Friday, March 22, 2019

Better growth from Tourism

Opinions on budget
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♦ Budget focused on 10 iconic sites
○ infrastructure
○ skill development
○ use of technology
○ private investment in branding and marketing

♦ 100 adarsh monuments
○ enhance visitor experience

♦ Initiatives that improve ease of living or transportation are likely to benefit tourism, so industry speaks well about such initiatives

Those with presence near iconic sites want infra to permit greater tourist inflows. Undoubtedly higher airport capacity will boost premium and budget sectors. Most want it done on a war-footing! Focus on excellence beyond infra was praised for its 'holistic approach'. Cox & King CEO say iconic sites development should create "tourism clusters" and offer "diversification of product offerings". MSME players see Mudra loan (Rs 3lakh cr) bringing in new investment and more jobs.

Many are happy to see a 'holistic' approach to transport and environment. For example, raising airport capacity by five times to 1B trips pa (NABH Nirman) is widely praised. Budget has primed balance sheet of AAI so it can raise funds from the market. Its revenue will be boosted by fast-growing, domestic air traffic (900 aircrafts ordered in last 3 years). Regional air connectivity under UDAN is creating demand in lower tier cities.

Railways and roads will undergo expansion and upgradation. Key railway initiatives include suburban rail in Mumbai and Bengaluru, safety first works, Wifi & CCTV in all stations and trains, and escalators in high use stations. Roads will get electronic tolls, service stops, safety first works (eg crash barriers in hilly areas) and emergency medical care. Sea cruise ship terminals will increase business, while river cruise and seaplanes will open up more and more opportunities.

Measures to improve Delhi's air quality were applauded. Amrut scheme for enhancing urban amenities was considered highly favourable to tourism, especially for smaller cities and towns. Tourism has huge potential and its concerns must be kept at the forefront. Others measures asked for:
▬ GST slab down to 18% for all hospitality
▬ infrastructure status for hospitality
▬ better digital and payments infrastructure

PRASAD (pilgrimage) scheme
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Previous budgets sanctioned development of 37 sites. Work is ongoing and not close to completion (due 11/2018). Parliament has called it conceptually flawed (see below).
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