July 12, 1999Tourism 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
- Eliminate unemployment in H.P.
- Generate earning of over $1 billion a year within five years
- Save the region from environmental degradation
Methodology
- Investments can be in stages as follows:
- All weather, four lane and lighted cement roads
- Water shortage and purification plants
- Garbage collection and disposal; effluent treatment plants
- Strengthen electricity distribution network
- Environment friendly hotels and motels with golf courses, theme parks, casinos, vacation homes, etc.
- Develop international airport nearby
- Privatised worldwide marketing to attract international tourists
Resources
- Encourage strategic investments in tourism from
- Idle, unaccounted money both in India and abroad
- Foreign Direct Investment (FDI)
- Liberal incentives may be offered to private enterprise:
- Subsidy based on number of jobs generated
- Tax holiday from civic, state and central levies
- 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
12th June, 1999