States Should Build Tourism Parks

PRESENTLY INDIA has 200,000 hotel rooms in the approved category and an estimated 100,000 rooms in the unapproved category. The country would need 180,000 additional rooms by 2020 to cater to 20 million tourists as Tourism is expected to grow 12% per annum as per the 12th Five-year Plan.

The major reasons for people not investing in hotels is high cost of land, non-availability of approved land for hotels, restrictive building norms/bye-laws and lack of basic infrastructure. There is no land currently earmarked in Master Plans of States for hotels. Land use is converted from commercial to hotel land leading to haphazard development of hotels and impacting the environment. States need to take appropriate steps to create Tourism Parks resulting in increased tourist arrivals, employment opportunities leading to higher economic growth.

The proposal for the creation of Tourism Parks was suggested by me in the year 2007. A Tourism Park is a tract of land with defined boundaries for developing an integrated tourism complex, with prescribed carrying capacities, having facilities and activities, maintaining the environment and retaining the culture of the destination. I had suggested that each Tourism Park could be developed on at least 10 to 50 acres of land.

The Government of India has made a provision for 20 Tourism Parks with an outlay of Rs. 1,000 crore in the 12^th Five-year Plan period. Most States have not understood the benefits of Tourism Parks. Only a few have shown interest. West Bengal has initiated Tourism Parks at Jharkali, Gajoldoba and Banarahat. The Karnataka Government plans to develop Tourism Parks at Hampi, Pattadakal and Badami.

States such as Sikkim and the ‘seven sisters’ of the North-East, or Chhattisgarh for instance, have unique tourism products but low tourist visitation. They can benefit immensely by creation of Tourism Parks. These integrated hospitality areas would assure tourists of a good ‘visitor experience’ and maintain long-term environmental sustainability.

Besides identifying areas with high tourist potential, the State Governments should:

·       Enact a special legislation for Tourism Parks

·       Conduct research to work out carrying capacity of destinations

·       Acquire land and develop a Master Plan consistent with Department of Tourism’s plans and identify boundaries for notification and development

·       Create integrated tourist facilities at one place through development with Local /Special Area Development Authorities/Private Sector

·       Lay down basic infrastructure of roads, electricity, sewerage lines, water supply, telecom, etc.

·       Area be controlled through given set of regulatory conditions

The land should be leased out at reasonable rates to investors with the condition that facilities should be built within four years or the deposit amount would be confiscated. All approvals and licenses to start the hotels/activities should be in place beforehand.

Creation of Tourism Parks in or near places of tourist interest such as commercial and business districts, hill stations and religious locations will attract foreigners and Indians in large numbers thereby providing safe and sustainable tourism. I suggest that all State Governments create Tourism Parks after conducting research on the carrying capacity of the place identified to work out the number of hotels/rooms and other facilities and allocate land as required.

The gains resulting by creation of Tourism Parks are as follows:

Benefits to States

·       Higher inflow of investments

·       Increased employment opportunities

·       Easier to regulate environment

·       Focused tourism development

·       Sustainable income by leasing/taxes, etc.

Benefits to Investors

·       Lower Capital investment as land will be on lease

·       Land with all approvals & basic infrastructure

·       Single-window clearance

·       Environmental controls

·       Fiscal benefits, incentives, tax holiday

Benefits to Tourists

·       Availability of integrated facilities at one place

·       Greater choice to tourists through a basket of services

·       Safety & Security: Area free from touts/beggars

·       Competitive Price – Value For Money

·       Clean & regulated environment

A living example of a Tourism Park is Delhi International Airport Authority’s (DIAL) Hospitality District. There are 5,000 rooms, convention and shopping centres on 45 acres of land in the vicinity of the airport. DIAL earns over Rs. 100 crore per annum as lease money and the amount is assured to DIAL in perpetuity.

State Governments can follow DIAL’s example and utilize the income generated from the Parks for tourism infrastructural development, product promotion and enhanced publicity campaigns.