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Rediff.com  » Business » Tax sop on cards to spur tourism

Tax sop on cards to spur tourism

By BS Regional Bureau in Ahmedabad
September 23, 2003 10:33 IST
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The Gujarat government on Monday announced its tourism policy that envisages private participation in tourism projects, introduction of tourism circuits, setting up of special entertainment zones and promoting beach tourism and event tourism, but refused to ease the prohibition policy.

The 'Tourism Policy 2003-2010' comes close on the heels of the new industrial policy announced on Sunday and ahead of the 'Global Investors' Summit.'

Despite recommendations from several quarters, including industries' associations, the government has decided against relaxing the prohibition policy, even selectively.

Minister of State for Industries Anil Patel, who also holds the tourism portfolio, said the state's prohibition policy has nothing to do with the tourism policy.

The roadmap

Event tourism like kite-flying, Navratri festival, Tarnetar fair and the like to be promoted

Nine beaches identified for development of beach tourism

Dinosaur theme park to be set up at Balasinor and Kutch

Privatisation of properties owned by TCGL Projects above Rs 50 crore to be approved by the Gujarat Industrial Promotion Board, special sops to be offered

Three circuits identified for promotion

"The state government does not believe that prohibition is a deterrent to the growth of tourism," he said.

The minister said through the new policy, the government was attempting to exploit the tourism potential to the maximum.

He said if private parties invest over Rs 50 crore (Rs 500 million) in any tourism project such as water cruises and entertainment cities, the state government will support the project by providing infrastructural facilities such as berths in ports, roads and bus services.

Patel said some companies have already begun discussing such big projects.

"We are also reforming the tax structure in the tourism sector," Patel said.

In a related decision, the government has sanctioned handing over of some of its properties to the private sector.

The Tourism Corporation of Gujarat Ltd has 21 properties. Of this, ten are to be privatised in the first phase.

"If keeping these properties doesn't make any financial sense and if they are not used effectively and profitably, then privatisation is the option," Patel said.

The ten properties -- mainly restaurants or hotels -- that are to be privatised in the first phase are at Tithal, Khuda in Bhavnagar, Chorwad, Valthan, Malwan, Nalsarovar, Dholavira, Shyamlaji, Limdi and Balaram.

He, however, said there are no plans to privatise TCGL. The government also proposes to promote beach tourism in nine areas -- Ahmedpur-Mandvi, Chorwad, Nana Laja (Kutch), Madhavpur, Shivrajpur, Tithal, Dumas, Ubhrat and Mangrol.

The government is looking for private participation in these projects too.

The government has also identified three road circuits, which are to be promoted in a big way. The north Gujarat circuit will cover Ahmedabad, Adalaj, Modhera, Rani Ki Vaav, Siddhpur, Rudrama, balaram and Ambaji.

The Saurashtra circuit will cover many religious places and pilgrim spots. The third circuit will cover the central and southern parts of the state, officials said.

TCGL managing director D Kishore Rao said several international fairs will be held to promote tourism.

"After implementing the new policy, the TCGL will become more of a facilitator than a participant in tourism activities," he said.

Rao said the outlay for tourism this year was five per cent lower than last year's Rs 21 crore (Rs 210 million).
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BS Regional Bureau in Ahmedabad
 

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