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24 February 1998

Tourism projections belie ground reality 

Girish Chadha  
NEW DELHI, February 23: Tourist arrival figures released by government do not reflect the true state of the tourism industry, according to Indian Association of Tour Operators (IATO).

"About 50 per cent of the 2.3 million tourist that arrived in 1997 were people termed as VFRs ( visiting friends and relatives, which include some NRIs too). They are not tourists in the real sense", according to IATO president Subhash Goyal.

"These people do not have a multiplier effect on the economy as most of them stay with their friends and relatives," he added.

India attracted 2.29 million tourists in 1996-97, which was less than 0.4 per cent of the global figure. Last year, the country registered a growth of less than four per cent in the overseas tourists traffic as against the projected growth rate of eight per cent.

Goyal was also of the view that the tourism industry needed to refocus its marketing strategy to effectively promote India as a destination.

He said the current marketing strategy adopted by thedepartment of tourism was not effective. "Most of the offices of the tourism department abroad are merely selling a passage to India, not marketing the destination properly", he said.

Besides stepping up efforts on the marketing front, Goyal said, India needs to ease its visa restrictions. "We should not impose visa restrictions in reciprocation to other countries doing so", he said, adding, "a system of visa-on-arrival should also be introduced".

Goyal said the various states in the country should also be promoted as separate destinations, for which they need to be made more accessible to the incoming tourists.

He was also of the view that each state should have an international airport so that tourists do not have to depend on the five international airports to gain access to the states. For instance, said Goyal, "If someone wants to go to the Andamans Islands from Indonesia -- which is not more than two hour's flight -- one has to spend more than two days in going to Calcutta or Delhi and then takinganther flight".

Goyal said the tourism industry hasn't been able to regulate tourist arrival in an even and regular flow so far. There is also a need to bring in a uniformity in hotel prices, he said. "In Delhi, Mumbai, Calcutta, Chennai and Trivandrum, where there is an international airport, hotel rooms are available for about $ 300 whereas in other towns the tourist can get a room for even $ 50".

"This disparity has affected the industry as the tourist feels cheated. In principle, there should be one price for one product", he added.

Goyal denied that there was any lobbying by the tour operators in getting the dual tariff structure in hotels abolished. He said the decision of the department of tourism to do so was based on the complaints and feed back received from various quarters. "Tourism is an invisible export and if there are more tourist arrivals in the country, the hotel industry also benefits. We have outpriced ourself in the market", he added.

Calling for a rationalisation in taxes, theIATO president said the industry which is already over-taxed should not be burdened further.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.



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