Private sector participation in tourism stressed

Mysore, May 17: The urgent need to stimulate private sector participation to create standard tourist attractions in Karnataka, ensuring incremental gains within a short period, has been stressed in a report.

The study said Karnataka should undertake long term measures to address the constraints and exploit the untapped potential of the sector. Tourism encompassed a wide spectrum of products and concepts, including amusement, recreation, entertainment and leisure products spanning eco-tourism, rural tourism, business tourism, heritage tourism and others. While all these genres would admit private participation, attempts to develop these products through private sector participation have led to various issues, which when appropriately addressed, would help sustain private sector interest.

Though the Government had recognised the sector's potential by giving it industry status and providing a package of incentives, channelising private investments into the sector was the surest way of bringing in a quantum jump.

The report, titled 'A growth agenda for Karnataka tourism - New opportunities for investment in tourism infrastructure' and jointly prepared by the Federation of Indian Chamber of Commerce and Industry (FICCI) and Crisil, was released at the two-day Karnataka Expo 2006 here.

It said Karnataka should, as part of its tourism policy, clearly enunciate its framework and approach the private sector. It should be ensured that the project planning adequately reflected the objectives.

The report said it was also necessary to recognise different types of tourism products and address its unique requirements, provide adequate State support and incentives. Certain projects might have objectives that might interfere with the core commercial aspects, thus reducing private interest. In such cases, the State must balance by providing suitable incentives, gear the State machinery to support project implementation and catalyse growth.

The study suggested that the State Government should create a 'land bank', showcasing the properties available in the State. The land bank would comprise of lands not only in the possession of the Tourism Department, but also those belonging to Endowments and other departments having tourism potential, besides all heritage properties not covered under the Archaeological Survey of India.

It said the Union Tourism Ministry had identified six areas of active intervention in the National Tourism Policy. It would focus on five key areas of strategic intervention -- bringing in effective private sector investments into the tourism sector, addressing accommodation needs in the light of the developments envisaged, aggressively promoting the State towards creating the necessary brand positioning, providing access infrastructure and linkages critical to development.

UNI

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