Issue dated > 16 - 31 May, 2003  
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IATO Redefining Rules

Jyoti Koul - Hyderabad

The XIX annual IATO convention recently concluded in Hyderabad highlighting one of the crucial issues in the tourism industry that of dual tariff. Conversely, the convention did focus on other important issues like transporting taxes, adequate marketing strategy, MICE tourism, and open sky policy. It was however, dual tariff, that Chandrababu Naidu, chief minister of Andhra Pradesh promised to take up with the central government and also assured that the state would like to keep to the lowest rates as far as taxes are concerned. The reason cited that dual tariff is one of the major irritant that calls for collective and immediate attention. “From airline tickets, hotel tariffs, monument entry tickets and things like camera fee, there are dual tariffs that at once marks us out as an unfriendly country. The sooner this practice is eliminated, the better it will be for Indian tourism,” said Maharaj Wahi, president, IATO.

Naidu disclosed that, “On behalf of the industry, I will request the government of India to remove service tax on tourism packages and abolish dual tariff. We will surely consider the demands of transportation taxes as it is a long pending demand. We will consider this immediately so that I can compete with other states.”

He further addressed tour operators that after all the deliberation, during the convention saying, “All recommendations will be examined and we will ensure that they are implemented with a true spirit to promote tourism. All the recommendation will also be taken up with the government of India.”

Wahi further added that, “We had renewed the plea that tourism needs to be looked at as an employment generating industry rather than an elitist activity.” He further revealed that IATO in its new role would offer its expertise in packaging and positioning tourism products properly. However, while explaining the theme of the convention ‘Indian Tourism - On The Turnaround’ Wahi mentioned that, “As the tourism industry is still reeling under the aftermath of a number of adversities, we thought it would be apt to look ahead and focus on the turnaround effect for Indian tourism. The source of such optimism lies in the fact that there have been signs of a turn around in the global tourism industry. As figures collated by the World Tourism Organisation (WTO) show the year 2002 recorded a healthy jump in tourism growth.”

It was also reported that the high level strategy group, headed by the planning commission member, N K Singh has in its report submitted to the prime minister recently very rightly has identified tourism as a thrust area for generating new jobs. It has also suggested to develop five or six world class tourism circuits. The report has also underlined the need to upgrade international airports to world class standards and improve connectivity to premier destinations in the country.

The six business sessions articulated valuable views on different critical topics like:

  • ‘Trends and opportunities’ focussed on niche tourism not only as a trend but as a necessity which was the need of the hour.
  • ‘Marketing strategies for growth’ discussed adequate strategies that require to be adopted for marketing India. By adopting this method, optimum results could be achieve with regards to targeted growth in arrivals and also identify destinations and regions that need further thrust.
  • ‘Competitive transportation system - key to tourism growth’ was an significant session, that dealt with how a competitive transportation system, be it air, surface or rail can enhance tourism. The heavy inter-state transportation taxes were brought into focus.
  • ‘MICE tourism’ was also identified as the upcoming future tourism product. The session focussed on volume traffic that India can receive through MICE tourism and with the growing popularity of this segment of tourism, it is imperative that India improves facilities and infrastructure for MICE tourism.
  • ‘Look South’ focussed on all southern states to showcase their products and update tourism professionals on the new products and developments that have taken place in their respective states.

There was also special sessions for presentations by participating states like Delhi, Jammu and Kashmir and Rajasthan. Surjit Singh Barnala, governor of Andhra Pradesh, chaired the valedictory session.

Concluding the tourism minister of Andhra Pradesh, T Srinivas Yadav while commenting on the success of the event said, “The focus on promoting south India as a composite tourist destination was discussed at length. The outcome of the deliberations are encouraging and I hope that this will be useful to promote India as a safe secure and peaceful destination. Further, I would like to request IATO to choose the state as one of the emerging capital of India for increasing conventions in future since the response has been overwhelming.”

Recommendations
  • The Centre should take immediate steps to remove dual tariffs and reduce the levies on ATF and Inland Air Travel Tax (IATT) drastically to make India a ‘tourism friendly destination’.
  • States must also lower sales tax on ATF to lower domestic air travel.
  • There should be closer government-industry cooperation as also coordination between different sections of the tourism industry for marketing tourism products jointly.
  • There is need to give a major push to intra-regional tourism.
  • It is imperative to develop world class international airports across the country, efficient airport facilitation, transfer facilities, tourism related-infrastructure on a war-footing.
  • Inter-state barriers on movement of tourist transportation should be removed and entry tax levies should be brought down to uniformly low levels.
  • Any cut in levies should be passed on to the customer to keep the overall product globally competitive
  • A ‘respectable budget’ is a must for meaningful tourism promotion.
  • The Incredible India brand, developed for the first time by the ministry of tourism, needs to be supported, strengthened and sustained by all players in the tourism industry.
  • The potential for developing world class circuits in the South has to be tapped primarily by the southern States with the Centre playing a supporting role
  • A focused, recallable central image of the product has to be created a la God’s Own Country of Kerala
  • NRIs should be encouraged to act as brand ambassadors and active promoters of tourism in traffic originating markets
  • A mechanism needs to be built in for detailing with crisis situations on an on-going basis.

Picture Perfect

Minister of state Bhavnaben Chikalia inaugurates the tourism fair 2003

Chandrababu Naidu, CM, AP lights the ceremonial lamp

Surjit Singh Barnala, governor of AP releasing `The best of Hyderabad’

Rathi Vinay Jha, secretary tourism receives the `Hall of Fame’ award

United Colours of Tourism at the annual convention

Jyoti Koul, senior reporter, Express Travel & Tourism receives the `Best Travel Writer’ award from SS Barnala, governor of AP
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