I am happy to say the new government which took charge in May 2004, has demonstrated a high level of commitment to the Travel and Tourism industry. For me, India Empowered is a government which realises the great economic potential of the tourism, tour and hospitality trade. I am happy due recognition is being given today and it comes from the highest quarters of this government. I believe, we have now begun to move in the right direction.
Tourism is an industry which plays a pivotal role in the economy of a country as it is one of the biggest employment generators—the tourism industry has a multiplier effect in the job market where it creates jobs for seven people, after it touches just one person. Is there any other economic sector which hires people who have retired (there is no age bar for guides) and cuts across the gender and age divides?
The tourism industry is also a window to the world, from which even India can be viewed. India is a unique destination and deserves easy access for visitors. I can say with some pride and gratification, we have successfully removed constraints for an open sky policy for international airlines. In fact, at the WTTC meet in Agra recently, I got into a big row with the government saying that domestic airlines should also be allowed to fly abroad, as it increases seat capacity.
Both Indian Airlines and Air India have had the luxury of protection from the government for far too long. Today, I am happy to say, we have more international flights than ever before, and this will not only encourage tourism but also have a positive effect on foreign investment.
Now, that’s the good news. The downside is there still needs a lot to be done to develop and improve infrastructure in the country to boost tourism—from upgrading airports to developing more hotel properties in the dozens of tourist destinations all over the country.
Our airports are in a deplorable state, they are disgraceful and the worst in the neighbourhood. And I do not mean just the major metros, but in also highly visited tourist destinations like Jaipur and Udaipur. These airports actually reveal what we are—an underdeveloped, Third World country.
For instance, while we have upgraded the Agra airport to an international airport, the facilities available are worse than those at a camel fair. I must add here, that in the enthusiasm to open the skies, I do not welcome the idea of charters as the tourists spend no money in the country as everything is already paid for at home. After all, the person who spends $20 consumes the same amount of water as the person who spends $200!
Another crucial area where government intervention is required is to make available government-owned land more cost-effective to develop new hotel properties. We need more hotels—Delhi has a dismal 5000 luxury rooms available today.
I had proposed the government give its land on a long-term lease to hoteliers where they pay a nominal fee per annum, equivalent to say five per cent of the value of the property, over 75 years or more. Unfortunately, the government wants to sell its real estate at commercial prices and get the money upfront.
I am not saying the government give us land and lose money, but with this long lease arrangement, it is possible the government makes money too.
Other areas where critical attention is required: clean cities and tourist spots, taking care of our monuments and heritage.
And, most importantly, simplifying the visa regime. Perhaps, the most ridiculous argument the bureaucrats give for stringent visa controls is our security concerns.
Which country in the world does not have security concerns today? In our neighbourhood itself, Sri Lanka, which has had a hairy, security environment, has the least visa controls for tourists. I think, for India to be truly empowered, the government must be empowered against its own bureaucracy.
Where will the vast army of visa officials go if visa regulations are relaxed?