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March 2006  
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Home - Budget Special - Article

Infrastructure investment activates new avenues for tourism advancement

Reema Sisodia - Mumbai

2006-’07

Tourism, India's neglected child especially since the last three years, is gaining notability. Apart from an increase in plan allocation for tourism from Rs 786 crores last year to Rs 830 crores this year what is notable in budget 2006-07 is an increased emphasis on infrastructure development, which would have a direct impact on tourism.

The announcement of new metro projects in Gujarat, Maharashtra, Madhya Pradesh (MP), the completion of the impending Golden Quadrilateral by 2008, setting up of four hotel management institutes in Uttaranchal, Chhattisgarh, Jharkand, Haryana, development of 15 tourist circuits and destinations, 50 villages with emphasis on handlooms, handicrafts etc close to existing destinations and circuits would only open up newer avenues for tourism promotion and development. Surface transport facilities, a vital link to boost domestic tourism and in turn inbound tourism has been dealt with increased seriousness this year. The National Highways Development Programme (NHDP) continues to make progress, wherein the finance minister has proposed to enhance the budget support for NHDP from Rs.9,320 crore to Rs.9,945 crore in 2006-07. The North East region has also gained importance with regards to road transport. A special accelerated road development programme for the North Eastern region at an estimated cost of Rs.4,618 crore has been approved, with allocation of Rs 550 crore in 2006-07. 1,000 kms of access-controlled Expressways are also to be developed on the Design, Build, Finance, Operate (DBFO) Model in the country.

Emphasising the role of public-private synergy, Prem Subramaniam, head - tourism, infrastructure development finance corporation (IDFC), said, "The focus on infrastructure improvement is definitely good news as it would bring in new opportunities and new partnerships in the area of tourism. Improvement in surface connectivity and transport would give rise to a new segment of road travellers, hence providing tour operators a new target market with new products to offer. New integrated circuits and new tourism villages would result in an increase in short haul trips and weekend gateways wherein people will look for newer experiences rather than trophy hunting. Self-drive holidays would be a new sector to explore. It would lead to dispersion of tourists into new areas hence reducing the pressure on the already established tourism destinations. But all this gain will only take place if there is connectivity between infrastructure development and the private players. It is important that private players take the initiative to sell and promote new regions where infrastructure has been spruced up."

Apart from the North East region, the state of Jammu & Kashmir has also received sanctions for infrastructure development. The budget announced special plan assistance for 2006-07 fixed at Rs 2,300 crore. In addition, a sum of Rs 848 crore for the J&K Reconstruction Plan, including Rs.230 crore for the Baglihar Project. Expressing his satisfaction, M Saleem Beg, director general, Department of Tourism, Jammu & Kashmir, said "We welcome this announcement. It was a critical requirement for tourism in J&K. We are hoping to get Rs 200 crore for the development of tourism. The infrastructure, much of which has been damaged over the last 15 years, needs restoration to cater to a wide spectrum of travellers."

The state government of MP has earmarked Rs 55 crores, for development of roads leading to tourist destinations. Says G S Chahal, executive director of Madhya Pradesh Tourism Development Corporation (MPTDC), "The regions of Indore, Bhopal, Jabalpur, Gwalior are definitely on a fast track towards development especially in terms of infrastructure. Public- private synergy is vital to further build and benefit from the on going infrastructure plan."

 


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