According to sources in the tourism ministry, the government had consulted various industry leaders and studied similar boards functioning in other countries.
But after conducting a widespread exercise, the proposal of setting up a board, which would do almost the same tasks as government, did not find much acceptance among the stakeholders.
"The Department of Tourism is already undertaking every exercise which the board might do. As such, the idea which was floated quite some time back, has not moved any further," said a senior official in the ministry.
The official said idea of board, with members across the government and industry stakeholders, was floated with a view of take care of inter-sectoral policy coordination.
"It was thought that the Department of Tourism tended to concentrate largely on its role as a promoter of tourism and generator of foreign exchange earning and less on inter-sectoral affairs," the official said.
"But over years it has been found that the Department is fully capable of coordination with ministries of road and transport, shipping, civil aviation, different states and private players and so on," the official added, contending that a board was really not needed to do the same tasks.
The official said the tourism ministry has been more effective in getting the things done, especially after its recognition and inclusion among the infrastructure ministries.
"Now tourism is included in the infrastructure committee, which is headed by no less than the Prime Minister and we have been able to take up the issues with other ministries," he said.
During consultations, the government had sought views of Assocham, Ficci, PHDCCI, Hotel Association of India, Indian Association of Tour Operators, Federation of Hotel and Restaurant Association of India and Indian Tour Transporters Association.
The government had also studied similar Boards functioning in neighbourhood countries such as Sri Lanka, Singapore, Nepal and also UK.
However, not all the industry stakeholders think the setting up of a board was a bad idea. "We are still in favour of a board, but, a board with more teeth. Not like Department of Tourism which has no teeth," said Subhash Goyal, the president of IATO.
"A board can not effective unless it has teeth. To have that it should not only have members across the board, but also be headed by government officer no less than the Cabinet Secretary," IATO president said.