July 12, 1999

Tourism Decade 2000-2010

Background

• Low investment; large employment; high and quick returns

Purpose

• Plan $25 billion investment over ten years to develop tourism
• As an example, a $1 billion (Rs. 4,400 crores) investment in the Kulu-Manali-Kangra region can

1. Eliminate unemployment in H.P.
2. Generate earning of over $1 billion a year within five years
3. Save the region from environmental degradation

Methodology

• Investments can be in stages as follows:

1. All weather, four lane and lighted cement roads
2. Water shortage and purification plants
3. Garbage collection and disposal; effluent treatment plants
4. Strengthen electricity distribution network
5. Environment friendly hotels and motels with golf courses, theme parks, casinos, vacation homes, etc.
6. Develop international airport nearby
7. Privatised worldwide marketing to attract international tourists

Resources

• Encourage strategic investments in tourism from

1. Idle, unaccounted money both in India and abroad
2. Foreign Direct Investment (FDI)

• Liberal incentives may be offered to private enterprise:

1. Subsidy based on number of jobs generated
2. Tax holiday from civic, state and central levies
3. Low interest and long moratorium foreign currency loans without collateral security

• Start with government supports and central assistance (may be borrowed initially); private investment will follow

Piyush Goyal

Mumbai

12^th June, 1999