Lessons From The South

Capital View

Rabindra Seth

With a new chairperson, Anil Bhandari, managing director of ITC-promoted International Travel House (ITH), the tourism and aviation committee of PHD Chamber of Commerce and Industry (PHDCCI), returned to a crucial subject it first addressed with some success three years ago: integrated tourism development-synergising northern region states.

Tourism ministers from J&K, Delhi, Rajasthan, Uttaranchal along with the Union Minister Renuka Chowdhury, and senior functionaries from other states participated in the one day conferences on September 1. Bhandari set the tone with a presentation in the nature of a wake up call. The northern region has been steadily losing ground to the south. From a 70 per cent share of the tourism market in 1980, it is now getting only 49 per cent. The shift has moved to the rest of the country, mainly to the south.

According to him, the reasons for the decline include a lack of an integrated plan to project the northern region as an ideal destination; inadequacy of world class infrastructure with only one international airport, and poor inter- and intra-state connectivity. Inter-state movement barriers and absence of uniformity in taxation have also hindered growth. In the accommodation sector, however, the northern region has comparable number of rooms (26,000) with the west and the south.

Sadly, while the theme of the conference was synergising the northern region, all the presentations made on behalf of the states talked only of their own attractions, development plans and so on. It was the PHD concept paper and Bhandari’s presentation that touched on the theme. Among suggestion for inter-state cooperation is one for pooling resources for joint marketing and such simple things as a exchange of information on programmes and festivals; a common calender of events and hyperlinking of websites. Plus some earnest efforts at creating combined tourist circuits across states.

A stark ground reality brought out by the presentation was that outside of Delhi there are no metered taxies anywhere. A sound advice from the chamber is to avoid ad-hoc increase of taxes and to introduce a uniform tax for the region with a single point of collection.

And, as far as the larger picture is concerned, the states have been advised to set up empowered committees for tourism development under chief ministers; enhance tourism budgets (Kerala, for instance has an outlay of Rs 75 crore while Uttar Pradesh sets apart less than one third of the figures). Also, the states should set up tourism boards (Uttaranchal is the only one to have done so) and they should draw up long-term sustainable development plans. They should devise a methodology for data compilation so essential for planning. With such an abundance of arts and crafts, little has been done to develop the souvenir industry.

Renuka Chowdhury’s diagnosis of what ails the northern region’s tourism went far beyond what the PHD committee chairman was willing to say. In a candid speech she told the states that they are losing out largely because of lack of cleanliness in the cities and in tourist centres. She wanted that a spectacle of garbage bins that many a railway station, a bus stand or environs of monuments present is hardly the sight that will attract a foreign visitor. What is India’s culture, she asked, we wish to project? Why, as a nation we cannot take pride in cleanliness. And, added, “If we can do well in IT or medicare why can’t we achieve excellence in civic affairs?” She advised the states to emulate the example of the southern states which have put in place a mechanism for coordinating their tourism effort, “The south,” she said, “already has a number of international airports and two more, both state-of-the-art, are being built in Bangalore and Hyderabad with private sector participation. She was particularly harsh on the northern states on their taxation policies which she described as ‘penny wise pound foolish’. Rationalise taxes, she said, which will bring in more revenues and also lessen the burden and hassles for the tourist.

In the realm of nitty gritty, she advised the states to provide tourists mobile phones on rent and train taxi drivers to be more presentable - “They look like convicts just released from jail,” she quipped. “It is also important,” she said, “that we

provide for prompt redressal of tourist complaints. The lady minister said that the prime minister has assured her of the government’s full support to tourism which can be a major instrument for creating

jobs and spoke of many initiatives launched by the centre. “The ball is in your court,” she told the states and asked them to come up fast with their projects and proposals.

It remains to be seen what follow-up action the PHD committee will be able to take.