SIMLA, Nov 4: Himachal Pradesh has invited investments from the private sector and foreign investors in tourism, a sector which contributes significantly to the state's revenue.

"The net revenue contributed by this industry during 1996-97 was around Rs 127 crore which is 10 per cent higher than the previous year," director, department of tourism and civil aviation, Ashwin Kapoor told The Financial Express.

The state expects a 12 per cent growth in tourism in 1997-98, he added. The department is promoting several new sites as tourist destinations. The products being offered for investment include ropeways, para-gliding, hand gliding and heli-skiing, Kapoor said. The incentives planned include capital and interest subsidy, subsidy on training, project formulation, purchase of diesel generators and publicity.

Southeast Asia, he said, is emerging as one of the most prominent tourist growth areas and Himachal Pradesh wants to attract more tourists. There has been a noticeable increase in inflow in recent years, especially among international travellers. Of the 36 lakhs who visited the state last year, 56,000 were foreign tourists.

In its endeavour to support tourism, the government has assessed development of infrastructure to cope with the anticipated traffic, Kapoor said. Other areas in need of investment include power, hydro-electric and horticulture.

The state has the capacity to generate over 20,000 mw power through hydel resources, he added.

Himachal Pradesh has framed an inter-sectoral master plan for the overall growth of tourism. It is making a provision for development of roads, bridges, telecommunications and power, said Kapoor.

The department of tourism has also identified various potential sites for private players. The state is also promoting the concept of small and budget hotels and has already recorded an investment of RS 232 crore by the private sector in 306 units.