Date:03/03/2006 URL: http://www.thehindubusinessline.com/2006/03/03/stories/2006030302470500.htm

Back A boost for domestic tourism

Tunia Cherian George

Mumbai , March 2

The tourism industry has welcomed the Budget proposals geared to promoting domestic tourism and improving access through the development of a network of highways and the completion of the Golden Quadrilateral by 07.

The proposal to develop 15 tourist circuits and 50 villages near tourist destinations would help improve infrastructure inside these regions, and provide an impetus for the development of more hotels.

`Include Agra, Aurangabad'

Mr Lalit Sheth, Chairman and Managing Director, said the enhanced Plan outlay of Rs 830 crore would enable more aggressive marketing of the country as a tourist destination.

Mr Sunil Gupta, Chief Operating Officer, India and South Asia Outbound Division, SOTC, has urged the inclusion of popular destinations such as Agra and Aurangabad in the initiative to develop 15 tourist sectors, given the lack of basic infrastructure at these centres. However, he writes off the proposal to develop 50 villages as a political statement on the part of the Government.

According to Mr Arup Sen, Executive Director, Cox & Kings (C&K), the enhanced allocation for tourism should be spent effectively. The Incredible India campaign should be moved forward.

`No direct takeaways'

Though the Budget does not have any specific proposals for the hospitality industry, the reduction of FBT on corporate travel and hospitality expenditure has brought some cheer to the sector.

Mr R. Venkatachalam, Director, Finance & Chief Financial Officer, the Leela group, said while the Budget on the whole was beneficial, there were no direct takeaways for the hotel industry. Importantly, the reduction in the FBT rate on travel and hospitality would encourage corporates to spend more under these heads.