Annual Report - Tourism Ministry-India

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ANNUAL REPORTMINISTRY OF TOURISM

2008-09

ANNUAL REPORT 2008-09

MINISTRY OF TOURISMGovernment of India

Chapter No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. ANNEXURES

Title Tourism - An Overview Ministry of Tourism and its Functions Development of Tourism Infrastructure New Tourism Products Accessible Tourism Development and Regulation of Tourism Industry Human Resource Development Publicity and Marketing Statistics, Surveys and Studies International Co-operation India Tourism Development Corporation Limited Welfare Measures and Vigilance Progressive Use of Hindi Gender Equality The Prime Concern CAT Cases Implementation of Right to Information Act, 2005 Departmental Accounting Organisation Commonwealth Games, Delhi - 2010 An Overview of North Eastern Region Important Audit Observations

Page No. 8 14 20 24 32 36 42 48 58 62 68 78 82 86 90 94 98 106 112 116

CONTENTS

I II III IV V

Organisational Chart Projects Sanctioned to the States/Union Territories List of Surveys/Studies Domestic Indiatourism Offices Overseas Indiatourism Offices

120 121 122 124 125

TOURISM AN OVERVIEW

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TOURISM AN OVERVIEW

in international travel fairs and exhibitions, extending the benefit of MDA to the active members of India Convention Promotion Bureau (ICPB), organizing Travel Mart and the Great India Travel Bazaar in Jaipur in association with the State government and all stakeholders. Marketing net was extended to include emerging source markets in keeping with the imperative of not losing sight of the long-term prospects of diversification and better management of market-risks. For the Indian Tourism Sector, the year 2008-09 has been a year of challenge and response. International tourist arrivals continued to deteriorate due to the impact of global economic crisis with the growth of overseas tourists visiting India slowing down to 5.6 per cent in 2008 as against 14.3 per cent in 2007. Tourist footfalls had further declined in the aftermath of the co-ordinated terror-strike at Taj, the premier hotel in Mumbai, and several other places in the city. Nevertheless, Indian tourism sector outperformed the global growth of 2 per cent in international tourist arrivals in 2008. The sector responded with substantial efforts to reinforce promotions, innovative policy directions to diversify products and markets that could hedge future risks, and strengthened industry-solidarity to provide attractive concessions and packages to stimulate demand. The meeting of the National Tourism Advisory Council held on the 15th December, 2008 with the Honble Minister of Tourism and Culture in chair discussed the problems faced by the tourism industry as a fallout of the Mumbai terror attacks and the global financial meltdown. Several measures have been taken after this meeting. The Visit India Year 2009 scheme was launched in January 2009 with attractive incentives by 8 way of value additions for foreign tourists visiting the country during the period April to December 2009. Complimentary value additions were shared between airlines, hotels, tour operators and State governments. The scheme is being widely publicized by the Ministry of Tourism through its website, international road shows, travel fairs and exhibitions and through advertisements in leading overseas mainstream and trade publications. The value additions include: (i) (ii) Complimentary international air passage for the travelling companion; One night complimentary stay in the hotel booked by the tourists; (iii) One complimentary local sightseeing tour in any one city of visit; and (iv) One complimentary Rural Eco-holiday in the country. Strengthened marketing and contact promotion supported by subsidies and incentives were key elements in the strategy to boost consumer and business confidence to revive tourism market. Steps taken include enhanced Market Development Assistance (MDA), familiarization tours for overseas media and travel trade representatives, incentives to repeat visitors, subsidy to the trade and State government for participation The effort in 2008-09 was all for a wider outreach and participation with equity consideration built into the programmes and policies. The Ministry of Tourism revised the Market Development Assistance (MDA) scheme to motivate travel agents and tour operators to promote lesser known destinations in India. The inclusive and social dimensions of the policy deepened with strengthened initiative towards capacity building for rural tourism and sustainable livelihoods through community participation and empowerment, training and skill development based on a model that harnesses rural and eco-tourism for preservation and also as products having a market presence. The Ministry is promoting rural craft persons and their art-wares through demonstration and display in tourism marts, exhibitions and events prominently both within and outside the country. 15 rural tourism sites have been selected as rural eco-holiday sites for the Visit India Year 2009. With a view to creating social awareness for tourist safety and security among masses and tourism stakeholders, the Ministry of Tourism launched its generic social awareness campaign 2008-09, in the domestic market through a TV commercial featuring Amir Khan, a noted film actor and brand Ambassador. Another campaign was launched under the

banner Atithi Devo Bhavah to sensitize the masses and youths to social issues like good behaviour with tourists and protection of monuments against garbage and graffiti. Effort to widen the market outreach was also made through promotion of the emerging segments in diversified tourism products like cruise, adventure and medical tourism. development, consultation and dialogue with other related ministries and stakeholders, financial support to augment infrastructure and procurement of capital equipment, market making, organizing events, tourist facilitation and institution of awards to encourage enterprise. Indian tourism sector seized the growing opportunities for medical tourism to market a unique branding of Indian traditional healing system like Ayurveda, Yoga, Siddha, Naturopathy etc. with the modern system of medicine in a package that projects India as a centre of wellness destination yet another instance of leveraging the sector to preserve and promote Indias centuries of wisdom as an ancient civilization. The agenda to reach out to people is also manifest in the Ministrys programme on human resource development. The National Council for Hotel Management and Catering

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TOURISM AN OVERVIEW

The range of initiatives included policy

Technology (NCHMCT), in collaboration with the National Informatics Centre (NIC) is going to start web-based decentralized counselling for entry of students in Institutes of Hotel Management from the coming academic session. The other scheme of human resource development, which is inclusive and involves service providers even in the lowest strata of the market including in the informal economy segment, is the Capacity Building for the Service Providers (CBSP) scheme. It covers, inter alia, a wide category of functionaries such as coolies, servers, waiters, helpers, front office staff, reception counter staff, food kiosks, dhaba staff etc. As the country developed stimulus measures through fiscal and monetary packages to mitigate the effects of global meltdown, the tourism sector contributed to strengthen the effects of the overall macro-economic policy stance by utilizing 100 per cent of the financial allocation for augmentation of tourist infrastructure in the country under the scheme of Product/Infrastructure Development for Destinations and Circuits. In order to promote investment in hotel sector, External Commercial Borrowing (ECB) has been made liberal for the potential investors in this segment of the tourism industry. The Ministry of Tourism has been proactive in unleashing a series of initiatives to seize the opportunities being thrown open by the forthcoming Commonwealth Games to be held in Delhi next year. The prospect is also bringing challenges calling for innovative solutions in coping with mounting pressure in areas where significant shortages already exist, namely, accommodation and trained personnel. The preparatory steps taken include encouraging growth of new hotels,

creation of additional hotel rooms through fiscal and regulatory incentives, construction of new flats by the Delhi Development Authority (DDA) to be upgraded rooms and of furnished by the India Tourism Development Corporation (ITDC), making identified guest houses of certain standards and Incredible India Bed and Breakfast/ demand for accommodation. To cope with the increase in the demand for additional hospitality trained manpower, the Ministry has introduced short-term training programmes of 21 days under Earn While You Learn and CBSP schemes for youth to work as student volunteers. Training and capacity building programmes are also being undertaken through CBSP for the owners, managers and the workers of the guest houses to upgrade their standards and soft-skills. To counter the negative impact of terror attack on tourism, the Ministry reviews the status of Travel Advisories issued by major tourist generating countries and take suitable corrective steps by way of putting up the security updates for foreign tourists in its website, liaising with Indian Missions, travel industry and overseas media. Confidence building measures are also undertaken by way of organizing fam tours and road shows to ward off unnecessary fear from a distance. The Ministry is encouraging promotion of tourist police as a specialized cadre with a blend of skills of hospitality and security services. To this end, the Ministry is supporting training of ex-servicemen with a view to preparing them to serve a