The central government is planning to increase its contribution to the world Gross Domestic Production (GDP) from the tourism sector in the years to come, said union minister Gajendra Shekhwat.
During a media interaction at his residence, the minister said, “Indian tourism contributes 5.06 per cent to the entire world GDP and we are planning to take this contribution to 10 per cent in the years to come.”
He also emphasized on increasing the number of hotel rooms in the country, especially on the tourist destinations to boost the sector. He said, “Expanding hospitality is the fastest route to generate employment. A hotel has at least 10 employees and a huge 13.8 per cent employment comes from the tourism sector.”
He said that building a quality hotel is a high cost matter and the operating cost of the hotel is also high. “On an average the investment comes around to Rs 1-1.5 crore per room, and takes around three years to build, yet banks only give loans for six to seven years,” he said.
“So, by the time the hotel is built, half the period is over. Then how will the hotel owner repay?” he said. To facilitate entrepreneurs and corporates, and not just contractors and politicians with money, his policy push is to treat much of hospitality investment as infrastructure.
The construction of three-plus star hotels in areas that are not metropolitan cities will attract an infrastructure status, which will allow for 20-25 year tenures and lower interest rates on loans.
Speaking on the increasing crowd at tourist destinations, he said that the government is planning to create new tourist destinations to decongest hotspots.
He disclosed that the government is in the process of identifying 50 new tourist destinations for development in the next budget.
“The ministry has floated this idea with the states and will organize the workshop next month in which all tourism ministers of the states will come up with the potential idea which they will present within 30 minutes. After this, the list of the destinations will be finalized,” he added.
