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Sunday, March 14, 1999

`Tourism sector must be pro-active to benefit from incentive 

Our Corporate Bureau  
Mumbai, Mar 13: The travel and tourism industry needs to be proactive to benefit from the sops offered by the government, director general of Tourism, Ashok Pradhan said while inaugurating the three-day exhibition on travel and tourism- Travelouge 99-here on Friday. The event has been organised by the Travel and Trade Association of India (TAAI). The Centre has been offering incentives to promote tourism industry, he said. "Recently tourism industry has been given the export house status on the basis of annual foreign exchange earning. This is in addition to the financial benefits already available to tourism establishments," said Pradhan. When asked the reason for delay in disinvestment of Indian Tourism Development Corporation (ITDC), Pradhan said the matter is pending with the ministry. He refused to speak on the issue of single tariff saying that the matter is sub-judice.

Over a year ago the Centre had announced that hotels should maintain single tariff which should be applicable for domestic andforeign clients. The move, however, was opposed by hoteliers who challenged it in the court.Pradhan said tourism is one of the major instrument for economic development and job creation, and several measures have been initiated for its sustained growth. He, however, opposed any subsidy for the sector. "There are enough incentives available for the industry and there is no need for subsidy," he added.

Travel and tourism exhibitions, he said, provide an excellent opportunity for the industry to show-case their products and services. But these should be organised at intervals to give maximum opportunity to consumers. Earlier, addressing the conference TAAI president Neeraj Ghei said travel agents by virtue of providing value added services have grown from being just as agent or an intermediary to being a facilitator, counsellor and a consultant for the domestic and international traveller.

She said that leisure travel will expand sharply in the first few years of the millennium. Despite the situation in theAsia Pacific, tourism will grow sharply in this region. "The outbound tourists market appears to grow annually at 15 per cent and the organised sector accounts for handling approximately 5,00,000 passengers," she added.

The industry, however, needs to address certain issues which are hampering the growth of tourism in the country, such as inadequate infrastructure and insufficient accommodation, she said.

Steps such as a single point taxation for tourist vehicles and removing the barriers of inter-state movement and a 30-days visa free visit for tourists from 10 highest tourist generating markets and making visas available on arrival will help the growth of the industry, she added.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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