The Hindu : FICCI agenda for developing tourism

Online edition of India's National Newspaper
Friday, Dec 12, 2003

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Business

FICCI agenda for developing tourism

By Our Special Correspondent

A. C. Muthiah

CHENNAI DEC. 11. The Federation of Indian Chambers of Commerce and Industry (FICCI) has finalised a six-point agenda for recommending to the Government for development of the tourism sector in view of its employment potential and multiplier effect on the economy.

Addressing a press conference on the second day of a three-day conference on `South India — A Global Destinaion', organised by the FICCI, the outgoing President of the federation, A. C. Muthiah, said FICCI wanted tourism to be made a concurrent subject under the Constitution for "deepening the synergy between the Centre and the States" with an integrated national plan of action.

It wanted quick implementation of the announcement made by the Prime Minister, Atal Bihari Vajpayee, about grant of 18 new international destinations in India for ASEAN (Association of South East Asian Nations) tourist arrivals.

To strengthen the Prime Minister's vision of a Look East Policy, ASEAN citizens should be allowed to obtain `visa on arrival' on a reciprocal basis. This policy could be extended to other targeted countries later.

The FICCI President said the Government, which had allowed all private airlines to operate to Sri Lanka, should allow the private carriers to utilise unused traffic rights throughout the world, to improve the share of Indian carriers. "India's unutilised rights are nearly 75 per cent (of the country's total rights)", Mr. Muthiah said.

The federation supported the recommendation of the Naresh Chandra Committee that foreign direct investment (FDI) should be allowed only up to 49 per cent equity in the case of international participation in domestic aviation. "Even the U.S. does not allow more than 40 per cent voting rights to foreigners wanting to operate in the American aviation market and stipulates that the CEO should be a U.S.-born citizen," Mr. Muthiah observed.

The chamber, whose conference is being attended by policymakers from the southern States as also Gujarat and Uttaranchal, called for the setting up of a Southern Region Tourism Board, including representatives of the private sector and professionals, to promote the industry on the basis of Public-Private Partnership.

The federation also favoured amendment of the coastal zone regulations (CRZs) to allow recreation-related projects beyond 150 metres from the coast as done in some East Asian countries. "We will make a representation to the Environment Ministry," Mr. Muthiah said.

Out of the foreign tourists who visited India, 16.7 per cent visited the South and this percentage had been growing. "Our objective is to increase this share," he said. Non-resident Indians, who came to the country to visit their families, could be induced to undertake a tourist itinerary in any circuit of their preference, he added.

The conference today heard representatives of other States, besides Sri Lanka, outline their tourism policy and strategy, and experience in tapping the vast potential of health tourism based on Indian systems of medicine.

Mr. Muthiah said the memorandum of understanding (MoU) signed on Wednesday by the FICCI and the World Tourism Organisation (WTO) would help exchange information on investment opportunities, policy options and assistance in the promotion of tourism projects.

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