Lok Sabha Question No. 320 (STARRED), answered on 2016-08-08
Subject: Roadmap to Boost Tourism Industry
Ministry: TOURISM
Asked by: VINAYAK BHAURAO RAUT, SURESH KODIKUNNIL

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA STARRED QUESTION NO.†*320 ANSWERED ON 08.08.2016

## ROADMAP TO BOOST TOURISM INDUSTRY

## †*320. SHRI VINAYAK BHAURAO RAUT: SHRI KODIKUNNIL SURESH:

Will the Minister of TOURISM be pleased to state:

(a) whether religious and medical tourism has significantly gone up  in  the  recent  years  in  the  country  and  if  so,  the  details thereof including its contribution to Gross Domestic Product of the country; (b) whether the Government has taken several steps for promoting tourism industry in the country and if so, the details of  the  schemes  proposed/formulated  for  growth  of  tourism sector; and (c) whether  the  roadmap  prepared  by  the  Government  will  also work in the service sector and if so, the details thereof?

## ANSWER

MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE) (DR. MAHESH SHARMA)

(a)  to (c):  A Statement is laid on the Table of the House.

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STATEMENT  IN  REPLY  TO  LOK  SABHA  STARRED  QUESTION NO.†*320  ANSWERED  ON  08.08.2016  REGARDING  ROADMAP  TO BOOST TOURISM INDUSTRY.

(a): The Ministry of  Tourism  does not  compile Domestic  and Foreign Tourist Visits (DTVs & FTVs) according to purpose of visit.

The number of Foreign Tourist Arrivals (FTAs), as distinguished from FTVs, for religious purposes is not known.

The year wise FTAs in India coming for medical purpose, during 2009-2014 were as follows:

| Year   |   Total FTAs (in number) | %Share        | FTAs coming for medical purposes (in number)   |
|--------|--------------------------|---------------|------------------------------------------------|
| 2009   |              2.2         | 113689        | 5167699                                        |
| 2010   |              5.77569e+06 | 2.7           | 155944                                         |
| 2011   |              6.30922e+06 | 2.2           | 138803                                         |
| 2012   |              6.57774e+06 | 2.6           | 171021                                         |
| 2013   |              6.9676e+06  | 3.4           | 236898                                         |
| 2014*  |              7.6791e+06  | 2.4           | 184298                                         |
| 2015   |              8.02713e+06 | Not Available | Not Available                                  |

* includes  the  number  of  FTAs  who  came  on  Medical  visa  and Medical Attendant visa. Earlier Ministry of Tourism used to publish the data of Nationality-wise FTAs by purpose of visit based on the information recorded in disembarkation card. Since the practice of filling  up  the disembarkation card has been discontinued, the data on purpose of visit is also henceforth discontinued. Now the Ministry of  Tourism publishes  data  of  Visa  Type  by  Nationality  instead  of purpose of visit data.

As per the 2nd Tourism Satellite Account of India (TSA) and its subsequent  estimates,  the  contribution  of  tourism  to  total  Gross Domestic Product (GDP) during 2009-10, 2010-11, 2011-12 and 201213 were 6.77%, 6.76%, 6.76% and 6.88%, respectively. This information for the subsequent years is not available. The break - up of this contribution according to purpose is not compiled.

- (b): The Government of India extends the following incentives to hotel industry:
- Five Year Tax Holiday for 2, 3 and 4 Star category hotels located  in  all  UNESCO  declared  World  Heritage  sites (Except  Mumbai  and  Delhi)  for  hotels  operating  w.e.f.
- i. 01.04.2004 to 31.03.2013.
- ii. Extension  of  Investment  Linked  tax  incentives  under Section 35AD of the Income Tax Act to new hotels of 2Star  category  and  above  anywhere  in  India,  which  will facilitate growth of accommodation in the country.
- iii. The Reserve Bank of India (RBI) has de-linked credit for hotel projects from Commercial Real Estate (CRE), thereby enabling hotel projects to avail credit at relaxed norms and reduced interest rates.
- iv. Hotel and Tourism related industry has been declared a high priority industry and Foreign Direct Investment (FDI) is allowed upto 100% under the automatic route.

The Ministry of Finance, Govt. of India has also included the following  in  the  'Harmonized  list  of  Infrastructure  sub  Sector'  to boost supply of hotel rooms in the country:

- i. Three Star  or  higher  category  classified  hotels  located outside cities with population of more than 1 million.
- ii. Hotels  with  a  project  cost  of  more  than  Rs.200  crore each in any place in India and of any star rating.

With  a  view  to  improve  transparency  and  accountability,  the Ministry of Tourism has made provisions for online applications for classification/reclassification/approval of various Hotels and Travel

Trade Service Providers.

Other Initiatives undertaken by the Ministry of Tourism in the recent  past  for  promoting  tourism  industry  in  the  country  are  as below:

- i. The Ministry of Tourism provides financial assistance to States/UTs for infrastructure creation under its 'Swadesh Darshan' and PRASAD Schemes.
- ii. Introduction of e-Tourist Visa facility for the citizens of 150 countries at 16 airports.
- iii. Launch of 24x7 Toll Free Multi-Lingual Tourist Info Line handling  ten  international  languages  besides  Hindi  and English.
- iv. The Ministry of Tourism has launched 'Welcome Booklet' with information on Dos and Don'ts for tourists, contact details  of  India  Tourism  domestic  offices  and  Tourist Helpline Number for distribution at immigration counters to tourists arriving at international airports.
5. v.
6. Launch of Swachh Paryatan App.
- vi. Promotion of India as a holistic destination in the international  markets  under  the  Incredible  India  brandline.
8. vii.
9. Organization of biennial International Buddhist Conclave.
- viii. Organization  of  Annual  International  Tourism  Mart  for promotion of tourism in North Eastern States.
- ix. Promotion  of  activities  in  tourist  generating  markets overseas through the India Tourism Offices abroad with active participation in International Tourism Events.
- x. Financial assistance to Stakeholders and Tourism Departments  of  States/UTs  for  undertaking  promotional activities  under  the  Marketing  Development  Assistance Scheme.
13. (c): The following are some of the measures taken by Ministry of Commerce  and  Industry  to  promote  service  sector  including  the tourism Industry:
1. The  Directorate  General of  Foreign Trade  (DGFT)  launched a new Services Exports from India Scheme (SEIS) in the Foreign Trade Policy  (FTP)  2015-2020.  The  Scheme  provides  rewards  to  service providers  of  notified  services  including  tourism  industry  who  are providing services from India.

The rate of reward under the scheme is based on net foreign exchange earned. The present rates of reward are 3 % and 5%. The sectors  covered  under  the  scheme  falls  into  the  following  eight broad sectors:

- i.
- ii.
- iii.
- iv.
- v.
- vi.
- vii.
- viii.
- Business services
- Communication services
- Construction and related engineering services
- Educational services
- Environmental services
- Health related and social services
- Tourism and travel related services
- Recreational, cultural and sporting services
2. The Ministry of Commerce and Industry provides the facility of access to duty free capital goods for rendering of services through the  Export  Promotion  Capital  Goods  (EPCG)  to  facilitate  import  of capital  goods  for  rendering  quality  services  to  enhance  India's export competitiveness including the tourism industry.
3. Department of Commerce (DoC) has shortlisted several sectors  where  India  has  the  potential  of  a  strong  competitive advantage for the services exports. These include tourism services including medical value travel and Meetings, Incentives, Conferences and Exhibitions (MICE) services.

In order  to  promote  trade  in  services  including  tourism, Government of India follows a multi-pronged strategy of negotiating meaningful  market  access  through  multilateral,  plurilateral  and bilateral trade agreements, trade promotion through participation in international  fairs/exhibitions  and  focused  strategies  for  specific markets and sectors.

4. DoC has also been organizing a Global Exhibition on Services (GES) since 2015. GES has emerged as an apt platform to showcase Indian  capabilities  in  the  services  space.  Tourism,  wellness  & Healthcare  are  some  of  the  focus  sectors  in  GES.  The  recently concluded the 2nd edition of the Global Exhibition on Services, held between April 21 to 23, 2016, at India Expo Centre & Mart, Greater Noida, India, was a resounding success, buoyed by participation of over  65  countries  and  delegates  from  India  and  abroad,  450 exhibitors, 500 foreign visitors, over 20,000 domestic visitors. GES 2016 witnessed over 3000 B2B meetings over three days.

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