The Hindu : Karnataka News : Increase in vehicle entry tax affects tourism sector

Online edition of India's National Newspaper
Tuesday, Oct 23, 2007
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Karnataka

Karnataka

Increase in vehicle entry tax affects tourism sector

Special Correspondent

For a 50-seater vehicle, it has been increased from Rs. 5,900 to Rs. 16,500

Government urged to withdraw steep tax hike
Tourists from Kerala, Tamil Nadu staying away

— PHOTO: M.A. SRRIAM

Uncertain future: With the increase in entry tax, the number of tourists and pilgrims visiting the Chamundeshwari temple in Mysore is likely to decrease.

MYSORE: Stakeholders in the tourism sector have made a strong plea for rescinding the increase in vehicle entry tax, which is reckoned to be killing the goose that lays the golden egg in Mysore and the rest of Karnataka.

Despite being upbeat about tourist arrivals for the Dasara celebrations that concluded on Sunday, the general consensus is that the figures could easily have been about 40 per cent higher had it not been for the 300 per cent increase in vehicle entry tax imposed by the State Government.

The entry tax for a 50-seater vehicle has been increased from Rs. 5,900 to Rs. 16,500 as a result of which groups from Kerala and Tamil Nadu who come in droves to Mysore during the holiday season beginning in October are staying away.

While there was a perceptible increase in the number of tourists during this year’s Dasara compared to last year as is evident from the number of visitors to the Chamundeshwari temple and the palace, the growth in tourism traffic is not in tune with the general buoyancy being witnessed in the industry. Both Chamundi Hills and the palace attracted more number of tourists during the 10-day festival period this year than in 2006. Nearly 90,000 tickets were sold for entry into the palace this year while 87,000 tickets were sold for entry into the palace during the 10-day period last year. This marginal increase has come about despite the 300 per cent increase in vehicle entry tax, the authorities say. Similarly, 3.5 lakh pilgrims visited the Chamundeshwari temple in the 10-day period this year compared to 2.9 lakh last year.

The increase in entry tax on tourist vehicles has not only affected tour operators but also potential tourists who now think twice before planning a visit to Mysore. The entry tax increase came into effect from April 1, 2007.After the hike in entry tax on tourist vehicles, Karnataka has become a costly proposition for tour operators and is the most expensive State in South India. Each visitor entering Karnataka in tourist vehicles have to pay Rs. 330 if they are travelling in ordinary buses and Rs. 660 if the arrive in luxury buses. In contrast, tourists visiting Kerala in ordinary buses pay Rs. 160 each. This increase has come at a time when the State was just turning the corner having realised its untapped tourism potential.

Tourism Secretary I.M. Vittala Murthy admitted during his recent visit to the city for Dasara that the increase had hit the tourism industry, particularly in places such as Mysore, which attracts a large number of visitors from Kerala and Tamil Nadu.

Mysore is rated among the top five tourist destination in the country according to a survey conducted by the Union Ministry of Tourism and the State Government. It is set to launch the Golden Chariot luxury train for niche international travellers to showcase its monuments and places of interest, but the steep entry tax may cripple the flow of domestic tourists.

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