Austria's interest in Indian tourism, hotel industry

By Sushma Ramachandran

NEW DELHI, DEC. 22. Austria is sending a high-level information technology delegation here next February but is wary of inviting Indian IT professionals owing to widespread sensitivity to the inflow of foreign workers.

As it is, Austria is worried over prospects of an immigrant wave following the induction of several new countries into the European Union (E.U.).

According to the visiting Austrian Vice-Minister for Foreign Economic and European Integration, Mr. Josef Mayer, the issue of seeking trained professionals from this country has to be viewed in the context of the concerns over the entry of new members to the E.U. Austria, he pointed, has a 400 km long border, the largest of any E.U. country with the proposed new entrants.

It was thus expected that a few million immigrants may come into the country after the E.U. approves the new members and free movement of persons is allowed in the region.

At the same time, he pointed out studies have shown that the economic impact in the long-term will be positive. One of the aspects to be taken into account, he said was that studies show the country's population will be over-aged within the next 10 or 15 years.

It will then be necessary for more younger people to come to Austria. Thus in the long run, he said the economic impact of E.U. enlargement would be favourable.

Similarly, from the political and security angle, he said the enlargement was advantageous because currently the Austrian border is the easternmost edge of the E.U. With the expansion, Austria will shift more to the centre of the E.U. rather than being on the border.

Mr. Mayer told The Hindu that the Austrian Government was seeking to promote greater economic cooperation with India especially in the areas of hydel power, railways, tourism, healthcare and information technology.

It was also trying to motivate Austrian companies to invest in India in a bid to diversify foreign economic relations.

But he said there were several hurdles in the way of closer economic cooperation. First, he conceded there is a perception that there is a great deal of red tape and that it is ``difficult'' to invest in India.

However, the success of companies like Swarovski is helping to project a more positive image.

Secondly, there is the problem of distance as 85 per cent of Austrian companies are in the small and medium sectors. For them, it is much easier to look towards European countries for investments.

Thirdly, the entry of countries formerly part of the erstwhile Austro-Hungarian empire, into the E.U. has generated interest in such nations with which Austria had close historical and cultural ties.

Finally, companies keen on investing in Asia have already made an entry into China which had liberalised earlier than India.

Even so, Mr. Mayer said there was considerable interest in India as an investment destination. The tourism industry is an area where Austrian companies are keen on entering, including in training as well as the hotel industry.

There is also expertise available to give a boost to tourism from Europe especially of older people interested in health tours as well as cultural, heritage and spirituality-oriented tours.

Hydel power is another sector where several Austrian companies are interested in collaboration and transfer of technology. Austria's own energy needs are met up to 75 per cent by hydel power.

Similarly, the country has expertise in setting up hospitals and healthcare centres. In the rail sector, there is interest in providing much-needed technology to the Indian Railways for maintenance and safety standards.

Mr. Mayer, who concluded a bilateral investment agreement during his visit, met representatives of the Commerce, Power, Health, Tourism and Railway Ministries.

Mr. Josef Mayer

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