Draft National Tourism Policy

Article Title: Draft National Tourism Policy

01-08-2023

Economy Current Affairs Analysis

Why is in news? Draft National Tourism Policy seeks to enhance contribution of tourism in Indian economy by making India a year-round tourist destination

The Ministry of Tourism has drafted a National Tourism Policy incorporating suggestions received from Central Ministries, State Governments/UT Administrations and Industry Stakeholders.

Objectives:

To enhance the contribution of tourism in Indian economy by increasing the visitation, stay and spend and making India a year-round tourist destination,

To create jobs and entrepreneurial opportunities in tourism sector and ensure supply of skilled work force,

To enhance the competitiveness of tourism sector and attract private sector investment,

To preserve and enhance the cultural and natural resources of the country,

To ensure sustainable, responsible and inclusive development of tourism in the country.

Initiatives taken by Government:

“Adopt a Heritage: Apni Dharohar, Apni Pehchaan” project - for developing tourism amenities at heritage/natural/tourist sites spread across India for making them tourist friendly, in a planned and phased manner.

The project aims to encourage companies from public sector, private sector, trusts, NGOs, individuals, and other stakeholders to become ‘Monument Mitras’ and take up the responsibility of developing and upgrading the basic and advanced tourist amenities at these sites as per their interest and viability in terms of a sustainable investment model under CSR and other funds.

In order to deliberate, ideate and devise strategies for promoting “Tourism in Mission Mode” and in line with the Government decision, the Ministry of Tourism organized a 2 days Chintan Shivir – on the theme of ‘Tourism in Mission Mode: Convergence and Public Private Partnership’.

The Ministry of Tourism has instituted a steering committee for increasing investments and public private participation in tourism and hospitality sector.

The guidelines for Swadesh Darshan2.0 envisage encouraging the States for opportunities for Private-Sector and Public-Private Partnerships.

PRASHAD Scheme provides for PPP mode in only operation and maintenance of the facilities created/to be created under the project.

Ministry of Tourism has launched the Travel for LiFE Initiative. Travel for LiFE aims to promote sustainable tourism in the country, through mindful and deliberate actions mobilized toward tourists and tourism businesses in the consumption of tourism resources.

In order to attract foreign investment in the tourism sector, 100% Foreign Direct Investment (FDI) is allowed under the automatic route in the tourism and hospitality industry in India, subject to applicable regulations and laws.

100% FDI is allowed in tourism construction projects, including the development of hotels, resorts and recreational facilities.

Highlights of the Draft National Tourism Policy:

It mentions granting industry status to the tourism sector, as well as granting infrastructure status to hotels, in an effort to attract investment.

Five key areas would be given significant focus in the next 10 years — green tourism, digital tourism, destination management, skilling the hospitality sector and supporting tourism-related to Micro, Small and Medium Enterprises (MSMEs).

The Mission will advocate appropriate taxation and subsidy policies to encourage investment in sustainable tourism activities and discourage unsustainable tourism.

The draft policy doesn’t deal with specific operational issues, but offers framework conditions to help the sector, especially in the wake of the pandemic.

The overall mission and vision are being laid out to improve the experience of tourists, foreign as well as local.