Havelies/ Hunting Lodges/ Castles/ Forts/Palaces built prior to 1950. The hotel should have a minimum of 5 rooms (10 beds). This category includes those properties constructed prior to 1950 which have been dismantled and rebuilt at new location. 6.4 Approval of Standalone Restaurants Quality restaurants, authentic food and variety of cuisines, particularly cuisines of different states in the country have become increasingly popular both with domestic and foreign tourists and extend an enriching tourism experience. Accordingly, the Ministry's scheme for the approval of standalone restaurants stands revived with effect from November 30, 2005. 6.5 Guidelines for Apartment Hotels Apartment hotels have become increasingly popular with business travellers who visit India for some assignments or family holidays, etc., which sometimes prolong for months together. With a view to providing standardized world class services to the tourists, the Ministry has introduced a voluntary scheme for classification of fully operational Apartment hotels in

36

the five star deluxe, five star, four star and three star categories. Salient features of the scheme: (i)

Apartments will not be sold individually for residential or any other purpose.

(ii)

Classified Apartment hotels/ approved projects are eligible for various concessions and facilities that are announced by the Government from time to time, getting world-wide publicity through the websites of the Ministry and Indiatourism Offices located in India and abroad.

(iii) Approvals are given in all the above mentioned categories at the project implementation stage itself. (iv) Inspection and assessment are made by the Hotel and Restaurant Approval and Classification Committee (HRACC). 6.6 Approval of Guest Houses In order to augment supply of hotel accommodation for budget tourists, both domestic and foreign, the Ministry has introduced a voluntary scheme of approval of Guest Houses, which will meet certain standards of cleanliness, hygiene, upgraded facilities and practices. Guest Houses and unregulated accommodation units that spring up in cities and towns can also come under such schemes if they meet certain standards. Such steps can potentially augment, not only hotel accommodation in the budget category, but also generate employment and revenue for the states. 6.7 Approval and Classification of Timeshare Resorts In view of growing popularity of vacation ownership for leisure holidays and family holidays of tourist accommodation, known as the Timeshare, the Ministry introduced a voluntary scheme for classification of Timeshare Resorts (TSRs) into three star, four star and five star categories with effect from August 10, 2005. 6.8 Incredible India Bed & Breakfast Scheme The scheme offers foreign and domestic tourists an opportunity to stay with an Indian family and enjoy the warm hospitality and a taste of Indian culture and cuisine in a clean and affordable place. Resident home-owners

who are able to offer a minimum of one to a maximum of five rooms of prescribed specification along with the facilities comparable to a three-four starred hotel are eligible to apply for this scheme. For the host, the scheme offers, besides an opportunity to earn extra income, an enriching experience of interaction with the guest. The scheme has been launched all over the country and taken up as a pilot project in Delhi for a focused marketing/attention. It has potential to address acute shortage of hotel accommodation and increase the inventory of hotel rooms especially in Delhi and all metro cities. It is an excellent medium to showcase India as a destination and being promoted by the Ministry through its Indiatourism Offices in India and overseas, through its website - www.tourism.nic.in - and by the tour operators and travel agents' associations of India with a wide media campaign to invite the prospective owners. Guidelines have been framed with the necessary requirements to be fulfilled by the interested homeowner whose residence would then be inspected by a Regional Classification Committee for the Silver or Gold category as opted by the home-owner in his/her application. 6.9 Approval of Standalone Air Catering Units To meet the increasing demands of the specialized professional inputs and outputs of international standards in the air catering segment, the Ministry of Tourism approves and classifies Standalone Air Catering Units in the country. Only those air catering units which are approved and classified as per the Ministry of Tourism's guidelines are found suitable.

6.11 Approval of Travel Trade To encourage better quality and standards in services of the Travel Agents, Tour Operators, Adventure Tour Operators, Domestic Tour Operators and Tourist Transport Operators, the Ministry of Tourism has a set of guidelines for approval of all bona fide agencies operating in these areas under a voluntary scheme. The guidelines were revised on August 27, 2007. Total number of approvals as per the revised guidelines is as under: Category Travel Agents Tour Operators Tourist Transport Operators Adventure Tour Operators Domestic Tour Operators

341 441 163 24 19

6.12 Tourist Charters With effect from August 17, 2006, guidelines for the operation of Tourist Charter Flights to and from India were made effective and these were further liberalized subject to the condition that Tourist Charter Flights will be permitted only for “Inclusive Tour Package (ITP)”. Some of the modifications for the ITP are: (i)

Application for operating inclusive Tourist Charter Flights to India can be filed by an Indian Tour Operator recognized by the Ministry of Tourism or flight clearing agencies, cleared by the security agencies for obtaining flight clearances from the Directorate General of Civil Aviation.

(ii)

The stipulation of minimum duration of stay of charter tourists in India has now been removed.

6.10 Approval of Convention Centres Meetings, Incentives, Conferences and Exhibitions (MICE) are important segments of the tourism industry. In a rapidly globalizing high growth Indian economy, MICE tourism is bound to grow and the country is in need of more Convention and Exhibition Centres to meet this requirement. To encourage investment and standardize facilities in these areas, the Ministry of Tourism grants approval to Convention Centres.

Till December 31, 2007

During the period from January 1, 2007 to November 30, 2007, a total of 626 (ITP) Tourist Charter Flights operated into India bringing a total of 1,40,530 foreign tourists.

The incentives presently available to the Travel Trade Industry are at Annex-VI.

37

Institute of Hotel Management, Dehradun

38

7

Human Resource Development

7.1 To meet the demand for trained manpower in the hospitality industry, Ministry of Tourism has a network of institutes. Initially four Institutes of Hotel Management, Catering Technology and Applied Nutrition were set up at New Delhi, Mumbai, Chennai and Kolkata. Subsequently, 12 Food Craft Institutes were also set up at different places in the country to promote the hospitality related craft disciplines and to meet the manpower needs of the tourism industry in the country. 7.2 The Ministry continues to actively pursue its endeavour to create institutional infrastructure to train manpower needed to meet the growing demand of the hospitality industry. To meet the demand, this year 8 new State Institutes of Hotel Management, Catering Technology & Applied Nutrition at Kozhikode in Kerala, Ailwang in Mizoram, Dimapur in Nagaland, Yupia in Arunachal Pradesh, Bodhgaya in Bihar, Hamirpur in Himachal Pradesh, Solapur in Maharashtra and Fursatganj in Uttar Pradesh were sanctioned. The Ministry also supported upgradation of the Food Craft Institute at Puducherry to a Hotel Management Institute. For expanding facilities for skill level training, the Ministry sanctioned setting up of 4 new Food Craft Institutes at Garhmukteshwar in Uttar Pradesh, Jammu, Hassan in Karnataka and Samaguri in Assam. Applied training centres/ executive development centres were sanctioned in IHMs at Gwalior, Chandigarh, Bangalore and Gurdaspur to raise these Institutes to international standards. To qualitatively upgrade the guide services, the Indian Institute of Tourism and Travel Management was designated as the sole agency for the training of regional level guides. Another important programme 'Earn While You Learn' has been launched for college students to inculcate appropriate tourism traits and knowledge amongst the trainees to enable them to work as student volunteers. 7.3 National Council for Hotel Management & Catering Technology In 1982, National Council for Hotel Management and Catering Technology (NCHMCT) was set up to coordinate the growth and general advancement in the development of hospitality management education

through its affiliated Institutes. Like all academic institutes, it undertakes recruitment; standardizes admission, fees, bye-laws, syllabus for studies, courses, research and examinations, results; regulates building plans and equipment, in addition to conducting training, publishing periodicals, magazines, etc; receives and also carries out such government approved activities as prescribed from time to time. The NCHMCT also affiliates Institutes of Hotel Management for admissions and regulation of examinations. At present, 30 Institutes of Hotel Management, comprising 21 Central Institutes, 5 State Institutes and 4 private Institutes are affiliated to the NCHMCT. They conduct Degree, Post Graduate degree/Diploma courses in various disciplines relevant for hospitality industry. The NCHMCT also affiliates State Food Craft Institutes (FCIs) both in the Central and State sectors for diploma courses. These FCIs are located at Aligarh, Balangir, Darjeeling, Puducherry, Faridabad and Udaipur with 491 registered students (2006-07). A list of IHMs (Central Autonomous Bodies) and Food Craft Institutes (FCIs) affiliated to the NCHMCT is at Annex-VII. The NCHMCT holds Joint Entrance Examination (JEE) on all India basis for admission to the 1st year of the 3-year B.Sc. programme in Hospitality and Hotel Administration for its affiliated Institutes. Admission to M.Sc. in Hospitality Administration is centrally carried out by the Council. In the case of other courses, i.e. P.G. Diploma in Accommodation Operation; P.G. Diploma in Dietetics and Hospital Food Service; Diploma in Food Production; Diploma in Food and Beverage Service; Diploma in House Keeping Operation; Diploma in Front Office Operation; Diploma in Bakery and Confectionery; Craftsmanship Course in Food Production; Craftsmanship Course in Food and Beverage Service and Certificate Course in Hotel and Catering Management, admission is directly carried out by the respective Institutes as per eligibility criteria prescribed by the National Council for each of the courses. Strength of students including those promoted to higher classes, during 2006-07 academic session are as under:

Course Title

Total

The National Council organizes an All India Student Chef Competition each year to develop a competitive zeal amongst students of Hotel Management to demonstrate their skills in production of dishes and menus in the different categories of the competition with certain rules and guidelines. 7.4 Central Financial Assistance for Creation of Institutional Infrastructure The Ministry extends Central Financial Assistance (CFA) for the setting up of State Institutes of Hotel Management. The National Institute of Tourism & Hospitality Management (NITHM) at Hyderabad and IHM at Dehradun were set up with CFA and they are already functional. The other projects that are at various stages of construction are located at Kurukshetra, Silvassa, Jamshedpur and Raipur. The CFA for such projects is subject to certain guidelines including allocation of at least 5 acres of land by the state government concerned and affiliation of the Institute to the NCHMCT. Normal grant is up to Rs. 10 crore, of which, Rs. 8 crore is for construction and rest for the purchase of equipment required by the Institute. The expenditure over and above the Central Grant is met by the respective state governments. Financial assistance is also extended for upgradation of

40

Students on Roll

M.Sc. in Hospitality Administration Ist year of 3-year B.Sc. in Hospitality and Hotel Administration (new admissions) IInd year of 3-year B.Sc. in Hospitality and Hotel Administration (promoted from lower class) IIIrd year of 3-year B.Sc. in Hospitality and Hotel Administration (promoted from lower class) P.G. Diploma in Accommodation Operations and Management P.G. Diploma in Dietetics and Hospital Food Service Craftsmanship Course in Food Production Craftsmanship Course in Food and Beverage Service Diploma in Food Production Diploma in Food & Beverage Service Diploma in House Keeping Operation Diploma in Front Office Operation Diploma in Bakery and Confectionery

9 3367 2786 2565 164 62 538 237 377 344 137 142 107 10835

institutional infrastructure such as construction of hostels and modernization of laboratories. Grants-in-Aid released to autonomous bodies during 2007-08 (up to February 29, 2008) is at Annex-VIII. 7.5 Brief Report on the Central Institutes of Hotel Management Institute of Hotel Management - Ahmedabad (Gandhinagar) The Institute, formed in 1972 as a Food Craft Institute, was upgraded as IHM in 1984 and offers B.Sc. programme with 392 students on roll. The campus recruitment is 100% with an average salary of Rs. 1,18,000/- per annum. Institute of Hotel Management Bangalore This was established in 1969 as a Food Craft Institute. It offers M.Sc. and B.Sc. programmes with 424 students on roll. The qualified candidates were offered jobs with the salary range between Rs. 1.20 lakh and Rs. 3.50 lakh per annum. The Institute signed an MoU with Hospitality Institute from South Bank, Queensland, Australia for

41

faculty exchange programme. An Executive Development Centre (EDC) with residential facility with 30 rooms is being set up by the Institute with the financial support of the Ministry of Tourism, Government of India.

Institute of Hotel Management Gurdaspur The Institute, set up in 1994, offers B.Sc. in Hospitality and Hotel Administration programmes with

programmes ranging from diploma level to B.Sc. level with 352 students on roll. Institute of Hotel Management Hyderabad The Institute started in 1972 as a Food Craft Institute and was upgraded to IHM and offers four

Institute of Hotel Management Bhopal The Institute, set up in 1986, offers B.Sc. and Craft Food Production Programme with 580 students on roll and achieved a record placement of 290 jobs. Many students got selected as management trainees on salary ranging between Rs. 1.20 lakh and Rs. 2.50 lakh per annum.

Craft Institute, was upgraded to IHM with 180 students on roll for the degree course. 138 students received job offers, many of them received more than one offer. Institute of Hotel Management - Mumbai The Institute was established in 1954. During the academic year 2006-07, at craft level, a new course in Bartending and another course for Airline Cabin Crew positions of Air Hostess and Flight Pursers were

Institute of Hotel Management Bhubaneswar The Institute, started as a Food Craft Institute in 1973, offers four programmes ranging from Craft level to B.Sc. degree. Up to March 2007, 3867 students were trained successfully and 3482 of them were placed in different organizations. Dr. Ambedkar Institute of Hotel Management - Chandigarh Set up in 1990, this Institute offers two programmes for 473 students on roll. Placement was 100% with average salary between Rs.1.00 lakh and Rs.3.00 lakh per annum. The Institute helped the Union Territory Government of Chandigarh in launching its Mid-day Meal Programme by catering to 49 schools. Institute of Hotel Management Chennai Established in 1963, this Institute offers ten programmes ranging from Certificate level to B.Sc. degree with 630 students on roll. Placement is good. Institute of Hotel Management Goa The Institute started in 1968 as a Food Craft Institute, is now upgraded to IHM. It offers 3 programmes ranging from Craft level to B.Sc. level with 703 students on roll.

357 students on roll. Two students were selected for 8 weeks internship by 'Vatel, International Business School', Paris, France. Institute of Hotel Management Guwahati The Institute, which started as a Food Craft Institute in 1995, was upgraded as IHM and offers three programmes ranging from Craft level to B.Sc & Post Graduate level with 354 students on roll. Placement is 95% with a salary offer from Rs. 0.90 lakh to Rs. 2.00 lakh per annum. Institute of Hotel Management Gwalior The IHM, Gwalior began initially as a Food Craft Institute in 1986 and was upgraded to IHM in 1992. It offers 3-year B.Sc. Degree in Hospitality and Hotel Administration and one year Crafts Certificate Courses in Food Production, Food & Beverage Services and Housekeeping. Students' strength was 423 in 2006-07. The placement for the last academic session i.e. 2006-07 was 63% with remuneration package from Rs.1 lakh to Rs. 3.6 lakh per annum. Institute of Hotel Management Hajipur The Institute, set up in 1982 as a Food Craft Institute, was upgraded to IHM and offers three

programmes ranging from craft level to B.Sc. with 343 students on roll. Placement of students was over 90%. Institute of Hotel Management - Jaipur The Institute was upgraded from a Food Craft Institute to IHM in 1989. There were 107 students in the degree course. Leading organizations held campus interviews and 180 jobs were on the offer. Institute of Hotel Management - Kolkata The Institute was established in 1963. It has 529 enrolled students in different programmes such as Craft, PG diploma and B.Sc. programmes. 165 students were placed in different organizations. Institute of Hotel Management - Lucknow The Institute, initially started in 1969 as a Food

introduced. Started an International Chefs Diploma of 1½-year duration in July 2006 in collaboration with Niagara on the Lake Culinary School, Canada. The placement is 85% with the highest salary of Rs. 3 lakh per annum. Recruiters included hotels, restaurants, BPOs, airlines, multiplexes. A record number of 21 organizations came for the campus recruitment. Institute of Hotel Management - New Delhi The Institute, set up in 1962, offers seven programmes ranging from craft to M.Sc. level with 530 students on its roll. During the placement interviews, 209 jobs were on offer. Institute of Hotel Management - Shillong The Institute, set up as Food Craft Institute in 1995, was upgraded to IHM and offers 3-year B.Sc. in Hospitality & Hotel Administration programme with 62 students on roll. Placement was 100% and salary offered ranged from Rs. 0.72 lakh to Rs. 0.96 lakh per annum. The Institute started the one-and-a-half-year diploma in Food Production from the academic session 2007-08. Under the CBSP Scheme, the Institute offers 3 months' course in Indian Sweets and Namkeen and 6 months' course in Bakery & Confectionery. Five

42

43

programmes in Indian Sweets and Namkeen and 2 programmes in Bakery & Confectionery were completed and more than 128 trainees were trained in 2006-07. Institute of Hotel Management - Shimla The Institute offers 4 programmes ranging from craft level to B.Sc. level with 467 students on roll.

During the campus interview, 70 students were selected for placement. Institute of Hotel Management - Srinagar Established in 1982, the Institute offers B.Sc. in Hospitality and Hotel Administration programme with 47 students on roll. Some additional training programmes are also being conducted by the Institute under the Prime Minister's Tourism Reconstruction Plan (PMTRP)/Capacity Building for Service Providers (CBSP) schemes. Institute of Hotel Management Thiruvananthapuram The Institute was established in 1990 and offers three programmes ranging from craft to B.Sc. level with 420 students on its roll. Placement was 100%. 7.6 Indian Institute of Tourism and Travel Management (IITTM) - Gwalior (i)

(ii)

44

Indian Institute of Tourism and Travel Management (IITTM), established in 1983, is a pioneer in the field of travel and tourism education and training for providing specialized training and education for tourism and travel industry both in private and public sector. In 2008, the Institute is celebrating its “Silver Jubilee Year”. During the Silver Jubilee year, the Institute will be organizing Directors' Conclave on

Emerging Dimensions of Human Resource Development in which Heads/Directors (Tourism) of Universities/Institutes and other experts and practicing managers are participating from all over the country. An International Conference on Innovations in Tourism: Competitiveness and Sustainability is also scheduled to be conducted at the IITTM, Bhubaneswar. The Institute is also organizing National Tourism Quiz, National Dance and Song Competition for the students of tourism institutes/universities. (iii) IITTM organized a Syllabus Review Workshop from October 16 to 18, 2006 at Delhi, and based on the recommendations of the Workshop, the Institute decided to offer the following All India Council for Technical Education (AICTE) approved programmes with an intake of 60 students each from the academic session 2007-08 at Gwalior, Bhubaneswar and Delhi centres: a.

Two-year Post Graduate Diploma in Management (Tourism and Travel) - from Gwalior and Bhubaneswar

b.

Two-year Post Graduate Diploma in Management (International Business) - from Gwalior and Bhubaneswar

c.

Two-year Post Graduate Diploma in Management (Service Sector) - from Gwalior

d.

Two-year Post Graduate Diploma in Management (Tourism and Leisure) - from Delhi

(iv) During 2006-07, IITTM conducted refresher courses on tourism/travel management for university and college teachers. AICTE also sanctioned Rs. 8.00 lakh for establishing an Entrepreneurship Development Cell in IITTM.

administrative control of NIWS was entrusted to IITTM. During 2006-07, NIWS conducted several short-term programmes and about 400 participants have attended these programmes related to Powerboat Handling, Lifesaving Techniques, Wind Surfing and Lifesaving for water sports, etc. 7.7 Capacity Building The Ministry is equally alive to the need of upgrading the skills and building capacities of service providers of the Industry. To this end, the Ministry commenced the scheme of Capacity Building for Service Providers, under which, trainings are undertaken to cover a wide range of services like health & personal hygiene, cleanliness, basic service techniques, cooking techniques, garbage disposal, etiquette and basic manners, basic nutrition values, energy saving and nutrition saving techniques, guide training, etc. It, interalia, covers service providers such as coolies/ servers/

waiters/ helpers/ front office staff/ reception counter staff/ food kiosk and dhaba staff/ personnel engaged in handling tourists, airport security staff, immigration officials and customs officers. The implementing agencies are Indiatourism Offices, Institutes of Hotel Management, Food Craft Institutes, Indian Institute of Tourism and Travel Management, NCHMCT, tourism departments of States/ UT Governments, State Tourism Development Corporations, India Tourism Development Corporation, State/Central training/academic institutions. Under the scheme, the participants of 1 to 3-day programmes are compensated for the loss of wages. The fee and other costs of training for all the programmes are covered. For the promotion of rural tourism, the Ministry of Tourism extends assistance for capacity building in selected villages.

Abstract of Financial Assistance Extended under the CBSP Scheme during the Year 2007-08 up to February 29, 2008 (Rs. in lakh) Indiatourism Offices

31.00

IHMs/ FCIs

35.00

NCHMCT

23.00

IITTM

19.24

State Government Organizations

40.57

India Tourism Development Corporation

61.97

Specialized Training Organizations

15.05

For Rural Tourism to State Governments

427.58

Total

653.41

National Institute of Water Sports - Goa India has a vast coastline; but the water based adventure sports/ tourism potentials have still remained untapped. The researchers are unanimous in their opinion that water sports tourism could be an ideal nonpolluting industry for the under-developed coastal regions of the country. The Ministry of Tourism established the National Institute of Water Sports (NIWS) in Goa on the beach of Panjim. The

45

8

Publicity and Marketing

8.1 Domestic Campaigns The Ministry of Tourism, as part of celebrations of 60th Anniversary of India's Independence, had launched a campaign titled, “Sare Jahan Se Achcha”. The campaign activities were undertaken in major TV channels and popular cinema halls across the country. The objective was to make Indians proud of their country and encourage them to travel within the country. In its continued efforts in educating/sensitizing stakeholders and general public about the importance of preserving monuments and places of tourist interest and to reinforce the “Atithi Devo Bhavah” message, thereby achieving the objective of responsible tourism, the Ministry of Tourism had launched the “4th Phase of Atithi Devo Bhavah - Awareness Campaign”. The campaign activities were undertaken in leading TV channels, print publications, FM radios and popular cinema halls across India. Four more domestic campaigns for promotion of the North East, Jammu & Kashmir, Rural Tourism and Adventure & Wildlife Tourism have been planned during the year 2007-08. Events (i) (ii)

Supported the Conference on Initiative Tourism on Kashmir on April 9, 2007 in New Delhi. Participated in South Asian Travel & Tourism Exchange (SATTE) 2007 - Promotion of North East.

(iii) Supported the “Look South” Conference organized by the Federation of Indian Chambers of Commence and Industry (FICCI) in Hyderabad in May 2007. (iv) Participated in the Travel and Tourism Fairs in Ahmedabad, Hyderabad, Bangalore and Kolkata through the Indiatourism domestic offices. (v)

Organised welcome dinner for delegates of the 12th International Conference of National Trusts in Delhi jointly with Indian National Trust for Art and Culture Heritage (INTACH).

(vi) Supported the World Press Photo Exhibition from December 12, 2007 to January 12, 2008 in Mumbai. (vii) Jointly organised the Tourism-cum-Handicrafts-

48

cum-Cultural Festivals with State Governments of Maharashtra, Orissa and Madhya Pradesh. 8.2 Marketing Objectives of Overseas Offices

attractions. These invited guests are able to get first-hand information/knowledge of the Indian tourism product during their familiarization tours.

The Ministry of Tourism, Government of India, through its 13 offices overseas, endeavours to position India in the tourism generating markets as a preferred tourism destination, to promote various Indian tourism products vis-à-vis competition faced from various destinations and to increase India's share of the global tourism market.

During the year, Travel Agents, Tour Operators and Media Representatives from important tourist generating markets overseas were invited, not only to visit the varied tourist attractions of the country but also to participate in and cover events including South Asian Travel & Tourism Exchange (SATTE), Himalayan Run & Trek Event and the Annual Convention of the Adventure Tour Operators Association of India.

The above objectives are met through an integrated marketing and promotional strategy and a synergised campaign in association with the Travel Trade and State Governments. The specific elements of promotional efforts undertaken overseas include advertising in the Print & Electronic Media, participation in Fairs & Exhibitions, organising Seminars, Workshops, Road Shows & India Evenings, printing of Brochures and Collaterals, Brochure Support/ Joint Advertising with Travel Agents/ Tour Operators, inviting the Media and Travel Trade to visit the country under the Hospitality Programme, etc.

Fam Trips for groups of Travel Agents and Tour Operators were organized in collaboration with FIN Air, Air Arabia, EVA Air, Air India, Special Buddhist Mahaparinirvana Train, the Deccan Odyssey Luxury Train, etc. Also groups of Travel Agents/Tour Operators/Media representatives from the Latin American countries, US & Canada, UK, Scandinavia, Greece, Belgium, Germany, South Africa, Singapore, China, Japan, Korea, etc. were provided hospitality during their Fam Tours to different destinations in the country under the Hospitality Programme.

8.3 Assistance to Service Providers under the Market Development Assistance (MDA) Scheme Under the Market Development Assistance Scheme, the Ministry of Tourism, Government of India, provides financial support to approved tourism service providers (i.e. hoteliers, travel agents, tour operators, tourist transport operators, etc.), whose turnover includes foreign exchange earnings also, for undertaking the following tourism promotional activities abroad : (i)

Sales-cum-Study Tours

(ii)

Participation in Fairs/ Exhibitions

In addition, content integration, image/photo gallery and destination specials were taken across portals to enhance various themes of India. A fresh campaign that commenced from September 2006 to March 2007 across major portals and travel sites (196 million impressions in domestic sites and 166 million impressions in international sites) is expected to give more mileage to various products and destinations of India. For another campaign specified for US, Korea, Japan and China markets, the sites have been chosen. Innovative units, rich media creative and other forms of digital media have been take into consideration to reach the target audience. Informative Interactive and Quick Time Virtual Reality (QTVR) CD ROMs Thematic CD ROMs have been made for providing specific and updated information to the India Tourism promotional agencies, media and tourists in particular to promote the specific products. These CDs are being distributed through network of the Indiatourism Offices in India and abroad. The subjects of new CDs produced during the period are:

8.5 Online Campaign

(i)

Adventure Tourism

A complete 360-degree approach was planned for the online campaign during the year 2006-07, considering all possible touch points to connect Incredible India with the internet users. The online campaign ran across esteemed and high traffic domestic and international sites and travel portals. Innovative site captures and road blocks, rich media creative (completely owning the environment of the site with Incredible India banners and visuals) along with bigger size creative resulted in higher click-through rate across all the websites.

(ii)

Cruise Tourism

(iii) Medical Tourism (iv) MICE Tourism (v)

Buddhist Sites of India

(vi) World Heritage Sites

(iii) Publicity through printed material 8.4 Familiarization Tours under Hospitality Programme One of the important elements of the Marketing Strategy and Plan of the Ministry of Tourism is the Hospitality Programme, under which, the Ministry of Tourism invites editorial teams of travel publications, journalists, photographers, TV teams, travel agents, tour operators, etc. from overseas, through the Indiatourism Offices to effectively project India as an attractive multidimensional tourist destination offering a vast range of

49

A Ministry of Tourism, Govt. of India Initiative

A Ministry of Tourism, Govt. of India Initiative

9

Overseas Activities

9.1 Marketing Objectives/Activities of Overseas Offices The Ministry of Tourism, Government of India, through its 13 overseas Indiatourism Offices located at New York, Toronto, London, Frankfurt, Paris, Amsterdam, Milan, Los Angeles, Dubai, Johannesburg, Singapore, Tokyo and Sydney, endeavours to position India in the key tourism generating markets as a preferred tourism destination and to promote diverse Indian tourism products vis-à-vis competition faced from various destinations and to increase India's share of global tourism market in terms of international arrivals and foreign exchange earnings. These objectives are met through an integrated marketing strategy and campaigns synergized in association with the travel trade in India and abroad, State Governments, airlines, Indian Missions and other related organizations. The specific elements of activities undertaken by overseas offices include direct marketing market development; improving supply and demand situation; establishing one-to-one relations with travel trade and media persons; media planning and advertising in the print, electronic, interactive media and outdoor advertising; participation in travel and consumer fairs and exhibitions; organizing of seminars, workshops, travel marts, road shows and India evenings; printing of brochures and collaterals for distribution in major trade, consumer, media fairs and to the discerning tourists; brochure support/joint advertising with tour operators, travel agents; dissemination of information through

Internet, by post and across the counter; inviting media and travel trade to visit India (to see for themselves its tourism products and infrastructure) under its hospitality programme; collecting market intelligence data through travel trade and other related sources and public relation activities, etc. The Ministry of Tourism also provides assistance to marginal service providers under its Market Development Assistance Scheme for the purpose of sales-cum-study tour abroad, participation in travel fairs and exhibitions abroad and printing of publicity material for overseas promotion.

PATA TRAVEL MART SEPTEMBER 2007

Some of the major promotional activities undertaken in the overseas markets during the year are: “Incredible India@60” in New York; “India Now' in London; PATA Travel Mart in Bali; participation in Japan Association of Travel Agents (JATA) World Travel Fair in Tokyo during India-Japan Tourism Exchange Year 2007; road shows in China during India-China Year of Friendship Through Tourism-2007; World Travel Market (WTM) in London, International Tourism Bourse (ITB) in Berlin; World Wide Exhibition for Incentive Travel, Meetings & Events (IMEX) in Frankfurt; European Incentive, Business, Travel & Meeting (EIBTM) in Barcelona; Feria International de Turismo (FITUR) in Madrid; Arabian Travel Mart (ATM) in Dubai; Incentive Travel & Conventions Meeting Asia (IT&CMA) in Bangkok; China International Travel Mart (CITM) in Kunming and Asia Pacific Incentive and Meeting Expo (AIME) in Melbourne.

CITM-KUNMING (CHINA) NOVEMBER 2007

INDIA NOW LONDON JULY - SEPTEMBER 2007

I T B BERLIN MARCH 2007

52

53

68

69

10

Promotional Activities undertaken by Domestic Offices

10.1 Promotional Activities undertaken by Domestic Offices

(ii)

There are 20 Indiatourism Offices in India. They participated in a wide range of events in various parts of the country. With traditional welcome at airports and seaports they ushered important opinion makers from abroad to India; offered hospitality to eminent tourists, their groups and to cruise liners. To create and promote tourism awareness among general public, they organized debates and quiz competitions. These offices also performed important functions regarding redressal of grievances of the tourists to their satisfaction. The offices carried out classification of new hotels and reclassification of the old ones, approved the new travel agents, tour operators and tourist transport operators in addition to approving the old ones, monitored the sanctioned tourism projects under Central Financial Assistance besides communicating to and guiding the tourists effectively.

(iii) 750 Parliamentarians from the Commonwealth Nations were guided and facilitated during their visit to Agra and Fatehpur Sikri.

These offices played a pivotal role in promoting tourism, developing its infrastructure and co-ordinating with various segments of the industry. World Tourism Day was celebrated with a number of events and functions, which made a favourable impression with the tourists and the locals.

Indiatourism Jaipur (i)

(ii)

(ii)

186 establishments were inspected during 2007, for inclusion as properties under the Bed & Breakfast scheme. 300 persons underwent training at the Best Western Country Club Resort, Manesar and also at Bhimtal and Binsar under the programme of Capacity Building for taxi drivers, auto drivers and other service providers.

(iii) Awareness was spread about tourism and its products in India by distribution of publicity material like framed blow ups, posters, brochures among hotels, travel agencies and tour operators, defence personnel and educational institutions. Indiatourism Agra (i)

56

Orientation programmes were organized for coolies at Mathura, Tundla and Agra Fort railway stations and also for dhaba workers on National Highway from Agra to Aligarh. Orientation programme was also organized for approved guides.

Participated in India Travel Mart (ITM), an important event, where participants also came from Singapore Board of Tourism, Malaysian Airlines, hotel chains and resorts, travel agencies, etc. Inter-school Quiz Competition and Inter-college Debate Competition were organized on the theme 'Women can perform better than men in tourism' consistent with the World Tourism Organization's (WTO) theme for the year.

(iii) Participated in the marketing meet at Jaimahal Palace Hotel, Jaipur. Indiatourism Varanasi Participated in a seminar organized by Varuna Travels on the topic “Changing trends, challenges and employment potential in tourism”. The seminar was attended by about 100 participants and speakers from Banaras Hindu University (BHU) and Kashi Vidyapeeth.

Indiatourism Delhi (i)

Extended hospitality to a VIP delegation of the SAARC Nations.

Indiatourism Chennai (i)

Indiatourism Chennai provided hospitality to 31 groups mainly from Canada, USA, Germany, South Africa, France, Singapore, Japan.

(ii)

Provided traditional welcome and information services on board and at port to 7 luxury liners with 2568 passengers.

(vi) A training programme for 620 stewards and cooks of Indian Railways Catering and Tourism Corporation (IRCTC) was conducted through the Institute of Hotel Management, Catering Technology & Applied Nutrition, Chennai. Indiatourism Bangalore (i)

Participated in the Conference of World Presidents Organization held at Hotel Leela Palace, Bangalore on October 26, 2007.

(ii)

Participated in the “Tourism Run” organized by the Department of Tourism, Government of Karnataka.

Indiatourism Hyderabad (i)

Made a presentation on Buddhist Sites in India in a seminar held at Osmania University, Hyderabad.

(ii)

Inaugurated the Tourism Resource Centre at the Government City College, Hyderabad.

Indiatourism Kochi (i)

(ii)

(v)

Conducted 45 Capacity Building Programmes in the Southern Region at Chennai, Kodaikanal, Bangalore, Hyderabad, Secunderabad, Tirupati, Wyanad, Alleppey, covering a total of 5500 participants.

Conducted a seminar on tourism highlighting the significant role of women in tourism industry in Chavara School of Tourism Studies, Ernakulam, Kochi on the World Tourism Day.

Indiatourism Mumbai (i)

During the months of March and April, 16 luxury liners visited Mumbai. The office arranged traditional welcome with 'tikka' and rosettes to the passengers on board and opened an information counter at Ballard Pier to assist the tourists.

(ii)

A programme on 'Advantages of meditation in our life' was organized for the benefit of staff members. A representative of the Sahaja Yoga Meditation Centre delivered a lecture on spirituality.

(iii) Assisted the handling agents for services at the seaport through Port Trust. (iv) Organized a cultural programme for the Crew and the VIPs of the Swedish ship `Gotheborg' which arrived at Chennai on January 31, 2007. The Union Minister for Shipping, and the Governor of Tamilnadu were present on the occasion.

Celebrated the World Tourism Day on September 27, 2007. The travel trade operators and the hoteliers were sensitized to the event well in advance and were requested to display banners depicting the theme, accord traditional welcome, offer discounted tariff for food and transport, illuminate premises, etc.

(iii) An in-house 'Training for Trainers' was arranged for the staff members of the Indiatourism Mumbai to enhance their skills needed for organizing

Capacity Building Programmes for Service Providers. (iv) Arranged a traditional welcome for the Chairman of China National Tourism Administration and his team on their arrival at the airport. (v)

In a joint initiative with the Bombay Chamber, a performance by the First Police Band was organized at Hanging Garden Band Stand on September 27, 2007 on the World Tourism Day, reviving thereby an old tradition of music being played at nine identified Band Stands.

(vi) On the World Tourism Day, a traditional welcome was accorded to the tourists who arrived by the first flight at the Mumbai airport after midnight on September 27, 2007. Banners with WTO theme were put up at various prominent places and at Travel & Tourism Institutes. Competitions such as Quiz, Debate, Essay Writing, etc. among Travel & Tourism students were also conducted. (vii) The Regional Director attended a conference at Colombo organized by the Sri Lankan Holidays where a presentation on Incredible India was also made. (viii) Sponsored Prayaag Festival organized by the Jamnalal Bajaj Institute of Management Studies to promote youth tourism. Various competitions like Quiz, Debate, Workshop on tourism were arranged and the winners were given lunch/ dinner coupons for two nights' stay package in one of the tourist locations in the region. Similar programmes of St. Xavier's College and NITIE were also sponsored. (ix) Participated in an exhibition called 'Locations' organized by the Novel Event Works Co. Ltd. The Indiatourism stall displayed different places of interest to popularize various locations for film shooting. Also, Indiatourism participated in 'India International Travel Mart' organized by the IITTM, Bangalore at the World Trade Centre, Mumbai. (x)

Presentations were made to the Belgian Travel and Tour Operator group and US Delta Press Trip who were the guests of the Ministry of Tourism, Government of India and Indiatourism New York.

(xi) Training programmes for service providers such as coolies, auto/ taxi drivers, service staff of hotels

57

were conducted under the scheme of Capacity Building for Service Providers.

September 1 to 13, 2007 by way of taking a booth and distributing tourism promotional literature to the visitors.

Indiatourism Aurangabad (i)

Inaugurated the prog ramme of “Rock Museum-Khadak Pushp” during the month of July. Also, attended the inaugural function of “Foreign Exchange Operation” by Thomas Cook Ltd.

(ii)

Organised a Seminar on “Indian Tourism Problems, Myths and Solutions”.

(iii) Quiz competition, talk and panel discussions on “Tourism Education” were arranged by the office where members from the Institute of Hotel and Tourism Management, Institute of Hotel Management and Catering Technology, and various colleges also participated. (iv) Opened a Tourist Counter at the Goa Youth Cultural Festival in Aurangabad and distributed publicity material.

(ii)

(iii) Participated in the 8th International Expo from October 25 to the November 7, 2007 in Guwahati along with representatives from Bangladesh, Thailand, Kenya, Myanmar and Egypt. (iv) Organised 8 Capacity Building Programmes between April and October, 2007 at Guwahati for service providers such as auto/taxi drivers, river cruise employees, shopkeepers, local craftsmen, receptionists, waiters, etc. who directly interact with tourists. Indiatourism Imphal

Indiatourism Goa (i)

(ii)

Celebrated the World Tourism Day by arranging various activities such as traditional welcome to tourists, essay competition for students and a workshop in the evening at Miramar Residency. The meeting was chaired by the Secretary (Tourism & Agriculture), Government of Goa and was attended by eminent personalities and representatives from Travel Trade. Organized Travel Agents' and Tour Operators' meet for the newly introduced 'Home Stay' facilities by 'Culture Angan' along with visit to Sawantwadi Palace, Adivasi Cultural Village Theme Park, Sindhudurg Fort and Dhamapur Lake.

Indiatourism Khajuraho (i)

Organised a monsoon festival for the local children.

(ii)

A Workshop on Art and Craft was organized at Shilpgram by the Centre for Cultural Resources & Training (CCRT). All necessary assistance was provided by Indiatourism, Khajuraho in organizing the programme.

Indiatourism Guwahati (i)

58

Participated at the Kaziranga Expo from

Celebrated the World Tourism Day. Tourists were welcomed at the Guwahati Airport and at the city office. A cultural programme in the evening was also organised at Hotel Brahmaputra Ashok, showcasing various classical and folk dance forms of the State of Assam.

Celebrated the World Tourism Day with a traditional welcome to the visitors at the office. A group of students from the Modern School, Imphal was invited for a talk on the theme “Tourism Opens Doors for Women” to educate the young minds on the socio-economic benefits of tourism specially for women. Indiatourism Shillong (i)

Celebrated the World Environment Day on June 5, 2007 in association with Shankar Dev College, Shillong. On this occasion, saplings were planted and a cleaning drive was undertaken in the nearby village Lawsohtun, which is visited by tourists.

(ii)

To mark the visit of the Hon'ble Tourism Minister of Thailand to Shillong on the June 30, 2007, a seminar was organized by the North East Council and presentations were made by the North East States to attract Thai investments in various sectors including tourism. At this event, Indiatourism Shillong exhibited an attractive display of the tourism material including promotional scrolls at the venue of the seminar. Literature kits were also distributed among the delegates.

Meghalaya and also participated in a radio-talk on the occasion. Indiatourism Kolkata (i)

Participated in a Fair at Durgapur, organized by M/s Blue Eye Kolkata from July 7 to 8, 2007. This is a platform to promote tourism to the people outside the metros.

(ii)

Participated in Travel and Tourism Exposition (TTE) held at Kolkata from July 13 to 15, 2007.

(iii) Participated in the 5th Bhutan Trade Show 2007 which was organized by Bhutan Chamber of Commerce and Industry (BCCI) from August 3 to 7 at Paro, Bhutan. (iv) Participated in the Travel and Tourism Fair (TTF) 2007 organised by M/s Fairfest Media Ltd held at Kolkata from August 18 to 20, 2007. The fair was inaugurated by the Hon'ble Union Minister of Tourism & Culture. It was very well attended by the Government and the private agencies from India and abroad. This event gets the largest footfall among all the promotional programmes organized in Kolkata. In TTF 2007, Indiatourism Kolkata won the first runner-up award for the door of the stall. (v)

Celebrated the World Tourism Day in a befitting manner with a variety of programmes on September 27, at the airport and in the city office by Indiatourism Kolkata. Banners with the year's message were put up at the office and at the airport. Visiting tourists at the information counters were welcomed in the traditional way.

(vi) In the city office, a cultural programme of Chhow folk dance of Purulia (West Bengal) was organized to entertain the visiting international and domestic tourists. Orphan children from the Missionaries of Charities with escorts were invited to attend the function. They were presented with beautiful Incredible India publicity material and also taken for a sight seeing tour of the city. At the request of Indiatourism Kolkata, Museums of the city allowed free entry to the visitors on the day. Indiatourism Bhubaneswar (i)

Participated in Orissa International Tourism Fair held from September 7 to 9 at Bhubaneswar.

(ii)

Celebrated the World Tourism Day with various programmes organised in the office and at the airport for the arriving passengers/ tourists.

(iii) Indiatourism Bhubaneswar, through the Reliance Petroleum outlets, is distributing publicity material to the highway travellers at the strategic locations on National Highway (NH) in Orissa. (iv) Organised training programmes for 164 service providers to upgrade their respective skills. Indiatourism Patna (i)

Celebrated the World Tourism Day on September 27, 2007 and organized various programmes both at the city office and at the airport. Banners were put up with the year's message.

(ii)

Organised Capacity Building Training Programmes at Bodhgaya and Rajgir during the month of November 2007.

(iii) Organized a cultural programme in association with the Department of Tourism, Government of

59

11

Research, Analysis, Computerisation and Monitoring

11.1 Information and Research Activities The responsibility for the compilation, tabulation and dissemination of information on various aspects of tourism is entrusted to the Market Research Division in the Ministry, which compiles data on domestic and foreign tourist visits, occupancy statistics of approved hotels, etc. Preliminary study for the preparation of master plans, perspective plans and Detailed Project Reports (DPRs) for the development of tourism is also undertaken by this Division. Periodic appraisal of the profile of international and domestic tourists, expenditure patterns, tourist preferences and satisfaction levels along with availability and adequacy of

infrastructural facilities at tourist centres, etc. is also prepared by this Division. 11.2 Foreign Tourist Arrivals During the year 2007, the number of foreign tourist arrivals estimated at about 5 million (Provisional) represents a growth of about 12% as compared to the corresponding figures for the previous year. Annex-IX also contains a statement of foreign tourist arrivals for the last ten years. Month-wise estimates on foreign tourist arrivals during 2007, along with the corresponding figures during 2005 & 2006, are given below: 11.3 Foreign Exchange Earnings (FEE) from Tourism

Foreign Tourist Arrivals in India during 2007 and Corresponding Figures for 2005 & 2006 Month

Foreign Tourist Arrivals

Percentage Change

2005

2006

2007@

2006/ 05

January

385977

459489

532088

19.0

2007/ 06 15.8

February

369844

439090

498806

18.7

13.6

March

352094

391009

444186

11.1

13.6

April

248416

309208

333945

24.5

8.0

May

225394

255008

267758

13.1

5.0

June

246970

278370

310104

12.7

11.4

Tourism is an important segment of Indian economy with its substantial contribution to the foreign exchange. Methodology of computation of FEE from tourism was revised in December, 2007 with the main objective of reducing the difference in the estimates prepared by the Ministry of Tourism and the Reserve Bank of India (RBI). Estimates of FEE from tourism has been revised using the new methodology

from 2000. As per these estimates, foreign exchange earnings from tourism in 2007 was approximately Rs. 49413 crore as compared to Rs. 40375 crore for 2006,indicates an estimated growth of 22.4%. Annex-IX also displays long-term trends of the estimated foreign exchange earnings for the last ten years. Month-wise estimates of foreign exchange earnings, both in Rupee and US$, during the year 2007, along with corresponding figures for the last two years, are given below:

Foreign Exchange Earnings from Tourism during 2007 and Corresponding Figures for 2005 & 2006 Month

Foreign Exchange Earnings

(Rs. in crore)

Percentage Change

2005*

2006*

2007#

2006/05

January

3272

3970

4793

21.3%

2007/06 20.7%

February

3136

3793

4823

21.0%

27.2%

March

2985

3378

4832

13.2%

43.0%

April

2156

2850

3242

32.2%

13.8%

May

1957

2350

2610

20.1%

11.1%

June

2144

2566

3041

19.7%

18.5%

July

2556

2990

3760

17.0%

25.8%

July

307870

337332

377474

9.6

11.9

August

273856

304387

360089

11.1

18.3

September

257184

297891

325893

15.8

9.4

October

347757

391399

440715

12.5

12.6

November

423837

442413

510987

4.4

15.5

December

479411

541571

575148

13.0

6.2

August

2273

2698

3594

18.7%

33.2%

Total

3918610

4447167

4977193

13.5

11.9

September

2135

2640

3259

23.7%

23.4%

October

2921

3739

4441

28.0%

18.8%

November

3560

4227

5189

18.7%

22.8%

December

4028

5174

5829

28.5%

12.7%

Total

33123

40375

49413

21.9%

22.4%

@ Provisional Estimates

* Revised Estimates # Advance Estimates

62

63

Foreign Exchange Earnings during 2007 and Corresponding Figures for 2005 & 2006 Month

Foreign Exchange Earnings

(US$ million)

Percentage Change

11.4 Domestic Tourism

(ii)

Improved Tourist Information

Domestic tourism experienced substantial increase during the last few years owing to an increase in income and the emergence of a dynamic urban middle class with more income to spend on tourism. As per the information received from States/ Union Territories, the number of domestic tourist visits is estimated at 462 million in 2006, showing a growth of 17.8% as compared to the year 2005.

(i)

Improved Efficiency at Indiatourism Offices and at the Ministry Headquarters

2005*

2006*

2007#

2006/05

2007/06

January

749

894

1081

19.4%

20.9%

February

717

854

1092

19.1%

27.9%

March

683

761

1098

11.4%

44.3%

April

494

627

766

26.9%

22.2%

May

449

517

639

15.1%

23.6%

June

492

564

746

14.6%

32.3%

July

585

645

930

10.3%

44.2%

August

520

582

879

11.9%

51.0%

September

489

569

808

16.4%

42.0%

October

643

831

1124

29.2%

35.3%

Details of Surveys, Studies, DPRs, Feasibility Studies, etc. completed/ commissioned during 2006-07 and 2007-08 are given at Annex-X.

November

784

940

1316

19.9%

40.0%

11.6 Information Technology Initiatives

December

888

1150

1477

29.5%

28.4%

Total

7493

8934

11956

19.2%

33.8%

The Ministry of Tourism, Government of India has, in the recent past, taken major initiatives in the field of Information Technology with a view to benefit the tourists. The aim of these initiatives is as follows:

* Revised Estimates # Advance Estimates

One of the important activities of the Ministry of Tourism is to sponsor studies and surveys to get important inputs for formulation of policies and programmes for the development of tourism in the country. In addition, evaluation studies are also conducted to find out the effectiveness of the schemes being implemented by the Ministry of Tourism. The Ministry also funds the preparation of Detailed Project Reports (DPRs)/ Feasibility Studies, etc.

Improved efficiency at Indiatourism Offices and at the Ministry Headquarters

Provision of PCs The Ministry, in its quest for improved and efficient services, has provided computers to all its officers up to the level of Assistant Director in the Headquarters and field offices. All Indiatourism Offices, both in India and overseas, have been provided with computers. Upgradation of PC's is done on a regular basis.

11.5 Surveys & Studies

(i)

64

a.

b.

E-Mail/ Internet Access to Internet and E-Mail IDs have also been provided to all the employees of the status of Principal Private Secretary (PPS), Personal Assistant (PA), Assistant, the senior officers in the Headquarters and in the Indiatourism Offices in India and abroad for quick disposal of information and other works.

c.

Project Monitoring System (PMS) Project monitoring system, developed by the NIC (National Informatics Centre) for the planning division to monitor/update/enter the details of Central Financial Assistance projects for various State Governments/ Union Territories is in operation. Updating is done on a regular basis.

65

(ii) Improved Tourist Information Various initiatives have been taken in the direction of providing quality tourist information, facilitation and services to the tourists, tourism promotional agencies, media and others in India and abroad. Some of the major initiatives taken are as below: a.

Website [email protected] - provides all the organisational activities/policies of the Ministry of Tourism.

b.

Website www.incredibleindia.org - the main promotional portal of the Ministry of Tourism is being updated regularly.

c.

Website www.incredibleindia.org - has been translated in various languages viz. Hindi, Chinese, Japanese, French and Korean. The site is also being translated in German and Spanish.

d.

Thematic 10 Microsites have been developed within www.incredibleindia.org to promote specific destinations/products.

e.

E-Newsletters/Mailers are being regularly sent to more than 1,00,000 registered users of www.incredibleindia.org across the world.

f.

66

An online platform to facilitate online booking of various India Tourism products is being developed on www.incredibleindia.org. An MoU in this regard has already been signed between the Ministry of Tourism and EVIIVO Limited, London.

g.

An exclusive website dedicated to the North East of India www.northeastofindia.com is in operation.

The revamped Incredible India website showcases all that is striking about India - the colours, the technology, the vastness, the diversity and depth of the country. From this perspective, the site is representative of modern India - the India with its roots firmly in place, yet forward looking and contemporary. Minute navigation features have been kept in mind, while designing the information architecture of the site, placing it in the league of the best travel websites in the world. The drop down menus have now adopted a “select and go” approach, whereby the user just has to click on a topic of preference to move to that topic, instead of selecting the topic and clicking the “go” button besides it. The site has well laid out drop down menus, making surfing a pleasurable experience. Besides giving the site a clutter free look, it helps to pack a lot of content in an easily comprehensible format. The masthead changes make every section interactive. 11.7 Central Financial Assistance Assistance on 50:50 basis is given to State Governments/ UTs as a part of Central Financial Assistance (CFA) for developing IT initiatives. The CFA is being given to develop websites, translation of websites into foreign languages, networking, office computerization, GIS, production of CD/ VCD/ DVD ROMs, procurement of multi-media projection system, etc.

67

68

69

12

International Co-operation

12.1 Co-operation with International Organizations International Co-operation Division participates and engages in various consultations and negotiations with international organizations which include United Nations World Tourism Organization (UNWTO), Economic and Social Commission for Asia and the Pacific (ESCAP), Bay of Bengal Initiative for Multi Sectoral Technical and Economic Co-operation (BIMSTEC), Mekong-Ganga Co-operation (MGC), Association of South East Asian Nations (ASEAN), South Asian Association for Regional Co-operation (SAARC), and South Asian Sub-regional Economic Co-operation (SASEC). The Division also negotiates with other countries for signing bilateral agreements and attends the Joint Commission Meetings in coordination with the Ministries of Commerce, Culture, External Affairs, Civil Aviation, Finance, etc. for the promotion of tourism. During the financial year 2007-08, some of the important Meetings and Events attended by India are as follows: (i)

Meeting of the UNWTO Commission for South Asia and UNWTO Asia-Pacific Conference on Low Cost Carriers held at Islamabad, Pakistan.

(ii)

Arabian Travel Mart at Dubai, UAE.

(iii)

UNWTO Regional Workshop on Tourism Statistics & Tourism Satellite Account for South Asian Countries at Colombo, Sri Lanka.

(iv)

Eightieth Session of Executive Council of UNWTO at Tunisia.

(v)

India-Pakistan talks on the promotion of friendly exchanges in various fields held at Islamabad, Pakistan.

(vi)

SASEC (South Asian Sub-regional Economic Co-operation) Tourism Working Group Meeting at Bhutan.

(vii) Regent Street Festival in London, UK. (viii) Japan Association of Travel Agents (JATA) Travel Mart held at Tokyo, Japan. (ix)

70

13th Meeting of India-Russia Joint

Working Group on Tourism and Culture at Moscow, Russia. (x)

India-Thailand Joint Commission Meeting (JCM) in Bangkok.

(xi)

Joint Commission Meeting between India and Germany at Berlin, Germany.

(xii) Incredible India @ 60 Event in New York, USA. (xiii) Pacific Asia Travel Association (PATA) Travel Mart and PATA Board of Directors' Meeting in Bali, Indonesia. (xiv) North East India Investment Opportunity Week at Bangkok, Thailand. (xv) WTM (World Travel Market) at London, UK. (xvi) Summit on Tourism and Climate Change organized by the UNWTO on the Sidelines of World Travel Market. (xvii) China International Travel Mart at Kunming, China. (xviii) Seventeenth Session of the United Nations World Tourism Organization General Assembly at Cartagena de Indias, Colombia. (xix) Knowledge Sharing Workshop between the Greater Mekong Ganga Sub-region and South Asian Sub-regional Economic Co-operation Member-Countries at Veintiane, Laos. 12.2 Bilateral Tourism Co-operation Agreements In 2007, India took part in 2 Joint Working Group Meetings on Tourism one with Greece and the other with Egypt. 12.3 External Assistance Under the programme of external assistance for the development of tourism related infrastructure, besides the on-going work of Ajanta-Ellora Conservation and Tourism Development Project Phase II, Japan Bank of International Co-operation (JBIC) has signed a loan agreement for the development of Uttar Pradesh Buddhist Circuit.

Ajanta-Ellora (Phase II) Japan Bank of International Co-operation signed a loan agreement for 7331 million Japanese Yen on March 31, 2003 to undertake the Ajanta-Ellora Development Conservation Project (Phase II) with the main thrust on monument conservation, improvement of Aurangabad airport, afforestation, improvement of roads, construction of tourist complexes, water supply at tourist attractions, public awareness activities, human resource development and computerization of tourist information. The work is in progress. Development of Buddhist Circuit in Uttar Pradesh (Phase II) Japan Bank of International Co-operation signed another loan agreement for 9496 million Japanese Yen on March 31, 2006 for improvement of infrastructure, public utilities, conservation of monuments, etc. at Sarnath, Kushinagar, Kapilvastu, Sravasti, Sankisa in Uttar Pradesh. 12.4 India-China Year of Friendship Through Tourism India and China launched 'India-China Year of Friendship Through Tourism' to promote tourism between the two countries. The inaugural function was attended by the Minister for Tourism and Culture, Minister for External Affairs, Minister of Foreign Affairs of the People's Republic of China, Ambassador of the People's Republic of China in India, Vice Chairman, China National Tourism Administration (CNTA), Ambassador of India in China and other dignitaries. The inaugural function marked the following activities: (i)

Unveiling of a Joint Logo to mark and publicise “2007” as India-China Year of Friendship Through Tourism.

(ii)

Release of an Action Plan.

which have been undertaken as per Action Plan are as follows: (i)

A sixteen-member Chinese Media/Tour Operators group visited India on fam tour under the 'Hospitality Scheme' of the Ministry of Tourism. The group visited Delhi-Agra-Jaipur.

(ii)

A delegation sponsored by the China National Tourism Administration (CNTA) comprising Tour Operators from Jiangsu Province, Zhejiang Province and Shanghai visited India for tourism promotion.

(iii) CNTA participated in the South Asian Travel & Tourism Exchange (SATTE) Exhibition in New Delhi. (iv) The Ministry of Tourism organized road shows in Beijing and Shanghai to showcase India's tourist attractions. (v)

Indian Association of Tour Operators (IATO) extended invitation to CNTA for participation in the Annual Convention of IATO which was held in New Delhi.

(vi) CNTA opened its office in New Delhi. As part of the inaugural ceremony, India-China Tourism Forum was held to enable interaction between travel trade from India and China. At this Forum, eminent speakers from both sides shared their views. Minister of Tourism and Culture and CNTA Chairman unveiled the plaque to inaugurate the CNTA office in New Delhi. CNTA also organized China Tourism Night in Mumbai as part of its promotion and marketing efforts in India. (vii) Exchange visit of students and faculty from Hotel Management Institutes took place between the two countries.

(iii) Launch of the Chinese version of Incredible India website.

(viii) Indiatourism Office participated in China International Travel Mart in Kunming city of China.

(iv) Release of India's tourist literature in Chinese language.

12.6 Promotion of India-Japan Tourism Exchange

12.5 The Action Plan released at the inaugural function of 'India-China Year of Friendship Through Tourism' included month-wise activities to be undertaken by both India and China. The details of the activities

A joint statement on the 'Promotion of IndiaJapan Tourism Exchange' was signed between India and Japan to enhance co-operation in the field of tourism between the two countries. As part of the

71

ongoing co-operation, the Ministry of Tourism participated in the Japan Association of Travel Agents (JATA) World Travel Fair which was held in Tokyo. The Indian delegation was led by the Minister of Tourism and Culture. A Tourism Conference and Buyer-Seller Meet was organized during the Fair in collaboration with the Federation of Indian Chambers of Commerce and Industry (FICCI). State Governments and Travel Trade from India also participated in the meet. An India Evening was organized during the course of the event. 12.7 India Elected Chairman of the Executive Council of UNWTO India was unanimously elected as the Chairman of the Executive Council of the United Nations

72

World Tourism Organization (UNWTO) for a period of one year in the 82nd meeting of the Executive Council held at Cartagena de Indias, Colombia on November 29, 2007. UNWTO, a specialized agency of the United Nations, is the leading international organization in the field of tourism. UNWTO's membership comprises more than 150 countries, seven territories and 300 Affiliate Members representing the private sector, educational institutions, tourism associations and local tourism authorities. The Executive Council meets between sessions of the UN General Assembly and takes all the administrative and technical decisions as may be necessary. The decisions taken by the Executive Council are reported to the Assembly at the following session, for approval.

73

13

India Tourism Development Corporation Limited

13.1 India Tourism Development Corporation (ITDC) is the only Public Sector Undertaking of the Ministry of Tourism. Incorporated on October 1, 1966, the ITDC played a key role in the development of tourism infrastructure in the country. Apart from developing the largest hotel chain in India, the ITDC offered tourism related facilities like transport, duty free shopping, entertainment, production of tourist publicity literature, consultancy, etc. The ITDC also played a committed and pivotal social role in the development of tourism infrastructure in backward areas, thereby trying to promote regional balance. Disinvestment of 18 hotels resulted in ITDC consolidating itself to take up diversified serviceoriented business activities like consultancy and execution of tourism and engineering projects, event management, mounting of Son-et-Lumeire (SEL) Shows, Money Changing facilities, etc. 13.2 Organisational Set-up The present organisational set-up at the Corporate level comprises C&MD, 9 functional Directors and Heads of various business groups viz. Ashok Group of Hotels, Ashok International Trade, Ashok Travels &

Tours, Ashok Reservation & Marketing Services, Ashok Creatives, Ashok Institute of Hospitality & Tourism Management and Engineering Services Division, etc. supported by Human Resource Management, Finance & Accounts, Public Relations, Secretarial and Vigilance & Security departments.

The present network of ITDC consists of 8 Ashok Group Hotels, 7 Joint Venture Hotels and one yet-to-becompleted hotel, 2 Restaurants (including one Airport Restaurant), 12 Transport Units, 1 Tourist Service Station, Duty Free Shops at International as well as Domestic Customs Airports in Goa, Bangalore and Calicut (sale operations were closed at Duty Free Shop (DFS) Mumbai with effect from January 3, 2008), 1 Tax Free Outlet, 1 Sound & Light Show and 4 Catering Outlets. Besides, ITDC is also managing a Hotel at Bharatpur, a Tourist Complex at Kosi and a Son-etLumeire (SEL) Show at Sabarmati, Ahmedabad owned by the Ministry of Tourism. 13.4 Subsidiary Companies Details below indicate ITDC's investment of Rs. 8.47 crore in the seven subsidiary companies as on December 31, 2007:

(Rs. in crore) 2005-06

2007-08 (up to December 2007)

75.00

75.00

150.00

Paid up Capital

67.52

67.52

67.52

Reserves & Surplus

114.20

*

*

Net Worth

176.01

*

*

Capital Employed

158.71

*

*

*These figures will be worked out after finalisation of annual accounts.

The Government contributed Rs. 73 crore towards additional equity in December, 2007, against which equity shares will be allotted to the Government. 13.6

Pattern of Shareholding

The authorised and paid-up capital of the Corporation as on March 31, 2007, stood at Rs.75 crore and Rs. 67.52 crore respectively. The pattern of shareholding is indicated below: Government General Public Employees

89.975% 9.999% 0.026%

MP Ashok Hotel Corporation Ltd.

0.82 4.69

13.7 Financial Performance The financial performance of the Corporation improved in 2006-07 with the turnover increasing from Rs. 373.64 crore in 2005-06 to Rs. 561.75 crore in 200607 (Provisional). The profit (before tax) grew substantially from Rs. 51.57 crore in 2005-06 to Rs. 68.77 crore in 2006-07 (Provisional). Closure of Duty Free Shops and rooms in hotels (for upgradation) in Delhi reduced the turnover to Rs. 312.63 crore (Provisional) during April-December 2007 from Rs. 362.65 crore (Provisional) in April December, 2006. The key figures relating to financial performance of the Corporation for the last four years and for 2007-08 (upto December, 2007) are shown below: (Rs. in crore)

0.36

Assam Ashok Hotel Corporation Ltd.

0.51

Pondicherry Ashok Hotel Corporation Ltd.

0.31

Turnover

Donyi Polo Ashok Hotel Corporation Ltd.

0.51

Punjab Ashok Hotel Company Ltd.

1.27

Operating Profit (before Interest & Deprectiation)

Total

8.47

2003-04

2004-05

2005-06

2006-07 (Provisional)

2007-08 (up to December 2007) (Provisional)

290.65

363.49

373.64

561.75

312.63

5.13

37.94

54.53

74.30

51.70

Profit Before Tax

2.86

31.16

51.57

68.77

48.89

Profit After Tax

2.72

28.77

45.79

45.56

48.89

121.65

156.59

146.93

118.19

24.07

Direct Foreign Exchange Earnings

74

2006-07

Authorised Capital

ITDC's Investment

Utkal Ashok Hotel Corporation Ltd. Ranchi Ashok Bihar Hotel Corporation Ltd

The Capital Structure as on December 31, 2007 is as under:

13.3 Network of ITDC Services

(Rs. in crore)

Subsidiary Companies

13.5 Capital Structure

75

13.8 Memorandum of Understanding (MoU) MoU for the year 2007-08 was signed between the Ministry of Tourism and ITDC envisaging enhanced targets for financial, dynamic and efficiency parameters. The criteria included targets for gross sales and gross margin, customer delight, tourism projects (planning & execution), preparation of Human Resource (HR) Strategy Plan, professional training to surplus staff for their redeployment, multiple of Average Room Revenue (ARR) and occupancy of ITDC hotels and joint venture hotels, etc. 13.9 Ashok Group of Hotels The Ashok Group of Hotels played host to several prestigious international and national level conventions and events, including Asian Ministerial Conference on Disaster Management, 53rd Commonwealth Parliamentary Association, Centenary Celebrations of Satyagraha, Fashion Design Council of India Meet, Wills India Fashion Week (2007), United Nations Office of Drugs & Crimes Meet, United News of India Conference, World Toilet Summit 07, International Honda Meet, Annual Convention of Dental Association, Micro-finance Conference, Gala evening hosted by McKinsey, Interpol Conference, IATO Convention, Bride & Groom Wedding Exhibition,

VIVAH Exhibition, the event of Fertilizer Association of India, INTACH - 07, ISNCON - 07 (Society of Nephrology), SAFMA Parliamentary Meet, UNICEF Convention, Auto-Expo Delegation, NRI Conference, Maruti Suzuki Meet, All India Convention on Gynecology, SAARC Car Rally, UNESCO's Regional Conference on Literacy, World Ophthalmology Conference and Defence Expo. The Ashok Group also hosted delegations from Maldives, Malaysia, Bahrain, China, Egypt, South Korea, Britain, Vietnam, Kenya, Thailand, Sudan, Libya, Germany, Mauritius, Indonesia, Austria, Afghanistan, Russia, Saudi Arabia, Morocco, Pakistan, Iran, Bangladesh, etc. During 2006-07, The Ashok and Hotel Janpath in New Delhi undertook major upgradation drives for guest rooms, public areas and other facilities. A new Banquet Hall is under construction at Hotel Pataliputra Ashok, Patna. Efforts are on by the ITDC for leasing existing restaurants/open space outside their hotels through tie-ups with national/multi-national food chains. The Ashok's star product the world class state-ofthe-art city lifestyle spa, namely AMATRRA, continues to add various dimensions to its profile, helps one to

access and unlock hidden reserves of energy with customized Wellness Programmes, the ancient science of Ayurveda and advanced training system. ITDC plans to open destination Spas in other hotels also, for which steps have already been initiated. International Gourmet colors, in the form of KUMGANG - The Korean restaurant, MASHRABIA - The Lebanese cuisine restaurant, CHINATOWN - The Chinese restaurant, BOYARIN - The relaunched Russian cuisine dinning restaurant and SSTEEL & ORANGE ROOMCAPITOL, FRONTIER - North West cuisine speciality restaurant and DURBAR - Awadhi cuisine restaurant better the image of The Ashok. Besides, Hotel Samrat's new F&B outlets - RED CHILLI, DECIBEL - an upmarket Pub lounge and THE CHAKRAS - an international multi-cuisine Resto Bar - are providing fine dining option for the hotel residents as well as general public. Steps are on for opening two new upmarket fine dining outlets - a Mexican restaurant at Hotel Janpath and an international cuisine restaurant at Hotel Samrat, for parties, etc. The Ashok launched direct marketing campaign for domestic, international tourists, corporate travellers, conferences and banquets business and steps initiated for strengthening in-house training to all employees in association with an expert training organization. Several different regional cuisine Food and Cultural Festivals were organized by The Ashok Group of Hotels. The Ashok Group of Hotels participated in several Food Festivals abroad at Tokyo in Japan, Cape Town in South Africa, Buenos Aires in Argentina, Cartagena, Bogota and Quito (Ecuador) to popularize Indian cuisine globally. 13.10 Ashok Reservation & Marketing Services (ARMS) The division manages Events, Conferences and Exhibitions and is currently handling over 50 events per year. Some of the major events handled include: India's participation in International Tourism Bourse (ITB) as Partner Country, Incredible India @ 60 event at New York, designing and fabrication of many popular pavilions like pavilions for CAPART, for the Ministry of Micro, Small and Medium Enterprises, India Post booth in India International Trade Fair, 53rd Commonwealth Parliamentary Union Conference, 12th World Lakes Conference, 39th Codex Committee Meeting, 2nd Asian

Ministerial Conference on Disaster Risk Reduction, UNESCO Regional Conference in Support of Global Literacy and Ministerial Conference on Avian and Pandemic Influenza, etc. For business promotion, ARMS continued to interact with various agencies and offered special rates to travel agents. For direct interaction with international and domestic travel agents, ARMS participated in ITB Berlin. The division is also promoting Ashok Group of Hotels through its event management activity. 13.11 Ashok International Trade The division competed with national and international duty free operators for operation and running of the Duty Free Shops both at government and private-run airports and won some of the tenders. To upgrade the Duty Free Shops to international standards, the division took a major strategic initiative and formed a joint venture company (JVC) with Aldeasa of Spain, the fifth largest duty free operator in the world. Efforts are on for exploring other international partnership arrangements to achieve international standards in merchandising and display, lowering costs of serving customers for improving the supply chain and overall business productivity, etc. New opportunities for sales in-flight and sales at seaport and in other areas are also being explored for business expansion. 13.12 Ashok Travels & Tours (ATT) Ashok Travels & Tours is an in-house approved Travel Agency of the ITDC to provide all travel related services primarily for the Government as also for the general public. Their services include Airline Ticketing/ Hotel Booking/ Tour Packages/ Car & Coach Rentals/ Money Changing/Money Transfer Services/Overseas Insurance & Organising Exhibitions. It handled 10 exhibitions across the country. With the growth in tourism sector, ATT strengthened its core business activities and added new services like Overseas Medical Insurance, Visa assistance and Exhibitions. ATT handled ticketing of a very large group from the Ministry of Youth Affairs and Sports, for Latin America and 2 groups from the National Defence College in 2007. It was also selected Lead Travel Agent for Asian Development Bank's 39th AGM. Opening more offices is in the offing for expansion.

77

76 Lalitha Mahal Palace Hotel, Mysore

13.13 Ashok Creatives The Ashok Creatives continued to play a major role in tourism promotion and developmental projects for the Ministry of Tourism and a host of other clients. The division bagged the international and domestic campaigns of the Ministry of Tourism through open bids. The international campaign is focused at reinforcing the campaign of Incredible India Brand worldwide and the domestic campaign unravels multiple facets of a wide ranging tourist products across the length and breadth of India through print, electronic, radio, cinema and outdoor media. The Ashok Creatives was nominated to design and execute the Republic Day Tableau - 2008 on behalf of the Ministry of Tourism. The division has also designed and produced several print production jobs for the Ministry of Tourism, Election Commission of India and the Second Administrative Reforms Commission. Coinciding with the India's 60th Anniversary of Independence, the Collectors' Issue of "Incredible India", containing 60 incredible destinations of the country was designed by the Ashok Creatives. The publicity brochures/ folders for Uttarakhand Tourism Development Board and Bihar Tourism are in the pipeline. Designing and printing jobs of various events managed by the Ashok Reservations and Marketing Services are also handled by the Ashok Creatives. Mounting of Sound & Light Shows at Udaigiri, Madurai, Vivekanand Rock Memorial at Kanyakumari, Hampi, Deogarh, Sabarmati and Kumbhalgarh undertaken by the Ashok Creatives are at various stages of development. The show in English at Chandigarh is already functioning, while the Hindi and Punjabi versions are in the process. The Ashok Creatives recently entered into Public-Private Partnership with advertising agencies and design houses, for improving its financial management. 13.14 Ashok Consultancy & Engineering Services The division renders Engineering Consultancy Services to the tourism departments of various State Governments and the Ministry of Tourism, Government of India for the preparation of Detailed Project Reports (DPRs) for Development of Circuits, Destination & Rural Tourism. In 2007, the division prepared 15 DPRs for various tourism related Circuits, Destinations and Rural Tourism in many states. The

78

Ministry of Tourism, Government of India has also engaged them for the preparation of DPRs for 11 mega Tourist Destinations/Circuits, out of which, three reports have already been submitted. Upgradation/improvement/renovation of its hotel properties all over the country is in the offing for the ensuing Commonwealth Games to be held in India in 2010. The division has also undertaken the execution of Tourism Infrastructure Projects involving preparation of detailed plans, estimates, tenders, monitoring & execution of works at site on fixed centage basis in various states. Assignments under progress include: (i)

The construction of Puducherry Institute of Hotel Management & Catering Technology building at Puducherry.

(ii)

The construction work of Indian Institute of Skiing & Mountaineering at Gulmarg.

(iii) The work of development of Bhalukpong-Tawang Tourism Circuit in Arunachal Pradesh is nearing completion. (iv) The development works at new sites in Jharkhand State i.e. at Sakshi, Dimna, Madhuban, Barkatta and Hundru. (v)

The building work of National Council of Hotel Management & Catering Technology at Noida has been completed. The work of interiors is under progress.

(vi) The works assigned by the Government of Jharkhand. (vii) The development work at Rai Bareli (Uttar Pradesh) is in progress. Some completed projects were handed over. (viii) The development works assigned in Mizoram, Manipur and Mysore were taken up. (ix) The illumination work of Gwalior Fort, various works at Kanniyakumari and development of Somnath Temple complex were completed.

renovation/improvement in existing hotels. The capital expenditure during 2006-07 was Rs. 6.04 crore. The Annual Capital Plan for the year 2007-08 was initially formulated with an outlay of Rs. 154.72 crore, which included Rs. 145.02 crore for renovation of existing ITDC hotels including major renovation of The Ashok which has now been deferred for 2008-09. The Revised Plan Outlay towards capital expenditure for 2007-08 is Rs. 29.45 crore. 13.16 Ashok Institute of Hospitality & Tourism Management (AIH&TM) Ashok Institute of Hospitality & Tourism Manag ement an ISO 9001-2000 accredited establishment, provides training facilities for human resource development in the Hospitality and Tourism sector. The training programmes are designed and conducted as per international standards to update knowledge, skills and self-development of students to be internationally competitive. AIH&TM has been conducting capacity building training programmes for the Ministry of Tourism. Capacity building training programmes were conducted for Himachal Pradesh Tourism, Nagaland Tourism and the state of Jammu & Kashmir. Plans are afoot to expand its activities, through franchise if necessary, to ensure appropriate geographical spread. During 2006-07, 13 training programmes were conducted for 537 employees of outside agencies and 5 programmes for 268 ITDC employees. In addition, 42 Management Trainees and 190 Apprentices in different trades were trained. About 160 Industrial Trainees and 110 Craft Course Trainees in Culinary skills are also undergoing training. A project titled “Air Hostess, Travel & Hospitality Management Career Training” for 100 Scheduled Caste candidates sponsored by the Social Welfare Department, Government of Karnataka in Bangalore was completed. AIH&TM is presently conducting classes for a new batch of 175 SC candidates in Bangalore and for a batch of 140 SC candidates in Ahmedabad. AIH&TM has

been successfully conducting 4 years' Bachelors' Degree Course in International Hospitality and Business Management in affiliation with the Kurukshetra University, Haryana. Trade Diploma Courses in Hotel Operations in affiliation with Board of Technical Education, Delhi Government has also started. 13.17 Human Resource Management Human Resource Management Division is of vital importance for service industry. As on March 31, 2007, ITDC had a total manpower of 2754 employees as against 2854 in the previous year. Of these, 797 employees belong to Scheduled Castes, 60 to Scheduled Tribes and 101 to Other Backward Classes. The total manpower of ITDC for the year 2007-08 as on November 30, 2007 is 2647. Of these, 766 employees belong to Scheduled Castes (SCs), 58 to Scheduled Tribes (STs) and 100 to Other Backward Classes (OBCs). 13.18 Industrial Relations The overall industrial relations situation in the ITDC is harmonious and cordial. There was no loss of mandays during 2007-08. 13.19 Implementation of Official Language Policy During the year, efforts were made to implement Hindi in official work. Cash incentives were granted to motivate the employees for completing prescribed quantum of work in Hindi. Employees were nominated for training in Hindi typing/stenography. Hindi workshops were organised for imparting training on noting-drafting and other works in Hindi. Various Hindi competitions were also organised during Hindi Month celebrations. 13.20 Conservation of Energy During the year, ITDC maintained its thrust on energy conservation, with commitment at all stages of operations due to commercial considerations as well as for the compliance with energy conservation policies and practices.

13.15 Plan Schemes The Revised Budget Estimate for 2006-07 envisages an outlay of Rs. 16.36 crore towards capital expenditure including Rs. 13.82 crore for

79

14

Welfare Measures

14.1 Scheduled Castes/ Scheduled Tribes Cell

14.4 Complaints

An officer of the rank of Director (Tourism) functions as the Liaison Officer for the Scheduled Castes/ Scheduled Tribes Cell in the Ministry which attends to the grievances on service matters of Scheduled Caste and Scheduled Tribe employees of the Ministry and its attached/ subordinate offices. The Cell issues directions to all the administrative authorities for compliance with the reservation orders issued from time to time.

The Ministry of Tourism has a Complaint Cell headed by a Deputy Director General. Regional Complaint Cells exist in the Regional Indiatourism Offices. The State Governments have also been requested to set up Complaint Cells at the state level.

14.2 Reservation for SC, ST and OBC Candidates All recruitments in the Ministry and the subordinate offices are being made as per the orders of reservation issued by the Government from time to time and reservation rosters are maintained accordingly. Regular annual returns on the subject are forwarded to the Ministry of Social Justice and Empowerment. 14.3 Employment Opportunities to Physically Challenged Persons There is no specific scheme or budget allocation for disabled persons in the sphere of activities of the Ministry. One visually challenged person, who was appointed in 1987 as LDC, was promoted as UDC. As per Government orders, efforts are continued by the Ministry for exploring job opportunities for disabled persons.

80

14.5 Initiatives towards Mainstreaming of HIV/ AIDS: Strengthening the National Response National AIDS Control Organisation (NACO) and UNDP are implementing a programme of "Support to the National Response for Mainstreaming HIV/AIDS” since August 2007. As a part of this programme, the Ministry is supporting initiatives to build awareness on HIV/ AIDS among its employees in the Headquarters and the field offices. Students of IHMs were also imparted the knowledge of HIV/ AIDS. Efforts are on for developing a multi-pronged strategy for the spread of awareness regarding prevention of HIV/AIDS amongst the stakeholders of the tourism sector. With a Deputy Secretary as the nodal officer, an HIV Unit was established in the Ministry with a Consultant provided by NACO/UNDP. Many activities like presentation, orientation programmes, sensitization workshop, conference, awareness training programmes, publicity and campaigns were held in 2007.

15

Progressive Use of Hindi

15.1 Implementation of Government's Official Language Policy and Programme Joint Director, Official Language (OL) holds the charge of Hindi Unit. The Unit is responsible for compliance with the provisions of the Official Language Act, 1963, Official Language Rules and various orders/ instructions issued by the Department of Official Language from time to time on progressive use of Hindi for official purposes. Apart from monitoring the implementation of the Official Language Policy and Programmes of the Government, the Unit arranges training of the staff in the use of Hindi, Hindi Typing and Hindi Stenography, preparation of bilingual documents and translation from English to Hindi and vice-versa. 15.2 Official Language Implementation Committee The Official Language Implementation Committee, constituted under the Chairmanship of Additional Director General (Tourism), holds regular quarterly meetings for necessary follow up on the progressive use of Hindi. 15.3 Award Scheme for Literature Written Originally in Hindi The Ministry of Tourism has a scheme (introduced in 1989) called “Rahul Sankrityayan Award Scheme” to present awards for books written originally in Hindi on subjects related to tourism. Under this scheme, there are first, second and third prizes of Rs. 20,000, Rs.16,000 and Rs. 10,000 respectively and one consolation prize of Rs.6,000. 15.4 Correspondence in Hindi In pursuance of Section 3(3) of the Official Language Act, 1963, all resolutions, notifications, communiques, press releases, rules, regulations, administrative reports and all official papers meant for laying in the Parliament were issued bilingually and efforts were made to achieve the targets of correspondence in Hindi with offices and persons located in “A”, “B” & “C” Regions. 15.5 Compulsory Training in Hindi Almost all officers and employees have proficiency and working knowledge in Hindi. 15.6 Translation and Bilingual Printing of Manuals, Rules, etc. All the manuals, codes, etc. being used in the Ministry are the ones prescribed and brought out by the Department of Personnel & Training. However, all other rules relating to tourism, such as Guidelines

regarding Central Financial Assistance, Guidelines for Recruitment of Tourist Guides and National Tourism Policy were translated into Hindi. 15.7 Special Measures for Promoting the Use of Hindi (i) Notifying Office under Rules 10(4): The Ministry of Tourism has already been notified under Rules10(4) of the Official Language Rules, 1976. (ii) Incentive Scheme and Cash Awards: Incentive scheme for doing original official work in Hindi is in operation in the Ministry of Tourism. (iii) Hindi Diwas and Hindi Fortnight: Hindi Pakhwada was organised in the Ministry of Tourism from September 14 to 30, 2007. Competitions such as Essay in Hindi, Noting Drafting in Hindi, Picture Expression, Hindi Translation and Hindi Quiz, etc. were held during this period. On October 31, 2007, a “Puraskar Samaroh” was organised in the Ministry of Tourism, where Secretary (Tourism) gave away cash awards and certificates to winners of the competitions. (iv) Hindi Workshop: Hindi Workshops are arranged for the officers/employees to encourage them to work in Hindi. Two workshops were organized. 15.8 Inspections With a view to ensure proper compliance of the Official Language Policy, 5 Sections and 12 Subordinate Offices were inspected during 2007-08. 15.9 Hindi Salahakar Samiti The term of Hindi Salahakar Samiti of Ministry of Tourism ended on June 4, 2003. Process is in final stage to reconstitute the Committee. 15.10 Departmental Website Hindi version of the Ministry's promotional website was launched. In the year 2007, Hindi software were provided to various Divisions and Sections in the Ministry, so that they can work in Hindi on the computers. To review the work being done in Hindi, Second Sub-Committee of Parliament on Official Language visited National Council for Hotel Management and Catering Technology, New Delhi and Institute of Hotel Management, Pusa, New Delhi. 15.11 National Tourism Awards include a separate category of award for Excellence in Publishing on Tourism in Hindi.

81

16

An Overview of North Eastern Region

16.1 The North Eastern Region of India is strategically located having international borders with Bangladesh, Bhutan, China and Myanmar. The States in North East Region are Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim which form part of the Eastern Himalayan region embracing Darjeeling Hills of West Bengal up to the Myanmar border. The region has a great tourist potential.

compendium on North East as a whole and also a set of six display scrolls on each of the individual state of North East have been produced. A website devoted to the North East (www.nor theastofindia.com) has been launched. A logo and brand line for the North East titled “India's North East Paradise Unexplored” has been devised for the North East Region. A CD of the brochure and a high resolution image CD on the Region have been produced. Films and commercials on North East and a film on Eastern Himalayas have also been produced.

16.2 The region is a heaven of rich natural beauty, serenity and exotic flora and fauna, invaluable for development of eco-tourism. The remote locations, with highly fragile environment has tourism spots spread all over the region and each state has its own diverse and distinct tourist attractions. Lack of infrastructural development hinders the tourist flow in spite of its abundance of natural beauty, snow-peaked mountains and rivers. 16.3 The Ministry earmarked plan allocation for the infrastructure development of tourism in North Eastern Region (NER). The sites for development are identified in consultation with the respective State Governments. Information Technology (IT) projects pertaining to development of tourism websites, creation of CD-Roms for individual states, fairs and festivals of the North East are held each year under the scheme of Central Financial Assistance. Budget under the head “domestic promotion and publicity including fairs and festivals” has also been increased for the NER. 16.4 The Ministry of Tourism initiated the following steps to boost tourism in the region: (i)

84

Under promotion and marketing, a series of collaterals including State-wise brochures and thirteen posters on each individual state and five themes related to the region such as music & dance and arts & crafts have been produced. A

A major integrated campaign for the promotion of the North-East Region was initiated during 200506. This campaign with further innovation was pursued during 2006-07 and implemented in the current financial year as well. (ii)

Nation-wide campaign focused on tourist attractions of the North East Region is being continued in various places in the country.

(iii) The Ministry of Tourism, Government of India provides space in the India Pavilion at important international Travel Fairs and Exhibitions to the States in the North Eastern region on complimentary basis so that they can showcase and promote their tourism products in the global markets. (iv) Financial assistance is being provided for the use of Information Technology for tourism promotion. (v)

The North Eastern States are given a special focus in the Marketing Conference of the overseas offices of the Ministry and all these offices are giving due publicity for promotion of tourism in the region.

17

Gender Equality The Prime Concern

17.1 Article 15 of the Indian Constitution prohibits discrimination against women; Articles 16 and 39 provide for equal opportunity as well as equal pay for equal work, irrespective of sex. The Government of India added provision in the Conduct Rules specially gender bias to safeguard the rights and legal entitlements of women. The Government set up the National Commission for Women in 1992. 17.2 The Hon'ble Minister for Tourism and Culture is a lady. The Joint Secretary of the Ministry is a lady.

86

A number of women are working in the Ministry, in its domestic and overseas offices. Women employees of the Ministry are given an equal opportunity to participate in all the events of national and international importance, road shows, exhibitions, seminars and conferences. 17.3 The National Tourism Awards include an award for Lady Chef of the year. 17.4 The Ministry has a Grievance Redressal Cell for Women.

18

88

Vigilance Activities

18.1 The Vigilance Unit in this Ministry is headed by a Chief Vigilance Officer (Joint Secretary) assisted by a Deputy Secretary, Under Secretary and a Confidential Assistant. All possible efforts are made to look into the complaints received in the Ministry and to get them processed/investigated promptly. Wherever necessary, the cases are also referred to CBI/CVC.

which are referred to by the Central Vigilance Commission (CVC) are examined in the Vigilance Unit of this Ministry. Sometimes, trade unions of ITDC also send complaints against persons working in the organization. The Vigilance Unit always takes due care to make proper enquiries in respect of all such matters. Pending vigilance cases are also regularly reviewed.

18.2 There is only one public sector undertaking under the Ministry, i.e. India Tourism Development Corporation (ITDC). All cases pertaining to ITDC

18.3 Like every year, Vigilance Awareness Week was observed in the year 2007.

19

Departmental Accounting Organisation

19.1 Secretary (Tourism) is the Chief Accounting Authority of the Ministry of Tourism. He discharges this responsibility with the assistance of the Joint Secretary & Financial Adviser of the Department and the Financial Controller. The Financial Controller heads the accounting organisation and reports to the Secretary through the Joint Secretary & Financial Adviser. The accounting organisation comprises the Principal Accounts Office, Internal Audit Wing and one Pay & Accounts Office at Delhi. The Financial Controller is Head of the Department for the accounting organization and is responsible for: (i)

Consolidation of the accounts of the Ministry of Tourism in the manner prescribed by the Controller General of Accounts.

(ii)

Preparation of Annual Accounts of Demands for Grants for the Ministry of Tourism, submission of Statement of Central Transactions and the material for the Finance Accounts of the Union Government (Civil) to the Controller General of Accounts.

(iii) Payment of loans and grants to State Governments through Reserve Bank of India.

the issue of “Letter of Credit”. All payments made by Drawing & Disbursing Officers are subject to postcheck. Any discrepancies/ shortcomings found in the working of the Drawing & Disbursing Officers (both cheque & non-cheque drawing) are pointed out in the Internal Audit reports of those offices. 19.3 Pay & Accounts Office compiles the monthly accounts on the basis of receipts collected and payments authorized by them after reconciling and incorporating the accounts of cheque Drawing & Disbursing Officers and submits these accounts to the Principal Accounts Office. The other important functions of the Pay & Accounts Office include authorization of Loans/ Grants-in-Aid to statutory bodies/other institutions, maintenance of General Provident Fund accounts and settlement of retirement benefits of Government employees, including authorization of pension, etc. 19.4 The Ministry of Tourism operates Grant No. 92 for which the Budget provision during 2007-08 is as under: (Rs. in crore) Revenue Section Plan

(iv) Preparation of manuals keeping in view the objective of management accounting system, if any, for rendition of technical advice to Pay & Accounts Offices, maintaining necessary liaison with the Controller General of Accounts Office and to effect overall co-ordination and control in accounting matters. (v)

Maintaining Appropriation Audit Registers for the Ministry of Tourism as a whole and to watch the progress of expenditure under the various Grants operated by the Ministry of Tourism.

(vi) Arranging internal inspection of payments and the accounting records maintained by the various subordinate formations and Pay & Accounts Offices of the Ministry and inspection of records pertaining to transactions of the Ministry of Tourism, maintained in Public Sector Banks. 19.2 Pay & Accounts Office carries out pre-check of bills submitted by the DDOs (Drawing & Disbursing Officers) for payment. In some cases, Pay & Accounts Officers authorize cheque Drawing & Disbursing Officers to operate funds up to a certain level through

90

Non-Plan

347.00 43.62

Capital Section Plan Non-Plan Total

(i)

606.00 0.00 996.62

Computerization

The office of the Financial Controller is taking a number of measures to implement Computerization and introduce IT for overall improvement and transparency in the accounting function of the Ministry. COMPACT Another important initiative in Computerization of Accounting System, taken at the instance of the office of the Financial Controller is the implementation of COMPACT package which touches upon the functioning of most of the areas in a Pay & Accounts Office. The overall objective towards development of COMPACT has been to achieve accuracy and speed in

various functions of the Pay & Accounts Offices, in addition to removing routine drudgery of manually entering the same data again and again. Computer support is being used through this package to ensure that once the accounts data are entered, the same can be used at various places without the need of re-entering for other purposes like compilation of monthly accounts, or generating reports, etc. The system will not only enrich the accounting and provide better management information, but also help in improving the analysis of the accounting information. There are various functions, especially those relating to reconciliation, which involves a lot of manual work. This package will help in taking care of such functions apart from improving the overall accuracy and exchequer control through the system. The package also provides for internal controls and audit through computerized validation and will thus be of great help in improving the quality of accounts. Improvement in office ambience will also be a by-product of Computerization. Apart from these two major initiatives undertaken, several other steps are being taken in the office of the Financial Controller to increase the Computerization process for which the officials are regularly being sent for training at the Institute of Government Accounts & Finance (INGAF). The Pay & Accounts Office is regularly uploading the data in e-lekha on daily basis at website www.cga.nic.in/elekha/elekhahome.asp. (ii) Computerization in Principal Accounts Office The account is consolidated in Principal Accounts Office through another software called “CONTACT”. The compilation is done by the Pay & Accounts Officers in the COMPACT and floppy is generated and forwarded to Principal Accounts Office. The Principal Accounts Office consolidates the accounts in CONTACT software. The consolidated account of the Ministry is sent to the Ministry of Finance, Controller General of Accounts for further consolidation of accounts of the Union of India. Several reports are also generated through “ CONTACT” software package. With the aid of these accounting packages and other accounting records, the Principal Accounts Office prepares the Monthly Expenditure Report (even weekly/ fortnightly when required) for the benefit of the Ministry in planning, monitoring, etc.

The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 mandates minimum quantifiable targets for reducing the growth of debt, deficit and guarantees in a time-bound manner and also embeds a series of improvements in the area of fiscal transparency and medium-term fiscal planning to improve Budget Management. With the implementation of FRBM, the Principal Accounts Office prepares a Monthly Expenditure/ Receipt Analysis of the Ministry, showing (a) Consolidated major Head-wise Receipts (b) Major Scheme-wise Plan Expenditure and (c) Month-wise trend of Expenditure (both Plan and Non-Plan) along with graphic depictions and transmit it to the office of the Controller General of Accounts for consolidation and further transmission to the Ministry of Finance. Also, the data of Receipt and Expenditure relating to the Ministry of Tourism are hosted every month on the Website of the Ministry (www.tourism.nic.in). In addition, the office of the Financial Controller prepares an 'Annual Accounts at a Glance' giving detailed analysis of accounts and the financial performance of the Ministry. This is also available on the Ministry's Website. (iii) Internal Audit Internal Audit Organization in the Ministry of Tourism is headed by the Financial Controller who is assisted by the Assistant Financial Controller, one Senior Accounts Officer and four Assistant Accounts Officers. Internal Audit works as an important tool for reviewing of accounting, financial and administrative functions. It highlights the important areas of deficiencies. The Internal Audit provides a basis for taking remedial and corrective measures. Significantly, compliance of Internal Audit paras pre-empts draft C & AG paras. The Internal Audit Section at the headquarters maintains a Control Register of Internal Audit for each financial year to serve as a basic and permanent record of the inspection of various units carried out by the Internal Audit Inspection Wing. The Internal Audit Section at headquarters draws an Internal Audit Plan based on the classification of the units to be audited annually, biannually depending on the budget allocation and staff strength of the units. Every year in the first week of March, particulars of all units due for inspection during

91

the ensuing financial year are recorded in the Control Register. Based on this information the Internal Audit Programmes are prepared on Quarterly basis. Intimation of the proposed visits of the Inspection Parties is sent to the concerned Heads of the Offices/ Pay & Accounts Offices at least one month in advance so that all the accounts books and other relevant records are kept ready to facilitate smooth working of the inspection. Simultaneously, an intimation regarding inspection of the office of the Drawing & Disbursing Officer (DDO) is sent to the Pay & Accounts Office. The Senior Accounts Officer/Accounts Officer supervises the Inspection Party. The percentage of supervision is determined with due regard to the nature of the unit inspected and the volume of work involved. Wherever necessary, the Financial Controller/Assistant Financial Controller may himself supervise the working of any Inspection Party. In order to speed up the progress and to achieve the targets of auditing the units of the Ministry of Tourism, additional Internal Audit parties were constituted consisting of officers from the Regional Pay & Accounts Offices situated in Mumbai, Kolkata and Chennai. In the financial year 2007-08, 33 units were audited till December, 2007 against 32 units completed during the financial year 2006-07. Further, audit programmes for the remaining units in India to be audited during the financial year 2007-08 have already been finalized.

f.

Periodical review of all accounts records.

(iv) Follow-up and Remedial Action

g.

Pursuance/ settlement of objections taken in test audit notes issued by the statutory audit offices and other matters relating to statutory audit.

h.

To examine and report on points or irregularities brought to its notice by the Principal Accounts Office and the Pay & Accounts Offices in the Ministry/ Department.

The Head of Office is expected to furnish parawise replies to the Inspection Report through the Controlling Officer/ Head of the Department within six weeks from the date of issue of the final report. The progress of the settlement of objections is watched through the Control Register of outstanding reports/ paras. First reminder for para-wise replies to the inspection report is issued after six weeks from the date of its issue.

i.

Preparation and submission of Annual Review on performance of Internal Audit Wing to the Internal Audit Wing of the Controller General of Accounts.

Nature of Audit The nature of checks by the Internal Audit Wing are as follows: a.

Detailed scrutiny of accounts/records required to be maintained in Pay & Accounts Office and in the Drawing & Disbursing Offices.

b.

Verification of payments and accounting procedure in the Departmentalized System of Accounts including procedure to be followed by the cheque DDOs.

c.

Verification of the extent and frequency of control and checks exercised by the Heads of the Offices, in order to locate any lacuna in the procedure whereby frauds or defalcations may be possible either by individual or in collusion. Wherever necessary, steps to remove such lacunas are suggested.

d.

Scrutiny of sanctioning and purchase procedure in the offices inspected.

e.

Checking procedure in regard to disposal of assets to ensure that there exists adequate scrapping.

f.

Scrutiny of General Office Management procedure adopted by the Heads of the Offices locally where they have financial and accounting implication, so as to suggest tightening up administrative and financial control, savings in expenditure or streamlining of accounting.

Scope of Internal Audit

`

92

a.

To study the Accounting Procedure prescribed by the Department with a view to ensuring that they are correct, adequate and free from any defects or lacunae.

b.

Watch implementation of the prescribed procedures and other issues from time to time.

c.

Scrutiny and check of payments and accounting work of the accounting units.

d.

Investigation of important areas on accounting and other connected records.

e.

Co-ordination with other Ministries and the office of the Controller General of Accounts regarding audit procedures.

An objection book is maintained at the headquarters entering therein objections having money value. The progress of recovery or sanction to write off the loss is watched through this book. Objections of routine nature relating to initial records i.e. cash book, log book, overtime allowance register, stock register and service books, etc. where

Department/Office has accepted the Internal Audit point of view and has intimated that the necessary compliance can be verified during the course of checking of all such records at the time of next inspection, may be treated as finally settled. Specific objections pointing out overpayments, short and non-realization of Government dues, irregular payments of grants, non-utilization of costly stores, equipment and machinery, irregular purchases and other serious irregularities where the Department/office has furnished satisfactory replies are treated as settled subject to the verification at the time of next audit. The outstanding audit reports/audit paras are reviewed periodically. An annual review on performance of Internal Audit is sent to the Department of Expenditure, Controller General of Accounts and the Secretary (Tourism).

93

20

Important Audit Observations

20.1 Excess Release of Grants-in-Aid Ministry of Tourism's failure to scrutinize the project proposal of State Government property resulted in excess release of Rs. 2.39 crore. (Para 15.1 of Report No. 2 of 2007) Transaction Audit Observation 20.2 Injudicious Release of Funds Injudicious release of funds without ascertaining

the availability of land for the proposed project resulted in wasteful expenditure of Rs. 31.31 lakh. (Para 15.2 of Report No. 2 of 2007) Transaction Audit Observation The details of the above paras are given at Annex-XI.

21

Implementation of Right to Information Act, 2005

21.1 The Right to Information Act (RTI Act), 2005 of the Government of India seeks to promote transparency and accountability in the working of every public authority and to empower citizens to secure access to information available with them. To this end, in accordance with the provision of Section 4 (I) (b) of this Act, the Ministry of Tourism brought out a handbook for information and guidance of the stakeholders and general public and posted it on the Ministry's official website www.tourism.gov.in under a distinct section namely RTI Act. The handbook provides information on various schemes, projects and programmes being implemented by the Ministry along with its organizational set-up, functions and duties of its officers and employees, records and documents available, etc. It

is appropriately hyperlinked to other sections of the website. 21.2 Information on the activities of the Ministry is provided in its Annual Reports. These Reports are available to the general public on the website and in the library. 21.3 The Ministry designated fifteen of its officers as the Central Public Information Officers (CPIOs) with each CPIO responsible for a distinct functional domain. The Additional Director General of the Ministry is designated as the Appellate Authority. 21.4 Information that is not available in the handbook can be obtained against payments.

Central Public Information Officers

96

Sl. No.

Name of the Officer

Designation

Address

Subject Matter

1.

Shri Devesh Chaturvedi

Director

Transport Bhavan New Delhi-110001

Service matters pertaining to Administration, ITDC, Planning & Co-ordination (P&C), Publicity, Events & Info. Technology (PE&IT) and Projects North & Central (PNC)

2.

Dr. Prabhakar Dubey

Director

Transport Bhavan New Delhi- 110001

Matters pertaining to Adventure & Rural Tourism (A&RT), Projects South & West (PSW), Projects East & North East (ENE) and International Co-operation

3.

Shri Ajay Kumar Gupta

Joint Director General

C-I Hutments New Delhi-110011

Market Research

4.

Shri Umesh Kumar Kalra

Director (Finance)

Transport Bhavan New Delhi-110001

Matters relating to Accounts & Budget, Audit, Integrated Finance and E-Governance

5.

Shri K. Ravindran

Deputy Secretary

Transport Bhavan New Delhi-110001

Matters relating to Vigilance, Parliament, Administration-II & IV, National AIDS Control Organization (NACO), Welfare and Public Grievances Readressal Cell

6.

Shri Vijay Kumar

Deputy Secretary

C-I Hutments New Delhi-110011

Matters relating to Human Resource Development Division and Domestic Offices Division (only Tourist Promotion and RTI Window Display)

97

7.

Shri S.P. Singh

Dy. Director General

C- I Hutments New Delhi-110011

Matters relating to Travel Trade

8.

Shri M.N. Javed

Dy. Director General

C-I Hutments New Delhi-110011

Matters relating to Hotels and Restaurants

9.

Shri K.R. Arya

Dy. Director General

Transport Bhavan New Delhi-110001

Matters relating to Overseas Marketing and Hospitality

10.

Smt. Devki

Joint Director

C-I Hutments New Delhi-110011

Matter relating to Official Language

11.

Ms. Roma Singh Nongpiur

Regional Director

Indiatourism, “Embassy” 4, Shakespeare Sarani Kolkata-700071

Matters relating to Indiatourism Offices of the Eastern Region

12.

Ms. Roma Singh Nongpiur

Regional Director

Indiatourism G.L. Publication Complex G.S. Road Guwahati-781006

Matters relating to Indiatourism Offices of the North East Region

13.

Ms. Sujata Thakur

Regional Director

Indiatourism 123, M. Karve Road Opp. Church Gate Mumbai-400020

Matters relating to Indiatourism Offices of the Western Region

14.

Shri D. Subhash

Regional Director

Indiatourism 154, Anna Salai Chennai-600002

Matters relating to Indiatourism Offices of the Southern Region

15.

Shri M.M. Sadana

Regional Director

Indiatourism 88, Janpath New Delhi-110001

Matters relating to Indiatourism Offices of the Northern Region

Appellate Authority Shri Sanjay Kothari, Additional Director General (Tourism), Ministry of Tourism, Transport Bhavan, Parliament Street, New Delhi- 110001.

98

Annexures

Annex - I (Para 1.1) Organisational Chart

Annex - II (Para 1.1) Indiatourism Offices in India Regional Offices

Secretary to the Government of India and Director General (Tourism) SHILABHADRA BANERJEE

1. New Delhi 2. Mumbai 3. Kolkata 4. Chennai 5. Guwahati Other Offices

Joint Secretary Leena Nandan

Addl. Director General Sanjay Kothari

Addl. Director General (MR) Dr. R.N. Pandey

Joint Secretary & Financial Advisor E.K. Bharat Bhushan

Advisor (T) Dr. Manas Bhattacharya

1. Patna 2. Jaipur 3. Bangalore 4. Varanasi 5. Agra

Director Devesh Chaturvedi

DDG (OM) K.R. Arya

Dy. Secretary (Parlt. & Vig.) K. Ravindran

Director Dr. Prabhakar Dubey

Jt. DG (MR) Ajay Kumar Gupta

Director (F) Umesh Kumar Kalra

Under Secretary Nagmani Rao

6. Bhubaneswar 7. Port Blair 8. Imphal 9. Shillong 10. Hyderabad

Jt. Director (OL) Devki

Dy. Secretary (HRD, RTI & DO) Vijay Kumar

DDG (TT) S.P. Singh

DDG (Hotels) M.N. Javed

11. Kochi 12. Goa 13. Aurangabad 14. Khajuraho

MR - Market Research T - Tourism OM - Overseas Marketing Parlt. & Vig. - Parliament & Vigilance F - Finance

100

OL - Official Language HRD - Human Resource Development RTI - Right to Information DO - Domestic Offices TT - Travel Trade

15. Naharlagun (Itanagar)

101

Annex - IV (Para 2.16)

Annex - III (Para 1.1) Indiatourism Offices Abroad Sl. No.

1.

Operation/ Station America New York

Countries Covered

All States on the East Coast of USA, South America up to Columbia/Venezuela

2.

Los Angeles

All States on the West Coast of USA up to Panama

3.

Toronto

Canada and Greenland

UK 4.

London

UK, Ireland and Iceland

Europe 5.

Frankfurt

Germany, Poland, Czech Republic, Slovakia, Austria, Romania, Bulgaria, CIS countries, Israel

6.

Paris

France, Switzerland, Spain, Portugal

7.

Amsterdam

Netherlands, Luxembourg, Belgium, Scandinavian countries

8.

Milan

Italy, Greece, Malta

West Asia 9.

Dubai

KSA, UAE, Iran, Syria, Kuwait, Qatar, Bahrain, Jordan, Yemen, Lebanon, Iraq, Egypt, Turkey

10.

Johannesburg

South Africa, Kenya, Mozambique, Tanzania, Zimbabwe, Mauritius, Madagascar.

Australasia 11.

Sydney

Australia, New Zealand, Fiji and The Pacific

12.

Singapore

Singapore, Malaysia, Thailand, Brunei, Indonesia, Vietnam

East Asia 13.

Tokyo

Japan, South & North Korea, China, Hong Kong, Laos, The Philippines An overseas office in China has recently been sanctioned and the proposed coverage will include Mainland China, Taiwan, Hong Kong, Laos, Mongolia and Macau

102

National Tourism Awards - 2006-07 National Tourism Awards for 2006-07 were given in the following categories: 1. Best state in infrastructure development for promotion of tourism 2. Best state for tourism-related programmes (2 awards) 3. Best rural tourism project 4. Best tourism promotion collateral/publicity material (2 awards) 5. Best classified hotels in different categories: (i) 5 Star Deluxe (ii) 5 Star (iii) 4 Star (iv) 3 Star (v) 2 Star (vi) 1 Star (vii) Heritage Grand (viii) Heritage Classic (ix) Heritage (x) Eco-friendly hotel & resort (2 awards) 6. Best convention centre 7. In the segment of private-public enterprise, the best hotel that provides facilities for the physically challenged 8. Chef of the year (2 awards) 9. Lady chef of the year 10. Travel agents/tour operators (6 awards graded on the basis of foreign exchange earnings) 11. Tourist transport operators (3 awards) 12. Best domestic tour operator (2 awards) 13. Best mice operator 14. Most innovative tour operator 15. Best overseas tour operator (5 awards for different regions) 16. Best overseas charter operator (2 awards) 17. Best foreign journalist for India 18. Best foreign photographer for India 19. Best maintained tourist-friendly monument 20. Best maintained tourist-friendly national park/wildlife sanctuary 21. Most innovative tourist project (3 awards) 22. Best NGO promoting/ developing tourism 23. Best tourist guide 24. Best film on tourism (3 awards) 25. Excellence in publishing (2 awards - one each for Hindi and English) 26. Most innovative use of information technology website/portal promoting tourism 27. Best adventure tour operator

103

Annex V (Para 4.1) Incentives Presently Available to Hotel & Tourism Industry

Projects Sanctioned in the States/ Union Territories (up to February 29, 2008) (Rs. in lakh) Sl. No.

Number of projects

Amount sanctioned

Amount released

1.

Andhra Pradesh

7

2369.12

1896.28

2.

Arunachal Pradesh

9

2993.61

2394.87

3.

Assam

5

1271.90

1017.52

4.

Bihar

2

785.82

628.65

5

Chandigarh

2

20.00

18.00

6.

Chhattisgarh

4

1274.09

1019.27

7.

Delhi

7

749.08

601.27

8.

Gujarat

4

559.58

447.26

9.

104

State

Annex - VI (Para 6.10)

Haryana

11

2260.27

10.

Himachal Pradesh

12

2286.22

1695.82 1834.97

11.

Jammu & Kashmir

34

6812.65

4763.22

12.

Jharkhand

7

1130.47

904.35

13.

Kerala

6

2447.04

1957.95

14

Karnataka

3

1343.44

1074.74

15.

Maharashtra

4

905.02

723.93

16.

Meghalaya

2

674.40

539.52

17.

Mizoram

3

1183.74

946.99

18.

Madhya Pradesh

16

3952.66

2983.71

19.

Nagaland

20

2221.99

1777.58

20.

Orissa

14

3443.59

2733.62

21.

Puducherry

6

1610.88

1288.70

22.

Punjab

1

397.89

318.31

23.

Rajasthan

2

1554.46

1243.57

24.

Sikkim

23

5968.48

4765.42

25.

Tamil Nadu

11

2761.80

2209.44

26.

Tripura

9

399.04

319.22

27.

Uttar Pradesh

7

2788.32

2509.15

28.

Uttarakhand

5

2081.04

1620.86

29.

West Bengal

12

2993.52

2399.27

Total

248

59240.12

46633.46

Section 80-ID (1) of the Income Tax Act In the budget proposals for 2007-08, a tax holiday for 5 years was declared for new hotels under budget category coming up between 1.4.2007 to 31.3.2010 in the National Capital Territory of Delhi and the Districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad. Tourism Finance Corporation of India Ltd. Tourism Finance Corporation of India Ltd. has been set up to render financial assistance to private sector for construction of hotels and other tourist facilities. Export Promotion Capital Goods Scheme (i) The scheme allows import of capital goods at 5% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of license. (ii) The capital goods shall include spares (including refurbished/reconditioned spares), tools, jigs, fixtures, dies and moulds including second-hand capital goods (without any restriction or age) and import of required components of such capital goods needed for assembly or manufacture of capital goods by the license holder. (iii) Only hotels, travel agents, tour operators or tour transport operators whose total foreign exchange earning in current and preceding three licensing years is Rs.1.5 crore will be allowed to import motor cars, sports utility vehicles/all purpose vehicles. However, the parts of motor cars, sports utility vehicles, all purpose vehicles such as chassis, etc. cannot be imported under the EPCG scheme (earlier there was no threshold limit of Rs.1.5 crore). (iv) Group companies or managed hotels are allowed to transfer capital goods (under intimation to the Regional Licensing Authority).

(v) Such goods (except tools) imported under EPCG scheme shall not be allowed to be transferred for a period of five years from the date of import even in cases where export obligation was fulfilled. (vi) A true and proper account of exports/ supplies made and services rendered on fulfilment of export obligation shall be maintained for a period of 3 years from the date of redemption by every EPCG license holder. Served from India Scheme (Erstwhile Duty Free Credit Entitlement Scheme) (i) Registered hotels of one star and above (including managed hotels and heritage hotels) and other service providers in the tourism sector registered with the Ministry of Tourism shall be entitled to duty free credit equivalent to 5% of the foreign exchange earned by them in the preceding financial year as against the average foreign exchange earnings of the preceding 3 years. (ii) Stand-alone restaurants will be entitled to duty credit equivalent to 20% of the foreign exchange earned by them in the preceding financial year (as against 5% of the average foreign exchange earnings of the preceding 3 years). In the case of one and two star hotels and standalone restaurants, the foreign exchange earned through International Credit Cards and sources as may be notified only shall be taken into account for the purposes of computation of duty credit entitlement under the scheme. Export House Status The Government of India accorded Export House Status to Tourism. The Hotels, Travel Agents, Tour Operators, Tourist Transport Operators shall be entitled for recognition as Export House/Trading House/Star Trading House/Super Star Trading House and will be entitled to such benefits as specified in the Chapter 12 of the Handbook of Procedures (Vol.I) of the Ministry of Commerce.

105

Foreign Investment

New Industrial Policy

Foreign direct investment are important sources of supply of foreign capital, technology, know-how, and skills, all of which are critical for achieving globally competitive standards. To attract such investment, the Hotel and Tourism related industry in India has been declared as a high priority industry for foreign investment and eligible for approval of direct investment up to 100%.

In the New Industrial Policy, "Eco-Tourism” was announced as a Thrust Industry for development in the States of Jammu & Kashmir, Sikkim, Himachal Pradesh and Uttaranchal to accelerate industrial development, boost investors' confidence and generating additional employment. Accordingly, a range of incentives was made available. The Eco-Tourism projects identified for the purpose are Hotels, Resorts, Spas, Entertainment/Amusement Parks, Ropeways, etc.

Foreign Collaboration To promote technology upgradation in the hotel industry, approvals for technology agreements are available automatically on fulfilment of the following parameters: (i) Technical and Consultancy Services including fees for Architecture, Design, Supervision, etc. constitute up to 3% of the Capital cost of the project (less cost of land and finance). (ii) Franchising and Marketing/ Publicity support fee account for up to 3% of the net turn-over. (iii) Management fees (including incentive fee) account for up to 10% of gross operating profit. These criteria are applicable provided the collaborations are proposed with companies running/managing hotel(s) with at least 500 rooms. No permission is now required for hiring foreign technicians. Applications for automatic approval for foreign investment on technology agreements and/or management contracts can be made to the Reserve Bank of India. The entrepreneurs can approach authorised dealers for the release of foreign exchange. Agreements which involve a variation in the parameters will be considered on merits by the Foreign Investment Promotion Board.

North East Industrial and Investment Promotion Policy (NEIIPP), 2007 On April 1, 2007, the Government approved a package of fiscal incentives and other concessions for the North East Region under the 'North East Industrial and Investment Promotion Policy (NEIIPP), 2007' covering the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim. The incentives are applicable to the following service sector activities/ industries: (i) Hotels (not below two star category), adventure and leisure sports including ropeways. (ii) Medical and health services in the nature of nursing homes with a minimum capacity of 25 beds and oldage homes.

Annex - VII (Para 7.3) Hotel Management Institutes affiliated with NCHMCT The affiliated Institutes of Hotel Management and Catering Technology are located in the following places: 1. Delhi (Pusa)

14. Ahmedabad (Gandhinagar)

2. Mumbai

15. Bangalore

3. Chennai

16. Bhopal

4. Kolkata

17. Bhubaneswar

5. Chandigarh (Known as Ambedkar Institute of Hotel Management)

19. Guwahati

6. Gurdaspur

20. Gwalior

7. Srinagar

21. Hyderabad

8. Thiruvananthapuram

22. Jaipur

9. Dehradun

23. Lucknow

10. Chandigarh

24. Patna (Hajipur)

11. Gangtok

25. Shillong

12. Jodhpur

26. Shimla

13. Delhi (Lajpat Nagar)

(iii) Vocational training institutes catering to the training needs in the following areas: hotel management, catering, food crafts, entrepreneurship development, nursing, para-medical profession, civil aviation, fashion designing and industry. Further information is available with the Ministry of Commerce & Industry, Department of Industrial Policy and Promotion and also in its website www.dipp.nic.in.

18. Goa

Food Craft Institutes affiliated with NCHMCT The affiliated Food Craft Institutes are located in the following places: 1. Aligarh 2. Balangir 3. Darjeeling 4. Faridabad 5. Puducherry 6. Udaipur

106

107

Annex - VIII (Para 7.4)

Annex - IX (Paras 11.2 & 11.3)

Grants-in-Aid Released to Autonomous Bodies during 2007-08 (up to February 29, 2008) Name of the Institute

1

IHM, Ahmedabad, Gujarat

0.63

2

IHM, Srinagar, Jammu & Kashmir

0.44

3

IHM, Lucknow, Uttar Pradesh

0.14

4

IHM,Shimla, Himachal Pradesh

0.40

5

IHM, Pusa, Delhi

0.15

6

State IHM, Kozhikode, Kerala

4.00

7

State IHM, Gangtok, Sikkim

3.50

8

IHM, Jaipur, Rajasthan

0.42

9

State IHM, Ailwang, Mizoram

4.00

Year

Foreign Tourist Arrivals (in nos.)

Percentage Change over Previous Year

Estimated Foreign Exchange Earnings (Rs. in crore)

Percentage Change over Previous Year

Estimated Foreign Exchange Earnings (in million US$)

Percentage Change over Previous Year

1998

2358629

-0.7

12150

15.6

2948

2.0

1999

2481928

5.2

12951

6.6

3009

2.1

2000

2649378

6.7

15626

20.7

3460

15.0

2001

2537282

-4.2

15083

-3.5

3198

-7.6

10

IHM, Lucknow, Uttar Pradesh

0.11

2002

2384364

-6.0

15064

-0.1

3103

-3.0

11

IHM, Jaipur, Rajasthan

0.15

2003

2726214

14.3

20729

37.6

4463

43.8

12

State IHM, Kurukshetra, Haryana

0.71

13

State IHM, Dimapur, Nagaland

4.00

14

State FCI, Garhmukteshwar, Uttar Pradesh

2.00

15

State FCI, Faridabad, Haryana

1.50

16

State IHM, Jodhpur, Rajasthan

1.30

17

IHM, Shimla, Himachal Pradesh

0.78

18

State IHM, Puducherry, Tamil Nadu

2.00

19

State FCI, Hassan, Karnataka

2.00

20

State FCI, Jammu, Jammu & Kashmir

2.00

21

IHM, Pusa, Delhi

0.20

22

IHM, Gurdaspur, Punjab

1.00

23

State IHM, Hamirpur, Himachal Pradesh

4.00

24

State IHM, Fursatganj, Uttar Pradesh

4.00

25

State IHM, Bodhgaya, Bihar

4.00

26

State IHM, Yupia, Arunachal Pradesh

2.00

27

State FCI, Samaguri, Assam

2.00

28

State IHM, Solapur, Maharashtra Total

108

(Rs. in crore) Amount released

Sl. No.

Foreign Tourist Arrivals and Estimated Foreign Exchange Earnings for the Last Ten Years

2004

3457477

26.8

27944

34.8

6170

38.2

2005

3918610

13.3

33123*

18.5

7493*

21.4

2006

4447167

13.5

40375*

21.9

8934*

19.2

2007

4977193@

11.9

49413#

22.4

11956#

33.8

* Revised Estimates # Advance Estimates @ Provisional

2.00 49.43

109

Annex - X (Para 11.5) Surveys & Studies The Surveys/ Studies/ DPRs/ Feasibility Studies completed during 2007-08: (i)

Evaluation of the scheme of Incentives to Accommodation Infrastructure.

(ii)

Evaluation of the scheme of Rural Tourism.

(iii)

Survey on collection of Tourism Statistics for the State of Goa.

(iv)

Survey on collection of Tourism Statistics for the State of Orissa.

(v)

Survey on collection of Tourism Statistics for the State of Uttar Pradesh.

(vi)

Study to quantify the size, scope & economic impact, etc. of the India's convention industry.

(vii) Detailed Project Report for Southern Tourist Circuits - Phase II at Lunglei-Saichho-Thenzawl Sialsuk-Hmuifang in Mizoram. (viii) Detailed Project Report for destination development at Kanhmun in Mizoram. (ix) (x)

Detailed Project Report for freedom struggle circuit, and religious circuit in Punjab. Detailed Project Report for destination development at Amritsar, Patiala and Wagha Border in Punjab.

Detailed Project Report for the development of Mubarak Mandi as tourism destination and Socio-cultural-cum-Heritage Centre at Jammu in Jammu & Kashmir.

(xiii) Detailed Project Report on destination development at Imphal in Manipur.

(xvii) Detailed Project Report for development of Circuit - Tueasang-Zunheboto-Kiphire in Nagaland.

(ii)

Evaluation study for the plan scheme of Computerization and Information Technology.

(xv)

(xvi) Detailed Project Report for the development of tourism circuits of Dirak-Namsai-ChokhamWakro-Parasuramkund-Tezu-Hayuliang-Walong in Arunachal Pradesh.

Evaluation study for the plan scheme of assistance for Large Revenue Generation Projects.

(xiv) Detailed Project Report for tourism circuits in Imphal Bishnupur-Churchandpur in Manipur. Detailed Project Report for Bungus Valley in Jammu & Kashmir.

(xviii) Detailed Project Report for the circuit development at Wokha-Nuiland Dimapur-Peren in Nagaland.

(iii)

Evaluation study for the plan scheme of Market Research Professional Services.

(iv)

(xix) Detailed Project Report for development at Tiger/Sumour village in Nubra in Jammu & Kashmir as tourist village.

Evaluation study for the plan scheme of assistance to IHMs/FCIs/IITTM/NIWS, etc.

The Surveys/ Studies/ DPRs/ Feasibility Studies completed during the year 2006-07:

(xx)

(i)

Evaluation study in selected Overseas Markets.

(ii)

Survey on collection of Tourism Statistics for the State of Chhattisgarh.

(iii)

Survey on collection of Tourism Statistics for the State of Bihar.

(iv)

Survey on collection of Tourism Statistics for the State of Uttaranchal.

(xix) Detailed Project Report for three rural tourism projects at Andro, Khongjom and Noney villages in Manipur.

(v)

Survey on collection of Tourism Statistics for the State of Karnataka.

(xx)

(vi)

Survey on collection of Tourism Statistics for the State of Assam.

(vii)

Survey on collection of Tourism Statistics for the State of Rajasthan.

Detailed Project Report for the circuit development at Itanagar-Ziro-Daporijo-Basar in Arunachal Pradesh.

(xxi) Detailed Project Report for destination development at Mechuka (West Siang district) in Arunachal Pradesh. (xxii) Detailed Project Report for destination developement at Jairampur War Memorial (Changlang district) in Arunachal Pradesh. The Studies/ Surveys likely to be completed during 2007-08: (i)

Evaluation study of the scheme of Capacity Building for Service Providers (CBSP).

(ii)

(xii)

Detailed Project Report for two rural tourism centres at Banabithi and Hurizala in Tripura.

Evaluation of the scheme of Domestic Promotion & Publicity.

(iii)

Evaluation of the scheme of financial assistance to States for development of circuits/destinations.

(xiii) Detailed Project Report for destination development at Sakawrdai in Mizoram.

110

The Surveys/Studies commissioned/taken up during 2007-08:

(xii)

(i)

Detailed Project Report for destinations at Belonia, Agartala and Udaipur in Tripura.

(xv) Detailed Project Report for the development of Aero Sports at Aizawl under destination development scheme in Mizoram.

Detailed Project Report for infrastructure development of 7 culturally significant circuits/ destinations by ITDC.

(xvi) Detailed Project Report for destination development at Aizuto and Tuophema in Nagaland.

(xi)

(xiv) Detailed Project Report for two rural tourism projects at villages Sesawng and Thanzawl in Mizoram.

(vi)

(iv)

Preparation of an Action Plan to raise the number of tourists from 3 million to 25 million in 10 years' time.

(v)

A study to assess the Hotel Room requirement in metro cities and 50 major cities in the country.

(viii) Survey on collection of Tourism Statistics for the State of Madhya Pradesh. (ix)

Feasibility study report for Mountain Airline in Uttaranchal.

(x)

Feasibility study report for Golf Tourism in Uttaranchal.

(xi)

Conservation & Management Plan for Mughal Gardens in Jammu & Kashmir.

(xvii) Detailed Project Report for the development of Eastern tourism circuit - Kritum-VanlaiphaiE. Lungdar-Khawbung-Farkawn-ZokhawtharHnahlan-Saitual-Tamdil in Mizoram. (xviii) Detailed Project Report for the development of Southern tourism circuit of HrangchalkawnTawipui-Lawngtla-Saiha-Vawnbuk-Sangau-S. Vanlaiphain Mizoram.

Detailed Project Report for development of tourism-circuit of Ranchi-Rajrappa-HazaribaghItkhori in Jharkhand.

(xxi) Detailed Project Report for the development of tourist destinations of Parasnath -Madhuban Phase-II in Jharkhand. (xxii) Detailed Project Report for the development of rural tourism at Amadubi district, East Singhbhum in Jharkhand. (xxiii) Detailed Project Report for the development of rural tourism at Deuridih district SaraikelaKharsanwan in Jharkhand.

111

Annex - XI (Para 20.2) Summary of Important Audit Observations Details of the Paras 18.1 Excess Releases of Grants-in-Aid Ministry of Tourism's failure to scrutinize the project proposal of State Government property resulted in excess release of Rs. 2.39 crore The Ministry of Tourism received a proposal (July 2002) from the State Government of Andhra Pradesh for setting up of a tourist facilitation centre “Balayogi Paryatan Bhawan” at Hyderabad at a cost of Rs.10.25 crore with a request for Central Financial Assistance (CFA) of Rs.4 crore and the remaining amount was to be arranged by the State Government. In addition, land measuring 2.15 acres was to be arranged by the State Government free of cost for the project. After consideration, the Ministry approved the proposal under the scheme for Development of Tourist Centres. The Ministry sanctioned (March 2003) Central Financial Assistance (CFA) of Rs. 5 crore to the project against an assistance of Rs. 4 crore sought by the State Government by assuming the total cost of Rs. 22.25 crore after including Rs. 12 crore on account of the cost of land provided by the State Government for the project. No fresh proposal from the State Government was obtained. The sanction of Rs. 5 crore was justified on the ground that the Ministry had already agreed to sanction Rs. 5 crore for the project during 2001-02 itself. The Ministry released the first instalment of Rs. 1.89 crore in March 2003 and the second instalment of Rs. 2.50 crore in April 2004 against the utilization certificate of Rs. 3.09 crore received from the State Government in March 2004. The project was actually completed (March 2005) at a lower cost of Rs. 7.20 crore against the initially projected cost of Rs. 10.25 crore (excluding the cost of land). Thereafter, the Ministry advised the State Government to adjust the excess release of Rs. 0.88 crore against some other project as the CFA of Rs. 3.51 crore was considered to be admissible against total release of Rs. 4.39 crore for the project costing Rs. 7.20 crore. The excess release of Rs. 0.88 crore was neither recovered nor adjusted as of October 2006.

112

Audit noted that as per the guidelines of the scheme of Development of Tourist Centres, CFA up to Rs. 2 crore only could have been provided, whereas under the scheme of large revenue generating projects, CFA at 25 per cent of project cost or Rs. 10 crore whichever was less, was admissible. As the Ministry had approved the project under the scheme of Development of Tourist Centres, the eligible CFA for the project could have been only up to Rs. 2 crore and therefore, sanctioning Rs. 5.00 crore (after including Rs. 12 crore in the total cost of the project on account of the cost of the land) was irregular. Thus, the Ministry need to recover Rs. 2.39 crore instead of Rs. 0.88 crore as calculated by them on proportionate basis. The Ministry in their reply (May 2006) stated that the amount of Rs. 0.88 crore would be adjusted against other project. It further stated (November 2006) that when the project was conceptualized the maximum ceiling of grants-in-aid under Tourist Centres was Rs. 2 crore but when the project was sanctioned, the revised guidelines were in place under which the upper ceiling for each destination was Rs. 5 crore.

lying between Yamuna River Front, National Samadhis and Red Fort through the ITDC1. Pending preparation of plans/ drawings/ blue prints, detailed estimates of the work and transfer of land to the project executing agency, the Ministry released an amount of Rs.5.00 crore to the ITDC (February 2004) as an advance to start the work. As per the sanction, the ITDC was asked to furnish land availability certificate within six weeks from the date of the sanction as the land belonged to the Central Government. The work was required to be completed by 15 February 2005 i.e. within a period of one year from the date of issue of sanction. After completion of project, the assets created were to be handed over to the DDA2 for maintenance and management. The ITDC requested (March 2004) the L&DO3 for permission to carry out the sanctioned work and also submitted a project proposal to MOT at an estimated cost of Rs. 787.33 lakh, including 3 per cent contingencies and 5 per cent centage charges. The L&DO, however, intimated MOT (December 2004) that the land was not available for the project as the same had already been transferred to the DDA for the purpose of integrated development of Yamuna River Front.

Thereafter, MOT directed the ITDC (December, 2004) to refund the amount of Rs. 5.00 crore released in February 2004. The ITDC refunded (June 2005) Rs. 4.69 crore after deducting Rs. 31.31 lakh which included expenditure of Rs. 28.94 lakh incurred mainly on hiring a project consultant and security guards and contingencies and centage charges of the ITDC. The release of Rs. 5.00 crore in anticipation of sanction of detailed estimates and handing over of land for the project to the ITDC resulted in idling of public funds for over fifteen months. Thus, injudicious sanction and release of funds without ascertaining the availability of land for the proposed project resulted in wasteful expenditure of Rs. 31.31 lakh. The matter was reported to the Ministry in January 2006; their reply was awaited as of December 2006. (Para 15.2 of Report No. 2 of 2007) Transaction Audit Observations 1

India Tourism Development Corporation Limited

2

Delhi Development Authority

3

Land and Development Office

The replies (May, 2006 and November, 2006) of the Ministry are not tenable because although the project was sanctioned after the new scheme guidelines were notified but it was sanctioned under the old scheme where the eligible CFA could have been only up to Rs. 2 crore. Besides, sanctioning Rs. 5 crore against the demand of Rs. 4 crore by State Government was irregular and not called for. (Para 15.1 of Report No. 2 of 2007) Transaction Audit Observations 18.2 Injudicious Release of Funds Injudicious release of funds without ascertaining the availability of land for the proposed project resulted in wasteful expenditure of Rs. 31.31 lakh. The Ministry of Tourism (MOT) decided (January 2004) to develop “Yamuna River Front Development of Great Green Tourist Complex, Delhi” in the area

113

Designed and produced for the Ministry of Tourism, Government of India by Ashok Creatives, India Tourism Development Corporation and printed at Viba Press Pvt. Ltd., New Delhi-110020