Convergence - the tipping point for tourism

The future vision for tourism succinctly outlined by the Finance Minister in the last budget may turn out to be the tipping point for Indian tourism. “Convergence” is the foundation of this vision. Way back in the 90s, there was a common refrain heard in the MoT that tourism is something everyone talked about, but no one cared. In my first book on Indian tourism while looking at the future, I had talked about the importance of “coordination” of activities of different players that make tourism possible. The background was an excellent study by WTTC pointing out that tourism either impacted on or was impacted by about 60 economic activities of which about 30 had more direct relationship. In common parlance, however, tourism was talked about only in terms of four or five of them like transport – air, road and sea, accommodation, destinations, shopping, guide and culture.

It is significant that the MoT’s Draft Tourism Policy identified 10 key stakeholders and 20 key ministries which had a role to play in total tourism development. In such a context, “convergence” is a much more meaningful word expanding the horizon of “cooperation”. It implies a positive alignment of understanding among all.

As the PM pointed out in the subsequent discussions, implementation strategy is of vital importance to transform the vision into a tipping point. Puneet Chhatwal, President, Hotel Association of India (HAI), has elaborated on the six P strategy – Planning, Places, People, Policy, Process and Promotion – implicit in the vision as starting point for action.

HAI has pointed out that the first step in implementation should be to put in place mechanism for convergence at four levels – between the 20 identified ministries in the Central Government, between the departments in the state governments, between the Centre and the states and between the government and the private sector. Just to mention an example – Gati Shakti scheme can be the lifeline for future tourism growth. The project formulation checklist for Gati Shakti should also include one parameter ie the tourism importance of the project or its link to any tourism destinations. On the other hand, selection of new tourism destinations should be in sync with infrastructure being put in place by Gati Shakti.

When so many players are involved, convergence, though much desirable, is also much difficult to achieve. Like an orchestra, it needs a good conductor, an agency or institutional mechanism to set the engine in motion. Very appropriately, the Draft Tourism Policy has identified such mechanism both for the centre and for the states in the form of National Tourism Advisory Board, National Tourism Authority, Inter Departmental Coordination Committee—ideas that HAI has been advocating and endorsed wholeheartedly by the industry. The first mission in developing tourism in mission mode should be to transform these ideas into reality.

At the same time, the future vision must be supported by action on various related fields. For example, it is common sense that the Ministry’s objectives of 1 trillion tourism economy or 100m tourist arrivals by 2047 may fall by the wayside unless they are synchronised with corresponding expansion of accommodation infrastructure. Creating accommodation is both time consuming and capital intensive.  In that context, providing “infrastructure status” to the hospitality sector is so much of a logical corollary and makes so much of sound economic and common sense that Government’s hesitation on the issue is totally unfathomable.  

Providing such status will encourage investment capabilities within the Indian hospitality industry. That will be in tune with the Government’s accent on atmanirbhar and will mobilise resources quickly and internally. Secondly the resultant return to the economy in terms of employment and income, tax revenue generation will far outweigh the small cost of incentives. Third, it will prevent outflow of foreign exchange that any foreign investment entails.

A recent statement by the Minister of Tourism in the Parliament that the ministry endorses the idea of “industry” status to tourism and that 11 states have already announced the same, invited attention to another very important area of convergence – between the Centre and the states and between states. One remembers how during the early stages of recovery after the Covid pandemic, the domestic movements were hampered by multiplicity and conflicting processes and procedures across the states. Finance Minister emphasised the large potential to be tapped in tourism. Prime Minister spoke of “out of the box” solution. It is only appropriate that such approach should start with a close look at the “ease of doing business” in the sector, rationalized and harmonized throughout the country in tune with the “one India, one nation” approach.

“There is one thing stronger than all the armies in the world” wrote Victor Hugo, “and that is an idea whose time has come.” There is elation on the expectation that the idea of tourism has arrived. It is also time for all the stakeholders to converge in action to ensure that “between the idea and the reality, between the motion and the act” shadows do not fall.

- The author is Secretary General, HAI