Gujarat leads in luring investment in tourism: Assocham study 20/08/2014

Gujarat leads in luring investment in tourism: Assocham study
20/08/2014 10:35
The apex industry body, Associated Chambers of Commerce and Industry of India (Assocham) said that Gujarat tops among Indian states in attracting investment in the tourism sector. However, the state's success in fetching investments is not matched by the rise in tourist numbers, despite the Amitabh Bachchan's ad campaign for Gujarat tourism. “Gujarat is followed by Maharashtra and Karnataka which are leading states attracting significant investments in India's hotels and tourism industry together accounting for about 61 per cent share,” noted a recent Assocham study. Further, Gujarat "has emerged on top with a lion's share of about 29 per cent amid 20 major states attracting combined investments worth over Rs one lakh crore in the sector as of financial year 2012-13," says the Assocham report. Of the over Rs 1 lakh crore that India's tourism and hotel sector attracted in 2012-13, Gujarat alone fetched outstanding investments worth over Rs 34,800 crore. However, Gujarat has not been as successful as other states in attracting tourists. The state is the ninth most sought after destination for domestic travellers, garnering about 2.4 per cent of the over 103 crore domestic tourist visiting different places in the country in 2012. The state has recorded a compounded annual growth rate (CAGR) of over 100 per cent and domestic tourist arrivals in Gujarat crossed 2.4 crore mark in 2012 from 1.1 crore in 2006. As for foreign tourists, the state ranks 15th in India as it attracted about 1.7 lakh travelers from abroad in 2012, a growth of about 5 per cent over 2011. The number of foreign tourists visiting the state in 2011 stood at 1.6 lakh. The Assocham study has suggested that the state government should provide clear land bank policies to further improve physical infrastructure in order to attract more private sector investors in Gujarat's hospitality sector. "There is tremendous scope to develop star-rated hotels across tier II, III towns in Gujarat to offer quality experience," says the study. Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Karnataka and Maharashtra are the top five states insofar as domestic tourist arrivals are concerned. Maharashtra, Tamil Nadu, Delhi, Uttar Pradesh and Rajasthan are the top five states attracting maximum foreign tourists.