Friday, July 18, 2014

Employment Generation in Tourism Sector



          The Minister of State (Independent Charge) for Culture & Tourism Shri Shripad Yesso Naik has said that as per the 2nd Tourism Satellite Account (TSA) of India 2009-10 and subsequent estimation, the contribution of tourism to total employment of the Country during 2009-10, 2010-11 and 2011-12 was 10.17% (4.37% direct and 5.80% indirect), 10.78% (4.63% direct and 6.15% indirect) and 11.49% (4.94% direct and 6.55% indirect), respectively. 

          In a written reply in the Lok Sabha today Shri Naik said, the working Group on Tourism for 12th Five Year Plan, set up by the Planning Commission, has estimated the generation of additional employment of 24.5 million (direct and indirect) between  2010 and 2016. The steps taken by the Government to boost tourism in the country are given as below:

1.       Visa:

(a)     The Government announced Tourist Visa-on-Arrival in 2010. At present, it provides Tourist Visa on Arrival facility (TVoA) to the nationals of 12 countries namely Finland, Japan, Luxembourg, New Zealand, Singapore, Cambodia, Indonesia, Vietnam, Philippines, Laos, Myanmar and South Korea. South Korea was added to this list on 15.04.2014.
(b)     The facility of TVoA was initially available at the international airport of Delhi, Mumbai, Chennai and Kolkata. However, with effect from 15 August, 2013 this facility has been extended through Hyderabad, Bengaluru, Kochi and Thiruvananthapuram.
(c)      The restriction of two-month gap on re-entry of foreign nationals coming to India on Tourist Visa and Tourist Visa on Arrival has been lifted.  
(d)     Ministry of Tourism organised a two day training program covering 450 officials of Bureau of Immigration handling Tourist Visa on arrival at Kochi, Chennai, Goa, Mumbai, Kolkata, Bengaluru and Hyderabad Airports.
(e)      Tourist Visa on Arrival fee payment can now be made by credit cards.  Earlier it was only to be paid in rupees.

2.       Low Cost Airlines:

The Ministry of Tourism regularly interacts with the Ministry of Civil Aviation in matters pertaining to air connectivity to the tourist destinations and development and upgradation of airports. Government has identified development of low cost airports in the Tier II and Tier III cities as one of the thrust areas.

3.       Safety of Women Tourists:

The measures taken by the Ministry of Tourism towards safety and security of domestic and foreign tourists including women travelers are:

(a)     Grant of Central Financial Assistance to Governments of Rajasthan, Uttar Pradesh and Andhra Pradesh for setting up of  Tourist  Facilitation and Security Organisation (TFSO)  on a pilot basis.
(b)     Adoption of code of conduct for Safe and Honourable Tourism which contains a set of guidelines to encourage tourism activities to be undertaken with respect to basic rights like dignity, safety and freedom from exploitation of both tourists and local residents, in particular women and children.
(c)      Letters have been written to all the Chief Ministers of the State Governments and Administrators of Union Territory Administrations to take immediate effective steps for ensuring conducive and friendly environment for all tourists and also request them to publicize the steps being taken/proposed to be taken to increase the sense of security amongst the present/ prospective visitors and also to counter the negative publicity.
(d)     In the wake of some unfortunate incidents involving foreign tourists, Ministry of Tourism has posted an advisory on its website www.incredibleindia.org.
(e)      Safety and Security of Tourists was discussed in the National Conference of State Tourism Ministers held on 18th July, 2013.

4.       Cleanliness and Hygiene:

To tackle the problem of hygiene and cleanliness at tourist destinations, the Ministry of Tourism has taken the initiative of launching the Campaign Clean India with a vision to ensure an acceptable level of cleanliness and hygiene practices at tourist destinations. This campaign is to be sustained though adoption and involvement of private and    public sector stakeholders as a part of their Corporate Social Responsibility (CSR).

5.       Highway Facilities en route to tourist places:

Development of tourism infrastructure including wayside amenities is primarily undertaken by State Governments/Union Territory Administrations. Ministry of Tourism, however, provides financial assistance based on the proposals received from them subject to availability of funds and inter-se priority. The Ministry of Tourism accords high priority to the sanctioning of wayside amenities to the states/UTs during the prioritization of tourism infrastructure projects.

6.       Trained Language Speaking Guides:

Selection and Training of Regional Level Tourist Guides including linguist guides is an ongoing process and the Ministry conducts the training programmes through the Indian Institute of Tourism & Travel Management (IITTM) periodically based on the demand of guides and foreign tourist arrivals from a particular country to the respective region

7.  Rationalisation of Taxes:

(a)       The Ministry of Tourism in collaboration with the Ministry of Road Transport & Highways and the State Governments of NCT of Delhi, Rajasthan, Haryana and Uttar Pradesh has made an arrangement whereby taxes would be collected centrally at each of the four starting nodes at Delhi, Gurgaon, Jaipur and Agra in such a way that the taxes thus collected are apportioned and the tourist coach/car would be allowed unhindered movement in the Golden Triangle.
(b)     Empowered Committee of officers on the ‘Issue of National permit System’ for tourist buses and goods vehicles (below 7.5 tons) has been constituted.
(c)      Five Year Tax  Holiday for 2, 3 and 4 star category hotels located in all UNESCO declared World Heritage sites (except Mumbai and Delhi) for hotels operating w.e.f. 01.04.2008 to 31.03.2013.
(d)     Foreign Direct Investment (FDI) – Hotel and Tourism related industry declared as high priority industry and FDI up to 100% under the automatic route Enhancement of FAR in Delhi from 150 to 225 for hotels excluding Lutyens Zone.
(e)      An investment linked deduction Under Section 35 AD of the Income Tax Act had also been announced in the Union Budget 2010-2011 for establishing new hotels of 2 star category and above, all over India thus allowing 100% deduction in respect of the whole or any expenditure of capital nature excluding (land, goodwill and financial instruments) incurred during the year.
(f)      In a Notification dated October 7, 2013 the Ministry of Finance expended its “Harmonized Master List of Infrastructure Sub-Sectors” to include such hotels and Convention centres for benefit of Hospitality Industry. Hotels with a project cost of Rs.200 crore and above each at any place in India and of any star rating, and Convention Centre with a project cost of more than Rs.300 crores has been included in the Harmonized Master List of Infrastructure Sub-Sectors. This is equivalent to granting infrastructure status to the hospitality industry.

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