National Tourism Policy
The Government announced a National Tourism Policy-2002 with an aim to project India as a worldwide brand so as to ensure benefits from escalating travel and trade globally and the infinite potential in India that has not been tapped as a tourist destination.
So as to enhance the rate of tourism development in India, focus has been laid on following aspects during the Tenth Five Year Plan-
- Placing tourism as a main economic growth engine;
- Harnessing multiplier effects of tourism besides direct effects for generating employment, development of economy providing momentum to rural tourism;
- As a main tourism growth driver, more focus is being laid on domestic tourism.
- Placing India as a worldwide brand so as to benefit from escalating travel and trade globally and the infinite potential in India that has not been tapped as a tourist destination;
- Private sector’s critical role is acknowledged with administration working as a catalyst and pro-active facilitator;
- Developing and creating integrated circuits of tourism on the basis on heritage, culture and unique civilization in India in partnership with private sector, states and other agencies; and
- Ensure that tourists coming to India get mentally rejuvenated, physically invigorated, spiritually elevated, culturally enriched and “feel India from within”.
Scheme for Product/Infrastructure and Destination Development
This scheme focuses on bringing about an improvement in the existing tourism products and ensuring development of new products that matches global standards. For development of product and infrastructure, the Tourism Ministry is offering state governments, Central Financial Assistance during the tenth 5-year Plan. As a result of this assistance, the infrastructure strengthened considerably and ensures development of products in India. During this plan, the scheme restructuring has been done so as to meet the present day requirements of infrastructure. According to earlier experiences, several small projects were funded by this scheme thereby thinly spread resources and at times, this also did not resulted in creating an anticipated impact. Thus, tenth Plan’s focus is on funding large projects thereby developing infrastructure as well as product in a streamlined and integrated manner.
Careful selection of destinations is done under revised scheme on the basis of tourism potential. Destinations are developed under careful master planning so as to ensure tying up of linkages, backward and forward, taking care of considerations related to environment. The significance of the development of destination has been realized and as such the sector’s total outlay has increased to a considerable extent. Every state’s prominent tourist destinations are taken up for development after consulting State Governments. A wide array of activities encompasses master plans preparation to their implementation under this scheme.
Scheme for Integrated Development of Tourist Circuits
Indian Government’s Ministry of Tourism has launched Central Financial Assistance scheme that has been offered to all States for tourism infrastructure development. As past experiences clearly indicate that a huge array of small and large projects has been funded under this scheme and is spread throughout the country thereby resulting in thinning of resources. Little impact was seen in projects and the results that were expected could not be received. Thus, so as to gain substantial and quick impact, a new scheme was introduced- Integrated Development of Tourist Circuits, under 10th 5-year plan. The focus of the scheme was identification of tourism circuits annually in the country and ensures their development matching global standards. Within these identified circuits all necessary infrastructural facilities that are required by a tourist will be provided. Resources convergence and through coordination of activities, expertise is imparted to the States and Union Territories sector by Tourism Ministry.
Scheme for Support to Public Private Partnerships in Infrastructure
Large investments are required for infrastructure development and this cannot be done only through public financing. Thus, private capital is attracted besides technical and managerial expertise associated with them to ensure development takes place in a smooth manner. The government also commits to promote PPPs or Public-Private Partnership for developing infrastructure. The scheme has been implemented so as to fulfill financial support that is required to fill the gap regarding infrastructure projects that are taken up under Public Private Partnerships.
Scheme for Market Development Assistance (MDA)
Indian Government’s Tourism Ministry also administers a scheme known as MDA or the Marketing Development Assistance Scheme that offers financial support to tourism service providers who have been approved, for instance, hoteliers, tour operators, travel agents, tourist transport operators etc. Foreign exchange is also included in their turnover when they undertake activities pertaining to tourism promotion abroad as following:
- Participation in exhibitions/fairs
- Sales-cum-study tour
- Publicity using printed material
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