Tourism Investment OpportunitiesPresented by

G. Kamala Vardhana RaoSecretary, Kerala Tourism

Kerala, India’s Tourism Superbrand

• India’s only Tourism Superbrand, selected by the Superbrand Council

• India’s No.1 upscale tourist destination• One of the 50 must-see destinations of a lifetime –

National Geographic Traveler

Kerala Tourism, Spectacular Growth

• International tourist arrivals:2003: 2,94,6212014: 9,23,366

• Domestic tourist arrivals:2003: 58,71,2282014: 1,16,95,411

• Average Duration of Stay (in no. of days)2003: 14.12013: 16.1

Source: Research Division, Dept. of Tourism, Kerala

Kerala, Excellent Connectivity• 3 International Airports -• Connect to Middle East, South East

Asia• Connect to all major cities in India• 17 international airlines & 4 domestic

airlines operate to Trivandrum Airport on a daily basis

• 20 international airlines & 7 domestic airlines to Cochin

• 10 international airlines & 4 domestic airlines

• Well connected by Rail and Road network to major cities in India• NH network of 1523 kms• State Highway of 4655 kms

• Intricate network of roads and canals connect even the remotest part

Kerala, Growth Enabling Environment

Government of Kerala• Facilitator for tourism as an Industry • Aggressive marketer of Kerala Tourism• Partner in progress with private sector

Kerala Tourism Investment Promotion Board

• The State had constituted Kerala Tourism Investment Promotion Board recently

• Clear intention is to attract more Private investment in the tourism sector

• Chief Minister will be the chairman of the board with Tourism Minister as Vice Chairman and Tourism Secretary as Convener

• Government will remain as a catalyst and facilitator to create enabling environment for private investments.

Ease of Doing Business in Kerala

• Industrial promotion agencies like KSIDC, KINFRA, INKEL, SIDCO etc will facilitate in organizing and assisting new investment proposals in the State

• Single window clearance system introduced for new proposals in 20 different departments

• A committee under Chief Secretary with trade representatives as members is entrusted with the task of Single window clearance for projects

Subsidies to Tourism industry

• Various subsidies offered to investors in the tourism sector

• Main incentives include investment subsidy limited to 10% of the total Investment, maximum 10 lakhs and the subsidy on Electricity tariff

• 25% of investment subsidy to the approved Girihasthali Scemes , maximum 5 Lakhs

Kerala Tourism, Investment Opportunities

• Destination Development• Development of Resorts/ Hotels• Adventure Activities• MICE Facilities• Human Resource Development

Master Plan for Major Destinations

• Development Master plans with a 30 year inclusive growth vision finalized for Kovalam, Kumarakom, Thekkady & Fort Cochin

• Pilgrimage tourism master plans for Sabarimala, Sree Padmanabha Temple, Malayator Church, Cheraman Mosque will be ready by end of this year

Kovalam – Poovar Corridor

Internationally renowned beach side destination Favorite beach of foreign tourists 3 adjacent crescent-shaped beaches Offers a variety of activities on the beach

Kovalam

Kovalam – Poovar Corridor

Poovar • Small Coastal Village 25 km south of Kovalam• An Estuary which connects with the Sea during high tides is the major attraction

Kovalam – Poovar CorridorMajor Investment Projects in PPP model

• Water Sports facilities including Scuba diving in 5 different spots ( Expected investment – 10 Cr)

• Conversion of Vattappara quarry as an adventure destination with bungee jumping, rappelling and a suspended restaurant ( Expected investment – 10 Cr)

• Sea Viewing restaurant on the cliff at Kovalam palm beach ( Expected investment -1.5 Cr)

Kovalam – Poovar CorridorMajor Investment Projects in PPP model

• Entertainment zone ( Amusement Park / Gallery/ Oceanarium/ Sand sculptures etc) at Poovar Estuary(Expected investment - 50 Cr)

• Solid waste management and bio gas plant (Expected investment - 5 Cr)

Destination - Kumarakom

Serene village on the banks of Vembanad lake Favorite holiday destination of Celebrities Houseboats with over night stay facilities

Kumarakom – Major Investment Projects in PPP Model

• Traditional Water sports complex at Cheerpunkal (Expected investment – 2Cr)

• Developing budget accommodation units . Recent feasibility study had identified a gap of 3000 beds in the destination

• Hospitality Training institute (Expected Investment -1.2 Cr)

• Ayurvedic Village / Rejuvenation Centre / Ayurveda Institute ( Expected Investment - 50 lakhs)

Kumarakom – Major Investment Projects in PPP Model

• Convention Centre for MICE tourism (Expected investment – 50 Cr)

• Theme based park for recreational activities (Expected investment - 2.5 Cr)

• Cultural Handicrafts Village ( Expected investment – 10 Cr)

Destination - Thekkady

One of the finest wildlife reserves in India

Thekkady – Major InvestmentProjects in PPP Model

• Proposed projects for private investment• Alternate Transport Modes ( Battery Operated

Vehicles) for Tourist transport• Tourist rest areas and toilet facilities• Floating area• Rock garden and recreational facilities at Urumbikkara

Destination – Fort Cochin

The first European township in India Hub of Spice Trade and Key Port in Spice Route

Kochi, Host city of India’s first Biennale

Government of Kerala is the primary sponsor of the Kochi-Muziris BiennaleContributed Rs 9 crores towards KMB 2012

Other Major Investment Projects

• Hop-on hop-off service in Cochin. DoT will arrange all necessary clearances, marketing support and other infrastructural requirements other than the vehicles

• Digital Museum or Heritage Village in Veli• Budget accommodation units in Parunthumpara,

Idukki and at Ilaveezhapoonchira, Kottayam which are emerging destinations. Land available on PPP model

Other Major Investment Projects• Clean Kerala. Destination and household garbage

collection and disposal. STP to be set up. The project will be on User fee model

• Multi level Vertical Parking in Kovalam, Munnar, Thekkady, Varkala, Fort Cochin, Kumarakom. Ideal model for Kerala where land availability is a major issue

• Caravan Tours in Munnar, Thekkady, Wayanad etc. Tourism & Forest departments will jointly develop facilities for interested Operators

Other Major Investment Projects

• 9-hole golf course and an eco-resort in Vagamon• 3 star eco friendly Resort and Convention Centre at

Karapuzha, Wayanad• Adventue Sports Zone and Backwater Resort at Kappil

beac, Varkala• Cable cars at Munnar

Potential Investment DestinationKannur International Airport

• Second Greenfield airport in PPP model in Kerala• The new airport will provide an international gateway in

the northern Malabar region with state-of-the art facilities • Will act as air cargo hub for Malabar region• The new airport will be fully operational in 2016

Potential Investment Destinations-Athirapally Waterfalls

Potential Investment Destinations-Wayanad

Potential Investment DestinationsBekal Fort

Dr. M Beena IASManaging Director

Kerala State Industrial Development Corporation Ltd. (KSIDC)Government of Kerala

Facilitating Industry in Kerala

• Area: 38,863 sq.km (1.18%)

• Population: 33.3Mn (2.75%)

• Coastal length: 600km (8%)

• Literacy rate: 94% (74%)

• High life expectancy: 74 yrs (67 yrs)

• High PQLI

Essential Facts

Network of Government Agencies

• KSIDC – Dedicated Parks & Financial Support

• KINFRA – Dedicated Parks

• K-BiP – Investment Promotion Support

• INKEL – Infrastructure Support

• KFC – Financial Support

31

Kerala Core Competencies• Tourism

• Wellness/ Health Care

• Information Technology

• Manufacturing

• Food Processing

• Bio - Sciences / Technology

• SMEs

• Innovation Ecosystem

At a Glance• Premier agency for industrial & investment promotion

• Single point contact for investments to the State

• Single window clearance cell

• 1200 Acres of developed land with plug and play facility

• Assisted more than 700 projects with Investment outlay of Rs. 26,300 crores

• Employment: Direct - 78,000 , Indirect - 3,92,000

• Mega Projects worth Rs. 1,00,000 crores in the pipeline

Range of Services

• Industrial & Investment Promotion• Infrastructure Development• Mega Projects – Facilitation/PPP• Identification of Investment Ideas & Facilitation• Feasibility Study, Project Evaluation, Financial Structuring• Single Window Clearance • Project Financing(Equity / Debt assistance)

Term Loan Assistance from KSIDC

Term loan assistance given for medium to large scale projects above Rs. 2 crores Loan assistance is given up to Rs. 35 Crores Consortium based funding in coordination with major public sector Banks

Interest Rate

(Depending on credit rating)

General Industries Tourism

11.25%- 13.25% 10.25% to 12.25%

DE Ratio

Up to 1:1 with primary security

Up to 1.5:1 with collateral security for the excess loan above 1:1

Up to 1.5:1 with primary security

Up to 2:1 with collateral security for the excess loan above 1.5:1

Moratorium 1 year moratorium from commercial operation date for principal repayments

Repayment period

5-8 years depending on project cash flow after moratorium period

IGC KannurLocation 

• Area acquired for IGC - 250 Acres

• Location - Valiyavelicham, Koothuparamba, Kannur District.

• Nearest Airport - Kozhikode International Airport – 120 km

• Nearest Railway Station - Thalassery Railway Station - 21 km

• Nearest Sea Port - Mangalore Port - 110 km

IGC KinalurPlace Kinalur, Balussery

Extent of land

308 acres (123.2 hectares)

District Kozhikode

Nearest Railway Station

Kozhikode (25 km)

Nearest Airport

Kozhikode

Nearest Seaport

Kochi (200 km)

IGC CherthalaPlace Pallippuram,

Cherthala

Extent of land278.79 acres (111.5 hectares)

District Alappuzha

Nearest Town Cherthala (7 km)

Nearest Railway Station

Cherthala (8 km)

Nearest Airport Kochi (70 km)

Nearest Seaport Kochi (30 Kms )

Kerala USPs

• Continuous, unbroken tradition• Advantageous terrain and climate• Rich bio-diversity• Largest pool of qualified, trained manpower

Ayurveda

Backwaters

• 44 Rivers • Vast network of lakes• 1500 Km of Canals• Over 300 species of birds

Hill Stations

Beaches

• Unbroken coastline of more than 600 km

• Beautiful shallow beaches

• Western Ghats • Undulating hills & valleys

Kerala USPs - Wellness / Healthcare• Kerala - India’s best healthcare indices - well

accepted by public• Health tourism - a fast emerging sector• More than 25 super specialty hospitals, 15 medical

colleges in the private sector and 8 Medical colleges and 4 Dental colleges in government sector

• High density of healthcare professionals

Opportunities• Super-specialty Hospitals & personalized

healthcare system, R&D facility, para medical and nursing institutions & medical device manufacturing

• INKEL Towers, Malappuram- 100 acres for health care industries

• Home for Ayurveda

• Ashtavaidya tradition

• Geographical spread

• Medicine Availability

• Renowned Ayurvedic centres &

Centres of Excellence

• Well trained medical & para-medical staff

• Good Manufacturing Practices for medicinal preparations

Kerala USPs - Kerala Ayurveda

• The value of spices exports from Kerala increased at a The value of spices exports from Kerala increased at a

CAGR* of 26.1 per cent between 2007-08 and 2011-12. CAGR* of 26.1 per cent between 2007-08 and 2011-12.

• Exports reached a volume of 421,570 tons in total from Exports reached a volume of 421,570 tons in total from

India, with Kerala being the major contributor. India, with Kerala being the major contributor.

KERALA USP’s - SPICES

Kerala Specialties

Mineral Sands - Ilmenite, Rutile, Zircon, Monazite, Sillimanite, etc. Titanium Sponge production – 500TPA; scope for massive scaleup Marine products – exports worth approx. $1.5bn

Natural Rubber – 90% of total rubber production in India

Kerala,Kerala,Life In God’s Own CountryLife In God’s Own Country

What makes Kerala so fascinating?What makes Kerala so fascinating?

• Green, diverse nature with rich bio-diversity

• Open, welcoming people

• Strong cultural heritage with an array of classical, folk art

forms and festivals

Nature…BeachesNature…Beaches

580 km long coastline…580 km long coastline…

Nature…HillstationsNature…Hillstations

High ranges of Kerala is one of the High ranges of Kerala is one of the biggest producers of spicesbiggest producers of spices

Nature… WildlifeNature… Wildlife

Unique flora & faunaUnique flora & fauna

Nearly one-fourth of Kerala is forested and has 15 Wildlife Sanctuaries and 4 National ParksNearly one-fourth of Kerala is forested and has 15 Wildlife Sanctuaries and 4 National Parks

Houseboats – traditional kettuvalloms

Unique Offerings; Houseboat HolidaysUnique Offerings; Houseboat Holidays

Ideal MICE DestinationIdeal MICE Destination

• World class infrastructure in accommodation and conferencing with national World class infrastructure in accommodation and conferencing with national and international hotel chains including Taj, Oberoi, Leela, Le Meridien, and international hotel chains including Taj, Oberoi, Leela, Le Meridien, CGH Earth, Abad Group of Hotels, KTDC Hotels & Resorts…CGH Earth, Abad Group of Hotels, KTDC Hotels & Resorts…

• Excellent connectivity with 3 international airports, which makes an airport Excellent connectivity with 3 international airports, which makes an airport only 3 hours drive away from any part in Kerala; well-knit rail and road only 3 hours drive away from any part in Kerala; well-knit rail and road networknetwork

• India’s most advanced communication infrastructure with 100% digital India’s most advanced communication infrastructure with 100% digital telephone exchanges, high-speed international submarine cable landings, telephone exchanges, high-speed international submarine cable landings, OFC backbone…OFC backbone…

Le Meridien International Convention Centre, Kochi – a unit assisted by KSIDC

Footprint of KSIDC in Tourism • Total units assisted – 59

• Project Cost – Rs. 973 Crores

• Employment Generated - 5410

52Aveda Resorts Vasundhara Sarovar Premiere

Crowne Plaza

Innovation Ecosystem• KSEDM – Entrepreneurship development Mission

• Second edition of YES to be held during September 2015

• Women Entrepreneurship Mission

• Built-up space on nominal lease rent

• Angel Investment Fund by KSIDC

• Mentoring support

• Incubation Support – Assumption College, Changanacherry

• Kayal, Silk Route Escapes – unit supported by KSIDC

• Kerala Ayurveda Mart

Thank You