Tourism-in-himachal-pradesh.pdf

7/27/2019 Tourism-in-himachal-pradesh.pdf

1/36

Tourism inHimachal

Pradesh andthe way

ahead


2/36


3/36 2012 KPMG, an Indian Registered Partnership and a member rm o the KPMG network o independent member rms aliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

table of contents

Tourism in India 01

Growth in the number o tourists 02

Growth in the contribution o tourism to GDP 02

Factors driving growth o Tourism 03

Himachal Pradesh and its distinct eatures 05

Major tourist destinations 06

Assessment o Himachal Pradesh as a tourist destination 07

Growth in total number o tourists visiting Himachal Pradesh 08

Tourist prole in Himachal Pradesh 08

Foreign tourists by nationality 08

Seasonality o tourist infow in Himachal Pradesh 09

Tourist infow at major destinations in Himachal Pradesh 10

Key states with respect to tourism in India 11

Key states in terms o market share 12

Evolution o the ranking o states during 2007-2010 12

Case Study: Madhya Pradesh 15

Case Study: Uttarakhand 17

Assessment o Himachal Pradesh tourism inrastructure 19

Key Initiatives taken and planned by Himachal Pradesh

government 21

The way orward 25

For the state government to increase tourist infow 26

For harnessing private sector participation 28


4/36

tourism in india

1


5/36

Growth in the number of tourists

During 2006-2010, the total number o tourists visiting dierent

states/ UTs in India has increased rom 4,740 lakhs to 7,580 lakhs,

growing at a CAGR o 12.5 percent.

Domestic tourist visits to states/ UTs grew at the rate o 12.5

percent CAGR during 2006 - 2010 period to reach 7,402 lakhs in

2010. Foreign Tourist arrival grew at 11 percent CAGR during the

same period and reached 179 lakhs in 20103.

To attract more oreign tourists to India, Government launched a

Scheme o Visa on Arrival (VoA) rom January 2010 or citizens

o ve countries, which has now been extended or six more

countries rom January 20113

.

Growth in the contribution of tourism to GDP

The total contribution o tourism to GDP in India has grown at a

CAGR o 4.6 percent during 2006-2010 period, reaching

INR 6,000 bn in 2012. According to World Travel & Tourism

Council, the tourism sector in India is expected to grow at even

aster rate o 8 percent over the next decade, contributing

approximately INR 13,000 bn to the GDP by 2022.

This not only considers the direct impact o tourism on GDP but

also takes into account its wider impacts i.e. the indirect and

induced impacts. The graph also shows that indirect contribution

o tourism to GDP is signicantly higher than the direct

contribution.

1. Direct Contribution o tourism to GDP: The direct

contribution o Travel & Tourism to GDP comprises total

spending within a particular country on travel and tourism

by domestic and oreign tourists as well as spending by

government on related services directly linked to visitors,

such as cultural (e.g. museums) or recreational (e.g. national

parks). According to World Travel and Tourism Council, the

direct contribution o tourism in India is orecasted to grow at

a CAGR o 8 percent over the next decade.

2. Indirect and Induced contribution o tourism to GDP:This

comprises investment spending (like construction o new

hotels), government collective spending, purchases done by

sectors dealing directly with the tourists and jobs supported

by the spending o people employed in tourism industry. The

indirect and induced contribution is orecasted to grow at

CAGR o 9 percent over the next decade.

From the graph above, or every rupee o direct contribution

o tourism to GDP, more than two rupees o contribution is

generated by indirect and induced eects o tourism in the GDP.Thus, due to the multiplier impact o direct contribution, ocus on

tourism sector may promote signicant investment, earning and

jobs in the economy.

The vast geography and cultural diversity o India provides it with a bounty o attractions to draw both

domestic and international tourists. There has been substantial growth in domestic and international tourists

in India over the last ew years.

There are dierent actors aiding increase in number o tourists in the country. Per capita income has more

than doubled over the last one decade in the country. Accessibility to tourist locations has improved due to

substantial increase in the number o fights, trains as well as road connectivity to more tourist locations inthe country. The Aircrat Trac Movement (ATM) in India has increased by 62 percent rom 6.3 lakhs in 2006

to 10.3 lakhs in 20101.

In India, travel and tourism contributed INR 5,651 billion or 6.4 percent to the countrys GDP in 2011. Travel and

Tourism accounted or 7.8 percent o total employment in India in 20112.

Total tourists in India 2006-2010

Contribution of travel and tourismto GDP

Source:India Tourism Statistics 2010, 2009, 2008 and 2007 (www.tourism.gov.in)

Source:Travel & Tourism Economic Impact 2012 India -WTTC report (www.wttc.org)

1 DGCA

2 WTTC, Travel & Tourism Economic Impact 2012, India

3 www.tourism.gov.in

2


6/36

DriversThese are the actors which have direct impact on the growth o

tourism in the country.

Rise o middle class and increasing income levels:The

middle class in India has grown rom 15 million households

in 2005 to 31.4 million households in 20114. The enhanced

purchasing power o middle class segment infuenced the

growth in domestic travel during 2006-2010.

Increasing business travel: Over the last decade, the Indian

economy has grown consistently at an average rate o 6-7

percent per annum5. This has led to an increase in business

travel to India. The rise o multinationals, especially in the IT

and ITeS sector has also helped in increasing the businesstravel.

Improved inrastructure:The tourism ministry and dierent

state governments are improving the acilities at various

tourist destinations. Development o new airports and

improvement in quality o roads has increased connectivity

to dierent tourist locations. This has helped in drawing more

tourists.

Facilitators

These are the actors that complement the driving actors in the

tourism growth

Government Initiatives:The Government o India (GOI)has taken several initiatives to promote India as a tourist

destination. These include campaigns like Atithi Devo Bhavah

and Incredible India6 to highlight India as a signicant tourist

destination on the world map. Along with this, GoIs Open

Sky policy, which gives permission to domestic airlines to

commence international fights, start-up o various low-

cost carriers, and feet expansion by domestic players have

created multiple options or domestic travelers to explore

ar-o destinations within and outside India. The government

has also allowed 100 percent FDI through automatic

route in tourism and hospitality industry7 which has led to

improvement in tourism inrastructure in the country.

Convenience o travel arrangement using internet: Riding

on the digital economy rise, travel portals oering travel

packages, hotel stays, etc, have eased the trip booking

process. This has ensured that there are competitive tourist

riendly oerings available in the market.

Increase in awareness o travel options: The use o internet

has also assisted in spreading inormation about various

tourist destinations in India. Every state has a tourism website

showcasing the places to visit in that state and providing

inormation on how to reach those places. They also provide

various package tours targeted at dierent tourists in dierent

economic status.

Factors driving growth of tourism

There are multiple actors which have aided in the growth o tourism in India and are expected to urther drive tourism growth in the

country.

4 http://economictimes.indiatimes.com/opinion/view-point/rapid-gdp-growth-growing-middle-class-will-lead-to-india-powering-the-world/articleshow/7300851.cms and http://articles.economictimes.indiatimes.com/2011-02-06/news/28424975_1_middle-class-households-applied-economic-research

5 http://economictimes.indiatimes.com/opinion/view-point/rapid-gdp-growth-growing-middle-class-will-lead-to-india-powering-the-world/articleshow/7300851.cms

6 www.incredibleindia.org

7 http://www.expresshospitality.com/20120215/market03.shtml

Source:PHD-KPMG in India report, Tourism in Himachal Pradesh and the way ahead, June 2012

3


7/36

4


8/36

himachal pradesh and itsdistinct features

5


9/36

Popularly known as the Devbhumi Land o the Gods, Himachal Pradesh is a beautiul hill state in India,

nestled in the north-west region o western Himalayas. The state is landlocked with the Tibetan plateau to the

east, Jammu and Kashmir to the north, and the Punjab to the west. The state stands apart rom its neighbours

in terms o its sheer topographic diversity. From vast tracts o high-altitude Trans-Himalayan desert to dense

green deodar orests, rom apple orchards to cultivated terraces, rom snow capped high Himalayan mountain

ranges to snow ed lakes and gushing rivers, Himachal Pradesh oers breathtaking pristine beauty.

Major tourist destinations

District Tourist destinations Pilgrimages Wildlife sanctuaries Other places of interest

Bilaspur New Bilaspur Town,

Swarghat, Salasi village

Naina Devi Bhakra Dam, Gobind Sagar Lake,

Deoli Fish Farm

Chamba Dalhousie, Khajiar Chamba

town, Saho village

Laxmi Narayan Temple,

Vajreshwari Devi Temple

Manimahesh Lake,

Chamera Lake

Hamirpur Hamirpur town, Bela village Baba Balak Nath, Deotsidh

Temple, Markanda

Sujanpur Tira

Kangra Dharamshala, Mcleodganj,

Palampur, Nerti village

Jwala ji, Chamunda Devi,

Bajinath Temple

Tibet Museum, Kangra Fort,

Kangra Valley, Pong Dam

Kullu Kullu, Manali Manikaran,

Naggar Vashishth, Shamshar

village

Hadimba Temple Great Himalayan National

Park, Majathal Sanctuary

Museum o Himachal Culture

& Folk Art, Gu Chu Sum

Movement Gallery, Rorrich Art

Gallery

Lahaul &

Spiti

Spiti, Kaza, Keylong,

Udaipur village

Trilok Nath Temple Pin Valley National Park Kunzam pass, Kye Monastery,

Rohtang Pass, Godhla Fort

Mandi Sundernagar, ShBagi Village

Shikari Devi Temple Shikari Devi WildlieSanctuary

Rewalsar Lake, Prashar Lake

Shimla Shimla, Kuri, Hattu Peak,

Narkanda, Hiun Village

Kalibari Temple, Jakhoo

Temple, Tara Devi,

Chail Sanctuary Shimla state Museum, Prospect

Hill, Chadwick Falls

Sirmour Paonta Sahib, Rajgarh,

Trilokpur, Nahan, Renuka,

Sangdah Village

Paonta Sahib Gurudwara,

Renuka ji Temple

Renuka Sanctuary,

Simbalbara Sanctuary,

Churdahar Sanctuary

Jaitak Fort, Churdhar Peak,

Shivalik Fossil Park

Solan Kasauli, Parwanoo, Barog,

Chail, Baniya Devi Village

Jatoli Temple Gorkha Fort, Karol Tibba and

Meteol Tibba, Sadhu Pul

Una Una Town, Nari Village Chintpurni Devi, Shiv Bari

Temple

Dera Baba Rudru Nand ji Ashram

Kinnaur Rekongpeo, Pooh, Chhitkul,

Sangla, Brua Village

Kinnar Kailash

Source: Himachal Tourism website (www.himachaltourism.gov.in)

The above table demonstrates the diversity and tourism

potential o Himachal Pradesh. Its serene valleys can promote

medical/ wellness and spiritual tourism in the state. Its terrain

also provides innumerable opportunities to promote adventure

tourism. Given the climate and topography o Himachal Pradesh,

adventure sport activities like river rating, para-gliding andtrekking are popular in the state. Availability o natural resources

makes the state suitable or investments in sectors such as

tourism, agricultural produce, hydroelectric power and cement.

states average GSDP growth rate between 2004-05 and 2009-

10 was about 11.4 percent. Given its topography, the state is a

leading producer o apples, producing 2.8 lakh metric tonnes o

apple in 2009-101.

The rural regions and pilgrimages can be used in promoting

rural tourism and pilgrimage tourism respectively. Hence,

opportunities are plenty or Himachal Pradesh to provide the

necessary inrastructure to attract higher tourist infows.

1 IBEF Report on Himachal Pradesh, November 2011

6


10/36

assessment of himachalpradesh as a touristdestination

7


11/36

Growth in total number of tourists visiting Himachal

Pradesh

Compared to national average growth rate o 12.5 percent, the

number o tourists in Himachal Pradesh has grown at a CAGR o

14 percent during the 2006 2010 period.

The total number o tourists (oreign as well as domestic) visiting

Himachal Pradesh has consistently increased over the last 5

years increasing rom 88 lakhs in 2007 to 151 lakhs in 2011

The perormance o Himachal Pradesh in attracting tourists

has been better than the average growth in number o tourists

across India. However, the current rank o 13 in terms o number

o tourists visiting the state in 2010 indicates that there is urther

potential which may be leveraged by showcasing the state as animportant tourist destination.

Tourist profile in Himachal Pradesh

The tourist infow in Himachal Pradesh over 2006-2011 period

has witnessed increase in both domestic and oreign tourists.

However, domestic tourists contribute the signicant proportion

o the total number o tourists in the state.

Himachal Pradesh is perorming better than the other states

in India as a whole in terms o attracting both domestic and

oreign tourists. The number o domestic tourists in the state has

increased rom 77 lakhs in 2006 to 129 lakhs in 2010, growing at

a CAGR o 14 percent as compared to a CAGR o 12.5 percent at

the India level.

In terms o oreign tourists, their number has increased rom 3lakhs to 4.5 lakhs in the same period, growing at a CAGR o 13

percent which is also above the CAGR o 11 percent at the India

level.

The mix o oreign and domestic tourists visiting Himachal

Pradesh has stayed almost constant rom 2006 to 2011. It

highlights the potential o the state to attract domestic and

oreign tourists on a sustained basis.

Foreign tourists by nationality

An analysis o the oreign tourist arrival data in Himachal Pradesh

in 2011 shows that visitors rom UK comprise the largest

proportion o oreign tourists with 15 percent share o the total

oreign visitors. Tourists rom USA and France comprise the next

biggest share with 7 percent share each.

The data highlights that apart rom English speaking countries

like UK, USA, Australia and Canada, a air share o oreign tourists

arrive rom non English speaking countries like France, Germany,

Italy and Japan. Thus, providing tourist related inormation on the

Himachal tourism website and at the tourist inormation centers

in multiple languages may add to the convenience o the oreign

tourists.

Country Percentage share

UK 15%

USA 7%

France 7%

Germany 4%

Australia 4%

Canada 3%

Italy 2%

Japan 2%

Malaysia 2%

Source: Department o Tourism, Himachal Pradesh

Total tourists in Himachal Pradesh 2006-2010

Source:Department of Tourism, Himachal Pradesh

Growth of domestic and foreign tourists in Himachal Pradesh


8


12/36

The average bed nights spent in Himachal Pradesh by a oreign

tourist in 2011 is just 1.2 highlighting that the avenues oentertainment or these visitors need to be increased as well as

communication program around them need to be reinorced to

make tourists stay longer. Although oreign tourists comprise

less than 3 percent o the total tourists in India, they constitute

17.8 percent o travel and tourism contribution to Indias GDP1.

This higher propensity to spend o oreign tourists highlights the

signicance o their longer stay in the tourism growth. To achieve

this, the Himachal Pradesh government while marketing the

state as a tourist destination overseas may also try to develop

broader tourist circuits on the line o Delhi Agra Jaipur to

place the state on the itinerary o international tourists. This mayinclude tie up with state Governments o neighboring states

e.g. Delhi, Punjab, and J&K to develop integrated packages

and investment in logistic inrastructure to allow smooth

transportation.

Seasonality of tourist inflow in Himachal Pradesh

The graph below shows the number o tourists arriving in

Himachal Pradesh in a particular month as a percentage o total

number o tourists arriving in 2011.

The graph highlights that Himachal Pradesh witnesses maximum

tourists during the period rom March to June with 46 percent

o the total tourists visiting the state visit during these 4 months.

This is the period during which summer vacations start in schools

across the country resulting in peak tourist trac.

During the our winter months rom November to February, thetourist infow to Himachal Pradesh is at lowest as accessibility to

dierent tourist locations within the state is a challenge during

this harsh winter period.

Thus, there is high seasonality in the tourist infow in Himachal

Pradesh and ocused initiatives may be taken to attract tourists

during o-peak seasons. Attracting corporate tourists or

conducting o site trainings and conerences and organizing

national and international level events during this o season may

help in reducing the tourist trac seasonality. A more balanceddistribution o tourists across the year would also be helpul in

attracting more private investors to the state.

1 WTTC, Travel & Tourism Economic Impact 2012, India

Average bed nights spent in Himachal Pradesh by foreign tourists

Seasonality in tourist inflow in Himachal Pradesh



9


13/36

Tourist inflow at major destinations in Himachal Pradesh

A detailed look at the tourist infow in 2011 at various districts in

Himachal Pradesh shows that only three districts (Shimla, Kullu

and Kangra) corner over 50 percent o the total tourists coming

to the state though the state has 12 districts. Development and

promotion o other potential districts as tourist hubs would aid in

more equitable tourism growth in the state.

Also, the graph shows that tourism has grown at a aster pace in

districts that were not prominent in the tourist circuits. In the lastew years, the number o tourists preerring to visit newer tourist

districts like Hamirpur, Kinnaur and Lahaul & Spiti has increased

at a rapid rate. It highlights the potential o growing tourism in

districts adjacent to popular destinations in the state.

Harmirpur and Una may have benetted rom their geographical

locations as they lie between two most preerred touristdestinations o Shimla and Kangra. Similarly, Lahaul and Spiti

may have beneted due to the adjacency with Kullu and Manali.

It highlights that popularity o key tourist hubs has positive

infuence on the adjacent districts and Himachal Pradesh

government may utilize this adjacency eect to attract the

tourists to lesser popular tourist destinations.

Citywise tourist share and growth rates

Source:www.himachaltourism.gov.in

10


14/36

key states with respect totourism in india

11


15/36

Key states in terms of market share

In terms o market share (market share being dened as the

total number o tourists visiting a state as a percentage o total

tourists in the country), the top 8 states in the country are:

statesMarket

Share

Rank in

2010

CAGR (2006-

2010)

Andhra Pradesh 20.6% 1 9%

Uttar Pradesh 19.3% 2 8%

Tamil Nadu 15.1% 3 18%

Maharashtra 7.1% 4 30%

Karnataka 5.1% 5 1%

Madhya Pradesh 5.1% 6 36%

Uttarakhand 4% 7 16%

Rajasthan 3.5% 8 3.5%

West Bengal 2.9% 9 7%

Himachal Pradesh 1.8% 10 14%

Source: India Tourism Statistics 2010, 2009, 2008 and 2007 (www.tourism.gov.in)

The top 6 states combined receive over 70 percent o the

tourists visiting dierent states/UTs in India.

The market share o Himachal Pradesh in total number o

tourists is still modest as compared to other top perorming

states

Growing at 36 percent, the rate o growth in the number o

tourists is highest or Madhya Pradesh, closely ollowed by

Maharashtra at 30 percent. The rate o tourism growth in

these 2 states is signicantly higher than the other states

present in the top 8, with Tamil Nadu having the next besttourism growth CAGR o 18 percent

Evolution of the ranking of states during 2007-2010

Following table gives top 8 most preerred tourist destinations in India in terms o number o visitors during 2007-2010.

Rank 2007 2008 2009 2010

1 Andhra Pradesh Andhra Pradesh Andhra Pradesh Andhra Pradesh

2 Uttar Pradesh Uttar Pradesh Uttar Pradesh Uttar Pradesh

3 Tamil Nadu Tamil Nadu Tamil Nadu Tamil Nadu

4 Karnataka Rajasthan Maharashtra Maharashtra

5 Rajasthan Maharashtra Karnataka Karnataka

6 Maharashtra Madhya Pradesh Rajasthan Madhya Pradesh

7 Uttarakhand Uttarakhand Madhya Pradesh Uttarakhand

8 West Bengal West Bengal Uttarakhand Rajasthan

Source: India Tourism Statistics 2010, 2009, 2008 and 2007 (www.tourism.gov.in)

12


16/36

A comparison o investment in tourism made by these states as a percentage o the total state budget in these states during 2007-

2010 has been shown below:

Andhra Pradesh, Uttar Pradesh and Tamil Nadu have

consistently stayed at the top o the list over 2007-2010 period

even though their investment in tourism as a percentage

o total outlay is among the least o the top 8 states, 0.09

percent, 0.14 percent and 0.21 percent respectively. The top

position o Andhra Pradesh is understood to be due to the

presence o Tirupati temple with millions o people visiting

it every year1. Similarly, the major tourist attractions in Tamil

Nadu are Chennai, Madurai and Rameshwaram. Uttar Pradesh

also attracts a lot o tourists due to presence o places like

Varanasi and Agra. One common actor among the top 3

states is the presence o holy pilgrimages in these states

signiying relevance o pilgrimage tourism especially in terms

o domestic tourism growth.

Maharashtra has moved up in the rankings rom 6 in 2007 to

4 in 2010 which is justied by its higher spend on promoting

tourism in the state. Its spending on tourism is 0.62 percent o

the total budget and is among the highest in the top 8 states.

The state invests its tourism budget on maintaining existing

tourist sites like Ajanta and Ellora, developing new sites,

publicity etc.

Madhya Pradesh entered into the top 8 in 2008 and has

stayed in the list ater that, showing that it is possible or other

states to enter into the list o top perorming state given they

take the right measures to promote tourism. Although the

average investment o the state in tourism is just 0.22 percent

o its budget, it has been able to attract private investment

in tourism projects. It is also using PPP models or the

development o tourism inrastructure.2 The state may have

also benetted by the eectiveness o its marketing campaign

where it is ranked higher than most o the top tourist states in

India3.

Uttarakhand invests 1.48 percent o its budget in tourism

which is the highest among these top 8 states. It has yielded

results or the state as it has risen rom number 8 to 7 in the

last 5 years.

Himachal Pradesh government invests 0.28 percent o its

budget in tourism which is below the average investment

o the top 8 states. This may be one o the actors that have

resulted in Himachal Pradesh slipping rom 12 spot in 2007 to13 spot in 2010.

This highlights that some states like Andhra Pradesh and Tamil

Nadu have been consistently able to draw maximum number o

tourists due to the presence o religious sites, whereas there are

other states like Maharashtra and Karnataka that have invested

in tourism in the state and have been able to garner the attention

o the tourists.

The key areas o investment by these states have been4

Promotion o state tourism in national and international orums

Transport inrastructure in terms o road and transport

connectivity Developing new tourist destinations in the state

Establishing good quality hotels and restaurants

Providing better acilities at tourist sites in terms o wayside

amenities, etc.

Himachal Pradesh may channelize investment to showcase

its natural beauty, develop newer circuits along with holy

pilgrimages to attract tourists to the state. The state realizes the

importance o investing in the above mentioned acilities and

there has been action in these areas however, these eorts need

to be sustained to continuously reap the benets.

1 http://www.nancialexpress.com/news/andhra-pradesh-top-tourist-destination-tourism-ministry/819071/0

2 http://www.hospitalitybizindia.com/detailNews.aspx?aid=5473&sid=1

3 HVS Whitepaper on Hotel Room Supply, Capita l Investment and Manpower requirement by2021

4 state tourism department websites

Investment in tourismas a percentage of total budget

Source:Planning Commission state Plans Outlays 2007-2011

13


17/36

14


18/36

case studymadhya pradesh

15


19/36

Madhya Pradesh is one o the upcoming tourist states in the

country. Recently, it bagged our national tourism awards rom

the Union Ministry - Best Tourism state, Best Tourism Film, Best

Publicity Materialand Best Civic Managemento a tourism

destination in India1. Madhya Pradesh has ocused on ollowing

key areas aiding tourism promotion in the state.

Marketing Understanding the importance o marketing andadvertising to catch the attention o tourists, Madhya Pradesh

government hired a reputed brand and advertising agency to

construct a tourism riendly image2. Understanding the act that

majority o tourists in India are domestic tourists, it has used TV

commercials to promote its tourism. The move has worked well

or them and has helped Madhya Pradesh move up the ranking

o states in terms o share o tourists visiting the state.

Development o new sites New religious, historic and natural

sites are being developed as tourist destinations to attract more

and more national and international tourists to the state. Thirty-

seven tourist places have been selected or urther development.

Dividing the state into tourism sectors The tourism potential

o Madhya Pradesh is being increased by identiying select

tourist sectors in the state. The state is giving special attention

to developing Panna, Chitrakoot, Khajuraho and Orchha as

tourist destinations3. The government has also set up Tourism

Promotion Councils in various districts o the state to promote

tourism.

Investment in inrastructure Investment is being made at

a ast pace in tourism and supporting inrastructure needed to

promote it. Investment is also coming rom oreign countries.

Three companies rom Republic o China have invested recently

in the state. Some o the positive aspects o investment in

Madhya Pradesh are availability o land at relatively attractive

price, peaceul industrial atmosphere, immediate action on

investment proposals and harmonious social atmosphere.

Inviting national and international investments The state

government has been undertaking eorts to rope in national and

international investors to develop inrastructure in the state. To

promote investor condence in the state, the Madhya Pradesh

state Tourism Development Corporation (MPSTDC) organizes

tourism conclave in association with reputed industry bodies.6

Fort and palaces to be converted into heritage hotels Thegovernment o Madhya Pradesh has created an inventory o

orts/palaces to be converted into heritage hotels. These orts/

palaces are planned to be oered to the private investors

on a long term lease (90 yrs)/Freehold/PPP basis through a

transparent process.4 For the orts/palaces in private hands, the

role o the Government is envisaged to be limited to bringing

the private players and investors together and acilitating the

entire process. The state has created a land bank o 500 hectares

and has invited private investors to set up properties at these

locations5.

Key learnings rom initiatives undertaken byMadhya Pradesh

Following key actors have helped Madhya Pradesh strengthen

its positioning and potential in terms o attracting tourists:

Judicious selection o marketing tools in increasing the

awareness o the tourist potential o the state.

Harnessing the tourism potential through identication and

development o potential new tourist destinations.

Establishment o required administrative set-up or

development and promotion o dierent regions and sites in

the state.

Regular meet with various tourism sector stakeholders to

create awareness about government initiatives and avenuesor private sector participation or tourism promotion.

Promotion and channelization o private sector investments

through PPP (Public- Private Partnership) models in the

development o state tourism inrastructure.

1 Indian Express - http://www.indianexpress.com/news/mp-sikkim-receive-top-tourism-awards/918543/

2 http://www.ogilvy.com/News/Press-Releases/November-2010-Ogilvy-Mumbai-creates-a-new-TVC-or-MP-Tourism.aspx

3 http://articles.economictimes.indiatimes.com/2008-09-07/news/28465645_1_tourist-destinations-tourism-council-tourist-places

4 http://www.nancialexpress.com/news/mp-takes-cue-rom-rajasthan-to-turn-orts-into-hotels/908633/

5 http://www.constructionupdate.com/CMS/Newsletter/NewsFiles/31556.html

6 http://www.travelbizmonitor.com/mp-tourism-to-organise-tourism-conclave-rom-eb-12-to-open-representative-oce-in-varanasi-15439

16


20/36

case studyuttarakhand

17


21/36

Uttarakhand has reasonably similar topography like Himachal

Pradesh. A large portion o the tourist trac in Uttarakhand

is driven by the presence o sacred places like Haridwar and

Chaar Dhaam, yet Uttarakhand as a state matches the prole

o Himachal Pradesh in terms o having scenic valleys, beautiul

hill stations and wildlie sanctuaries which provide the scope

or promoting new orms o tourism like wellness tourism, eco

tourism, adventure tourism, etc.

Uttarakhand has perormed well in terms o attracting tourists

during 2006-2010 period, as the total number o visitors in the

state increased rom 168 lakhs in 2006 to 303 lakhs in 2010,

growing at a very healthy CAGR o 16 percent. Some o the key

actors or this healthy growth have been mentioned below.

Investment in tourism With an average investment in tourism

as a percentage o total state budget o 1.5 percent duringthe 2007-2010 period1, Uttarakhand government is spending

signicantly on tourism sector as compared to other key tourist

states in India. Focus on tourism investment by Uttarakhand

government may be one o the actors aiding aster tourism

growth in the state. The density o hotel rooms per 100 square

Km o state area in Uttarakhand is 1.8 which is high as compared

to other similar terrain states2. Five ropeway projects have

also been added to improve connectivity in areas o Nainital,

Mussoorie, etc3. The state has been able to attract investments

rom private players as well as the central government to

improve its tourism inrastructure. It highlights the ocus o

Uttarakhand government and private sector in developingtourism inrastructure in the state.

Pilgrimage tourism Domestic tourists orm a major portion

o the total tourists visiting the state. A key actor or this

high domestic tourist infow in the state is the presence o

holy pilgrimages like Haridwar and Chaar Dhaam in the state.

According to ACNielsen4 report on Uttarakhand or Ministry o

Tourism, over 70 percent o the domestic tourists in Uttarakhand

visit Haridwar. It highlights the high potential o pilgrimage

tourism in drawing domestic tourists in India.

Liasioning with tour operators The state has ocused

on promoting tourism in lesser known destinations in

Uttarakhand. Uttarakhand Tourism Development Board organized

amiliarisation tours or 50 tour operators rom across the

country to new destinations in Garhwal and Kumaon regions5.

The state is actively working with these private tour operators

in not only promoting these destinations but also inviting their

eedback to eectively promote tourism in the state.

Promoting dierent orms o tourism The state government

is also ocusing on creating new tourist circuits. It is promoting

a new circuit christened Vivekananda Circuit showcasing the

places Swami Vivekananda visited and stayed in the state6. The

Government is also aggressively setting up adventure centers

across the state or promoting outdoor activities like trekking,

mountaineering, river rating, kayaking, canoeing, rowing, water

and snow skiing and has shortlisted 19 locations to establish

these centers. A program has been started at Choti Haldwani to

provide the rural experience to urban children and it has received

good response7. It is also promoting eco tourism to increase

the tourist ootalls and has created an Eco tourism wing o the

Uttarakhand government or promoting eco tourism activities in

the state8.

Key learnings rom initiatives undertaken byUttarakhand

Following key initiatives have helped Uttarakhand in promoting

and harnessing its tourism potential:

Focus on development o tourism inrastructure by

channelizing investment rom govt. and private investors.

Identication and development o new tourism circuits and

locations and involvement o key stakeholders in promotion othe same.

Leverage the gited religious pilgrims in the state to attract

domestic tourists year on year basis.

Development o centres o recreational activities across the

state to attract adventure loving tourists.

Make use o dierent resources o the state to promote

various orms o tourism.

1 Planning Commission state Plans Outlays 2007-2011

2 HVS Whitepaper on Hotel Room Supply, Capital Investment and Manpower requirement by2021

3 http://www.expresstravelworld.com/201005/market12.shtml

4 http://www.tourism.gov.in/CMSPagePicture/le/marketresearch/statisticalsurveys/07%20uttaranchal.pd

5 http://articles.economictimes.indiatimes.com/2008-04-17/news/28384744_1_tourist-destinations-tour-operators-oreign-tourists

6 http://www.expresstravelworld.com/201108/market11.shtml

7 http://in.news.yahoo.com/uttarakhands-chhoti-haldwani-region-promotes-rural-tourism-corbett-121603877.html

8 http://in.news.yahoo.com/uttarakhand-government-promoting-eco-tourism-145645789.html

Total tourists - Uttarakhand

Source:India Tourism Statistics 2010, 2009, 2008 and 2007 (www.tourism.gov.in)

18


22/36

assessment of himachalpradesh tourisminfrastructure

19


23/36

Connectivity1

Road Road connectivity is critical or tourists to commute rom

one city to another and Himachal government has addressed

this area at high priority. The total length o motorable roads in

Himachal Pradesh increased rom 22,200 km in 2002 to over

30,000 km in 2009. As o March 2011, the total length o National

Highways in the state is about 1409 km2. Himachal Pradesh

government has given a high priority to the transportation

sector in the Twelth Five Year Plan. It has proposed 21 percent

o the total outlays in this plan to be spent on improving the

transportation and communication sector in the state. An all

weather road rom Manali to Leh is also under construction and

is planned to be completed by 20153. However, the road length

per 100 sq Km area or Himachal Pradesh is 38.1 which appear to

be modest as compared to many o the key tourist states in the

country4. Thereore, eorts on improving road connectivity need

to continue.

Rail Owing to the hilly terrain o the region, rail connectivity is

a constraint. Himachal Pradesh alls under the Northern RailwayNetwork. Two narrow gauge lines connect Kalka with Shimla

and Joginder Nagar with Pathankot; with a route length o 96 km

and 113 km, respectively. A 33 km broad-gauge l ine connects the

Nangal Dam to Charuru.11The state is also pushing the central

government or Mandi-Manali-Leh rail line12 which will give a

major boost to tourism in Himachal Pradesh and J&K.

Air Air connectivity to Himachal Pradesh is limited but is

helped by nearby airport at Chandigarh and Delhi with excellent

road connectivity. Himachal Pradesh, by itsel, has 3 airports at

Kullu, Kangra and Shimla which have limited number o services

currently. In addition to these, there are more than 50 operational

helipads while another 12 new helipads are in the pipeline. Anew international airport is also proposed at Sunder Nagar

district.

Accommodation

Himachal Pradesh oers a vast range o accommodation acilities

to tourists to choose rom depending on his preerence and

budget. The number o hotels in Himachal Pradesh has increased

rom 1,500 in 2003 to 2,150 in 2010 with the total number o

beds rising rom 34,000 to 51,000 in the same period5. Majority

o these hotels are located in major tourist hubs o Kullu, Manali

and Shimla. The actual total number o beds available may be 30-

40 percent higher than this due to the presence o small guesthouses and unorganized sector accommodation6. However, the

accommodation acilities in smaller or lesser visited places may

need to be improved.

Tour operators and guides

Himachal Pradesh has a good network o tour operators and

guides. These private tour operators provide travel related

services, such as transport vehicles (tourist coaches and taxis),

hotel reservations, local sightseeing, air and rail bookings, airport

and railway pickups, guide services, etc. The total number o

travel agencies in the state has increased rom about 405 travel

agents in 2003 to 1,100 in 20107. Along with this, there are about

500 guides to assist the tourists and providing them with the

details o the places they visit.

Branding

The state government promotes Himachal using slogans

like Unforgettable Himachal13 and A Destination for All Seasons

and All Reasons14 . This has had excellent eedback rom the

tourism raternity. The state has nominated movie star Preity

Zinta as the brand ambassador o Himachal Pradesh Tourism to

promote the state both nationally and internationally. The state

recently won national-level Best Tourism Promotion Award or

its campaign Unforgettable Himachaland coee table

book Har Ghar Kuchh Kehta Hai8. The eectiveness o the

marketing campaign o Himachal Pradesh tourism has also

increased over the last 2 years4. Sustained ocus on branding

both in India and internationally may help increase tourist fow in

the state.

Tourist inormation kiosks

The state government invested INR 22.50 lakhs in setting up IT

enabled tourist inormation kiosks in Himachal Pradesh in 20119.

The unding was provided by the Union Ministry o Tourism.

Tourist related inormation such as important tourist destinations;

weather, hotel, railway and bus bookings and other related

acilities will be provided to the tourists through these kiosks.

Festivals and events

To attract national and international tourists to Himachal Pradesh,

the government organizes several events throughout the year.

These include - Internationa Shimla festival, Winter Carnival

at Manali, Ice Skating festival, Tribal festivaland many more10.

Himachal Pradesh needs to continue ocus on such events to

increase tourist ootalls, especially during the o-peak season

(November-February).

Urban inrastructure

Urban inrastructure in Himachal Pradesh has been identied

as a key ocus area under the central government Jawaharlal

Nehru Urban Renewal Mission (JNNURM). Shimla is one o

the 65 cities that have been identied under JNNURM or local

inrastructure development. Under this mission, our projects

worth USD 33 million have been sanctioned and are currently

under implementation to improve the urban inrastructure

in the city2. These include widening o tunnels, solid waste

management etc. which shall help improve tourists experience

in Shimla. The government policy to ban the usage o plastic

bags has also helped in improving the sanitation issues and

preventing the environment. Overall these initiatives have had a

positive impact on the growth o tourism in the state.

1 IBEF report on Himachal Pradesh, November 2011 and http://www.hpplann ing.nic. in/

Roads%20and%20Bridges%20in%20Himachal%20Pradesh.pd2 IBEF report on Himachal Pradesh, November 2011

3 http://www.igovernment.in/site/all-weather-roads-link-jk-ladakh-soon


5 www.himachaltour ism.gov.in and 20-year Perspective Plans on Tourism Sector, HimachalPradesh

6 20-year Perspective Plans or sustainable tourism development in Himachal Pradesh

7 himachaltour ism.gov.in and Drshti report on Sustainable Tourism Development in HimachalPradesh

8 http://www.indianexpress.com/news/patil-to-coner-tourism-award-on-hp-today/917894/9 http://www.travelbizmonitor.com/PrintArticle.aspx?aid=13703&sid=36

10 www.himachaltourism.gov.in

11 IBEF report on Himachal Pradesh, November 2011

12 http://articles.economictimes.indiatimes.com/2012-03-14/news/31168836_1_railway-budget-rail-budget-new-railway-lines

13 http://www.himachaltourism.gov.in/

14 http://www.indy.com/himachal-pradesh/

20


24/36

key initiatives taken andplanned by himachal pradeshgovernment1

1 Himachal Tourism (www.himachaltourism.gov.in)

21


25/36

Some o the key initiatives at the policy ormulation and

implementation steps taken by the government are detailed in

this chapter.

Division into circuits

Himachal Pradesh Tourism Development Corporation has divided

the state into our interesting circuits. These circuits pass

through dierent terrains making one eel as i one is trekking

through ages at dierent times. These circuits are

a. Dhauldhar Circuit (Dalhousie, Dharamshala, Palampur, etc.),

b. Beas Circuit (Mandi, Kullu and Manali),

c. Tribal Circuit (Sarahan, Sangla and Nako) and

d. Sutlej Circuit (Shimla, Solan and Paonta Sahib).

There are multiple tour options available or each o the circuits

providing several choices to the tourists.

Tourism policy

The Department o Tourism and Civil Aviation came out with a

orward looking tourism policy o Himachal Pradesh in 20052. Itshowcased the importance o tourism to the state economy and

identied several thrust areas to promote tourism in the state.

Home stay scheme

This scheme was launched in 2008 by Himachal Pradesh

government with an aim to provide clean, comortable and

aordable supplementary accommodation to tourists in rural

areas in the vicinity o amous tourist destinations when hotels

and guest houses are packed to capacity.

This scheme was intended to broaden the stake holders base

or tourism in the state by including rural and interior areas o the

state in providing tourism accommodation inrastructure and at

the same time decongest the urban areas, which cannot support

any urther tourism trac. The initiative also aimed at providing

employment and generating economic value in the rural areas.

The state government has provided several incentives to

promote this scheme by exempting the home stay units rom

luxury and sales tax and charging domestic rates o water and

electricity rom these units.4

The scheme has proved to be highly successul or the

Himachal Pradesh government with Home Stay units evoking

overwhelming response in Kullu, Manali, Shimla, Dharmshala,

Palampur and Dalhousie regions. A very large percentage o

tourists preer to stay in small aordable accommodations in

clean homely environment. A total o 891 rooms in 332 units

were registered as Home Stay units by February 20113.

Har gaon ki kahani

This initiative was started by the Himachal Pradesh government

in 2010. One village was selected in each o the twelve districts

o the state and ascinating tales, olklore and anecdotes related

to these villages are used to lure tourists. This novel scheme

aims at developing villages o historic importance as tourism

villages by providing basic amenities and provides tourists a peep

into rustic lie o the hill state.

The state government has received accolades or this initiative

and won the award or most innovative marketing campaign5.

The state government is in process o launching the second

phase o this scheme in August 2012 as more villages in the

districts are being identied6. To identiy villages or this initiative,

the tourism department encouraged people rom across the

state to send ascinating stories and legends, stories o gods

and goddesses, prevalent religious belies, local customs, rituals

ollowed on the occasion o marriage and estivals etc related

to their native place. These were then reviewed and unds were

allocated to the villages with interesting stories and historicalacts7.

Tourism promotion

The Himachal Pradesh Tourism Development Corporation

(HPTDC) has been using print media to promote tourism in

the state. These include advertisements in newspapers and

publishing books like Unforgettable Himachal. The department

has also used TV channels, primarily news channels to advertise

tourism. It participates in various national level tourist estivals

across the country and also conducts road shows to draw more

tourist attention.

Adventure tourismThe state government highlighted the potential o adventure

tourism in Himachal Pradesh Tourism Policy published in 2005.

Since then, to promote Himachal Pradesh as an adventure sport

destination, adventure tourism activities like trekking, mountain

biking and para-gliding, ice skating, skiing, river rating, heli-

skiing, car rallies are being organised in dierent areas o the

state or tourists.

2 http://www.himachaltourism.gov.in/le.axd?le=2010%2F4%2FTourism+Policy+2005.pd

3 http://www.himachal.nic.in/hipa/LabtoLand/RD/RuralTourism.pd

4 Department o Tourism, Himachal Pradesh

5 http://www.ttotm.com/tt/award.html

6 http://www.dailypioneer.com/state-editions/chandigarh/64527-himachal-to-launch-second-phase-o-rural-tourism-soon.html

7 http://www.himachalpr.gov.in/eatures/FEATURE-27E10.htm

22


26/36

Policy incentives

To encourage private sector participation in tourism and create

employment in the state, the state declared a 10 year tax holiday

or entertainment units and deerred payment o luxury tax by

hotels and tourism units8. This has provided a major boost or

development o tourism inrastructure in the state.

Inauguration o Shimla heritage museum

In 2011, Himachal Pradesh government inaugurated a heritage

museum which showcases the heritage o Shimla. It provides

visitors a glimpse o heritage building o British Raj and is aimed

at attracting more domestic and oreign tourists to the state. The

government is also investing in restoring The US Club building

which houses the Shimla Heritage Museum.

Initiatives in the pipeline

a. Gol courses: Recognizing the potential to develop gol as

a niche tourism product or attracting both international and

domestic tourists, especially the high end visitors, state

government is planning to set up gol courses at industrialtownship o Baddi and tourist resort at Manali under Public-

private-Partnership (PPP) model and has oered land and other

acilities to the private sector.

b. Connectivity improvements: Ten more helipads are to be set

up in Sirmour, Kinnaur and Mandi districts to increase the total

strength o helipads in the state to 70. Heli-taxis services in

the state is also planned to be started soon. The government

is also in the process o increasing the ropeway connectivity in

the state by setting up ropeways at Palchan and Bijli Mahadev

in Kullu district. Work on several other ropeways is also in

progress9.

c. Development institution unding:The state has also

been able to attract direct oreign assistance rom Asian

Development Bank (ADB). ADB would be providing a unding

o USD 95 mn or the development o various inrastructural

acilities in Himachal Pradesh10. Some o the planned acilities

include:

i. Development o circular road and parking near Naina Devi

ii. Inormation Centres, toilet and parking acilities at Pong

Damiii. Restoration o Shimla Heritage museum

iv. Inrastructure improvements, development o jetties,

development o trails, landscaping etc. in Ranser and Karu

Islands

v. Development o camping sites at Dhameta and Nagrota

Suriyan11.

d. Developing new circuits: The state government is also

working closely with the Ministry o Tourism to develop new

tourist circuits in the state. A new adventure and eco tourism

circuit has been identied in Himachal Pradesh covering Kullu,

Katrain and Manali12.

8 http://www.pppinindia.com/state-policy-himachal-pradesh.php

9 http://www.hospitalitybizindia.com/detailNews.aspx?aid=9393&sid=1

10 http://www.nancialexpress.com/news/adb-to-und-tourism-inra-projects-in-hp/726166/1

11 Depart o Tourism, Himachal Pradesh

12 Ministry o Tourism, Annual Report, 2010-11

23


27/36

24


28/36

the way forward

25


29/36

For the state government to increase tourist inow

Marketing

a. Advertising on television: One o the biggest take-away

rom the success o other Indian states that have witnessed

tourism growth is the impact o marketing and advertising

on tourism. Tourism is a highly competitive industry as

multitudes o tourism destination options are available to thepotential traveler. Thus, marketing is a key unction or the

state as it helps in promoting a distinct image o the state and

catching the travelers attention, thereby infuencing ones

decision. Himachal Pradesh government has thus ar ocused

on advertising in print (including in-fight advertising) and its

television advertising has largely been on news channels1.

However, with domestic tourists comprising over 97 percent

o the total tourists in the country5, television commercials

on prime channels, internet advertising, along with current

channels o advertisement is likely to reinorce eorts to reach

huge potential tourist market

b. Participation in events: In-fight promotions may becontinued to attract more and more international travelers. To

attract more oreign tourists, Himachal Pradesh may ocus on

increased participation in trade airs and tourism events held in

dierent parts o the world.

c. Use o social media:To improve the brand visibility o

Himachal Pradesh tourism, a strong presence on internet

and in the social networking media is necessary. Tourists can

be encouraged to provide reviews o their trip to Himachal

Pradesh and latest upcoming events should be posted on

these websites. Innovative videos can also help in promoting

the tourism.

Thus, a joint eort between the Himachal Government,Department o Tourism, hoteliers, tour operators, and travel

organization may be needed to promote Himachal Pradesh as

a tourist destination on national as well as international stage.

Development in inrastructure

One o the best ways to promote a tourist destination is through

word o mouth. Hence, it is important to provide a pleasant

experience to tourists visiting a place and sound inrastructure

is needed or that. This includes good roads, availability o pre-

paid taxi services, good connectivity with dierent parts o the

country, etc. The density o branded hotel rooms in the state is

0.9 rooms per 100 square Km2

and may need to be augmentedto be at par with some o the peer states. The government needs

sustained eorts to improve on this dimension. All this needs

to be taken care o to elevate the image o Himachal Pradesh

as a preerred tourist destination3. However, natural beauty or

which Himachal Pradesh is known or should be preserved while

developing the tourism inrastructure

Inviting private investment

The state government may ocus on encouraging investment

rom private players or improving inrastructure acilities,

accommodation and service quality, developing and maintaining

tourist sites. The government may play the role o a acilitator

in order to channelize private investment in the state towards

development o tourism. The Government has already planned

major incentives to encourage private participation. The state

declared a 10 year tax holiday or entertainment units and

deerred payment o luxury tax by hotels and tourism units6. In

addition, the government may also convene periodic events and

tourism conclave which will engage stakeholders and boost

the investor condence. Heritage sights may be developed and

maintained based on PPP model by leasing them out to private

players whereas hotels and restaurants can be entirely unded

by private players. To increase the attractiveness o Himachal

Pradesh to private players, model o private sector participation

in the inrastructural areas mentioned above may need to be

evolved. Also, it is important to have a streamlined process or

investment approval in tourism projects.

Pilgrimage tourism

Religious tourism is the single largest driver o Tourism in India.

For example, Andhra Pradesh witnesses a very large number

o people visiting Tirupati Balaji every year7. Similarly, over 70percent o the total tourists in Uttarakhand visit Haridwar8. This

shows the high potential o pilgrimage tourism in India. Himachal

Pradesh is also blessed with multiple pilgrimage destinations

like Naina Devi, Chamunda Devi, Jwala ji and Paonta Sahib

Gurudwara. The tourism potential o these places should be

tapped by developing the supporting inrastructure o these sites.

Special package tours covering major pilgrimages in Himachal

Pradesh may be started to pull more domestic tourists to the

state.

Organise international events to promote adventure

tourism

Himachal government currently organizes a ew international

events like Ice Skating Festival, International Paragliding

competitions, etc. Aggressive promotion o adventure tourism

sites in the state and holding international events at dierent

locations in the state can give a major boost to tourism.

Dharamshala currently hosts some matches o Indian Premier

League.9 Hosting larger number o international cricket matches

at this stadium will also help in increasing the tourist ootalls. A

signicant number o events during the Nov-Feb period may help

in attracting more tourists during this o-peak season period. The

state may also set up institutes oering courses in adventure

sports to dierentiate it rom other states and establish itsel as

a pioneer in adventure sport market in India.

Training

Tourism contributes 10 percent o GSDP o Himachal Pradesh

and the government aims to increase it to 15 percent by 20204.

To achieve this, apart rom all the inrastructural requirements,

the state will need a lot o skilled labor to provide services to

the visitors. The state would also need local entrepreneurs to

establish recreational acilities, hotels etc. Hence, providing

quality training to the locals is going to be critical or Himachal

Pradesh to achieve its goal. There should be regular trainings

conducted or developing guides, entrepreneurs, waiters and

ront oce sta.

1 Department o Tourism & Civil Aviation Himachal Pradesh Annual Reports


3 Report on Inrastructure Gaps in Tourism Sector in Kullu-Manal i, Himachal Pradesh

4 Presentat ion beore the Planning Commission on Annual Plan 2012-13 and Twelth 5 yearplan, Government o Himachal Pradesh

5 India Tourism Statistics 2010 (www.tourism.gov.in)

6 http://www.pppinindia.com/state-policy-himachal-pradesh.php

7 http://www.nancialexpress.com/news/andhra-pradesh-top-tourist-destination-tourism-ministry/819071/0

8 http://www.tourism.gov.in/CMSPagePicture/le/marketresearch/statisticalsurveys/07%20uttaranchal.pd

9 http://articles.timesondia.indiatimes.com/2011-05-02/tale-spin/29495956_1_ipl-hotels-hpca

26


30/36

Circuit rationalization

As mentioned above, the Himachal Pradesh government has

divided the state into our circuits to provide dierent experience

to the tourist. However, there are too many destinations across

each circuit and with the average duration o a trip o a domestic

tourist being 2-4 days only, the number o destinations in each

circuit may be rationalised.

Establish new circuits

Himachal Pradesh has the potential to promote various orms o

tourism like wellness tourism, corporate tourism and ecotourism

etc. The state needs to develop new circuits to tap the potential

o these upcoming orms o tourism. Wellness or Health circuits

covering regions like Dharamshala and Mcleodganj may be

promoted. Similarly corporate circuits in regions having good

connectivity and other amenities may be set up to oset the

seasonality in tourist infow.

Localization o content or oreign tourists

As stated earlier, Himachal Pradesh receives a air share o

oreign visitors. A signicant number o these oreign visitors

belong to non-English speaking countries like Germany, France,

Italy, etc. Hence, the service provided to these visitors may be

improved by providing inormation in their local language at the

tourist inormation centers. The website o Himachal tourism

may also be translated into dierent languages. Apart rom this,

dierent language trainings to guides may also help in ensuring

more pleasant experience to these guests.

27


31/36

For harnessing private sector participation

Hotels and restaurants

With the growing number o tourists visiting Himachal Pradesh

year ater year, there is immense potential or hoteliers/investors

to build good quality budget and luxury hotels in the state. The

Himachal Pradesh government aims to increase the contribution

o tourism to GSDP rom 10 to 15 percent by 20208 and ispromoting tourism in the state, so the number o visitors is likely

to grow providing ample opportunities or the investors to benet

rom it. Seasonality o the trac is a risk or this segment but it

may be mitigated by developing corporate clients and organizing

o site trainings and conerences during the o season.

Developing tourist sites

One o the keys to attract tourists to a state is the maintenance

o existing tourist sites and development o new ones. Private

sector has a role to play in both these aspects. The state

government o Himachal Pradesh is ocused on perorming the

role o a elicitator and is inviting private players via PPP route todevelop new destinations or lease existing sites or maintenance.

Training institutes

As mentioned earlier, Himachal Pradesh needs signicant trained

personnel to achieve its targeted growth in tourism. This would

require training programs or Entrepreneur Development, Hotel

Management, Adventure sports, Front oce tasks, etc. It is

dicult or the government to create so many trained personnel

by itsel and thus there is great potential or private sector to

ulll this gap. The scope o this opportunity is good given that

Himachal Pradesh government is promoting tourism courses

among the youth o the state.

Recreational centers and shopping complexes

With the number o tourists visiting the hills o Himachal

Pradesh increasing consistently every year, the state oers

growing potential to the investors in retail and entertainment

space. The potential areas o investment may be shopping malls,

multiplexes, amusement parks, etc.

Other opportunities

Apart rom the above mentioned areas, the other likely areas or

private investment may be:

Travel and tour operations

Adventure activities operations.

The past initiatives undertaken by the Union and Himachal

Pradesh government have yielded a strong impact on the

tourism market in the state. Some o the initiatives by the

government and the private sector outlined in the above section,

will urther strengthen the position o Himachal Pradesh as atourist destination and will enable the state to achieve greater

economic and social prosperity.

8 Presentat ion beore the Planning Commission on Annual Plan 2012-13 and Twelth 5 yearplan, Government o Himachal Pradesh

28


32/36 2012 KPMG, an Indian Registered Partnership and a member rm o the KPMG network o independent member rms aliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

about kpmg in india

KPMG in India, a proessional services rm, is the Indian member rm o KPMG

International and was established in September 1993. Our proessionals leverage the

global network o rms, providing detailed knowledge o local laws, regulations, markets

and competition. KPMG in India provide services to over 4,500 international and national

clients, in India. KPMG has oces across India in Delhi, Chandigarh, Ahmedabad,

Mumbai, Pune, Chennai, Bangalore, Kochi, Hyderabad and Kolkata. The Indian rm

has access to more than 7,000 Indian and expatriate proessionals, many o whom are

internationally trained. We strive to provide rapid, perormance-based, industry-ocused

and technology-enabled services, which refect a shared knowledge o global and local

industries and our experience o the Indian business environment.

KPMG is a global network o proessional rms providing Audit, Tax and Advisory

services. We operate in 152 countries and have 145,000 people working in member

rms around the world.

Our Audit practice endeavors to provide robust and risk based audit services that

address our rms clients strategic priorities and business processes. KPMGs Tax

services are designed to refect the unique needs and objectives o each client, whether

we are dealing with the tax aspects o a cross-border acquisition or developing and

helping to implement a global transer pricing strategy. In practical terms that means,KPMG rms work with their clients to assist them in achieving eective tax compliance

and managing tax risks, while helping to control costs.

KPMG Advisory proessionals provide advice and assistance to enable companies,

intermediaries and public sector bodies to mitigate risk, improve perormance, and

create value. KPMG rms provide a wide range o Risk Consulting and Management

Consulting that can help clients respond to immediate needs as well as put in place the

strategies or the longer term.

29


33/36

about phd chamber ofcommerce and industry

PHD Chamber o Commerce and Industry, established in 1905, is a proactive and

dynamic multi-state apex organisation working at the grass-root level and with strong

national and international linkages.

The Chamber acts as a catalyst in the promotion o industry, trade and entrepreneurship.

PHD Chamber, through its research-based policy advocacy role, positively impacts

the economic growth and development o the nation. PHD Chamber is more than anorganisation o the business community, as it lives by the chosen motto In Communitys

Lie & Part o It and contributes signicantly to socio-economic development and

capacity building in several elds.

Geographic Spread

PHD Chambers geographical span covers the 10 states o Chhattisgarh, Delhi, Haryana,

Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Punjab, Rajasthan, Uttar

Pradesh, Uttarakhand and the Union Territory o Chandigarh. Apart rom its headquarters

in New Delhi, the Chamber has regional oces in Jammu, Shimla, Chandigarh, Lucknow,

Jaipur and Bhopal.

Diversifed and Large Membership Base

PHD Chamber has a direct membership o over 1,600 corporate entities and serves

more than 45,000 indirect members through 150 Association Members and 8 Secretarial

Aliates. The membership covers trade and industry. PHD Chamber organises over

200 events every year, ranging rom seminars, conerences and workshops to social

networking events in the region served by us.

30


34/36


35/36


36/36

KPMG Contacts

Rajesh JainPartner and Head, Markets

T: +91 22 3090 2370

E: [email protected]

Jaideep Ghosh

Partner, Management Consulting

T: +91 124 307 4152


Atul GandhiPartner, Tax

T: +91 172 393 5781


kpmg.com/in

PHD Chamber Contacts

Headquarters

PHD Chamber o Commerce and

Industry

PHD House,

4/2 Siri Institutional Area

August Kranti Marg,

New Delhi - 110016

T: +91 11 2686 3801-04/4954 5454

F: +91 11 2685 5450/4954 5451


Punjab, Haryana & Chandigarh


Industry

PHD House, Sector -31A,

Chandigarh - 160031

T: +91 172 263 8981/8653/8662

F: +91 172 263 8982


Himachal Pradesh


Industry

Room No. 205, Udyog Bhawan,

Shimla - 117044

T: +91 177 280 7855


phdcci.in

The inormation contained herein is o a general nature and is not intended to address the circumstances o any particular individual

or entity. Although we endeavour to provide accurate and timely inormation, there can be no guarantee that such inormationis accurate as o the date it is received or that it will continue to be accurate in the uture. No one should act on such inormation

Documents

Tourism-in-himachal-pradesh.pdf