Why Rural Tourism• Sustainable Livelihood

• Poverty Alleviation

• Uplift of Rural Artists

• Uplift of Rural Artisans

• Empowerment of Women

• Improvement in Urban and Rural Infrastructure

• Better Image, Quality of Life and Attitude of People

• Revival of Traditional Crafts

• Heritage Conservation

• Conservation of Natural Resources

Significant multiplier effect on the economy

Every dollar spent by a tourist changes hands 13

times

Every hotel room generates direct employment

to 3 and indirect employment to 8 persons

FAMINE-PROOFING

Reducing absolute dependence on agriculture:

Revival of traditional arts & crafts, building art, etc.

Providing ready marketing opportunities for rural artisans

Employment generation during entire year

About half a million of artisans employed in Handicraft

sector in only one State of Rajasthan

Handicraft Exports from one of the States, Rajasthan:

1991-92 Rs. 2800 mn.

2000-01 Rs.43,000 mn.

2004-03 Rs. 100,000 mn.

TOURISM creates:

a. Jobs in situ-wild life sanctuaries, historical places,

beaches, mountains etc. Does not result in migration

b. Creates a large number of semi-skilled jobs for local

population

c. Contributes to overall economic development of areas that

would otherwise be deprived

EMPLOYMENT

Every Rs.1 million ($25,000) invested creates…

Tourism (directly) 47.5 Jobs

Tourism (indirectly) 89 Jobs

(sub-sector of hotels and restaurants, transportation etc.)

Agriculture 44.6 Jobs

Manufacturing 12.6 Jobs

TOURISM THIRD-LARGEST NET FOREX EARNER (2001-02)

Gem & Jewelry US$ 7.40 Bn.

Readymade Garments US$ 5.50 Bn.

Tourism US$ 3.30 Bn.

COMPARATIVE FOREX INFLOW (2000-01)

FDI $ 2.4 bn

Tourism $ 2.9 bn

*2001-02 & 2003-03 figures are not used due to the effect of Sept 11 2001

Image/Visibility

Infrastructure

Tourism enabled services

Heritage conservation and management

Tourism friendly environment (non-intrusive,

facilitating, safe and secure…)

Tourism products

Deepening tourist experience (repeat visits/longer

stay)

Integrated

Tourist, the focal point

Circuit development involves creating a circular route to be

taken by tourists

Based on features of tourist interest throughout the circuit

route

Driven by infrastructure development

FDI can play a major role in inducting capital, technology,

managerial skills and marketing

Foreign Direct Investment (FDI):

Augments investible resources

Improves technological standards

Improves efficiency of the domestic industry

Increases competitiveness

Introduces ‘latest’ technology

Improves allocative efficiency

Introduces higher level of technical or ‘X’ efficiency

Results in diffusion of technology and knowledge to local firms

Leads to labor turnover or ‘reverse engineering’

Results in income ‘multiplying’ effect

Could result in cutting into the market of local firms (reduce productivity)

Could result in ‘financial leakages’

Repatriation of profits

Direct channeling of tourists’ expenditure to the home country

Remittances by expatriate workers

Imports on account of weak host country supply chain

In international tourism, cross-border anti-competitive practices may

adversely affect smaller tourism service suppliers from developing and

least developed countries particularly vulnerable to anti-competitive

policies

Employment opportunities may not increase for local population because

of absence of skilled manpower

Policy/Regulatory Framework

Facilitating InstitutionsDecision-support structure

Facilitating organizations

HRD institutions

Infrastructure:Physical

Social

Investment Products (Opportunities)

Public Private Partnership mode

Mission for Tourism Development

Efforts to raise tourist arrivals Aggressive domestic and

international marketing Organizing international tourism

events Awareness about and professional

management of heritage and raising resources for it

Ensuring hassle-free and pleasant stay of tourists

Tourism promotion through Internet Encourage Public Private

Partnerships Rural tourism for generating

employment in rural areas Eco-tourism

Tourism Policy Comprehensive Tourism Master Plan Promoting Private sector investment Enhancing quality and diversifying

tourism products Development of tourism

infrastructure Aggressive marketing & publicity Tourism as ‘Industry’ Tourism Trade Regulation Act – to

prevent possible exploitation of tourists

HRD for Tourism Sector Upgrading Tourism Support Services Improved Connectivity Preservation of historical and cultural

heritage and promoting Heritage Tourism

Promoting Adventure, Wildlife, Eco-Tourism (as applicable)

OBJECTIVES

To make the country/region “Tourist Friendly”:

Security for tourist, i.e. Not to be mobbed by

beggars, touts, taxi drivers etc.

Not to be cheated-cost / quality

Accessible/reliable Information

Good amenities & reliable services

Cleanliness & hygiene

Heritage conservation

PROVISIONS Definitions Regulatory Anti-begging Special attention to tourists by

Police Voluntary Adoption of law Bench-marking Certification Third Party Inspections Penalties Exit Clause Heritage Declaring building/area/township

protected heritage Construction to be strictly regulated

Single Window Clearance System

A. Investment Proposals

B. Visa applications

C. Concessions to commercially use state assets

D. Licenses to operate tourism related activities

(recurring)

Tourism Advisory Council

Top political and bureaucratic executives

Membership to include tourism trade and industry representatives,

experts…

To deliberates upon policy initiatives, demands of the industry,

problems with the government institutions, development plans

Tourism Regulatory Authority

Accreditation

Benchmarking services

Grievance redress

Adjudication

Institute of Crafts for the handicrafts sector

Design input

Professional degree/diploma in craft & design-techno-design managers

Facilitating marketing and marketing linkage intervention

Technology intervention and product and process standardization

Capacity building at artisan level

Documentation and resource centre

IPR issues related to the handicrafts sector

Entrepreneurship Management Institutes

Entrepreneurship development for SMEs

Tourism specific entrepreneurship programmers for tourism enabled

services

Institutes of Hotel Management

HRD in hospitality industry

Managerial level courses

Language skills

Food Crafts Institutes

Shop floor level skill development courses

Language skills

Centre for Heritage Management

Capacity building amongst officials in the local governments, town

planners, urban and civic bodies, government functionaries about

heritage conservation and management issues

Public Private P-P Partnership

Highways, Airports,

Urban Infrastructure

, Power

Hotels, Travel Agencies, Tour

Operators, Dealers,

Handicraft Stores

BOT Roads, Airports,Resorts, Heritage Properties, Circuit development, Web-

portals

INVESTMENT

Several key sectors like water supply, sewerage, roads, capacity building and

public awareness, and heritage conservation can be covered - assistance from

multilateral and bilateral funding agencies

Separate budgetary provisions for tourism related activities in Forest, PWD and

other related departments

Public finance and assistance from organizations such as the UNESCO and the

World Monument Watch for restoration of heritage monuments

TOURISM Infrastructure (Illustrative)

Civil Aviation (Airports)

Roads Up-gradation Project

Urban Infrastructure

Public facilities

Information Kiosks

OUTPUT CONTENT

I Detailed Feasibility Report

To assess the feasibility and to recommend a suitable institutional and financial plan for the project

II Risk Management Plan

To assess the major areas of vulnerability underlying the assumptions, forecast cash flows and profitability of the project

To assist in the development of suitable strategies to limiting such effects

To ensure the equitable sharing and allocation of project risk

To reflect the differing perspectives of the consortium, contractors, Government, lender, etc, on the project and to assess the balancing of interests achieved

III Environment and Social Assessment Report

To assess the environment and social impact of the project and to incorporate appropriate mitigation measures

IV Contractual framework Documentation

To develop the contractual framework of the project and to provide the draft agreements to be entered into by the principal stakeholders to the project, such as Government, Operators, Lenders, etc.

V Procurement To provide a blue print to achieving technical close for the project, including selection and award of the contract to successful bidders.

Rural Tourism is the main driver of economic growth/employment generation

in more than 80 countries

It has the potential of addressing issues such as rural poverty, empowerment

of women, strengthening the economic status of the rural artisans, earning

forex etc.

It is necessary to create the right environment to attract FDI by establishing

progressive legal-institutional framework and facilitating organizations

Circuit development approach yields fastest results

HR is the key

Presenting bankable projects to the investors not only increases the

possibility of attracting forex but also establishes benchmarks for the future

Baramati

Village in Kochi

Janapada Loka Ganjam, Srirangapattna

Ganjam, Srirangapattna

Rural Sports Panjab

Sravanabelagula, Hassan

Belur , Hassan

Turuvekere Mysore Dasara