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Sops for infrastructure in tourism sector

By Our Special Correspondent

THIRUVANANTHAPURAM AUG. 7. The State Cabinet has approved Tourism Vision-2025, a policy document prepared by the Kerala Tourism Department, envisaging subsidies for infrastructure investments, including foreign direct investments, and pollution control, waste management and captive power generation.

Releasing the policy document, the Tourism Minister, K.V. Thomas, told a press conference that apart from the general investment subsidy of 10 per cent of the capital cost, subject to a maximum of Rs. 10 lakhs for tourism units, additional subsidy of 15 per cent, subject to a maximum of Rs. 5 lakhs, would be given to tourism ventures which invest in pollution control facilities, equipment for solid/liquid waste management, sanitation, and captive power generation.

He said that projects with capital investments exceeding Rs. 50 crores would be considered for a special incentive package except tax based incentives not below the benefits otherwise eligible on a case-to-case basis. Similarly, the Government would consider offering special package of incentives for channelising foreign direct investment in tourism and infrastructure projects.

The policy document lists 13 objectives to be achieved in the coming years, strategies to be adopted, and an action plan to be implemented in the short, medium and long term. Some of the proposals are oft repeated ones and are now in the process of being implemented in one form or other. But the document has set an ambitious target of increasing the rate of earnings from tourism by 10 per cent annually. It proposes to achieve an annual growth rate of seven per cent in foreign tourist arrivals and nine per cent in the growth of domestic tourists.

It also proposes to create employment opportunities for 10,000 persons every year. Another important target is to go in for innovative tourism products and promote at least one new product or destination every year.

Prof. Thomas said that Tourism Vision-2025 aims at developing Kerala into an upmarket, high quality tourist destination, which could be achieved through optimal utilisation of resources, while keeping intact the heritage and environment of the land. "We propose to make tourism the most important factor for socio- economic development of the State by aiming at higher productivity, income and employment generation, and alleviation of poverty,'' Prof. Thomas said.

The document aims at promoting and marketing Kerala Tourism products at national and international levels, positioning Kerala as a premier global destination, defining and endorsing the Government's role as a catalyst and facilitator for the growth of the sector. It proposes to conserve and preserve the art, culture, and heritage of the State, besides promoting sustainable eco-friendly tourism in the State on the basis of the carrying capacity of various destinations.

When his attention was drawn to the inexorable delays in executing tourism projects, Prof. Thomas said that the policy document envisaged the setting up of an apex inter-ministerial body with the Chief Minister as chairman, as members to discuss and decide inter-sectoral issues in development of tourism.

The action plan lists out the short, medium and long-term steps to be taken to boost the sector. This includes enforcement of legislations for approval of various tourism units, introduction of single window clearance system for tourism projects and establishing special tourism cells in financial institutions to expedite clearance of projects.

Prof. Thomas said that the action plan had also identified new markets to be explored and developed for promotion of Kerala tourism products. Asia and Gulf have been identified in the long-term, Europe, Japan and China would be given immediate attention.

Explaining the salient features of the policy document, the Tourism Secretary, T. Balakrishnan, said that it envisaged the promotion of Kerala as an eco-tourism destination. He said that of the Rs 50,000 crores of investments during the Tenth Plan period, a major chunk at around Rs. 10,000 crores was expected in the tourism sector. He said that Kerala Tourism was in the process of working out a strategy with Indian embassies to attract investments from Gulf countries. The Tourism Secretary said that this initiative was the outcome of a recent letter to the State Tourism Minister by the Ambassador of Kuwait expressing keen interest in investing his surplus funds of his country in tourism projects. .

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