The Confederation of Indian Industry is lobbying for core sector status to tourism.
This, CII feels, will accelerate growth, translating into additional employment and revenue generation in the short term.
CII also commended the government of Gujarat for focusing on tourism in the state budget, and said a focused effort was required to upgrade infrastructure for the sector. According to a recent survey by the Government of India, tourism (directly or indirectly) generated employment for 52 persons for every Rs 10 lakh (Rs 1 million) invested.
The figure is based on the 1992-93 Consumer Price index, and is much higher than the rate of employment generated by most other economic sectors.
In India, the tourism sector has earned the third slot in terms of foreign exchange earnings after gems and jewellery and ready-made garments.
CII said the government should be more proactive and promote Gujarat's vast attractions such as its historical monuments, wildlife, fairs & festivals and pilgrimage centres.
It said the tourist inflow to the state would increase from 48.69 lakh (4.869 million) during April 2002 to January 2003 to one million in 2007 if plans drafted for the sector were implemented.
Noting that other states like Kerala and Goa were trying to woo Gujaratis, who are high-spending tourists, CII said Gujarat too should be promoted as a travel destination so that Gujaratis consider various locations within the state as the first preference for visit.
In a period when the world is facing political turmoil, CII said the time was right to promote domestic tourism.
A recent study showed the inflow of tourists to Gujarat had decreased over the last two years. The average inflow in 2003 was 509,000, as against 717,000 in 2001.
CII attributed the fall in tourist numbers to the state to a reduction in visits by Non-Resident Indians and foreign nationals, and also to the state's inability to tap domestic tourism.
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