GOVERNMENT OF PUNJAB

DEPARTMENT OF TOURISM AND CULTURAL AFFAIRS

(Tourism Branch)

Notification

The 28th April, 2003

No.12/52/96-5TC/707. –In exercise of powers vested, the Governor

of Punjab is pleased to notify the Punjab Tourism Policy, 2003 consisting of

Chapters I to IV (copy enclosed). The Department directly associated with

Tourism Sector would issue office orders in a time-bound manner to

ensure compliance of the policy guide-lines and the decisions contained in

the Department action plan.

ROMILA DUBEY, IAS

Principal Secretary to Government, Punjab, Department of Tourism and Cultural Affairs

CHAPTER-1 TOURISM POLICY – GENERAL 1. THE PREAMBLE

To develop tourism as the major industry of Punjab by providing leadership and organizational & strategic direction, to improve the quality of the tourism product, to develop places of tourist interest, to provide necessary facilities for all categories of tourists and pilgrims, to market Punjab Tourism Products internationally and domestically so as to provide employment and for the economic, environmental, social and cultural benefits of our citizens.

2. MISSION

2.1 To evolve a policy with the aim of promoting tourism, preserving the heritage and also to revive the culture of the State.

2.2 To promote tourism in the State of Punjab in such a way that it will contribute to the generation of the employment and economic growth.

2.3 To ensure the sustainable development of tourism by not permitting any slaughter mining of tourism resources (its art, culture, heritage & other material resources). The concept of carrying capacity would be observed so that there is no cultural shock for the people of Punjab.

2.4 To evolve a pragmatic tourism policy to encourage the private sector participation in development of tourism infrastructure and services.

3. WORLD SCENARIO

In its modern form since the end of the Second World War, tourism has grown into one of the world’s largest industries with a growth rate in excess of 5 per cent per annum over the part twenty years. International tourism flux across frontiers in the year 2000 reached 698 million while receipts from those flows reached US$595 billion. Estimates prepared by the World Tourism Organization indicate that global domestic tourism flows are at least ten times greater than international tourism flows indicating that there were at least 6,980 million domestic arrivals in 2000. Globally, tourism accounts for 11% of the global GDP and 8% of the work

trade employment. In most countries with a large population, domestic tourism is the foundation of a viable and sustainable tourism industry. Much of the growth of global tourism has been generated by domestic tourism, which tends to be more focused on rural destinations. With a growing interest in the intangible culture of different countries (i.e. lifestyles, cuisine, ceremonies, music, religious, beliefs, traditions, customs and history), there is a strong potential to encourage international tourism in the rural areas as well. India’s share of global international tourism at 2.64 million foreign arrivals through its borders in the year 2000 is relatively small in volume (about 0.38 per cent) but almost twice as high in terms of US$ receipts (about 0.69per cent). 4. NATIONAL SCENARIO On the other hand, India’s share of global domestic tourism is much higher (around 4.6 per cent of estimated global domestic tourism). While the proportion of global US$ receipts from international tourism increased from 0.57 per cent in 1990 to 0.69 per cent in 2000, this compares with a share of 1.37 per cent in 1981. In contrast India’s neighbors in South and South-East Aria have more effectively utilized tourism for economic growth and employment creation. A forecasting study undertaken by the World Tourism and Travel Council estimated that in 2001, tourism would account for 10.7 per cent of global Gross Domestic Product, 207.1 million jobs, US$ 1,0638.8 billion in export value, and US$ 657.7 billion in capital investment. A study on the economic impact of tourism conducted by the World Tourism and Travel Council estimated that in 2001, the consumption activity arising from domestic and international tourism will contribute 5.3 per cent of India’s Gross Domestic Product. Tourism will also sustain 25 million equivalent full time jobs or 6 per cent of India’s workforce, and contribute more than US$ 3 billion in gross foreign exchange receipts. 5. TOURISM IN THE STATE Punjab is recognized as the granary of India and also enjoys a fairly high per capita income. However, the State has to infuse additional funds for ensuring balanced development. Tourism, international and domestic, offers the best prospects of helping the state, both in the short term and on a long term basis, earn substantial amount of revenue for meeting the necessary requirements of the State. It has to be recognized that tourism not only generates employment, it also upgrades human skills and the infrastructure created for tourism is used by all other sectors of the

economy. Therefore, development of tourism must not be viewed in isolation and State must adopt an integrated approach for its development. Since tourism is a composite of several service providers who may be in the public or the private sector, its development presupposes participation of different agencies and necessitates cooperation and coordination at different levels. The State recognizes that uncontrolled growth of tourism can damage not only our cultural heritage but also our social and cultural values. Therefore, the State would introduce suitable legislation for an orderly and regulated growth of tourism and promotion of culture of Punjab. The State does not have much to offer as far as the natural resources are concerned. Hence, some manmade features/attractions need to be created in the State to attract tourists. The State has an excellent road net work (both National and State Highways). Emphases would be laid on “Highway Tourism” by creating projects lined on to the highways. Destinations need to be developed focused on Religious, Leisure, culture and Heritage, Natural and Rural Tourism. Recognizing the potential of various attractions that Punjab has to offer to domestic and foreign tourist, the Government has accorded tourism a special status by declaring it as an industry in Punjab in the year 1996. However, it needs to be reiterated to all the wings of the Industries Department including Punjab Financial Corporation and Punjab State Industrial Development Corporation etc. that the State Government Policy of treating tourism at par with any other industry shall be implemented in letter and spirit. Golden Temple, Amritsar has become internationally famous and popular among the tourists being recommended to UNESCO for World Heritage Monument status.

6. SWOT ANALYSIS – POSITION OF PUNJAB Strengths :

Large Punjabi NRI population.

High spending Punjabi culture.

Good core infrastructure and better environment in comparison to

other States (National Highways & State Highway).

Rich cultural tradition & heritage.

Rich Punjabi cuisine has already taken west by storm.

Number of important pilgrimage centres.

Typical dance/music form of the State. Weaknesses

Lack of effective tourism policy.

Inadequate awareness about tourist spots in Punjab.

Neglect of traditional arts, craft & culture.

Lack of inter-sectional linkages.

Ineffective marketing through promotion and publicity.

Inadequate tourist information centres/kiosks.

Tourism in the state has been affected by a long period of militancy and

current disturbances along the international border.

Inadequate tourism infrastructure.

Opportunities

Promotion of religious tourism

Exploring adventure & sports tourism

Promotion of rural & highway tourism

Promotion of leisure tourism & gaming complexes

Promotion of cultural festivals and arts & crafts of the State

Tourism accorded industry status

Potential for attracting large number of out-bound tourists and non-

resident Indians

Excellent general infrastructure

Threats

Close proximity to Pakistan border.

State being considered as transit area while travelling to the

neighboring State of Himachal.

7. OBJECTIVES

To promote Tourism in the State of Punjab in such a way that it will contribute to the generation of employment, economic growth and particularly bringing the tourist closer to the culture of Punjab.

To develop places of interest in Punjab as tourist destinations. Patiala and Kapurthala will be developed for culture and heritage, while Anandpur Sahib and Amritsar as religious centres.

To promote Private Sector participation in the development of tourism with Government facilitation to develop necessary infrastructure in the State.

To position Punjab on the Tourist Map of India or tapping the untapped potential of various heritage monuments in Punjab.

To implement Tourist Master Plan prepared by Government of India for development of Sustainable Tourism.

To provide quality service to all domestic and international tourists.

To diversify and expand marketing of Tourist potential of the State along with preserving the cultural monuments against any kind of decay.

To encourage people’s participation through tourism promotion to provide economic benefits to the people through such participation. And to encourage involvement of NGOs like INTACH and other heritage societies by providing them support, assistance and making use of their expertise for development of tourism.

8. STRATEGY Government will act as a facilitator/catalyst by providing support

infrastructure facilities such as wayside amenities, tourist information centres, facility for holding/managing craft melas, transportation services and a platform for managing a calendar of events.

To provide basic infrastructure viz. roads, aviation services, rail, water services through joint Government-Private Sector initiative.

To involve Private Sector in strengthening/up-gradation of museums. Heritage and cultural sites in the State of Punjab.

To manage and implement the Tourism Master Plan.

Restoration of monuments, ancient palaces, forts and introduction of a heritage holiday scheme.

Utilising the services of consultants in planning and execution of 20 years perspective plan for development of sustainable tourism in Punjab.

Awareness Campaign for the public to create a favorable ambience and affinity towards tourism.

Efforts will be made to coordinate preservation and upkeep of old buildings with all departments including ASI, Waqf Board, Municipal Corporation etc. Revival of traditional buildings and arts etc. would also be supported.

Besides using popular method of awareness, it will be endeavor of the State Government to create awareness amongst all segments of society specially the younger generation through Seminars, competitions, Quiz, Films, Festivals etc.

Insertion of a chapter in the text books at relevant levels in the school and college curriculum. Special efforts would be made to popularize youth and educational tourism.

Raising Punjab’s profile and showcasing the State as a global destination

through effective publicity campaign.

9. ROLE OF STATE GOVERNMENT To act as a facilitator, coordinator and regulator.

To make commercial services available entirely through private sector

or in association with it.

Intensive efforts to attract investors from outside the State as well as from other countries including Non-Resident Indians (especially Punjabis) to invest in tourism sector on a large scale.

To provide a conducive environment for the development of tourism in the State.

Initiate specific measures to ensure safety and security of tourist and efficient facilitation services.

Standardization of tourist services.

A Single Window Clearance System would be introduced for speedy clearance of various permissions, approvals required under different laws and rules.

CHAPTER-II

PRIORITY AREAS

10. PRIORITY AREAS – SHORT TERM

As a first step the focus will be on domestic tourism, which can be a major engine of tourism growth.

The infrastructure so developed ultimately gets upgraded for international tourists.

For this purpose, the policy attempts to concentrate on the following areas:-

(i) Places of pilgrimage

(ii) Eco-tourism

(iii) Recreational facilities

(iv) Heritage Sites

(v) Cultural Festival

(vi) Craft & Heritage Villages

(vii) Rural & Farm Tourism

(viii) Sports & Adventure Tourism

(ix) Plan to have to Golden Temple declared as a World Heritage Site

11. PRIORITY AREAS – LONG TERM

2.1 Promotion of International Tourism

Regional shift in international destinations with an increased share for

South Asia/

Large number of Punjabi NRIs having the high spending potential, look forward to enjoy the rich culture and traditions of the State. However, at present, not many tourists visit Punjab due to lack of facilities of international standard.

The expectation of international tourist are higher compared to domestic tourists and therefore, much better infrastructure i.e. accommodation, transport etc. are required.

Through this policy, the Government shall encourage the private sector to invest in tourism related projects of international standard.

Government will facilitate setting up of Casinos of International Standard. For this purpose, new enactment for licensing of casino Gaming and suitable amendments in the Gambling Act as applicable to Punjab will be made.

The focus will be on 4 ‘A’s of tourism, i.e. Access, Accommodation, Attraction and Amenities.

12. RELIGIOUS TOURISM

As of now the tourism in Punjab is primarily religious. People from different parts of India as well as from abroad come to visit Punjab mainly on a religious trip. The State has large number of Gurdwaras including three principal Takhts of Sikhs. Moreover, there are many important Hindu Temples such as Ram Tirath, Durgiana Mandir, Kali Devi Mandir at Patiala, which have a history behind them. In the neighboring State of Himachal Pradesh, there are many famous temples, which can be accessed through Punjab. Punjab also has certain important Muslim religious places like Rauza Sharif in Sirhind, which is considered next to Mecca. Other important mosques are Jamma Masjid, Jalandhar, Moorish Mosque, Kapurthala, Chilla Baba Sheikh Farid, Faridkot etc. But the two best known tourist destinations are Amritsar and Anandpur Sahib. (i) Amritsar – The holy city has a place in the history of India’s freedom

struggle. It is also associated with Maharaja Ranjit Singh. However, the tourism facilities are not up-to the mark and it shall be the endeavour of the State to provide adequate facilities to the tourists. A new Tourist Reception centre is coming up at Amritsar and Golden Temple Beautification Project is also going on. The Government has already

sent a proposal to UNESCO for declaring the Golden Temple as a World Heritage site. A panorama on “The Life and Times of Maharaja Ranjit Singh” is also being set up at Ram Bagh in Amritsar. It is expected that future tourist arrivals in Amritsar will increase, and therefore, it will be the endeavour of the Government to facilitate the private sector investment in tourism related projects in Amritsar.

(ii) Anandpur Sahib – Anandpur sahib is the 2nd most important Takht of Sikhs as the Khalsa was established here. Tourist arrivals at Anandpur Sahib are seasonal; it peaks at the time of Hola Mohalla when lacs of devotees reach here. This place has already come on the international map because of the Khalsa Tercentenary Celebrations. The Khalsa Heritage Complex is coming up at Anandpur Sahib, which will be a unique place to visit when it is fully functional. This complex will depict the history and the heritage of Punjab of the last 500 years in a unique manner using modern techniques. It is expected that tourism in Anandpur Sahib will also pick up once this complex comes up.

Efforts will be made to position a Punjab Gurudwaras Tourist Circuit for visiting pilgrims.

13. HERITAGE TOURISM

The State abounds with some of the best Forts and Palaces. The

Government will encourage the preservation, conservation and upkeep

of such heritage properties and selectively open some of them for being

developed into Hotels/tourist Complex.

The State will encourage private investment in developing ancient

building and heritage properties as tourist resorts.

The properties owned by the State Government may be offered on easy

terms to private entrepreneurs for conversion into hotels,

infrastructure, which is considered necessary, would be provided by the

State on a selective basis.

Corporate Sector would be invited to join hands with the Government

in conservation of historical heritage and monuments in the State.

Students, Teachers and National Service Scheme (NSS) volunteers

would be involved in conservation of monuments.

NGOs like INTACH and other heritage societies will be involved in

conservation of monuments to exploit their expertise.

14. TRADITIONAL TOURISM

Fairs and Festivals

Special emphasis would be laid on promoting traditional fairs and festivals like Basant Panchami, Holla Mohalla, Baisakhi (Amritsar, Jalandhar, Patiala, Muktsar, Anandpur Sahib and Talwandi Sabo), Urs of Rauza of Mukadid Alif Saani Sheikh Ahmed Faruqui at Sirhind, Jor Mela Fatehgarh Sahib, Classical Music Festival Harballabh Fair, Jalandhar. This could attract lot of tourism focusing on traditional life style, culture and customs of Punjab and can emerge as major tourism events and attractions. Experience in various states has shown that Tourism can be pegged around festivals and fairs both traditional and new. Their link with tourist destinations must be taken advantage of by designing the product around them.

For this purpose following steps are emphasized :

A festival calendar will be brought out by Punjab tourism and will be widely published for next 5 years or so.

Infrastructure Facilities at Tourist Attractions/Places will be improved.

Private Sector will be encouraged to setup Hotels/Restaurants/ Lodging Facilities at Religious Centres.

Punjab Tourism Department will assess the requirement of accommodation/additional accommodation & restaurant/fast food joints at important religious centres and work out the details for initial private investment in this area.

Souvenir Market Attempt shall be made to revive traditional handicrafts, rural

craftsmen and facilities for setting up Crafts Bazaar and Villages to develop Souvenir Market.

The Punjab Tourism Department will work out a comprehensive plan for training of traditional craft persons so that the rich culture heritage of Punjab is not lost forever.

Directory of ethnic/traditional craft persons will be prepared.

15. FOOD TOURISM

Punjabis have the reputation of being connoisseurs of good food. Punjab has bequeathed the institution of the ‘Dhaba’, originally a wayside eating place, to the world.

Food Festivals will be organized clubbed with peak tourist seasons and other major events/cultural festivals, through Private Hoteliers and Caterers.

There are a number of roadside Dhabas located in Punjab which cater

to wayside tourists visiting Punjab. Efforts would be made to educate

them about maintenance of hygiene, service manners, and quality of

food and regulate them with a Facilitation Act, if required.

16. RURAL TOURISM

Punjab is basically an agricultural State, its pride being in its villages. To bring the tourist closer to the culture of Punjab, it is necessary to acquaint them with the rural life of Punjab For this, the Government shall seek the cooperation of rural population willing to put up tourists in the traditional surroundings to give them a feel of the culture of Punjab.

This can play an effective role in generating additional employment (different from traditional employment) for rural people and shall also provide a unique opportunity for women and weaker sections to get

themselves assimilated in the economic cycle of the State thereby improving the living standards across the border.

It would further harness agriculture production, open people’s minds, change mentalities and improve the manual skills necessary for artisans.

17. ECO-TOURISM 17.1 Eco-Tourism for Punjab in general and Harike Lake in particular will be

promoted in two modes. The first more shall focus on the casual

visitors to the facilities at Harike Lake including pilgrims to

Gurudwaras, School/College students organized groups and local

villagers. The second mode shall be designed keeping in view the

outstation visitors and serious bird watchers through building well-

designed and organized eco-culture tour packages with Harike Lake as

the centre.

To develop an effective Eco-Tourism strategy for Harike the following

points need to be addressed:

(a) Suitable infrastructure

(b) Network of facilities.

(c) Organizational set up including possible joint venture tie-ups.

(d) Marketing strategy-both in country and overseas.

(e) Financial outlay.

Department of Science & Technology shall be the nodal Department for this purpose and they shall prepare detailed plans.

17.2 Ranjit Sagar Dam will be developed as a major Tourist Destination.

The abundance of natural beauty and absence of pollution and

overcrowding makes Ranjit Sagar Dam an ideal destination for

weekend tourists from Amritsar, Jalandhar & Jammu. Ranjit Sagar

Dam is ideally located to attract travelers heading for Dalhousie. To

fully exploit the tourism potential of this location, it is proposed to set

up a multi-activity recreational centre with a wide range of outdoor

activities for tourists in the higher income bracket. Water-spots could

be the ‘focus’ supplemented by other outdoor activities such as golf,

mountain biking, trekking etc. The accommodation will exclusively

consist of eco-friendly huts located at multiple levels so as to give a

feeling of staying in harmony with the nature. It is envisaged that

Ranjit Sagar Dam could become a favourite station of Punjab as well

as the neighbouring states.

17.3 Tourism Sector Units would be encouraged to utilize sources of Non-conventional energy. 18. WILDLIFE TOURISM The State has Moti Bagh and Nabha Wildlife Birs. These Birs have potential

for development of Wildlife Tourism. The other areas, which have

potential for Wildlife Tourism, will also be developed for Tourism in a

planned manner. The detailed action plan is being prepared by the Forest

and Wildlife Department.

CHAPTER-III ACTION PLAN 19. INTEGRATED DEVELOPMENT OF TOURISM CIRCUITS

To provide all infrastructure facilities required by the tourists within circuit with Central Financial Assistance.

Master Plan, implementation and monitoring work would be carried out by Government of India/

Ministry of Tourism will finalise the Circuit in consultation with State Government.

To identify the area for the development of tourism of international standard.

To begin with, the State Government will market the following Circuits to be re-located as per requirement from time to time :-

Gurudwara Circuit – Delhi-Patiala-Ropar-Anandpur Sahib-Amritsar-Muktsar-Talwandi-Sabo-Delhi.

Punjab Darshan Circuit – Delhi-Patiala-Anandpur Sahib-Kapurthala-Amritsar-Delhi.

Patiala Palace on Wheels – Delhi –Patiala-Kapurthala-Amritsar-Delhi.

20. UPGRADATION OF TOURISM SUPPORT SERVICES 20.1 Human Resources Development for Tourism Sector To meet the increasing demand for trained personnel in various

disciplines of Hotel Management and Travel Trade, the Government

will encourage setting up of Institutes of Hotel Management, Travel and tourism Management and food Crafts in the Private Sector.

State Government may appoint a Standing Committee in which heads

of various Institutes of Hotel Management and In-charge of facilities at various Universities could be co-opted as members, which may from time to time review the position and make suggestions for the promotion of tourism education.

20.2 Tourist Guides The availability of trained, well informed and multilingual guides with

proper motivation is very crucial for tourism. It will be the effort of the State to select and train appropriate number of guides.

Courses would also be organized for those who are interested in

taking up career as language guides, especially in the foreign languages like French, German, Spanish, Italian, Japanese, Chinese, Arabic, English and Indian languages like Bengali, Tamil and Guarati.

20.3 Tourist Reception Centres (TRC) Looking at the large traffic of domestic and international tourist, it

becomes increasingly necessary to have modern well equipped TRC at important entry points and destinations.

Efforts would be made to start New Tourist Reception Centers in

Private Sector at Mumbai, Kolkatta, Chennai and Bangalore. All Tourist Reception Centres will be linked by a Computer Network.

Apart from offering tourist information, these Tourist Reception

Centers would also make available confirmed reservation for private Classified Hotels located within Punjab.

Information on other details like package tours, fairs and festivals,

paying guest accommodation etc. would also be made available at these TRCs. Multimedia Software would be developed to provide customized information to tour operators and tourists. Information through Touch Screen Kiosks will also be made available to the tourists at Bus Stand, Railway Station and Airport and in the existing Tourist Reception Centres.

20.4 Promotion, Publicity and Marketing

Use of Electronic, Print and Cyber Media for aggressive marketing of Punjab as a Premier Tourist Destination.

Promotion and marketing is an important component of tourism development and needs to be undertaken along with product development in conformity with consumer profiles and product characteristics. The policy of the Government, therefore, will be to develop and implement cost effective marketing strategies based on market research and segmentation analysis in each of the tourists generating countries/states.

In order to facilitate dissemination of information to the tourist from foreign and domestic market, the State will publish such literature, files, videos and other publicity material as is necessary.

A multi-pronged strategy will be evolved to make optimal use of the media for promoting Punjab as an attraction for tourists. Sufficient literature will also be distributed to important Travel agents and Tour Operators, Air-lines and Hotel groups for distribution among important people connected with the Tourism Industry.

Efforts would be made to make available tourist literature in foreign languages as per the need.

A separate website related to tourism will be created to promote tourism in the State.

Participation in Exhibitions and Festivals organized by other States.

Tie-up with India Investment Centre/various embassies and the Government of India’s Tourism Office located abroad to target and educate the foreign tourists as well as investors about Punjab.

Display of signages on roads to highlight the locations of d9ifferent tourist sites.

Publicity will be ensured by making presentations in various cities of the Country. For all the activities like the one mentioned above, a proper annual budget outlay will be allocated.

21. FUNDING SOURCES FOR TOURISM PROJECTS: Twenty years perspective plan has been prepared by Govt. of India for development of sustainable tourism. To implement it in a time bound manner, following assistance will be required:-

External Assistance/Assistance from International Agencies.

Central Assistance.

State Plan Resources – The State Government would provide sufficient budgetary support

Private Sector Investment.

Loans from Commercial Banks

Loans from tourism finance Corporation of India Ltd.

22. FACILITIATION OF PRIVATE SECTOR INVESTMENT:

Efforts would be made to facilitate the flow of institutional finance through Banks and Financial Institutions for increasing hotel accommodation and other tourism related projects.

Tourism Finance Corporation of India (TFCI) would be persuaded to open a branch at Chandigarh and work actively in collaboration with Department of Tourism in advancing loans to Tourism Industry.

Non-Resident Indians will be encouraged to invest in the Tourism Sector. Such investment would primarily be invited in infrastructure activities. Highest priority would be accorded to proposals received from NRIs and all facilities would be made available to them. Such proposals would be accorded all sanctions on priority basis though

Single Window Clearance System. All information will be made available to them on internet.

23. PUNJAB HERITAGE & TOURISM PROMOTION BOARD:

The Government of Punjab has constituted the Punjab Heritage & Tourism Promotion Board under the Chairmanship of Chief Minister, Punjab for promotion of tourism and heritage of Punjab.

All funds through the State budget and those made available through centrally sponsored schemes would go to the Punjab Heritage & Tourism Promotion Board. The Board would be allowed to accept contributions from other sources also. The Board would enjoy administrative and financial autonomy so that it could assist in a meaningful way in accelerating the pace of development in the tourism sector.

24. DEVELOPMENT OF INFRASTRUCTURE: 24.1 Core Infrastructure : Though the core infrastructure is good in Punjab, yet it can be improved. The Government of Punjab has created PIDB for strengthening and development of infrastructure in the State. PIDB while finalizing its priority will take into consideration tourism requirements also. 24.2 Air Service:

The State will encourage air tax service and Helicopter service by air taxi operators within the State so that the tourist visiting the State can see as many places as possible within the available time.

Private Sector Investment would be encouraged in setting up/ strengthening of International Airport in Punjab. Air Taxi Operators (ATOs) would be encouraged to operate civil aviation services for tourists as feeder/regional airlines.

Strengthening of Amritsar Airport.

24.3 Availability of land:

Availability of suitable land has been one of the biggest constraints in development of tourism infrastructure. The Tourism Department, in consultation with the Revenue, Local Self Government and Housing & Urban Development Department will Endeavour to simplify rules for allotment and conversion of land for tourism infrastructure.

It has been observed from past experience that people especially the NRIs and persons of Indian origin generally find it difficult to find a proper land and to get the necessary clearances for setting up tourism related facility/infrastructure in the State. To avoid any further problems of this kind, the State will help the promoters to identify the land or places to set up their projects in the State.

The sites identified in the schemes could be either acquired by the State Government or its designated agency.

The Government could consider granting long term lease land for setting up tourism infrastructure or projects related Tourism.

25. SINGLE WINDOW CLEARANCE:

A Single Window Clearance scheme will be put in place for tourism related projects, wherein a person willing to start Tourism related project will get all the requisite approvals under one roof.

26. TOURISM TRADE FACILITATION ACT :

In view of possible exploitation of tourists, Government may enact a suitable legislation for regulating tourism trade.

The Department of Tourism will be empowered to license and inspect such establishments as are engaged in providing services to the tourists. Since there is an existing procedure for classification of Hotels, such establishments will not be brought under the purview of the legislation to avoid duplication of regulatory procedures.

Complaints received from the tourists will be redressed on priority.

Special studies would be conducted by the Department of Tourism to assess the carrying capacity of popular tourist places. Efforts would be made to regulate the tourist traffic in such places and also to ensure that no cultural pollution takes place because of unregulated growth of tourism industry.

Efforts would be made to educate roadside Dhabas located in Punjab which caters to wayside tourists visiting Punjab about maintenance of hygiene, service manners, and quality of food and regulate them with a Facilitation Act, if required.

27. SAFETY & SECURITY OF TOURISTS The safety and security of tourists in the State is an extremely important and a sensitive factor in the growth of tourism. Being a peaceful State, is favorable for Punjab but to avoid or minimize any mishap, a cadet of Tourism Police will be carved out of the existing Police and set up at Bus Stands, Railway Stations, busy Monuments so as to further instill the feeling of safety among the tourists from India as well as abroad. 28. MODERNISATION OF DEPARTMENT OF TOURISM

In order to improve the working of Department of Tourism and to help in better co-ordination among various departments, computerization will be taken on war footing basis.

A separate cell will be created for collection of Tourism feed-back/statistics and maintain a data bank and for advising the Tourism Department from time to time.

29. COORDINATION & ADVISORY COMMITTEE ON TOURISM The State Government has constituted a coordination and advisory committee on tourism and cultural affairs under the chairmanship of Sh.S.K.Misra, Vice Chairman, INTACH. The Committee will advise the Government on following matters:

Formulation of Policies and Strategies for Development of Tourism.

Preparation of plans for developing and strengthening tourism related infrastructure in the State.

Formulation of standards, norms and policy guidelines for various tourism related activities.

Formulation of strategy for mobilizing private sector participation and investment in tourism sector.

Improvement of facilities for visitors to Punjab and the development of Punjab as a global tourist destination.

Advice on the functioning of regulatory and licensing authority in respect of various tourism related enterprises and activities.

Advise on promotion publicity and marketing of Punjab as a destination within India and abroad.

To advise on research, studies and documentation.

30. COORDINATION WITH NEIGHBOURING STATES/REGIONAL TOURISM The Government will co-ordinate with the Tourism Department and Corporations of States like Haryana, Chandigarh administration, Himachal Pradesh, Delhi, Uttaranchal, Rajasthan etc. and promote package tours on reciprocal basis. 31. COORDINATION WITH OTHER DEPARTMENTS

Based on these policy guidelines contained heretofore various departments of State Government would formulate detailed action plan to implement the decisions and to achieve the objectives of the tourism policy.

Those departments which are directly associated with tourism sector would issue office orders in a time bound manner to ensure compliance of the policy guidelines and decisions contained in the departmental guidelines.

CHAPTER-IV

INCENTIVES

The taxes in Punjab are lower in comparison to other States and infrastructure is also much better compared to other States. Punjab is, therefore, an ideal place for private investment. The main stress in this policy is to facilitate the private investor so that his project is implemented in a time bound manner with minimum delay. However, tourism has not developed up to its potential and therefore the State Government shall extend certain special incentive to the new tourism related projects. This shall be subject to certain criteria laid down by the State Government from time to time to be fulfilled by such projects.

Some of the tax based advantages in Punjab compared to other States are as follows:

The Stamp Duty at 6% and the registration fee in Punjab is lower as

compared to other States.

There is no luxury/expenditure/service tax being levied by the State.

The road tax on tourist transport is already on lower side as compared to neighbouring States.

Following incentives shall be extended to the tourism industry in Punjab:

No House Tax will be charged for first five years from new projects of : (i) Classified hotels and restaurants.

(ii) Projects of amusement parks involving an investment of more than

Rs.2.00 Crores.

There shall be no entertainment tax on all amusement parks including existing parks with a capital investment of more than Rs.2.00 Crores for next five years from the date of commencement of this policy.

License fee structure for bar shall be rationalized. The eligibility for having a bar in hotels and restaurants will also be liberlised. However, this shall be separately notified by the Excise & Taxation Department.

Grant of Soft Loan by the State Level Financial Institutions like Punjab Financial Corporation & PSIDC to new tourism projects and for expansion of existing projects.

Tourism projects will be treated at par with industry for the purpose of incentives – These incentives will be available only to those hotels, restaurants and amusement parks which come up in an authorized manner and of a license/registration from Tourism Department of the Central or State Government. In case of amusement parks, these incentives will be available only to those projects, which involve an investment of more than Rs.2.00 Crores. Some incentives as proposed in the Industrial Policy of Punjab which will be available to similarly placed tourism units also are :

i) Certain procedural changes for hassle free dealing by conferring the powers of Inspector with regard to inspection and verification under various Acts to Chartered Engineers who possess the requisite qualifications.

ii) The Power Sector reforms as envisaged in the Punjab Industrial Policy-2003 shall be extended to tourism projects in addition to the incentives extended in this tourism policy subject to approval from Punjab Electricity Regulatory Commission.

iii) The facility available to the existing small scale Industrial Units for modernisation and technology up-gradation as envisaged in Punjab Industrial Policy-2003 shall also be given to the tourism projects. Under This scheme capital subsidy to the extent of 25% of the cost of fixed capital investment a maximum of Rs.25.00 lacs per project will be provided.

iv) As per Punjab Industrial Policy, a State Level Industrial Revival Forum will be constituted to assist the revival of sick projects. The details of the scheme will be separately notified. The facility available for revival of sick small-scale industrial units shall also be available to similarly placed tourism units.

v) As per Punjab Industrial Policy, development of Integrated Multiplex Complexes having atleast three Cinema Halls with total minimum of 1000 seats, set up in area of 4,000 Square Yards or above with minimum investment to the tune of Rs.20 crores consisting Cinema

Halls, Restaurants, Fast Food Outlets, Video Games Parlors, Pubs Bowling Allies Health Spa/Centres and Recreational activities will be given the status of Industry. Following concessions will be given to these Complexes :

a) 100% entertainment tax exemption for first five years.

b) Existing Cinema Halls converting into multiplexes shall be entitled to 25% exemption for first five years.

c) Liberty to fix the ticket rates by the Owners.

d) Power tariff rates as applicable to Industry.

e) No transfer fee except Stamp Duty shall be leviable on first sale of shopping area.

vi) Incentives granted to Industrial Units in border area in the Punjab Industrial Policy-2003, shall also be extended to similarly situated tourism projects. The quantum of subsidy will be 30% of the fixed capital investment upto maximum of Rs.30.00 Lac per Unit except those in negative list at Annexure ‘V’ of Punjab Industrial Policy-2003 under heading Boarder Area Development.

All new Tourism Projects over & above the investment of Rs.Five Crores will be put up on case to case basis for special concessions to the empowered committee headed by Chief Minister, Punjab.

All classified hotels, motels, restaurants and other tourism related projects will be eligible to power tariff at par with other Industrial Units, subject to approval from Punjab Electricity Regulatory Commission.

All new classified hotels, motels, restaurants eligible for a rebate of 15% on Power Bills for 3 years from the commencement of business with a maximum ceiling of Rs.15 lacs will be available subject to approval from Punjab Electricity Regulatory Commission.

Priority will be given to the projects which have some sort of Financial or Technical or Marketing tie-up with a well known national or foreign brand relating to Restaurants, Hotels or any other segment related to Tourism. This will encourage bringing foreign chains and Popular Hotels and Fast Food Joints in the State.

THE UNITS ENTITLED FOR THE ABOVE CONCESSIONS SHOULD FULFIL THE CRITERIA LAID DOWN BY THE PUNJAB GOVERNMENT.

(SOURCE : PUNJAB GOVERNMENT GAZ.(EXTRA), MAY 5, 2003 VYSK 15, 1925 SAKA)