Tourism forex earnings may kiss $10 b in '07

An internal report prepared by department of tourism projects that forex earning from the tourism sector may go up to $10 billion this year from $6.5 billion in 2006.

That’s not all. Foreign tourist arrivals is likely to cross the 6.5-million mark from 4.4 million last year. There has been an increase of 45.5% in arrivals during the last two. Forex earning during the same period rose by 62.2% in dollars terms.

Says a senior tourism ministry official: “The tourism sector is one of the fastest growing sectors. Efforts should be made to take advantage of the awe and curiosity India creates among people all over the world with its ancient and diversified culture, world heritage sites and the great variety offered to visitors.

In fact, as one of the major initiatives taken to give a further boost to the tourism sector, India will be the partner country at ITB Berlin this year, which is one of the largest tourism fairs in the world.”

According to the report, between 2001 and 2006, there was a 75% increase in traffic, with employment generation in this sector going up by 43%.

It is estimated that $6.5 billion of investment has already come in for the construction of new star properties. The shortage of rooms in major metro cities is adversely affecting the flow of tourists to the metros as well as in other destinations. Experts say that accommodation constraints in Delhi will have serious implications on the arrangements for the 2010 Commonwealth Games.

It is estimated there will be a requirement of about 40,000-50,000 rooms in the budget category for tourists visiting Delhi and surrounding areas during the Games.

In fact, the government would soon identify land that the tourism department would procure from the government of India and give to Indian Tourism Development Corporation,(ITDC), which will then lease it to hoteliers. The department is working out the modalities. Besides, the railways have also identified 100 such places.

Says Bharat Sidheshwar Rai, ED, Swift Travel: “It appears that in three to five years India will be the number three economy in the world. The tourism sector has shown much faster growth as compared to other sectors. Now there is a need to push the tourism sector and 2010 Common Wealth games should bring in the required infrastructure to the country.”

raja.awasthi@timesgroup.com