The Hindu Business Line : A silver lining for tourism sector

DESPITE the gloom scenario painted by the Survey, the travel industry feels that the Government can arrest the decline in international tourist arrivals and the resultant fall in foreign exchange earnings.

This, it suggests, can be done by providing greater budgetary funds to the sector, besides following an open sky policy for international airlines, and marketing India in a comprehensive manner in important global markets.

A cross-section of the captains of the tourism and travel industry felt that the Government should follow a multi-pronged approach to ensure that the sector was able to achieve its full potential.

The Managing Director, P&O Travel India Ltd, Mr Partha Basu, told Business Line that the country must take steps to become a more affordable destination for inbound tourists, particularly in view of the competition offered by Pacific Rim countries such as Malaysia.

"The Government should look at increasing Budget allocation. Such a move will help reactivate India tourist offices abroad, which can then focus attention on marketing India. Besides, the issue of rationalisation of taxes between the Centre and States also needs to be looked at,'' Mr Basu said.

The Economic Survey shows that there has been a 6.3 per cent decline in foreign tourist arrivals during April-October with a resultant decline in 1.3 per cent in estimated foreign exchange earnings at $1,636 million. However, there is near unanimity among the major players in the industry that international tourist arrivals are beginning to look up.

The General Manager, International Travel House, Mr Sudhir Sahi, told Business Line that the decline in international tourist arrivals, while being worrisome, was a part of a global trend.

"The US, Europe and UK, which are among the key markets for international tourist arrivals to India were affected by the effects of September 11. However, India being an all season multi-interest destination, we should be able to attract more international tourists,'' Mr Sahi said.

The Chairman, STIC and Chairman, Assocham Expert Committee on Tourism and Civil Aviation, Mr Subhash Goyal, pleaded for an open skies policy to boost international tourist arrivals. Mr Goyal felt that the issue had now become more important as a number of international carriers such as United Airlines and SAS had already withdrawn their services from the country.

Besides, the captains of industry also stressed the need for incentives similar to those provided to the information technology sector.

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