POLICY

Following policies of different states , UTs and Government of India have been featured and the list is ever-growing.

 Education Policy

* Energy Policy and Renewable Energy Policy

* Environmental Governance

* Tourism Policy

* Taxation Policy and Development

* Poverty and Social Disparity

* Urban Policy and Community Development

* Finance, Banking & Monetary Policy

* Industrial Policy & MSME Development

* Strategic Relation and Security

Andaman and Nicobar island tourism policy

Andaman and Nicobar island tourism policy

GOVERNMENT OF INDIA MINISTRY OF TOURISM AND CULTURE DEPARTMENT OF TOURISM MARKET RESEARCH DIVISION Final Report On 20 YEAR PERSPECTIVE PLAN FOR SUSTAINABLE TOURISM DEVLOPMENT IN UNION TERRITORY OF CHANDIGARH March 2003 Submitted by India Tourism Development Corporation TLC Marketing Pvt. Ltd. Deloitte Touche Tohmatsu India Private Limited 20 year Perspective Tourism Master Plan for Chandigarh Contents for the 20 Year perspective Tourism Master Plan 1. Executive Summary 1 2. The approach a. Guidelines for developing 20 year perspective Master Plans as issued by the Department of Tourism, Government of India 6 b. Background of Consortium partners 11 i. ITDC ii. Deloitte Touche Tohmatsu iii. TLC Marketing Pvt Ltd c. Approach 15 d. Approach to Environmental Impact Assessment 19 3. Background on the State 21 a. History b. Physical features, Flora and Fauna c. Current infrastructure i. Access – Road, Rail, Air ii. Water & Sewage iii. Power – Electricity iv. Industrial Estates – list of major corporates d. Demographics versus other Northern States District Profiles e. Chandigarh Headquartered Corporate Houses 4. Current Tourism scenario in the State 38 a. Current Chandigarh Tourism Policy b. Inventory of Accommodation c. Current Tourism Statistics 1 20 year Perspective Tourism Master Plan for Chandigarh i. By city ii. Comparative with other Indian States – employment, project spends d. Taxes on Tourism activities e. Fairs & Festivals f. Roles of relevant bodies i. State Tourism Development ii. Urban Development & Town Planning iii. Industrial Development g. Tourism activities of contiguous States 5. Assessment of Tourism Attractions of the State 65 a. How other “City States” have developed tourism b. Inventory of attractions i. Versus criteria ii. By type of tourist and linkages c. Current State Tourism Policy versus National Tourism Policy d. Potential markets and market segments for the State e. Shortlisted projects f. Approach to Environmental Impact Assessments 6. Marketing State Tourism. Case studies of Kerala, Rajasthan and Uttaranchal 79 7. Implementation of shortlisted projects 90 a. Setting up a system for coordination of Departments b. Assessing the economic impact of tourism 2 20 year Perspective Tourism Master Plan for Chandigarh c. Setting up Police outposts d. Setting up a system for accreditisation of shops and transporters e. Creating a Tourist/ Cultural Centre f. Promoting traditional cuisine g. Horse race track & Club h. Amusement park i. Linking the sightseeing j. Conference Centre k. Adventure Tourism and Wildlife Tourism 8. Attracting the Private Sector investments in Tourism 126 9. Summary Tables 147 a. Prioritisation of projects b. Job creation c. Funding of projects d. Visitor numbers e. Economic impact 3 EXECUTIVE SUMMARY This 20 year perspective Tourism Master Plan for Chandigarh attempts to identify short, medium and long term tourism projects for the Union Territory of Chandigarh using the National Tourism Policy as a guideline. However, all existing and planned projects of Chandigarh Tourism have also been addressed. In these cases, thoughts that complement/ supplement the current thinking have also been listed. We have examined the success of several other “City States” and how they have positioned themselves. Very few, like the Vatican, have the benefit of historical attractions. Some like the Bahamas, Bermuda and Mauritius have natural attractions like beaches. Some traditional trading centers like Hong Kong, Singapore and Dubai have developed as financial hubs. In nearly all cases, however, city states have developed man made attractions with an emphasis on world class recreation and leisure. Gambling – Macau, Monaco & Sun City Horse Racing in Hong Kong & Dubai Sporting events – Singapore, Hong Kong, Dubai, Monaco and Sun City Entertainment events – in all the above, Seychelles etc. Interestingly, most do not rely on immediate neighbouring countries as source markets. Several suggested projects do not have any precedent in India. As such, projections of usage and hence revenues are difficult to make. However, these projects have been endorsed by knowledgeable individuals in the Travel & Tourism industry based on their personal experiences. The Plan makes some observations on current practice. Several specific actions and projects have been recommended. These have been divided into those projects to develop and sustain tourism infrastructure and those that generate visitors. These are summarized in the following pages. In all cases, the involvement of the private sector has been examined. The Plan shortlists the following projects Basic Tourism Infrastructure Projects 1. Setting up a system of coordination between Departments through a “Mission approach” on the lines of Rajasthan’s Rajiv Gandhi Mission on Tourism Development a. Coordination between Chandigarh Tourism/ Chandigarh Hotels/ Town Planning/ PWD (B&R)/ PHD/ Police/ Trade Associations/ NHAI/ Indian Railways b. The Mission should have a mission statement, a manageable number of objectives and specific activity milestones for effective review. 2. Assessing the Economic Impact of Tourism in Chandigarh. Tourism will not get the attention it deserves unless it can demonstrate the economic and social benefits it generates. a. We have suggested annual surveys and the use of multipliers to measure the impact of tourism investments and of tourist spendings 3. Tourism Police outposts. Safety and security are a major concern of travelers. a. We have suggested Tourism Police outposts be set up in the proposed “Tourist Centres” in Chandigarh. The list of locations can be expanded over the Plan period. 4. Accreditisation of Shops and transporters. These are two areas where most tourists feel most insecure in terms of being cheated. a. For shops, we have suggested accreditising shops that have price tagged items and a reasonable return/ refund policy. Shops will carry a Chandigarh Tourism plaque and be advertised in an official map. For Taxis/ auto rickshaws. Must be metered and carry tariff cards. These will be identified with a plaque 5. Cultural/ Tourism Information Centre. This should showcase Chandigarh and be a cross between Dilli Haat and The National Crafts Museum. This center should provide information and reservation capabilities for potential tourists to Chandigarh and neighbouring States. These will provide employment to artisans/ performing artists a. We recommend arts/ crafts, State cuisine and performing arts be showcased b. We recommend some permanent stalls backed by open spaces for stall for celebrating State festivals c. Incorporated into “Recreation & Leisure Centres” in Kishangarh 6. Promoting Traditional Cuisines. Chandigarh has eight neighbouring States each with a rich cultural tradition. We propose that food and cultural festivals be held on a regular basis. We further propose that the existing facility of Kalagram, which has held successful festivals in the past, be utilised. 7. Horse Race Track & Club. There is no good Horse Race track in North India. North India is also home to about 10 stud farms. Hotels in cities like Pune and Bangalore have their week end occupancies boosted by punters from major metros. The Race Club can have other facilities to attract a permanent membership. 8. Amusement park. The Rock Garden/ Sukhna Lake/ Golf Course area is already one hub of tourist activity. An area for an amusement park, for a Sports Complex and a Tourist Health Resort have already been ear-marked in the Chandigarh Master Plan. We propose the Amusement Park be marketed to families traveling Delhi- Shimla with young children to encourage an overnight break. 9. Linking the sightseeing. The distance between the Rock Garden and the area identified for the Amusement park is a long walk but a short auto-rickshaw ride. We propose a vintage narrow gauge railway be set up to link all the points in this Recreation & Entertainment area. 10. Conference Center to attract Business Travellers. Chandigarh Tourism has already identified a plot in Sector 31 next to the CII Regional HQ. We believe that this can cement Chandigarh as the commercial center of North India. 11. Developing the City Centre – Sector 17 – as a social and cultural hub. There is already a trend in this direction. We recommend a partnership between the Sector 17 shop owners and Chandigarh Tourism to develop a calendar of events. We also recommend a relaxation in Excise rules in terms of bar licence costs and hours of operation. 12. Adventure Tourism & Wildlife Tourism. We do not recommend any additional activity in this area other than the ongoing levels. 13. Attracting the Private Sector. We have recommended a package of incentives to attract the Private Sector to invest in tourism related projects in Chandigarh. In all visitor generating projects we have recommended roles for the private sector As a “City State”, Chandigarh does not have the scope – or the space - to develop new projects over a 20 year time span. There is no particular need either in terms of funds or manpower to spread the suggested projects. Guidelines of Dept. of Tourism for 20 year Perspective Tourism Master Plans 1. Year wise phasing of investments required having regard to resources available 2. Plan should indicate short term & long term plans, targets and ground realities. 3. Plan should indicate all activities by agency with timeframes 4. Assess the existing tourism scenario in the state/UT with respect to existing traffic levels and inventory of - Natural resources - Heritage & other socio-cultural assets - Quantitative/ demographic factors - Services & infrastructure available 5. Plan should review the status of existing development/ investment for the development of tourism in the region 6. List and evaluate existing potential tourist destinations and centers and categorise them on the basis of - inventory of attractions - infrastructure available - degree of popularity - volume of traffic flow 7. Plan should analyse and categorise existing destinations and centers as - stand alone - part of a circuit - niche attractions for special interests 8. Plan should assess the existing infrastructure levels at identified destinations/ centers in terms of - quality of roads/ transportation facilities - civic amenities - en route transit facilities - boarding and lodging facilities 9. Plan should assess traffic flow for assessment of infrastructure requirements based on - Past growth - Suggested links and integration - Future expected developments - Likely investments from State - Investment climate/ incentive for private sector 10. Plan should attempt indicative cost configuration of likely investment on infrastructure under different heads and prioritise investment needs over 20 years 11. Plan should identify existing as well as new tourism projects including - expansion/ augmentation, - upgradation of services/ facilities - Destinations & centers 12. Plan should undertake product conceptualization cum feasibility for identified projects covering - locational evaluation - schematic product planning - quantification of individual product parameters - assessment of investment levels - project viability 13. Action plan for implementation of identified projects along with development of infrastructure in conformity with - State/ Central policy objectives & guidelines - National development and funding agencies - WTO’s Bali declaration 14. Project wise potential for employment generation including for women 15. Projection of domestic and foreign tourist arrivals for each proposed tourist place 16. Prioritise schemes based on employment potential and tourist arrivals 17. Prepare inventory of existing accommodation including paying guest and proposed needs split by various providers including various State Govt depts 18. Each project to be scutinised and finalized with a view to suggesting State Tourism projects to foreign funding agencies 19. Explore sources of funding such as FIs, TFCI. - Suggest incentives for private sector 20. Suggest institutional machinery in the State to oversee/ supervise the development of Tourism infrastructure 21. Build in facilities for performance of local artistes, cultural troupes 22. Cultural complexes to be suggested with the financial help of the State Dept of culture 23. Handicraft shops to be suggested. These can be run by women 24. Include development of potential health resorts. 25. Plan should have an Executive summary 26. Plan should include attractive packages/ schemes to attract private sector investments 27. Environmental issues shouls be dealt with in sufficient detail and EIA made in respect of new projects 28. Plans should include - carrying capacities - instruments of spatial and land use planning - instruments for architectural controls - strategy for local community participation & protection of cultural identity - Awareness programmes for local 29. Measures for mitigating adverse environmental impact and rehabilitation 30. Strategy for privatisation of State and State Tourism Corp owned tourism related properties 20 year Perspective Tourism Master Plan THE CONSORTIUM We believe that 20-year Tourism Master Plans require detailed knowledge in several domains. To address this need we have formed a consortium of experts. The consortium comprises of India Tourism Development Corporation – ITDC – Consultancy Division with relevant past experience in Master Plans, Technical Consultancy and project execution. TLC Marketing Pvt.Ltd, a marketing consultancy empanelled by The World Tourism Organisation (WTO), Madrid for various aspects of Tourism Development. TLC Marketing will ensure a balanced tourism plan that is marketable to both developers and the Tourist industry Deloitte Touche Tohmatsu, an international firm of Chartered Accountants and consultants with a wide range of experience in perspective planning in various industries. Deloitte Touche Tohmatsu also have access to their global expertise in the area of Tourism Master Planning. RELEVANT EXPERIENCE India Tourism Development Corporation ITDC was established in 1966 with the objective of developing tourism infrastructure and promoting India as a tourism destination. ITDC has a Consultancy Division which has completed many projects. ITDC has the capability of conducting Techno-Economic feasibility studies, providing Engineering and Technical Services, Mangement Consultancy and Advisory services, consultancy for Adventure Tourism. Assignments already completed by ITDC include Feasibility Reports for hotel projects in Baroda, Calicut, Cochin, Kanpur, Kohlapur, Lucknow, Nagpur, Nainital, Pine, Rishikesh, Varanasi, Raipur, New Delhi, Calcutta, Bangalore and Agartala 20 year Perspective Tourism Master Plan Tourism Master Plans for Assam, Nagaland, Orissa, Pondicherry, Sikkim, Punjab and Tripura. Technical consultancy for multiple hotels, youth hostels, forest lodges and restaurants Special projects for Rail Yatri Niwas, Indian Railways Catering, College of Combat, Institute of Water Sports at Goa. Project consultancy/ Execution – 28 hotels, the IITTM in Gwalior. TLC Marketing Pvt Ltd. The Directors of TLC Marketing have been involved with Tourism Development for almost 30 years and have had exposure to Tourism Planning in Egypt, Mexico and India. This has been mainly from the project developer’s aspect and are familiar with the requirements of the parties that invest in Tourism Development. They are also familiar with all aspects of tourism including resorts, cruises, timeshare, charters, conferences etc. Some relevant projects undertaken by the directors of TLC Marketing include Study for the India Convention Promotion Bureau on promoting conferences of various sizes to India Assignment with The Planning Commission for Tourism Development Plans for Uttaranchal and Uttar Pradesh. This included the development of a “tourist train” concept Review of Hotel classification norms covering Heritage and Resort hotels for the Govt. of India, Department of Tourism Feasibility studies for business and leisure hotels at over 40 destinations all India. Entry strategy for a hotel company into India looking at mid level hotels. This involves studying business destinations across India Strategy for a chain of Ayurvedic Spas, initially in the North of India Entry strategy into Timeshare for both mid-market and Luxury Resorts Launch of an Outbound Adventure Tour Operator 20 year Perspective Tourism Master Plan Deloitte Touche Tohmatsu India Private Limited Deloitte Touche Tohmatsu believes that for achieving a client’s business objectives, a variety of knowledge and skills are required. Our national coverage and international experience allows access to professionals in the industry and other areas of specialisations. Our clients include government bodies, non-government organisations, public sector organisations, private companies and international agencies. Brief details of some of our assignments in the hospitality, tourism and entertainment sectors is set out below: International assignments in hospitality and the tourism sector are detailed below: • Privatisation of Hungary Hotels, which comprises some 45 hotels and over 250 restaurants, in association with the Swiss Bank Corporation and Cazenove & Co. Our UK offices worked with our Budapest office on this extensive assignment. • Business valuation of Astir Hotel Company. We assisted the National Bank of Greece on the proposed sales as part of the Government’s privatisation programme. • Advised the public enterprises reform and divestiture secretariat of the Ministry of Finance, Government of Uganda, on the divestiture of Government owned hotels. • Valuation of four state-owned hotels in Morocco prior to their intended privatisation and sale for the Government of Morocco. In conjunction with the Deloitte & Touche Corporate Finance Group, investment memoranda were subsequently prepared to assist in the privatisation process. Indian assignments in Hospitality and Tourism Sector • Strategic advice to Quality Inns Private Limited. • Business plan for a holiday resort based in Kerala. This is under implementation. • Advisory services provided to an international chain of hotels • Business advisory services for Resort Condominiums International • Business advisory services for Singapore based company, for setting up operations in India in the area of serviced apartments and estate development. 20 year Perspective Tourism Master Plan • Business valuation and due diligence review for Landbase India Limited, • Business advisory services for The Radisson Hotel. • Entry strategy, valuation, negotiations and joint venture identification for Keystone and Venkys. • Trade survey for travel agents and tour operators for a large multinational company. • Review of project parameters and returns compiled for the airport expansion planned for Chennai by the Airports Authority of India. • Economic Feasibility study for setting up a permanent Trade Fair Venue, Madras International Exposition Limited, under the aegis of Federation of Indian Export Organisations (FIEO). Privatisation/ Disinvestment experience • Bharat Heavy Plates & Vessels Ltd., Visakhapatnam • RBL Limited, Calcutta • Tractors Corporation Limited • Bharat Goldmines Limited • Lamps Division of HMT Limited • Paradeep Phosphates Limited Ongoing disinvestments assignments include • IDCOL Cement Limited • The Fertiliser and Chemicals Travancore Limited • Instrumentation Limited • Braithewaite & Co. Limited • Bharat Heavy Plate limited 20 year Perspective Tourism Master Plan APPROACH Our approach is as follows 1. Review existing Tourism Policy a. This is reviewed in conjunction with stated National Tourism Policy as State Tourism activities should be in synch with National Policy b. Thisis also reviewed in terms of “Best Practice” of other Indian States and some Internationally successful players. 2. Validate Proposed projects a. Plans still to be implemented were reviewed to validate their broad feasibility 3. Suggest new Tourism Products a. This is done with costs, revenues, timelines and responsibilities. b. A broad Economic Impact assessment is made for each suggested product for both primary and secondary effects. Objective Our objective is to develop 20-year Perspective Tourism Master Plans that encourage sustainable tourism by achieving a balance between the growth of tourism on one hand and the impact on natural, heritage and cultural resources on the other. Criteria The Critical Criteria would be that the Plan should be viable. In other words, it should be attractive and marketable to all agencies involved – The traveler, the Travel industry, State and Government agencies, Financial Institutions, Tourism project developers and last but not least to the local population. The Plan will Clearly indicate short term and long term projects and targets Identify agencies involved and the actions required to be taken by each 20 year Perspective Tourism Master Plan Ensure that each action will have a time frame and an indicative cost Ensure each project will also indicate possible developers and possible sources of funding. Financial structuring arrangements, where relevant will also be indicated. Endeavour to involve the private sector in the development of the plans. This will ensure a buy-in to the finished product. Be based on secondary data – published data, supplied by the State and information obtained in discussions with informed individuals. METHODOLOGY Conduct Inventories Identify existing and potential - attractions - Infrastructure - Access - Environmental impact - Human factors Identify Specific projects Develop balanced Tourist products around each identified attraction Detailed Project analysis Identify each element, the possible developers, sources of funds, incentives etc Final Recommendations Shortlist projects, prioritise over 20 years. - Tourist projections - Employment and other economic benefits Identifying the attractions – the reasons for visiting. 1. The first step would be to make an inventory of all possible visitor attractions both current and potential. These would be studied under a. Long stay – natural and activity resorts such as hill/ beach/ health & fitness/ sports/ wildlife/ shopping and other activities 20 year Perspective Tourism Master Plan b. Short Stay destination – Business visitors, conferences, weekend stays, pilgrimage c. Short stay itinerary – where the attraction is part of an itinerary and dependent on other links 2. Each attraction will be assessed for “Carrying capacity” using absolute numbers as well as indices such as Tourists/ sq.km, Tourists/ 1000 population. This assessment will use international benchmarks and Best Practices. 3. The Environmental sensitivities will be addressed by a strategy to measure the impact on a. Air quality b. Water and water bodies c. Nature, both flora and fauna d. And on the attraction itself. 4. Based on the above, an assessment of the present and future needs of infrastructural services will be undertaken to cover a. Water b. Electricity c. Sewage and waste disposal d. Communications 5. Based on the potential markets for visiting the attraction, an assessment of the present and future requirements for access will be identified by a. Road b. Rail c. Air d. Water transport 6. There are Human Factors that will also be addressed. These will cover a. Employment b. Inflationary impact c. Cultural impact d. Alienation of locals/ Displacement 20 year Perspective Tourism Master Plan Identifying and Conceptualising Specific Tourism Products Having assessed the attractions available and the broad feasibility of each, the Plan will e develop a balanced Tourist product around each attraction. The Tourist product consists of the following 1. The attraction – the reason for the visit 2. Accommodation – requirements at each level a. Propose incentives for balanced development 3. Recreational facilities – to supplement the attraction. Eg. a hill resort could have rock climbing, paragliding, river & lake fishing, golf, entertainment and shopping 4. Local transportation a. Airport/ station transfers, shuttles, city sightseeing, public transportation 5. Information a. Signage, guides, brochures, photo ops 6. Wayside amenities a. Rest stops, service stations 7. Safety & Security a. Accreditisation of shops etc b. Tourism police Detailed Analysis and Final Recommendations After identifying the Tourism Products to be developed, the Plan will prioritise them over the 20-year perspective, each project will be analysed to detail The key agencies/ organizations involved in developing the product The investment required Identify possible investors and sources of funds and the processes to access these Possible incentives for the development Identify environmentally threatened places and buildings for restoration. Projection of tourist numbers – domestic and international Employment potential – occupations and income levels Other economic, social and cultural benefits Suggestions on marketing the products Environmental Impact Assessment Studies Environmental Impact Assessment (EIA) studies are complex exercises. They are also dependent on the specific projects. For example, projects next to water bodies would require a much deeper assessment of impact on water than other projects that would confine the study to the impact on ground water resources. In the Technical Bid for this project, the Consortium had clearly stated that we are not competent to undertake EIA and would not include them in the final report. However, we are listing out the essential aspects of EIAs. Each attribute must be monitored on a regular basis. Frequency of monitoring may vary from daily for some air samples to annually for soil characteristics. EIAs are best undertaken by specialist organizations like TERI, TARA etc. Attribute Parameters Ambient air quality SPM, RPM, SO2, NO2, CO, CO2, HC etc. Usually 24 hour samples twice a week. Meteorology Surface wind speed and direction, temperatures, relative humidity, rainfall Water quality Physical, Chemical and bacteriological parameters of surface and ground water Ecology Existing flora and fauna. For environmentally sensitive projects, inventory and state of health Noise levels Noise levels in DB(A) Light Lighting levels and impact on fauna, insects Soil Characteristics Parameters relating to agriculture and afforestation potential Land use Trends in land use change for different categories Socio Economic aspects Socio-economic characteristics, labour force characteristics, population statistics and existing amenities, current inflation Geology and mining Geological history, minerals details Hydrology Drainage area and pattern, nature of streams, acquifier characteristics of the area 20 year Perspective Tourism Master Plan for Chandigarh HISTORY India attained Independence in 1947; but in the process the territory of British India was partitioned to form India and Pakistan. The large and prosperous Province of Punjab, was divided and Lahore, its capital, fell within the borders of Pakistan, leaving Indian Punjab without a capital. Those who had been compelled to migrate to India keenly felt the loss of Lahore, a city much loved by its inhabitants. Though there was a temporary secretariat at Shimla in Himachal Pradesh, the political leadership decided on the construction of a modern and accessible capital. In March 1948, the Government of Punjab in consultation with the Government of India approved a 114.59 sq. km tract of land at the foot of the Shivalik Hills in Ropar district as the site of the new capital. The city was named after the Mother Goddess Chandi, (Chandi - Goddess of Power + garh - fortress). The temple of the Goddess is on Chandigarh-Kalka Road. The temple is known by the name of Chandi Mandir. Prior to the construction of Chandigarh, the present site was a typical rural tract, with a rainfed subsistence agricultural economy. It was dotted with 24 village settlements, surrounded by cultivated land parcelled into consolidated irregular, small fields. Each settlement had a number of mango groves remnants of which are still visible in parts of the city. There were banyan or pipal trees within the settlements or near village ponds. The majority of houses were kutcha or partially pucca. Among the physical features, the choes, with their broad, shallow, and dry sandy beds, constituted an important element of landscape. These represented undulations in an otherwise level topography. Hills and mountains provided a panoramic background. The new city was needed not only to serve as a capital but also to resettle thousands of refugees who had been uprooted from West Punjab. India’s first Prime Minister, Jawaharlal Nehru enthusiastically supported the project and took sustained interest in its 20 year Perspective Tourism Master Plan for Chandigarh execution. When he visited the project on April 2, 1952, he declared: “Let this be a new town symbolic of the freedom of India, unfettered by the traditions of the past, an expression of the nation’s faith in the future.... The new capital of Punjab will be christened as Chandigarh-a name symbolic of the valiant spirit of the Punjabis. Chandigarh is rightly associated with the name of Goddess Chandi — Shakti, or power.” The responsibility for the design was given to the French architect Le Corbusier or the Crow. With the help of his cousin Pierre Jeanneret, and that of the English couple Maxwell Fry and Jane Drew (alongwith a number of Indian architects prominent amongst them Chief planner Narinder S. Lamba & Chief Engineer J.C. Verma) Chandigarh, the present capital, came into existence at the foothills of the Shivaliks. Profile of People It was built in 1953 and serves as the capital of two states, i.e. Punjab and Haryana. It is administered by the Central Government and is hence classified as an Union Territory. Since 1986 there has been much talk about officially handling it to Punjab on the basis of demography. The issue however continues to be a matter of discussion with many political disputes. Chandigarh had to be a city of migrants as it was built on the land acquired and cleared of existing settlements. One of its objectives was to rehabilitate persons displaced from Pakistan in 1947. Early settlers in the city were government officials transferred from Shimla, the temporary capital of Punjab after partition and displaced persons from Pakistan in search of a new home. According to 1991 census data, around two-third of the city's population were migrants, the remaining one-third were locally born. About one-third of the migrants hail from Punjab, Uttar Pradesh comes next, having contributed one-fifth of them. Haryana, Himachal Pradesh and Delhi are other important contributors of migrants. The city has 20 year Perspective Tourism Master Plan for Chandigarh attracted migrants from distant states, such as Bihar, Tamil Nadu, West Bengal and Maharashtra. The number of migrants from Nepal is also considerable. Over one-half of migrants to Chandigarh came from other urban places; the rest had a rural base. An urban origin was more typical of migrants from nearby states, such as Punjab, Haryana, Delhi, and Jammu and Kashmir. Migrants from relatively distant states, such as Uttar Pradesh, Bihar, and Tamil Nadu, mostly had a rural origin. According 1991 census the Pakistan-born displaced persons reduced to about 4% of all in-migrants. In the early sixties, they accounted for nearly 40% of the total population. PHYSICAL FEATURES Location Chandigarh is located in the Northern part of India and bound by two states, Chandigarh has Punjab to its north and west and Haryana to its south and east. Chandigarh lies at 30o 44'N latitude, 76o 53"E longitude. 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Map 20 year Perspective Tourism Master Plan for Chandigarh ROAD MAP Road Transportation The Union Territory of Chandigarh is well served with by an excellent network of roads. The National Highway 21 ( Ambala – Simla) and 22 ( Chandigarh – Manali) link Chandigarh to rest of the country Buses of seven State Road Corporations connect Chandigarh with many cities and towns of neighboring states. The important cities that are connected by buses with Chandigarh are Delhi, Dehradoon, Simla, Manali, Jammu and major Towns of Punjab and Haryana. 20 year Perspective Tourism Master Plan for Chandigarh National Highway Development Project – Golden Quadrilateral & North South East West Corridors Note: Red Line: North South East West Corridors Blue Line: Golden Quadrilateral 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Rail Network : Rail Transportation Chandigarh is well connected on the rail network. The main railway routes passing through Haryana are: Kalka-Delhi, Chandigarh-Delhi, Kalka-Amritsar, Kalka-Jodhpur,Kalka-Hawrah,Amritsar-Hawrah, Kalka- Sir Ganganagar (Rajasthan). 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Air Network: Air Transportation Chandigarh Airport is 12 kms. from City Centre, Indian Airlines and Jet Airways connect Chandigarh with Delhi, Leh and Amritsar. Jet has daily flights Delhi – Chandigarh – Delhi. Indian Airlines has a weekly flight Leh – Chandigarh – Leh. 20 year Perspective Tourism Master Plan for Chandigarh Physical Features The geographical area of the U.T. Chandigarh is 114 sq. km. and another 25.42 sq. km. of the hilly area, which has now been declared as 'Sukhna Wildlife Sanctuary' was acquired for soil conservation works. Chandigarh lies at 280 feet above sea level, with an average altitude of 362m (m.s.l.). The location of Chandigarh is unique as it lies in the foot hill region and is also adjacent to the plains of north India. As such it contains the vegetation of the foot hills and the north Indian plains.Chandigarh has 27 villages in its jurisdiction and two satellite towns, Sahibzada Ajit Singh Nagar, conveniently shortened to SAS Nagar, now Mohali, in the Punjab territory and Panchkula in the Haryana territory. Climate Four seasons are noticeable as (i) the rainy season (late-June to mid-September); (ii) the post monsoon or transition season (mid September to mid-November); (iii) the winter of cold season (mid November to mid-March) and (iv) summer or hot season (mid-March to Mid-June). Southwest monsoons commence in late June and usually continue up to mid-September when there are high intensity showers and the weather is hot and humid. May and June are the hottest months of the year with mean daily maximum temperature being about 40oC and mean daily minimum temperature being about 25oC.January is the coldest month with a mean maximum being around 24oC and a mean minimum being around 1.8oC. Fauna In the small and large water bodies there are about a dozen types of fishes, of which Mahseer , Thail and Rohu are more well known. The common frog is Rana tigrina (Indian Tiger Frog) but the other ones are Indian Rice Frog and Indian Burrowing Frog. Two types of tortoise are found. Three four types of lizards are found in buildings, lawns, hedges, etc. and one of these attracts the attention by its brilliant vermilion colour during mating season. Snakes are of quite a many types as Russels Viper, Cobra, Blind Snake, Indian Python, Sand Cobra, Rat Snake etc. 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh has numerous types and the permanent population of birds, which may consist of over 100 different kinds. There are also migratory birds visiting during winter from as far off a region as Siberia. It is estimated that about 100 to 200 types of birds primarily visit Sukhna Lake. The number of migratory birds varies from year to year. The common mammals are Grey Musk, Shrew Monkey, Langur, Flying Fox, Tickellis Bat, Stripped Squirrel, Indian Rat, Common Rat, House Mouse, Porcupine, Indian Hare, Common Mongoose, Stripped Hyena, Jackal, Indian Fox, Nilgai, Blackbuck and Chital. Flora The flora of Chandigarh area is in fact very rich, existence of 860 species of flowering plants in Chandigarh and its neighborhood. This excludes the ornamentals species whose number is anybody's guess because amongst the residents of Chandigarh and neighboring areas garden culture and love for ornamental herbs and shrubs is fast growing. Chandigarh region is home to number of plant species with Medicinal importance. Areas like Shivalik Reserve Forests, Sukhna Catchment area, Rock Garden, Rose Garden, adjoining villages, are among the various places where different kinds of Medicinal plants and few to endangered species of the same can be found. The most fascinating feature of the City's landscaping is perhaps the Tree Plantation along avenues, open spaces, green belts and around building complexes. The total forest cover in Chandigarh is 32.42 sq. km., which forms 23.5% of the total area. The green spaces like Parks, Gardens, Green belts, Leisure valley and Road avenues etc. are in addition to the forest cover of 23.5 %. Thus the green cover in the city is more than 33 % with 26 types of flowering trees and 33 types of evergreen trees in Chandigarh. 20 year Perspective Tourism Master Plan for Chandigarh DEMOGRAPHIC INDICATORS Unit Year Haryana Himachal Jammu & Madhya Punjab Rajasthan Uttar Delhi Chandi All India Pradesh Kashmir Pardesh Pradesh garh Sq.Km. 1982 44212 55673 222236 443446 50362 342239 294411 1483 114 3287263 Share in India Percent 1982 1.34 1.69 6.76 13.49 1.53 10.41 8.96 0.05 0 100 Population Million 1991 16.46 5.17 7.72 66.18 20.28 44 139.11 9.42 0.64 846.3 Share in India Percent 1991 1.94 0.61 0.91 7.82 2.4 5.2 16.44 1.11 0.08 100 Population Density Per sq.km. 1991 372 93.0 76.0 149.0 403.0 129.0 473.0 6352.0 5632.0 274.0 Avg Annual Growth in Percent 1981-91 2.42 1.89 2.54 2.38 1.89 2.5 2.27 4.15 3.54 2.14 Population (1981-91) Population (Projection) Million 2001 20.1 6.8 10.1 81.2 23.8 54.5 174.3 14.4 0.8 1012.4 Urban Population (Projection) Million 2001 27.5 - - 26.9 31.9 25.4 22.7 - - 28.8 Sex Ratio Females/ 1991 865 976 923 931 882 910 879 827 790 927 1000males Urbanisation Ratio Percent 1991 24.6 8.7 25.5 23.2 29.5 23.0 19.8 90.0 89.7 27.0 Urban Density Per sq.km. 1991 5309 2114 3132 6054 4997 2238 4364 14313 8433 4092 Death Rate Per '000 1996 8.1 8 - 11.1 7.5 8.9 10.2 6.05 4.1 9 Live Birth Rate Per '000 1996 28.2 23 - 32.4 23.5 32.3 34 24.6 16.9 27.5 Work Participation Rate Percent 1991 31 42.83 NA 42.82 30.88 38.87 32.20 31.64 34.94 37.46 Male Percent 1991 48.51 50.64 NA 52.26 54.22 49.30 49.68 51.72 54.34 51.55 Female Percent 1911 10.76 34.81 NA 32.68 4.40 27.40 12.32 7.36 10.39 22.25 Source: PHD Chambers of Commerce. 20 year Perspective Tourism Master Plan for Chandigarh MACRO ECONOMIC INDICATORS Unit Year Haryana Himachal Jammu & Madhya Punjab Rajasthan Uttar Delhi All India Pradesh Kashmir Pardesh Pradesh Net State Domestic Product (NSDP) at Factor Cost*: - At current prices Rs. Million 1998-89 383990 49310 58120 610187.8 342900 **586500 1527260 365040 8755940 - At 1980-81 prices Rs. Million 1997-98 75450 $14,190 #17540 147480 101420 @116480 273650 *75740 323820 - At 1993-94 prices Rs. Million 1998-99 254090 NA NA NA NA **379720 971390 251650 NA NSDP Growth 1980-81 prices Percent 1997-98 1.1 NA NA 3.1 2 @0.4 2.2 3.3 87.3 Gross State Domestric Product Rs. Million 1997-98 374270 65040 72930 708320 503580 678050 1299770 445100 NA Per Capita Income at 1993-94 Rs. 1998-99 13084 8864 6658 7350 15504 7694 5890 19091 9739 Prices* 2.00 Sectoral Shares: - Agriculture Percent 1997-98 39 27.6 43 41.4 44 **34.2 37 1 31 - Industry Percent 1997-98 21 32.3 8 26.3 15 **24.088 20 83 28 - Services Percent 1997-98 40 40.1 49 32.3 41 **41.72 43 16 41 Sectoral Growth Rates: - Agriculture Percent 1995-96 -6 9 4 -2 0 -6 2 -40 -1 - Forestry & Logging Percent 1995-96 7 10 5 -12 1 2 -25 - -1 - Fishing Percent 1995-96 16 10 14 15 8 -12 6 3 5 - Mining & Quarrying Percent 1995-96 1 14 10 5 16 -18 1 -58 7 - Manufacturing Percent 1995-96 9 13 3 11 10 6 4 13 14 Per Capita Consumption Rs. 1995 5127 4347 7080 3442 5750 4503 3852 NA NA Expenditure * Note: Owing 10 differences in source material used, figures for different States are not strictly comparable. $: 1995-96 #: 1996-97 @: 1998-99 **: 1999-2000 Source: PHD Chambers of Commerce. 20 year Perspective Tourism Master Plan for Chandigarh MINIMUM MONTHLY WAGES OF WORKMEN Haryana Himachal Jammu & Madhya Punjab Rajasthan Uttar Delhi Pradesh Kashmir Pardesh Pradesh Chandigarh With effect from Jul-00 Jan-99 Mar-93 Mar-00 Nov.99 Feb-00 Jan-96 UNSKILLED 1914.86 1530 NA 825 1796.5 1560 1920 2419 1350 SEMI UNSKILLED A 1964.86 1695 NA 928 1941.55 928 2220 2585 1495 SEMI UNSKILLED B 1989.86 NA NA NA 1875.45 NA NA NA NA SKILLED A 2039.86 1950 NA 1032 2104.55 1032 2660 2843 1657 SKILLED B 2064.86 NA NA NA 1983.45 NA NA NA NA HIGHLY SKILLED 2114.86 NA NA NA NA NA NA NA NA EDUCATIONAL FACILITIES SCENARIO Recognised Educational Institutions in Northern Region (1998 - 99) State University Professional Colleges for High Middle / Sr.Basic Primary/Jr. * Education general Education School/Jr. School Basic College School HARYANA 5.00 45.00 169.00 3785.00 1788.00 10269.00 HIMACHAL PRADESH 3.00 6.00 557.00 1525.00 1189.00 7732.00 JAMMU & KASHMIR 3.00 12.00 38.00 1351.00 3104.00 10483.00 MADHYA PRADESH 17.00 70.00 413.00 8341.00 21108.00 86858.00 PUNJAB 5.00 64.00 193.00 3325.00 2527.00 12633.00 RAJASTHAN 10.00 70.00 267.00 5633.00 14807.00 35077.00 UTTAR PRADESH 28.00 174.00 676.00 8339.00 20675.00 94476.00 DELHI 11.00 24.00 64.00 1459.00 601.00 2676.00 CHANDIGARH 2.00 7.00 12.00 107.00 34.00 48.00 NORTHERN REGION 84.00 472.00 2389.00 33865.00 65833.00 260252.00 % TO ALL INDIA 35.44 22.17 31.88 30.12 34.62 41.52 INDIA 237.00 2129.00 7494.00 112438.00 190166.00 626737.00 * Includes Deemed Universities and Institutes off National Importance Source: PHD Chambers of Commerce. 20 year Perspective Tourism Master Plan for Chandigarh WATER SUPPLY Items Unit Period 1990-91 1998-99 1999-2K 2000 - 01 1 2 3 4 5 6 No. of Water Works Nos. NA 5 5 5 (Cums.) No. of Metered Connection Nos. 74892 82184 84294 120000 No. of Un-metered Nos. 9360 23464 23656 20241 Connection WATER CONSUMPTION (A) Domestic Kiloliters 67933 5227262 5334897 5943761 (B) Commercial / Industrial Kiloliters 7992 1833205 1881295 4940444 Per Capita Consumption Kiloliters 97 70 67 95 20 year Perspective Tourism Master Plan for Chandigarh POWER Items Unit Period 1990-91 1998-99 1999-2K 2000 - 01 1 2 3 4 5 6 Electricity Consumed Lakh KWH 5240.80 8401.89 8491.04 8715.36 Per capita Consumption KWH 816 988 964 955 Agricultural Consumption Lakh KWH 12.71 25.58 26.59 23.02 Industrial Consumption Lakh KWH 2005.16 1792.34 1865.46 1916.35 20 year Perspective Tourism Master Plan for Chandigarh POPULATION DATA 2001 - CENSUS (P) Population Total Rural Urban Population as per 2001 Persons 900914 92118 808796 Census Males 508224 56837 451387 Females 392690 35281 357409 Decennial Population Growth Absolute 258899 25932 232967 1991 - 2001 %age +40.33 +39.18 +40.46 Density of Population Sex PerSq.Kms 7903 2658 10194 Ratio No.of females per 1000 773 621 792 Males Population of 0-6 years* (I) Absolute 109293 14007 95286 Persons Males 59238 7562 51676 Females 50055 6445 43610 (II) Percentage of Total 12.13 15.21 11.78 Population Persons Males 11.66 13.30 11.45 Females 12.75 18.27 12.20 Literacy : (I) Absolute 647208 59547 587661 Persons Males 384563 40178 344385 Females 262645 19369 243276 (II) Literacy Rate 81.76 76.23 82.36 Persons Males 85.65 81.54 86.16 Females 76.65 67.17 77.53 * 6 years means completed 6 years as on 01.03.2001 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Corporates Name of the Organisation State Amrit Banaspati Co. Ltd. Chandigarh Bank of Punjab Limited Chandigarh Bhushan Industires Limited Chandigarh Bhushan Steel & Strips Ltd Chandigarh Chandigarh Distillers & Bottlers Ltd. Chandigarh Chandigarh Industrial & Tourism Development Corporation Chandigarh Control & Switch Gear Company Ltd. Chandigarh Dhillon Kool Drinks & Beverages Chandigarh Golden Laminates Limited Chandigarh Gorz-Beckert Asia Ltd Chandigarh Guru Nanak Paper Mills Ltd. Chandigarh IPF - Vikram India Ltd. Chandigarh Indian Acrylics Limited Chandigarh Indo - Swift Limited Chandigarh Industrial Cables India Limited Chandigarh JC Coach Builders Limited Chandigarh Kamla Dials & Devices Ltd. Chandigarh Khandelia Oil & General Limited Chandigarh Metro Expoters Limited Chandigarh Modern Steel Limited Chandigarh Mohan Meaken Limited Mohangram (Chandigarh) Munak Chemicals Limited Chandigarh PCP International Ltd. Chandigarh Punjab Alkalies & Chemicals Ltd Chandigarh Punjab Chemicals & Pharmaceuticals Ltd Chandigarh Punjab State Civil Supplies Corpn. Ltd Chandigarh The Punjab State Co-oop Milk Producer's Federations Ltd Chandigarh Rana Polycot Limited Chandigarh Shivalik Agro Poly Product Limited Chandigarh Singhania & Co. Chandigarh Surya Medicare Limited Chandigarh Variendera Agro Chemicals Limited Chandigarh Winsome Textiles Industries Ltd Chandigarh POPULATION DATA 2001 - CENSUS (P) Population Total Rural Urban Population as per 2001 900914 92118 808796 Census Persons Males 508224 56837 451387 Females 392690 35281 357409 Decennial Population 258899 25932 232967 Growth 1991 - 2001 Absolute %age +40.33 +39.18 +40.46 Density of Population PerSq.Kms 7903 2658 10194 Sex Ratio No.of females 773 621 792 per 1000 Males Population of 0-6 years* (I) Absolute 109293 14007 95286 Persons Males 59238 7562 51676 Females 50055 6445 43610 (II) Percentage of 12.13 15.21 11.78 Total Population Persons Males 11.66 13.30 11.45 Females 12.75 18.27 12.20 Literacy : (I) Absolute 647208 59547 587661 Persons Males 384563 40178 344385 Females 262645 19369 243276 (II) Literacy Rate 81.76 76.23 82.36 Persons Males 85.65 81.54 86.16 Females 76.65 67.17 77.53 * 6 years means completed 6 years as on 01.03.2001 Name of the Organisation State Amrit Banaspati Co. Ltd. Chandigarh Bank of Punjab Limited Chandigarh Bhushan Industires Limited Chandigarh Bhushan Steel & Strips Ltd Chandigarh Chandigarh Distillers & Bottlers Ltd. Chandigarh Chandigarh Industrial & Tourism Development Corporation Chandigarh Control & Switch Gear Company Ltd. Chandigarh Dhillon Kool Drinks & Beverages Chandigarh Golden Laminates Limited Chandigarh Gorz-Beckert Asia Ltd Chandigarh Guru Nanak Paper Mills Ltd. Chandigarh IPF - Vikram India Ltd. Chandigarh Indian Acrylics Limited Chandigarh Indo - Swift Limited Chandigarh Industrial Cables India Limited Chandigarh JC Coach Builders Limited Chandigarh Kamla Dials & Devices Ltd. Chandigarh Khandelia Oil & General Limited Chandigarh Metro Expoters Limited Chandigarh Modern Steel Limited Chandigarh Mohan Meaken Limited Mohangram (Chandigarh) Munak Chemicals Limited Chandigarh PCP International Ltd. Chandigarh Punjab Alkalies & Chemicals Ltd Chandigarh Punjab Chemicals & Pharmaceuticals Ltd Chandigarh Punjab State Civil Supplies Corpn. Ltd Chandigarh The Punjab State Co-oop Milk Producer's Federations Ltd Chandigarh Rana Polycot Limited Chandigarh Shivalik Agro Poly Product Limited Chandigarh Singhania & Co. Chandigarh Surya Medicare Limited Chandigarh Variendera Agro Chemicals Limited Chandigarh Winsome Textiles Industries Ltd Chandigarh 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Tourism Policy Chandigarh Tourism has declared the following vision “ Tourism as a major industry in Chandigarh is to be developed by Providing leadership, organizational and strategic direction, Improving the quality of tourism products, Developing places of tourist interest, Providing necessary facilities for all categories of tourist and Marketing Chandigarh’s Tourism products internationally and domestically So as to provide employment and economic, environmental, social and cultural benefits to the citizens of the city beautiful – Chandigarh” In the new economic scenario, Chandigarh Tourism has recognized the need to involve the private sector in the development of tourism infrastructure in conjunction with the Government. The following activities are included in the ‘Tourism Industry’ Accommodation facilities Restaurants and fast food facilities Transportation facilities Tourist entertainment Souvenirs With this background, the objectives have developed as 1. Employment generation. Tourism generates both direct and indirect employment 2. Attract private investment 3. Preserve heritage and tradition. As Chandigarh is a new city, the traditions are related with gardens and festivals 4. Preserve the environment 20 year Perspective Tourism Master Plan for Chandigarh 5. Diversification of the Tourism product into adventure sports, entertainment, leisure etc. 6. To provide adequate publicity both domestic and international 7. Create accommodation facilities – renovate and upgrade existing facilities 8. Develop human resources for Hospitality and Tourism. The following strategic projects have been suggested to implement these objectives 1. Develop Chandigarh as a convention city – attract the MICE segment 2. Eco- tourism wildlife park around the Sukhna Bird sanctuary 3. Sound & Light show at the Rock Garden 4. Further development of Tourist amenities at Sukhna Lake 5. Amusement park 6. Translites and signeages for the convenience of tourists 7. Tourist information center to house other State Tourism offices as well as railways, airlines and trade associations 8. Promotion of Rail Tourism – in particular on the Kalka-Shimla line 9. Promotion of Kalagram as a showcase for the Northern States 10. Development of innovative tourism packages o Buddhist places o Pilgrimages - Hindu and Sikh o Holiday packages to Hill stations o Heritage packages o Adventure packages o NRI packages 11. Promotion of off-season tourism 12. Special Tourism packages for NRIs 13. Development of Chandigarh as a Film City 14. Integrate the police to safeguard the interests of tourists 15. Promotion of week end golf packages 20 year Perspective Tourism Master Plan for Chandigarh Another major initiative has been an attempt to integrate Tourism Development in the Northern States of Punjab, Haryana, Himachal Pradesh and Jammu & Kashmir via a ‘Tourism Advisory Board’. The Board would have the Tourism Secretaries of the participating states as members, the Chairmanship rotating between the States. The Board would also have prominent persons from the Tourism industry as members. The primary role is seen as Working out a strategy for integrated approach for promotion of tourism in the region Promotion of interstate Tourism via programmes such as Tourism Trade fairs & Exhibitions Setting up joint information centers Organising interstate package tours Collaboration on Tourism promotion schemes Joint participation in Traevl Industry Trade fairs Joint cultural festivals Linkages of websites Part of this initiative would be to declare a Special Tourism Area for a radius of 100 Km around Chandigarh with the prime objective of allowing the free movement of designated tourism vehicles. 20 year Perspective Tourism Master Plan for Chandigarh FAIRS & FESTIVALS Chandigarh citizens celebrate several festivals that are uniquely their own. The Festival of Gardens This is a three-day extravaganza organized in the last week of February; included on the national calendar of festivals. Initially called the Rose Festival it intended to encourage people to stroll through the Rose Garden and enjoy the sight of the blooms. Each year the festival grew: now it includes performances of music and dance, both classical and folk, flower shows, events for children, exhibitions by local artists, photographers and craftsman and a wide range of amusements. Since 1997 it is known as the Festival of Gardens. The city pulls out all the stops for this celebration, reminiscent of ancient India's Vasant Utsav in honor of spring. April Fools' Day (April 1) On this day poets from all over the country gather at Chandigarh to recite verses in a jocular vein. Even those who do not ordinarily enjoy poetry look forward to the Maha Moorkh Sammelan, or Conclave of Colossal Fools. No other city in India hosts such a gathering. Baisakhi Baisakhi is the first day of the new year in the traditional Vikrami calendar, it celebrates the wheat harvest, and it is one of the high points of the year for Sikhs as it is anniversary of the founding of Khalsa. As the capital of two basically agrarian states, Punjab and Haryana, this day sees festivities organized by both the state governments as well as the Administration of the UT, and of course many institutions in the city. 20 year Perspective Tourism Master Plan for Chandigarh The Mango festival This festival is held in June. Mango-growers from all over India are invited to enter their prize fruits in the various competitions. Visitors to the fair can see and taste all the traditional varieties of the fruit as well as the latest hybrids from the agricultural universities. It is also an occasion for agro-industries, and food industries processing mango into jams, pickles and canned fruit to display their wares. TEEJ Teej is a traditional holiday celebrated by women in the middle of the monsoon season-generally around the first week of August. The Rock Garden with its swings and pavilions is the festival venue and the day is basically a grand picnic with songs and dances, purchase of new bangles, painting the hands with mehndi. The Indo-Pak Mushaira This gathering in December brings together poets from India and Pakistan. The significance of this event is felt especially by the older generation whose memories go back to the years before the partition of India. For the younger generation it brings home the deep commonalties of language and culture that unite the people of two nations. The Chrysanthemum Show - in December turns the Terraces Flower Garden in the city's Sector 33 into a multi-coloured wall-to-wall carpet of chrysanthemums. Hundreds of varieties of the flower are on display and city gardeners vie for coveted honours in the competitions. The Plaza Carnival 20 year Perspective Tourism Master Plan for Chandigarh This Carnival is on every-Saturday-night is held on an open-air stage set up in Sector 17's central piazza. The weekly three-hour programme draws a large crowd and provides an opportunity for talented local singers, dancers, magicians, comedians, actors and acrobats to do their stuff. The Chandigarh Carnival This carnival is a three-day event celebrated in the second week of November shortly before or after Nehru's birth anniversary on November 14,otherwise known as Children's Day. The carnival opens with a colourful procession, which everyone is encouraged to join. The carnival is a time for students to show their talent (or simply have fun) and elders too participate in a number of competitions and exhibits. 20 year Perspective Tourism Master Plan for Chandigarh Roles of relevant bodies in Tourism The main bodies that generate and cater to leisure and business travel to the State are 1. CITCO – Chandigarh Industrial & Tourism Corporation 2. Urban Development and Town Planning Chandigarh Tourism. The Chandigarh Industrial & Tourism Development Corporation Limited (CITCO) was set up in 1974 for construction and allotment of industrial sheds and for supply of iron & steel to the industries in Chandigarh. Its original name was Chandigarh Small Industries and Development Corporation Limited (CSIDC). The Chandigarh Administration transferred Hotel Mountview and other cafeterias to the Corporation in 1982. It's name was first changed to Chandigarh Industrial & General Development Corporation Limited (CIGDC) and finally to Chandigarh Industrial & Tourism Development Corporation Limited (CITCO). In terms of Tourism responsibilities, Chandigarh Tourism plays both developmental and operational roles. Its prime areas of responsibility are 1. Promotion of Chandigarh and its attractions as destinations 2. Creation of tourism related infrastructure 3. Development of accommodation and restaurants 4. Activities pertaining to the preservation of art, culture, history and heritage of the State 5. Establishment of recreation and leisure facilities 6. Tourism related human resource development 7. Promotion of package tours 8. Information and signage 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Tourism is a profitable venture. A short overview of its performance over various activities is given below Unit Hotel Mountview 1997-98 Rs. - Lacs Sale Profit 824.55 215.71 1998-99 Rs. - Lacs Sale Profit 891.57 266.84 1999-00 Rs. - Lacs Sale Profit 1093.08 323.97 Hotel Shivalikview Hotel Parkview Chef Lakeview 677.08 127.68 111.28 145.49 9.98 16.04 651.46 121.22 117.20 81.74 -47.61 12.43 673.31 124.21 160.69 91.11 -4.60 39.98 Chef Bus Stand Rock Garden Canteen Canteens Tours & Travels 41.56 5.44 9.50 10.47 -14.55 -3.00 -18.59 -15.48 38.50 6.61 17.41 9.80 -10.07 0.14 -23.02 -15.24 36.89 1.24 16.88 7.96 -10.84 -0.54 -23.03 -13.54 20 year Perspective Tourism Master Plan for Chandigarh URBAN PLANNING The Department is headed by the Chief Architect who is the Ex-officio Secretary, Urban Planning. The Department consists of two wings. Architectural Wing Town planning Wing Architectural Wing This wing has five basic duties: • To design buildings for the Chandigarh Administration and work entrusted to it by various departments of the Central and State governments and autonomous bodies • To Co-ordinate with the various wings of the Engineering Department both in the planning and construction phases and to incorporate structural designs and other engineering services into the buildings. • Architectural supervision during the course of construction of works designed by the deptt. • To scrutinize building plans submitted to the Estate Office for approval of the Administration and to inspect commercial buildings for issuance of completion certificates by the Estate Office. The Chief Architect's jurisdiction encompasses the entire Union Territory. Town Planning Unit The Town Planning Unit consist of Senior Town Planner with supporting team of Divisional Town Planner, asstt, Town Planners and other draftsmen in different grades. The Senior Town Planner is responsible for implementing the Chandigarh Master Plan proposals. He prepares project reports dealing with different aspects of the development of the city and its surrounding area. He plans 20 year Perspective Tourism Master Plan for Chandigarh Industrial Development As this, along with Chandigarh Tourism, is part of CITCO, there is complete coordination within their roles and no overlaps. The Corporation was set-up in 1974 primarily for supplying raw-material to the small scale industries and for construction and allotment of industrial sheds. Some more activities were added subsequently. The details of the industrial activities in chronological order are as under: Year Activity 1974 Construction and allotment of industrial sheds. Supply of iron and steel to the SSI Units. 1978 Industrial Development and Facility Centre ( IDFC ). This Centre was setup with the assistance of Industries Department . 1979 Emporium as marketing outlet for the products of SSI units. 1992 Supply of Petroleum products- Agents for IPCL (Indian Petro Chemical Limited) 2000 Consignment Agency of Steel Authority of India Limited (SAIL) 20 year Perspective Tourism Master Plan for Chandigarh the Phase-II and II sectors and the left out pockets of Phase I and II with the aim of bring areas under intensive utilization. HE scrutinizes building plans and cases concerning construction in areas falling under the Periphery Control Act. He studies Urban trends, which will require plan revisions and plans for changing traffic and transportation needs. Rehabilitation and resettlement of squatters settlements and other rehabilitation housing projects come under his purview and he also outlines the statutory zoning plans in respect of land for commercial/residential/cultural/educational purposes. In accordance with the Estate Officer, the Senior Town Planner releases land for auction and sets plinth levels. He provides guidance to the Chandigarh Housing Board and prepares plan for the development schemes of Manimajra. He is involved in planning for the integrated development of the Chandigarh Inter-State Region. The Senior Town Plan's jurisdiction encompasses the entire area of the Union Territory of Chandigarh. 20 year Perspective Tourism Master Plan for Chandigarh Activities of contiguous states UTTAR PRADESH After the formation of separate hill state of Uttaranchal, UP doesn’t account for any breath taking topography as is associated with Uttranchal. Its most important physical feature is the River Ganges, which traverses the length of the state and accounts for some of the oldest cities/ regions of the world. Rivers are a significant physical feature and tourism resource. All important tourist destinations of UP have an attractive riverfront that can be developed. UP Government is concentrating on improving river-based experience by way of improving ghats, improving the experience at the ghats, encouraging water sports, river cruise, Better destination management at key tourism centers by way of urban decongestion, traffic management, ghats and river experience improvement and better accommodation facilities at Varanasi ,Allahabad and Agra. Product Innovation and better packaging of existing products a. The Bundelkhand area has a rich inventory of heritage properties. Lack of connectivity, infrastructure and communication facilities makes it difficult to create a tourism experience. Plans are to start a tourism train to provide connectivity, accommodation and basic infrastructure in a single product. It also provides a “theme” that is attractive and marketable. b. Agra as an International convention and events center. Plans to set up a international size convention facility. Agra has the advantage of instant international positive name recognition. It is well connected with Delhi gateway. Agra has numerous monuments besides Taj Mahal and numerous possible excursions extensions. Agra has ample accommodation in different ranges. 20 year Perspective Tourism Master Plan for Chandigarh UTTRANCHAL Tourism has been identified to have the potential to become the main stay of Uttranchal’s economy, and needs to be developed in planned and time bound manner. To achieve this objective the state has taken following steps The state has constituted a high-level Tourism Development Board, which will replace the existing tourism directorate. The role of the board will be a. Formation of a policy and strategy for development of tourism in Uttranchal b. Preparation of plans and guidelines for developing and strengthening tourism related infrastructure in the state c. Establish standards/norms for and forming policy guidelines for various tourism activities d. Strategy for mobilizing private sector participation and investments in the private sector. e. Single window Information and assistance center. Outsourcing Expertise The Uttranchal tourism board empanelled more than hundred experts/ agencies to seek services of specialists and consultancy agencies. The board identified seven projects and awarded the work to different agencies. These projects are master plans, which dovetail all developments and have a long-term perspective for sustainable tourism products. Destination Management The existing tourism centers need destination management plans to maintain and improve their effectiveness. Haridwar, Mussoorie, Nainital and Rishikesh being the key hubs through which pass the maximum number of tourists in the region would require immediate attention. 20 year Perspective Tourism Master Plan for Chandigarh Plans need to be made for better connectivity, city decongestion, improvements of accommodation etc. The master plan is being prepared for the Char Dham route, and same might be planned for other important destinations mentioned above. New Destinations New tourism destinations have been identified which will develop and marketed as spokes to hubs. These new destinations will also help in decongesting the hubs. Private Sector Participation The areas and opportunities have been identified for the private sector which are development of accommodation facilities for different categories of tourists, tourist resorts, specialized food restaurants, facilities for adventure sports, amusement parks etc. To make these investment opportunities attractive special incentives and concessions have been planned. 20 year Perspective Tourism Master Plan for Chandigarh RAJASTHAN Tourism is a significant contributor to the economy to Rajasthan economy. Rajasthan has adopted the mission approach for tourism sector to accord very high priority and ensure planned and time bound growth and development of tourism industry in the state to make it a truly “people’s industry” in Rajasthan. a. Rajasthan has estimated tourist accommodation of 19000 rooms in 772 hotels and as per assessment of the state tourism department, 20000 additional rooms will be required by year 2005.The state has decided to encourage more private investment. The state will encourage private investment in developing ancient buildings and heritage properties as tourist resorts; this will have dual advantage of preservation of heritage properties and additional accommodation. b. Traditionally Rajasthan has been depending on it heritage to attract tourists. Rajasthan Government is looking at ways and means of enhancing the tourist products. o The State has rich forest reserves and national parks like Sariska, Bharatpur- Ghana and Rathambore. Other areas, which have the potential for Wildlife, will be promoted. o Rajasthan has rich and varied heritage of handicrafts, handlooms and other products, which are appreciated by and purchased by tourists visiting the State. Efforts will be made to improve direct access of tourists to artisans. RTDC will develop shopping arcades in their existing properties and provide space to artisans to display and market their products. Efforts will be made to set up Shilpgrams and a Handicrafts Museum. o Experience has shown that Fairs and festivals have great tourist appeal and promotional value. Some of the fairs and festivals have become internationally popular like the Pushkar and Dessert Festival, 20 year Perspective Tourism Master Plan for Chandigarh Jaisalmer. The Government proposes to consolidate the facilities at such places to make these fairs and festivals more attractive. c. Destination Management o In view of possible exploitation of tourists, Government of may enact a suitable legislation for regulating tourism trade. o The Department of tourism will be empowered to license and inspect such establishments as are engaged in providing services of to tourists. Since there is an existing procedure for classification of Hotels, such establishments will not be brought under the purview of the legislation to avoid duplication of regulatory procedures. o Complaints received through tourists may be readdressed through Tourist Assistance Force. o Care will be taken to avoid unrestricted entry of tourists beyond the carrying capacity of National Parks and Sanctuaries. DELHI Delhi has a rich inventory of heritage properties. Delhi is one of the two major gateways to the country. Delhi has done very little to promote tourism in the state. This tourist has to come to Delhi for visiting all the popular tourist destinations in North India. Delhi is planning to set up 6/8 more Delhi Hatt type of facilities in different parts of Delhi. Efforts are being made to rejuvenate Tuglakabad Fort area. PUNJAB Punjab has done very limited to promote tourism in the state. It has limited heritage assets and the same have been neglected. The Golden Temple or Darbar Sahib is the most frequented pilgrimage center of the state. The Patiala Fort houses the National Sports Academy.Lately the Sheesh Mahal has been used as a backdrop to organize music concerts and contests and the area around the property has been improved. 20 year Perspective Tourism Master Plan for Chandigarh CHANDIGARH HOTELS HOTEL SECTOR AMAR 22 A ALANKAR 22 A AROMA 22 C CHANDIGARH 22 C CLASSIC 35 C DIVYADEEP 22 B G.K. INTERNATIONAL 35 C HERITAGE 35 C HIMANI'S 35 C JASMINE 35 C JAMES PLAZA 17 JULLUNDHAR 22 B KAPIL 35 B KC RESIDENCY 35 D KWALITY RESIDENCY 22 A Le CROWN 35 B MAYA PALACE 35 B METRO 35 35 C MONARCH 35 B MOUNTVIEW 10 B PANKAJ 22 A PARK INN 35 PICCADILY 22 B REGENCY 35 B RIKHI 35 B SAMRAT 22 D SHIVALIK VIEW 17 D SOUTHEND 35 C SUNBEAM 22 B CHANDIGARH YATRI 24 B NIWAS PRESIDENT 26 C SOLITAIRE NAC Shivalik Enclave PANCHKULA HOTELS North Park Panchkula - Shimla Road Prabhat Inn *** Panchkula - Shimla Road Oscar Regency Panchkula - Shimla Road Vikrant Panchkula - Shimla Road ZIRAKPUR HOTELS Mark Royal (10 Kms from Panchkula) Bristol (10 Kms from Panchkula) Shagun (10 Kms from Panchkula) Grow Green (10 Kms from Panchkula) NO OF ROOMS 16 12 30 16 14 14 28 14 17 14 N/A 16 13 26 14 16 26 16 14 156 14 26 48 25 16 16 13 57 20 26 30 20 12 50 30+ Info. Not avail. 12 (approx) 20 year Perspective Tourism Master Plan for Chandigarh State Luxury tax on room Qualifying rate -Rs Actual/ Published Sales tax on Food Sales Tax on softbeverages Sales tax on Liquor Annual Bar licence -Rslakhs Excise onconsumption- BeerRs Excise onconsumption-liquorRs Electricity / unit Elcetricity demandMonthperKVA/ 10 for Andhra Pradesh 5% 300 pub 8% 8% 8% hotel nil nil 4.61 108 Assam 20% all pub 7% nil nil 0.5 1.95+75% 3.75+75% 3.70+ 5% 70 Arunachal nil nil nil nil nil nil 0.5 nil nil 2.15 Bihar 7% 151 act 6+1% 11+1% 25+2% 3 1 6.75 2.92 125 Delhi 10% 500 act 8% 10% 20% 4.5 to 7.5 5.25 to 7.0 Goa 15% 500 pub 15% 20% on foreign 0.6 2.90 to 3.30 110 Gujarat 20% 500 act 12% 0.2 3.5 +45% Haryana nil nil NA 10% 20% 20% 5.75 4.02 Himachal Pradesh 10% 150 pub 8% 33% on out of state 0.7 2.8 Jammu & Kashmir 2% 8% 32% 1 3.18 Karnataka 15% 1,000 pub 10% 10% Indian 10% Foreign 60% 2.08 6.2 Kerala 15% 500 act 9% Local 5% imported 13 2 100% Madhya Pradesh 10% all act 9% 10% nil 2 3.63 122 Maharashtra 10% 1,200 act 20% 20% 20% 1.18 to 3.71 2.64 Orissa nil nil nil 8% Indian nil imported 20% 1.5 3.45 Punjab nil nil nil 9% nil nil 1.2 7.95 88 3.39 120 Indian nil imported Rajasthan 8% 1,200 act 14% 50.6% 1.5 to 6.0 11 31 3.72 20 year Perspective Tourism Master Plan for Chandigarh State Luxury tax on room Qualifying rate -Rs Actual/ Published Sales tax on Food beverages Sales Tax on soft Sales tax on Liquor - Rs lakhs Annual Bar licence Beer - on Rs consumption Excise liquor - on Rs consumption Excise Electricity / unit per KVA/ Month Elcetricity demand Sikkim nil nil nil 8% nil nil 0.06 2.5 Tamil Nadu 20% all Pub 8% 2.2 4 Uttaranchal 5% Uttar Pradesh 5% 1,000 act 8% out of state 32.6% 8 per hotel 8 48 4.13 West Bengal 10% a/c act 17% imported 30% daily 1 to 25 30 to 175 4.88 Chandigarh nil Source : FHRAI 20 year Perspective Tourism Master Plan for Chandigarh Transport taxes Token tax/ qtr Tax perseat/km Tax per day Tax per month Tax per week Total permonth All IndiaTouristPermitpermonth Delhi 35 seat coach 1675 560 1600 Ambassador 850 285 Esteem 1300 433 Haryana 35 seat coach a/c 8.53 4000 35 seat coach non a/c 8.31 Ambassador/ Esteem 875 291 Qualis- 9 seats 3175 1058 Punjab 35 seat coach 3175 nil Ambassador/ Esteem 800 267 Qualis- 9 seats 1000 333 UP & Uttaranchal 35 seat coach 14500 485 4835 Ambassador/ Esteem 730 243 Qualis- 9 seats 4350 1450 Gujarat 35 seat coach 9000 36000 Rajasthan 35 seat coach 20610 20610 2025 Ambassador 1000 1000 Qualis- 9 seats 3400 3400 Himachal Pradesh 35 seat coach 12000 4000 4000 Ambassador/ Esteem 386 130 Qualis- 9 seats 3250 1085 Madhya Pradesh 35 seater coach 3400 21600 Qualis/ Ambasador 210 Source : All India Transporters Association/ PHD Chamber of Commerce Employment in Hotels & restaurants Own Account Ent Establishments Total Number Employed Number Employed Number Employed Andhra Pradesh 69979 131,082 26504 134,009 96483 265,091 Arunachal 446 823 1029 4,740 1475 5,563 Assam 12005 18,186 14713 56,020 26718 74,206 Bihar 39822 62,201 21599 81,870 61421 144,071 Delhi 10917 14,822 10642 65,402 21559 80,224 Goa 1740 2,578 1189 9,331 2929 11,909 Gujarat 14759 22,622 12945 66,042 27704 88,664 Haryana 11971 15,360 5426 18,682 17397 34,342 Himachal Pradesh 7931 9,937 3214 11,651 11145 21,585 Jammu & Kashmir Karnataka 60093 103,972 34429 160,522 94522 264,494 Kerala 71472 101,290 27483 103,657 98955 204,947 Madhya Pradesh 39248 57,836 24412 96,007 63660 153,843 Maharashtra 47828 73,828 52237 312,763 100065 386,591 Manipur 2174 4,400 794 3,169 2968 7,569 Meghalaya 2222 4,430 3100 11,767 5322 16,197 Mizoram 1010 1,635 619 1,706 1629 3,341 Nagaland 589 1,301 949 4,179 1538 5,480 Orissa 34811 60,779 18007 68,292 52818 129,071 Punjab 10006 13,503 6694 23,984 16700 37,487 Rajasthan 29426 38,606 14820 50,224 44246 88,830 Sikkim 261 593 398 1,809 659 2,402 Tamil Nadu 85563 139,566 36637 167,673 122200 307,239 Uttar Pradesh 73911 103,649 28760 102,230 102671 205,879 West Bengal 68179 92,019 26508 115,903 94687 207,922 Andaman & Nicobar Chandigarh Daman & Diu Dadra & Nagar Haveli Lakshwadeep Pondicherry Source : department of Tourism Transport taxes Token tax/qtr Tax perseat/km Tax per day Tax permonth Tax per week Total permonth All IndiaTouristPermitpermonth Delhi 35 seat coach 1675 560 1600 Ambassador 850 285 Esteem 1300 433 Haryana 35 seat coach a/c 8.53 4000 35 seat coach non a/c 8.31 Ambassador/ Esteem 875 291 Qualis- 9 seats 3175 1058 Punjab 35 seat coach 3175 nil Ambassador/ Esteem 800 267 Qualis- 9 seats 1000 333 UP & Uttaranchal 35 seat coach 14500 485 4835 Ambassador/ Esteem 730 243 Qualis- 9 seats 4350 1450 Gujarat 35 seat coach 9000 36000 Rajasthan 35 seat coach 20610 20610 2025 Ambassador 1000 1000 Qualis- 9 seats 3400 3400 Himachal Pradesh 35 seat coach 12000 4000 4000 Ambassador/ Esteem 386 130 Qualis- 9 seats 3250 1085 Madhya Pradesh 35 seater coach 3400 21600 Qualis/ Ambasador 210 Source : All India Transporters Association/ PHD Chamber of Commerce 20 year Perspective Tourism Master Plan for Chandigarh Approach to Assessment of Attractions Successful tourism products are those developed to meet the demands of existing and potential markets. These market segments have also been analysed. While analyzing the attractions of Chandigarh, we kept in mind both Chandigarh Tourism Policy and the National Tourism Policy. The approach has been 1. Identification of market segments 2. Listing of all attractions in Chandigarh 3. Mapping the relationship between Chandigarh Tourism and National Tourism Policies 4. Study of “Best Practice” in other City States 5. From the above, a shortlisting of projects. 1 Fitness Trail High Court The Open Hand/ Dove – symbol of Chandigarh Rock Garden scuplture Marketing State Tourism Three case studies are attached – Kerala, Rajasthan and Uttaranchal – representing “Best Practice” in the Indian context. Recently, Maharashtra has been very active in promotion. Some pertinent observations are 1. Get the basics in place. In other words set the right conditions for enhancing infrastructure for tourism. Some specific actions taken a. Common approach by all Govt.Departments. Rajasthan’s Rajiv Gandhi Mission and Uttaranchal’s Tourism Development Board ensure that various Govt.Depts and private sector are involved in Tourism plans b. Giving Tourism Industry status. Kerala did this in 1986, Rajasthan in 1989 c. Outsource expertise. Uttaranchal and Rajasthan both utilize professionals for surveys and feasibility studies d. Involve Private sector. Kerala Tourism formed JVs with two major hotel chains to attract investments. It has further set up a Tourism Investment Agency. Rajasthan offered further assistance to develop Heritage hotels. Uttaranchal has earmarked accommodation, restaurants, adventure sports, amusement parks for private development. e. Develop Human resources. Rajasthan and Uttaranchal are encouraging private sector to set up Hotel management and Food craft institutes. There is emphasis on guide training and certification. Uttaranchal plans specialist training facilities for adventure sports. Kerala set up an Institute of Tourism & Travel Studies in 1988 in addition to the IHMCT in Kovalam. f. Emphasis on civic infrastructure. Identified by Uttaranchal as a key area. 2. Enhance the Tourism product. Apart from traditional reasons for visits a. Kerala – Ayurveda and Traditional festivals like Boat races, Elephant March, Nishagandhi Dance festival. Also developing a new Hill Station b. Rajasthan – Direct access to Handicrafts and Handloom artisans, Fairs and festivals, Wildlife. c. Uttaranchal – Adventure sports 3. Concentrate on a few destinations/ activities a. Kerala – Ayurveda, Calicut-Kasargod, Quilon-Alleppey b. Uttaranchal – four hubs of Haridwar, Mussoorie, Nainital and Rishikesh. Adventure sports c. Goa – holidays d. Rajasthan - Heritage 4. Manage Destinations. Involve host population – Rajasthan positions this as a ‘peoples industry’, better connectivity, city decongestion, Safety & Security of tourists – Kerala thinking of an insurance scheme, restricting entry into sensitive areas like National Parks, Registration of establishments catering to tourist needs 5. Product Positioning. Each State needs to develop a USP. a. Kerala – God’s own Country b. Uttaranchal – Every season is the reason c. Goa – 365 days on holiday 6. Promotion to target markets. a. Market segmentation – Relevant market segments, both domestic and international, should be identified geographically and by reason for visit. Eg. Kerala also targets NRIs b. Distribution – Ability to reserve hotels/ tours in source markets c. Sales - Participation in domestic and International trade fairs, familiarization trips for identified agents, sales offices in key markets d. Communications - Focused advertising in trade and travel related media, PR, Interactive websites, e-mail magazines, sweepstake prizes for high profile contests, familiarization trips for identified journalists i. Kerala has hired an agency in the US e. Database maintenance f. Marketing alliances – on-line airlines/ transporters, neighbouring States, destination co-op marketing. How other City States/ small countries position themselves Chandigarh is similar in situation to the city states and small countries around the world. The chart below attempts to analyse some of the more successful city states in terms of their drawing power City State Attractions Singapore Trading - Was a trading post to the Far East – Now a Financial hub – Connectivity to the world Manmade attractions – Jurong Bird Park, Night Safari, Sentosa Island & ropeway, Acquarium – Shopping, night markets – Golf Hongkong – now part of Trading China, but mainly unchanged Shopping Sports – Horse racing, rugby Macau Gambling – Casino/ Jai Alai Formula 1 races Monaco Gambling Casino & entertainment Formula 1 races Dubai Trading – similar to Singapore Shopping Sports – horse racing, power boats, golf, tennis, cricket Events Mauritius/ Bahamas/ Bermuda Beaches Off-shore companies Sun City, South Africa Casino, Golf,water sports, events Very few City States have the benefit of historical attractions such as at the Vatican. Some like Bahamas, Bermuda and Mauritius have the natural attractions of beaches. Most, however, have had to depend on manmade attractions. It is obvious that those city states that have had a history of trading, have managed to develop themselves as World Financial Centers. As part of this development, they have installed infrastructure for communications, in particular, very broadband channels for Internet. Another off shoot of this development is the growth in media. Dubai, in fact, is building a media city. However, the one striking feature in all these cases is the emphasis on world class standard Recreation and Leisure facilities. While facilities have been created for visitors, they are also used by the residents. – Gambling is a major attraction in Macau, Monaco and Sun City. – Horse racing is big in Hongkong and Dubai. – Sporting events attract people to Singapore, Hongkong, Dubai, Monaco and Sun City. – Entertainment Events are held in Sun City, Dubai, Hongkong, Singapore, Bahamas, Bermuda, Seychelles etc We believe that Chandigarh does have the potential to become a successful city state based on its own draw. It is interesting to note that city States like Dubai, Singapore, Bahamas, Bermuda, Mauritius etc do not rely on their immediate neighbours. Market segments for Chandigarh Tourism Market Segment Potential demand Potential Solutions Residents of Chandigarh Recreation and Leisure appear to be the main 1. Multiplex cinema halls demands. However, Chandigarh residents tend to 2. Amusement Park finish their working days relatively early and night 3. Night food bazaar cum entertainment entertainment demand is limited. 4. Horse Racing Neighbouring States Delhi 1. Transit traffic, specially families with small 1. Delhi - Transit Stopover traffic to Shimla or children on their way to Kulu/ Manali. These start 2. Haryana Kulu/ Manali later in the day from Delhi and the children get 3. Punjab - Short breaks restless after 4 to 5 hours. A good reason to stop 4. Himachal Pradesh Haryana would be an Amusement park. - Recreation & Leisure 2. Recreation & leisure. See comments above. None - Shopping of the contiguous states has developed good R&L - Business facilities except possibly the Gurgaon and - Meetings & Conferences Faridabad districts bordering Delhi. Punjab 3. Shopping. While Jalandhar and Ludhiana have now - Recreation & Leisure got good shopping facilities, they are still behind - Shopping the range offered by Sector 17. If this is combined - Business with R&L, it makes a powerful attraction. - Meetings & conferences 4. Business. This is normally connected with Himachal Pradesh Government. - Recreation & Leisure 5. Meetings and conferences. Chandigarh being the - Shopping State Capital of Haryana and the Punjab as well as - Medical the Northern Region HQ for several trade bodies, can satisfy this need 6. Medical. Medical facilities at the PGI are excellent. The new Fortis Hospital in Mohalli can also contribute to Chandigarh room occupancies Market Segment Potential demand Potential Solutions The Rest of India Apart from transit to HP, and a very small market No strong offer to attract this segment interested in architecture, the tourism demands from the rest of India are not met by Chandigarh NRIs – Also those of Chandigarh is the Gateway to the Punjab NRI’s could be encouraged to expose their children, many Punjab origin NRI Marriages of whom are negative to India, to the modern city beautiful - Chandigarh Other Foreign No real demand State Tourism Policy > Improving the Developing vs. National Tourism quality of places of Policy tourism tourist vvvv products interest Place Tourism on the Concurrent list Effective linkages and close coordination between Departments Safety & Security of Accreditisation Tourists of Shops, transporters Tourism Accounting System Computerisation Concentrate on one major project as State USP World Heritage sites as opportunity to expand cultural Tourism Themed Cultural Sound & Light Attractions at Rock Garden Providing necessary facilities for tourists Effective signages Have police posts at Tourism Information centres Provide a central reservation facility. Provide linkage between Rock Garden and Sukhna Lake and planned amusement park Other Chandigarh has already declared Tourism as an industry in 1994. However, incentives and concessions need to be reviewed Constitute a State Tourism Board/ Tourism Advisory Council Initiate a system for tracking tourism spends Secretariat & High Court complex?? Develop a documentary on the planning and development of Chandigarh State Tourism Policy Improving the Developing Providing Other > quality of places of necessary vs. National Tourism tourism tourist facilities for Policy products interest tourists vvvv Capitalise on Run regular Food traditional cuisines Festivals featuring foods from other States. Actively promote village tourism Exploit the potential of Sukhna Bird Create wildlife sanctuaries sanctuary awareness of the fauna Develop Adventure Improve the Development tourism with safety tourist amenities of the Sports standards at Sukhna lake. center at Kishangarh Recreation & leisure Develop a Dinner Develop an Multiplex Explore the are a vital component cruise on Sukhna amusement possibility of a of the local & regional Lake park. Race Track. This domestic tourism will help week market end occupancies in the hotels MICE to be developed Develop a for tourism, trade and convention commerce centre Develop Eco-tourism Create Develop the through grassroots, environmental Botanical community based consciousness garden movement through gardens Capitalise on the growing awareness of India’s holistic healing traditions Development of Incorporate shopping centers for traditional arts traditional crafts and and crafts with information on them Kalagram State Tourism Policy Improving the Developing Providing Other > quality of places of necessary vs. National Tourism tourism tourist facilities for Policy products interest tourists vvvv Promote the events, The quality of the A daily night fairs and festivals both Saturday Sector market can be locally and in the main 17 entertainment developed markets needs to be reviewed Provide the Convention infrastructure for center Business travel The following projects have been shortlisted Basic Tourism Infrastructure Projects 1. Setting up a system of coordination between Departments through a “Mission Approach” 2. Assessing the economic impact of tourism in Chandigarh through annual surveys and the use of multipliers 3. Setting up police outposts in the new concept “Cultural/ Tourism Centre” 4. Setting up a system for accreditisation of shops and transportation 5. Creating Tourist/ Cultural center Visitor generating projects 6. Promoting traditional cuisine 7. Horse Race track 8. Amusement Park 9. Linking the sightseeing 10. Conference center to attract business travelers 11. Developing the City Centre 12. Adventure tourism & Wildlife Tourism 13. Attracting the Private Sector Project 1 Effective linkages and close coordination between Departments There is a need to set up a system in Chandigarh to coordinate with other departments whose work has a bearing on Tourism. 1) Currently the following Government agencies have a direct impact on tourism products a) CITCO. Here, both Industrial development and Tourism come under the same department. b) Town Planning c) PWD (B&R) d) PHD for water, sewage & sanitation e) Police 2) Private bodies that are directly involved in tourism are the local chapters of a) FHRAI/ HAI b) TAAI/ IATO c) Transporters association 3) Indirect involvement by private sector corporations for business travel requirements and their related associations i) FICCI/ ASSOCHAM/ PHDCC etc. ii) Informed and committed individuals with current or potential interest in the State 4) Some Central Government agencies are also involved. These are a) NHAI b) Indian railways Two related approaches have been used by other Indian States Rajasthan has used a ‘mission’ approach whereby they have set up the Rajiv Gandhi Tourism Mission. This has the commitment from all State Ministries of giving tourism priority treatment. Uttaranchal is the first State to constitute a ‘Tourism Advisory Board’ with participation of both the Government and private sector The roles in planning and identification of projects, problems and solutions are similar. They vary in that the ‘Tourism Advisory Board’ is a body constituted under an Act with broad powers. The ‘Mission Approach’ is not a legal body and is probably easier to implement in states where tourism is not a major industry. Rajasthan - The Mission Approach This is exemplified by Rajasthan’s Rajiv Gandhi Mission on Tourism Development. While not a legal entity, the mission has A nodal agency in the Dept of Tourism, Art and Culture Collaborating agencies o RTDC o Dept of Urban Development o Dept of Archaeology & Museums o PWD o General Administration & Civil Aviation o Forest & Environment o Industries Dept o Devasthan Dept o West Zone Cultural Centre o Khadi & Village Industry Board o Archaeological Survey of India The Mission is structured with a Chairman – Chief Minister Empowered committee chaired by the Chief Secretary Mission Director – Secretary Tourism, Art & Culture District level Sub-Mission – Chairman is District Collector Site/ Local – mini mission A Mission Statement has been defined. Ten Mission objectives have been identifies and a 12 point strategy developed to implement the objectives. The mission statement seeks “To make Tourism the peoples industry”. The objectives and strategy were developed with the help of task forces that surfaced problems and solutions on a variety of subjects including Policy needs. 10 Milestones have been defined and for each milestone specific activity and deadlines detailed. The mission Director coordinates with other departments as well as professionals. The Directorate has the following Advisors Advisor Heritage Advisor Handicrafts Advisor Economist Advisor Media & Marketing Advisor Human Resource Development Advisor Research & Development Advisor Ecology/ Sociology As well as consultants from the private sector 1. Uttaranchal - Constitution of a Tourism Development Board A high level Tourism Development Board has replaced the Tourism Directorate. The responsibilities of this board are a. Formulation and Strategy for development of tourism in Uttranchal b. Preparation of plans and guidelines for developing and strengthening tourism related infrastructure in the state. c. Preparation of plans for various tourist segments and activities, identification and development of projects and ensuring their timely implementation. d. Establishment of standard / norms and framing of policy guidelines for various tourism activities. e. Formulation of a strategy for mobilizing private sector participation and investment in the tourism sector. f. A single window solution to all tourism related information, sanction for projects, escort services for obtaining clearances and approvals from other departments. 2. Identifying Key Projects - Based on the present tourist interest and the future potential in each destination. 3. Outsourcing Expertise - The tourism board empanelled more than hundred experts/ agencies to seek services of specialists and consultancy agencies. 4. Destination Management - The existing tourism centers need destination management plans to maintain and improve their effectiveness. Plans to be made for better connectivity, city decongestion, improvements of accommodation etc. 5. New Destinations - New tourism destinations have been identified which will developed and marketed as spokes to hubs to help in decongesting the hubs. 6. Private Sector Participation - The areas of accommodation facilities, tourist resorts, specialized food restaurants, facilities for adventure sports, amusement parks etc. Special incentives and concessions have been planned. 7. Human Resource Development - Plans to upgrade existing institutes and set up new institutes for diploma and degree training programmes. a) Specialist training for activities like adventure sports etc. b) Self-employment opportunities for local residents to encourage maximum participation of the host community. 8. Infrastructure Development Establishment of world class infrastructure facilities will be the highest priority of Uttranchal government. In order to do this, special efforts are being made to mobilize institutional resources and private sector investment and participation. Recommendation We recommend that Chandigarh start with a mission approach. This would require the backing of the Governor and the Chief Secretary to make it successful. The mission approach provides the coordination required and gives tourism a better profile with other departments. Project 2 Tourism Accounting System Tourism will not get the attention it deserves unless the positive impacts can be demonstrated. Several measures of the changes in economic activity can be generated. The most common are Changes in Sales or spending - The spending of visitors within the local area becomes sales or receipts for local businesses Changes in regional incomes - This is the sum of wages & salaries accruing to workers in these businesses and owners income and profits Changes in employment - Number of jobs supported by the given level of Sales. What is required to be measured for an impact analysis is the changes that occur with the introduction or closing down of facilities. In simple terms, the economic impact is Economic impact= change in # of visitors * average spend/visitor* Multiplier A visitor is defined by someone who lives outside the region so only ‘new’ spendings are measured. The overall impact is normally arrived at by c) Measuring distinct visitor segments eg. Day trips, transit, stayover, business travel, Government expenditure on tourism related activities including museums, cultural activities, recreational parks etc. d) Measuring spending in distinct categories – lodging, restaurants, meals, petrol etc. e) Allocating spending to receiving sectors and applying ratios and multipliers The first two measure primary effects. Secondary effects are of two types a) Indirect effects are changes in spending, income and jobs within the region in sectors that supply goods and services to the tourism sector. This requires an input-output matrix. b) Induced effects are the increased spends by residents from the incomes earned in tourism and the supporting sectors. Multipliers are required to capture the secondary effects and are generally sxpressed as a ratio to direct effects. These can be sales, income and employment multipliers. The World Bank has estimated that for every Rs 10 lakhs invested in India, the following number of direct jobs are created In Tourism projects 47.5 jobs In Hotels and restaurants 89.0 jobs In agriculture 44.7 jobs In Manufacturing 12.7 jobs Tata Consultancy Service has also estimated that for every direct job created in tourism, 4.62 indirect jobs are created in ancillary areas. The World Travel & Tourism Council uses a ‘Direct Revenue Multiplier’ in tourism of 2.07. While the intention of the Ministry of Tourism is to get a better understanding of the positive effects of tourism, at this stage the mechanism is not in place to collect the details in all sectors. Recommendation We suggest that Chandigarh Tourism puts in place a mechanism to collect data on direct effects. This may initially be in the form of annual surveys extrapolated to cover the State and calculated using the multipliers above. This will give Chandigarh Tourism the hard data required to substantiate the benefits of Tourism. Project 3 SAFETY & SECURITY SPECIAL TOURISM POLICE The National Tourism policy states that “There is a need for the creation of a special tourism police force for deployment at major tourist destinations. This will provide travelers security through a spirit of courtesy and hospitality.” While the creation of a special force at State level may not be feasible, the spirit of providing a sense of security to travelers is an important aspect. At the very least, all Tourist information centers – see note on the concept – should have a police outpost which can deal with crimes against tourists. The awareness of these police outposts should be widely created with hotels, restaurants and shopping centers in the relevant districts. There is no cost involved in this activity PROJECT 4. ACCREDITISATION OF SHOPS AND TRANSPORT AGENCIES Two other areas where most tourists feel insecure in the sense of being cheated are Tourist shops and transportation. It is suggested that Chandigarh Tourism institute a system of accrediting these establishments. For shops, the requirements are simple All items will be price tagged All sales will be subject to return in undamaged condition Shops will carry the accreditisation plaque/ sticker with the number of the monitoring agency For transport, again requirements can be kept simple Taxis/ rickshaws will be metered or carry a tariff sheet No fare will be refused if the taxi/ rickshaw is at a stand Participating transport will carry a plaque/ sticker with the number of the monitoring agency Participating transport drivers may be asked to wear a uniform In both cases, complaints will be taken up with the offending shop/ vehicle owner. A repeat complaint will bar the shop/ vehicle from carrying the plaque/ sticker. Recommendation We recommend that Chandigarh Tourism issue a tourist-cum-shopping guide – preferably in the form of a Chandigarh map - listing accredited shops and transporters. Maps should be given free at hotels, Sukhna Lake, Rock Garden and Sector 17 market. The cost of the guide can be recovered by advertising and sale of guides. PROJECT 6 PROMOTING TRADITIONAL CUISINES Indian cuisine is not just a trend internationally – no longer represented by just Tandoori Chicken – but within the country there is a growing interest in regional cuisine. Kerala vegetarian and non-vegetarian restaurants are thriving. Gujarati, Konkan, Chettinad and Punjabi outlets are being well patronized in the metros. In the past, extremely successful food festivals have been held at Kala Gram. Kalagram is an ideal venue between Chandigarh and Panchkula. It is suggested that State Tourism departments be contacted to conduct food festivals on an ongoing basis. Some arrangement will need to be worked out with the North Region Cultural Centre, but as this is a win-win situation for both parties – and the general public, this should be possible. Kalagram may require additional parking facilities. The neighbouring States of Himachal, Punjab, Uttar Pradesh, Uttaranchal, Haryana, Rajasthan, Jammu & Kashmir and Delhi can all be approached to hold festivals in Chandigarh. Chandigarh Tourism is also looking at promoting outbound traffic to adjoining States, and they may wish to use this platform more often. If the months of May to July are excluded, it should be possible to organize a festival every month, thereby giving Chandigarh residents and visitors an additional area of recreation and leisure. The festivals should be accompanied with performing arts and display the State handicrafts. Recommendation We recommend food festivals of various states be held at Kala Gram on an ongoing basis. This activity does not require much additional infrastructure and is in fact a revenue generating activity. Visitor numbers Past food festivals at Kalagram have generated 4-5000 visitors per festival over a 3-4 day festival period. If festivals are held monthly at a fixed period, say second weekend of the month or the full moon nights, the numbers can be sustained. 9 festivals x 5,000 visitors per festival = 45,000 visitors Revenues Revenues to Chandigarh Tourism/ Kalagram will be generated by entrance tickets and stall rentals. Stall owners – handicrafts/ F&B – will have direct sales revenues. Assume expenditure @ Rs 50 per visitor for handicrafts/ F&B/ parking 9 Food & Cultural Festivals/ annum Entrance fees = Rs 10 x 45,000 Stall rentals @ Rs5000 x 9 festival x 15 stalls Revenues to stall owners 45,000 x Rs 50 Costs = Rs 4.5 lakhs = Rs 6.75 lakhs = Rs 22.5 lakhs Venue costs are minimal as infrastructure exists. There will be promotional costs Project 12 Wildlife Tourism The Government of India, Department of Tourism has identified the development of wildlife sanctuaries as a priority item. Specific suggestions are to improve the quality of tourist facilities including Visitor information/ interpretation centers. Chandigarh has the Sukhna Bird sanctuary. As a reserved forest, people are not allowed without permission. This area should not be developed further. However, Chandigarh also has a wealth of flora. While the gardens attempt to highlight this, it is not generally known that there are over 1000 variety of trees in Chandigarh. Recommendation We do not recommend any additional expenditure other than that normally budgeted for this activity. Project 12 A Adventure Tourism Chandigarh has limited scope for adventure tourism. Apart from promoting serious boating – rowing, sculls, sailing, regattas - in Sukhna Lake, the area is not conducive to pursuing adventure tourism. Recommendation We do not recommend any additional expenditure on this activity other than that normally budgeted. Upgrading the facilities for the above can be taken up by the private sector. Project 5 Concept for Cultural / Tourism Information Centres These should be part of the City ‘Recreation and Leisure’ complex, and are envisioned as centers to showcase the State – a cross between Dilli Haat and National Crafts Museum. At the very least they should have 1. Tourist office with all information on the State 2. Central reservation capabilities for hotel and tour packages. a. These can be manned/ funded by the State Hotel Association & State Travel agent associations b. Space can also be rented to airlines, railways and travel trade associations. 3. A permanent live exhibition of the State’s traditional lifestyle, arts and crafts. This can be modeled on the National Crafts Museum. a. Artisans sell their goods directly and/ or through a central shop. The center provides a platform for the artisan on a revenue share or straight lease. b. State produce can also be sold e.g Basmati rice 4. A permanent restaurant featuring the State cuisine. a. This should be leased with stipulations on the menu and service standards b. The area can also carry periodic photo exhibits/ art exhibits. 5. Some permanent shops can be incorporated and leased out. a. Factory outlets of manufacturers based in the State is one example. 6. An open air amphitheatre to showcase the State’s performing arts a. This should also have screening facilities for documentaries b. This can be leased for private functions including marriages, film shooting 7. Open spaces for putting up stalls for celebrating State festivals a. These can be handicrafts and food stalls leased to private parties. 8. Space should also be allotted to other State Tourism bodies 9. A police outpost where problems faced by tourists can be addressed. Estimated costs for construction of this cultural centers are Activity Budget Tourist office building with space for State tourist offices, Central 50 lakhs reservations office, restaurant and police outpost, other offices Live exhibition of State’s arts and crafts, permanent shops 10-15 lakhs Open air amphitheatre – 750-100 persons 10 lakhs Space for temporary stalls for State festivals 2 lakhs Recommendation This should be set up in the amusement park area planned near Sukhna lake. Visitor numbers The objective of this facility is to provide service, not generate additional visitors, though there will be an indirect effect. Revenues Office rentals 10 offices x Rs10,000/ month Restaurant rental @ Rs 20,000/ month Shop rentals 10 shops x Rs 20,000/ month Amphitheatre rentals 20 functions @ Rs 20,000 Costs = Rs 12.0 lakhs = Rs 2.4 lakhs = Rs 24.0 lakhs = Rs 4.0 lakhs Ongoing costs are for maintenance and common utilities @ Rs 24 lakhs/ year. Funding The initial capital required is Rs 70-75 lakhs. Breakeven is achieved in 4-5 years and thereafter, it is a profitable operation. Attracting the Private Sector While there appears to be no requirement to incentivise the building of hotels, there are other tourism related activities that would need incentives to attract the private sector. We recommend that Chandigarh Government consider the following to develop a package of incentives.. INCENTIVES FOR TRAVEL & LEISURE INDUSTRY 1. Assistance on project report preparation 2. Concessional land for specified projects 3. Entertainment tax exemption for 5 years 4. Capital investment subsidy of 20% subject to a maximum of Rs 20 lakhs 5. Recommendation of loans to Financial Institutions 6. Interest subsidy on loans from approved financial institutions 7. Energy subsidy 8. Concessions on stamp duties/ reimbursement – urban areas, rural areas 9. Concessions on Change in land use fees 10. Excise licence fees concessions 11. Concession on Transport taxes on vehicles used for this activity. INVOLVING THE NON TRAVEL & LEISURE SECTOR IN TOURISM ACTIVITIES Chandigarh has over 25 corporates and PSUs with turnovers of over Rs 100 crores. These all have some commitment to Chandigarh and can be approached for sponsoring various activities that can improve the tourist experience. Greening of the environment – road dividers, green belts, parks Cleaning of the environment – garbage bins and collection Sponsorships of o signage o projects such as handicraft villages o events such as local festivals o information kiosks o tourist literature The companies may be compensated in terms of exposure available. It is also common to have directional signs to the company premises. Project 7 Horse Race Course Horse racing is an activity that draws week end traffic. In India, the main race tracks are in Mumbai and Kolkata. These depend largely on the local population with free income. However, Pune and Bangalore both have successful race tracks where the attendance is from outside the city. The race season in these two cities fills hotels over the normally low weekends. Revenue sources for Race Clubs are Club memberships Sponsorship of Corporate boxes Club house activities F&B concessions/ sales Gate money from attendees. Sponsorship of races. Programme sales Programme advertising Horses pay to race/ stable Share of tote Off-season revenues are buoyed by off track betting. Race tracks around the country pay for live telecasts via satellite. o This brings in viewership of about 2 lakh people Race tracks are also labour intensive, both for the track and for anciliary activities like stud farms, training paddocks, stables and for manning the accommodations for staff, trainers jockeys etc. A quality race course with a 2000 meter track requires an area of about 200 acres depending on the shape of the plot. On clear grounds, a race track can be laid in 100 acres. The area around Chandigarh and Delhi have the best stud farms in the country. Many are owned by political figures. There are at least 10 stud farms in the North where horses are bought for racing across the country. Owners of stud farms currently need to travel to other race tracks to promote their products. The Delhi Race Course does not cater to quality horse races. Setting up a race track is complicated. Tracks like Hongkong, Singapore, Malaysia, Kentucky etc all have their own systems and one suitable for Chandigarh will need to be worked out in conjunction with stud farms, race horse owners, authorities etc. The modern tote systems are totally electronic and cost upto Rs 2 crores. They are backed by broadband access to allow off track betting and satellite broadcast/ reception. The indicated expense of setting up an entire race course with track, club house, stabling, accommodation, tote machines etc is in the region of Rs 40-50 crores minus cost of land. The facility is usually given on long lease. Note Mr. Narendra Lagad from Pune is an acknowledged authority on setting up race courses. He has set up one in Kandy, Sri Lanka. (Contacts are 020-6879495/ 6870217/ 098220-28285 e-mail : narendralagad@hotmail.com ) Recommendation Chandigarh further examine the feasibility of including a Race Course in the Master Plan. The Club can have other sports facilities to attract memberships. Accommodation for out of town visitors should also be examined. The entire project should be in th private sector. Visitor numbers Race attendees 15 race days x 5000 attendees = 75,000 30 off track x 1000 attendees = 30,000 Club Members Permanent members = 500 Out station members = 300 Revenues 1. Gate money Race days 75,000 x Rs50 = Rs 37.5 lakhs Off track 30,000 x Rs 20 = Rs 6.0 lakhs 2. Club memberships 500 members x Rs 2 lakhs = Rs 1000 lakhs 300 outstation x Rs 75,000 = Rs 225 lakhs 3. Monthly dues + usage 300 x Rs 1000 = Rs 3.0 lakhs 300 x Rs 400 = Rs 1.2 lakhs 4. Company sponsored boxes 10 x Rs 5 lakhs/ year = Rs 50 lakhs 5. F&B concessions 45 days x 5 concessions x Rs5000 = Rs 11.25 lakhs 6. Programme sales 1 programme per 4 attendees xRs 10 = Rs 2.6 lakhs 7. Programme advertising @ Rs 1 lakh a programme x 45 = Rs 45 lakhs 8. Race charges 15 races x 8 horses x Rs 5000 = Rs 6.0 lakhs 9. Share of tote 5% of 105K attendees x Rs 200 per = Rs 105 lakhs Plus royalties for live telecasts. Costs - Ongoing 1. Race purses/ prizes – At least 2 prizes per meet can be sponsored by Corporate Houses. 2. Personnel – This includes a. Tote supervisors/ tellers/ gate entrance/ horsemen’s book keeper b. Racing secretariat/ starter/ announcer/ stewards/ paddock judge. Some of these can be voluntary positions c. Club house personnel d. Track maintenance/ security 3. Equipment maintenance. This can be outsourced 4. Insurance 5. Utilities 6. Track Maintenance 7. Advertising. Programme printing Funding recommendation The requirement is Rs 40-50 crores plus cost of land. The entire project should be tendered to the Private Sector. There are a variety of ways this can be managed from JV to fixed leases to profit/ revenue sharing. Project 8 Amusement Park Attracting tourists en route to Himachal Pradesh Up to less than ten years ago, given the state of the highways and the quality of cars, most tourists driving from Delhi to the Himachal destinations of Shimla and Kullu- Manali required up to 6 hours to reach the Chandigarh environments. For many, especially those on their way to Kullu-Manali or those traveling with young children, a stop-over in Chandigarh was very convenient. Today, the distance is covered in 4 hours or less and Chandigarh is now accessed before lunch. Given that the average person can comfortably drive 400 Km or 6 hours a day, they can easily reach Shimla. Also given the fact that car ownership is increasing at over 18% a year and that domestic tourism is increasing at 5% a year, traffic to Himachal out of Delhi will only increase over the next decade. The increased tourism promotion activity of Uttaranchal will also spur the HP Government to promote tourism more actively. Therefore, it is imperative that some portion of the transit traffic to Kullu-Manali is attracted to overnight in Chandigarh. The logical segment to attract is those traveling with children as children tire of long car trips. In short, the attraction should be oriented to children. Therefore, we propose an amusement cum water park. The water park would be a major attraction as most movement to the hills is in the Summer months. This need not be on the scale of a Disney World, but the rides and facilities of Appu Ghar but with quality equipment would suffice. This would also be a facility for the local population of Chandigarh, providing reasonably priced family entertainment, currently available in very limited scope. The ideal location for this facility would be in the Kishangarh area, adjacent to the current leisure areas of Sukhna Lake, the Golf course and the Rock Garden. This has already been identified by Chandigarh Town Planning. The park should be marketed to the specific segment of families with small children traveling to Kulu/ Manali. Possible facilities in an amusement park are listed below. While weekend usage will be high, it is necessary to balance the products to drive traffic throughout the week and throughout the day. The analysis below attempts this. Weekday usage Invest Direct Indirect Attraction AM PM Night ment jobs jobs Amusement Park - Ferris Wheel, slides, rides, dodgem cars Med Hi Hi Animal rides Med Hi Lo Bowling Med Hi Hi Casino/ Slot Machines Lo Med Hi Cultural Centre - Dilli Haat style to showcase the State Hi Hi Hi Fairground stalls - games of chance and skill Med Med Hi Food Court - Vishala/ Chowkidana Lo Lo Hi Go-karting Lo Lo Hi Kiddies play centre - Primeplay, Softlands Hi Hi Med Mini-golf - Putt Putt Med Med Hi Science Centre- Eg. Panorama in Kurukshetra Hi Hi Lo Shopping mall - designer shops a la Santushti, factory outlets, discount clubs Hi Hi Med Roller Skating rink Lo Med Hi Swimming Pool - heated(?) Hi Hi Hi Water Park Lo Med Hi Mini - Zoo Hi Hi Med Name of Park Area in Annual Entrance fees excluding video acres Visitors games and some selected rides. lakhs Child below 1 metre free. Essel World, Gorai 64 18–20 Child Rs.200/ Adult Rs 250 Water Kingdom, Gorai 24 12-14 Child Rs225/ Adult Rs 275 Nicco Park, Kolkata 40 12-13 Kishi Kintha, Chennai 10 VGP Universal, M’puram 8 Appu Garh, Delhi 6-7 MGM, Chennai 5-6 Fun city, Chandigarh 4 Child Rs140/ Adult Rs 140 Fun & Food Village, Delhi 12 5 Nicco Bhubhaneswar 15 2-2.5 Nicco Jamshedpur 8 2-2.5 Great Escapes, Nagpur 2 Visitor numbers Given that Fun City, with its less than prime location, attracts around 5 lakh visitors a year, and that the recommended location can easily attract highway traffic to Himachal, it is not unreasonable to base visitor numbers at 5 lakhs a year going up to 7 over 3-4 years. Visitor spends Factoring in student discounts and free children, Essel World/ Water Kingdom average Rs 175 per visitor. In Chandigarh, the average will probably be around Rs 150. In addition, visitors spend on parking, F&B and souvenirs as also on specialized rides and video games. An average visitor spend on items other than entrance is taken at Rs 50 per visitor. Therefore revenues can be assumed to be 5 lakhs x Rs 150 = Rs 7.5 crores on entrance fees and a further 5 lakhs x Rs 50 = Rs 2.5 crores on other items. Total revenues Rs 10 crores Costs It costs roughly Rs 1.0 crore an acre to create an amusement park. The investment in Chandigarh will be in the region of Rs 15 crores. Funding It is recommended that Chandigarh Tourism tenders the entire project to private sector. There a variety of ways this can be done from JV to various types of leases. Marketing This will be done by the amusement park operator. Project 9 Linking the sightseeing Chandigarh Tourism has recently introduced the Hop-on Hop-off bus linking the sightseeing of Chandigarh in an extremely user-friendly manner. This works very well for attractions that are fairly wide spread from each other where customers are willing to wait the 15 minutes to half an hour for the next lift. However, when attractions are relatively close together, waiting for the bus versus walking to the next attraction becomes a dilemma and an irritant. The main case in point is the 1 km distance between the Rock Garden and Sukhna Lake, both ‘must see’ attractions of Chandigarh. The walk versus the wait for the bus, specially with children, are both unattractive options! The other alternative option is to pay a hefty fare to the auto rickshaws It is understood that Chandigarh Town Planning has proposed leisure activities in the area beyond the Lake and between the existing Golf Course and Kishangarh. These are A sports complex Health resort/ picnic huts Amusement park This, along with the activities already existing in the Sukhna Lake area, make this area a hub of leisure activities, visited by all Chandigarh tourists and most Chandigarh residents. There are several possible solutions to ease this situation for the Chandigarh tourist. Regulate the auto rickshaws to charge the official fares o Auto rickshaws will probably boycott the stand as the potential fare is the minimum drop of flag amount. o It is probably not economically viable to increase the number of buses that would be required to increase frequency over the entire circuit. Introduce a shuttle bus between the two places o This would require one more bus to shuttle every 10 minutes o Customers may not be willing to pay any amount over and above the basic Hop-on Hop-off fare for a bus service that is seen to be part of the same system. Introduce a novel form of cheap transport between the two locations. Some alternatives o Animal drawn buggies o An elevated monorail/ rail system It has been indicated that a 2 Km elevated track would be extremely costly. The monorail is necessarily electric o A conventional rail track with ‘antique’ engines and coaches in miniature. This would be like the narrow gauge railway to Matheran/ Darjeeling. The engine would be a diesel/ electric engine and could be designed like the ‘Fairy Queen’. This would be an attraction in it’s own right. A diesel/ electric train can be run very cost-efficiently. Pollution versus a steam train is minimal Recommendation It is recommended that a narrow gauge track and rake be commissioned to the private sector. Revenues From ticket sales The Rock Garden receives an average of 3,000 – 5,000 visitors a day. All visitors to the Rock Garden also go to Sukhna Lake. With the development of the Recreational Area, the Sports complex, the Tourist & Healht Resort and the Amusement park, the number of visitors can only increase. If 35 -40% of the visitors use the transport, which is an attraction in itself, this is roughly 1500 passengers a day @ Rs 5/ passenger = Rs 2.25 lakhs/ month. If running/ maintenance costs are 50%, net profits are Rs 1 lakh a month for a 70 month breakeven. If the Amusement Park and Tourist Health and Sports Centre are developed in Kishangarh, the numbers will rise dramatically. In addition, there will be opportunity of generating revenues from advertising on the train. Costs The estimated cost for setting down 2 Km of track is Rs 20 lakhs and the cost of the train, 4 coaches with 50 passenger capacity is Rs 20 lakhs. The engine is Rs 30 lakhs for a total project cost of Rs 70 lakhs Sources of funds It is recommended that this project be funded by Chandigarh Tourism. The Indian railways may be approached to set up a mini rail museum in this area. Marketing There is no marketing and promotion necessary and hence no specific marketing costs. Project 10 Conference Centre for Business Travel Businessmen travel to Meet buyers Meet suppliers Visit Home/ branch offices Incentive travel – where the travel is an incentive reward for better performance Attend conferences – own company and business associations The first three reasons for travel cannot be influenced by third parties. Business travel however can be generated to particular destinations through incentive travel and through conferences, conventions and exhibitions. Apart from road, rail and air access which is a common essential to develop these activities, and which is adequate in Chandigarh, each of the above also has its own requirements. Incentive Travel Incentive destinations are typically not those with cultural attractions but those with a wide range of leisure activities and nightlife. The participants of an incentive group are all prize winners of performance awards and are looking for a fun time in a place that ordinarily would be out of reach of their pockets or regular family holiday destinations. Chandigarh is not suited for incentive travel. Meetings, Conventions and Exhibitions Meetings and conferences These are traditionally organized by companies for their own staff, distribution chain and, occasionally, suppliers. They are company need-based to communicate messages that require some interaction to a medium sized audience. The size of the company in terms of number of people and the spread of distribution are the prime drivers of meetings and conferences. Apart from companies headquartered in Chandigarh, those headquartered in the surrounding districts of the Punjab and Haryana are also candidates for holding meetings and conferences in Chandigarh. A listing of such companies is attached. Conventions and Seminars These are meetings held for multiple organizations interested in the same topic. They are usually organized by industry associations, professional associations, management associations, universities and NGOs to discuss topics of common interest. Among the more common conventions are various medical disciplines, religious, environmental subjects etc. However, the local chapter of the association needs to drive the organization of conventions and seminars. Typically, a bid document is put up to the national body that then may make an inspection trip to view facilities. The bid is normally submitted with comprehensive back-up documentation which apart from the core expertise is exhibited, the documentation covers extra-curricular activities during the day for spouses and evening and night entertainment, accommodation facilities, transportation etc. The local chapter must also organize the convention/ seminar. This can be fairly complicated and many organizations do not have in-house expertise. Successful conventions require that organizers are educated in meetings management. Cities that have evolved as convention destinations generally have a dedicated ‘Convention Visitors Bureau’ that works with local organizations to generate conventions. The Bureau has full time employees and a committee made up of representatives from the local tourism, hospitality, transport facilities as well as Associations. The attachment gives some organizations that can generate conventions in Chandigarh. Exhibitions Exhibitions are held to display products. These may be organized by Companies – A launch of new products is usually accompanied by an exhibition Associations – Manufacturing associations, agricultural associations and other industry associations including travel, automobile, job fairs all require exhibition area. Exhibition halls, typically being unfurnished have multi usage potential such as marriages, concerts and other social events. It appears that there is scope for a meetings facility in Chandigarh. Given that hotel capacities, both current and in the future, will be contained by town planning, the conference facility should not be too large. Chandigarh Town Planning has already identified a 7 acre plot in Sector 31, next to the CII Northern region Headquarters. Recommendation It is suggested that this offers A venue for General Body meetings of 600-800 persons (Approx 600-800 sq.mtr). This would be auditorium seating 3-4 break-out rooms. These are not with any fixed seating but should have capacities ranging from 50 to 150 persons theatre style.( Approx 400 sq.mts) Exhibition area of approximately 1500 sq.mtr Business center facilities Restaurant and snack Bar Parking Visitor numbers Typically, utilization of convention and exhibition area space is taken at 25% of capacity, even though it is possible to use spaces more than once a day. Exhibition area space may be better utilised as it has multi-functionality for social occasions. A 600 seat auditorium with break out rooms should see a throughput of roughly 55,000 persons a year. The exhibition space will have utilization for both exhibits and social functions. These are mutually exclusive. If the space is used 25% for exhibitions - 90 days a year including set up and knock down times – in other words exhibits available for 60-65 days, throughput of visitors will be 60-65,000. Of the 270 days available for social functions, we can take a utilization of 40% or 100 days with an average marriage attendance of 500 pax, this will be 50,000 pax. Visitor revenues Revenues from conference hall Rentals per event @ Rs 20,000/event x 90 days = Rs 18 lakhs F&B on attendance of 55,000 x Rs 200 = Rs 110 lakhs Revenues from exhibition hall Rentals per event @ Rs 20,000 x 90 days = Rs 18 lakhs F& B on attendance of 60,000 x Rs 25 = Rs 15 lakhs Revenues on Social functions Attendance 50,000 x Rs 200 = Rs 100 lakhs Total = Rs 261 lakhs Cost The total cost of construction of approximately 3000 sq.mtrs convention center will be in the region of Rs 8-10 crores. Landscaping 7 acres with parking will be around Rs 15 Lakhs. Profitability of rental income is around 80% - Rs 29 lakhs - and F&B income around 50% - Rs 112 lakhs for a total profitability of Rs 140 lakhs approx. Project viability break even in 5 –7 years. Funding Sources Part of the cost of construction can be de-frayed by Corporates paying to have some of the break-out rooms and possibly the main auditorium named after their company/ founder. ASSOCHAM has done this successfully with their HQ in Delhi. Marketing A convention promotion bureau should be set up. Potential clients for conferences and conventions both in India and abroad are easily identified from ICCA and other association lists. The convention bureau will need to work with their India Chapters to prepare attractive bid documents. Project 11 Energising the City Centre Sector 17 is the City Centre of Chandigarh. While most sectors have their own markets for daily essentials, Sector 17 is where aspirational ‘Lifestyle’ products are retailed. The market has been designed with vast pedestrian spaces and is eminently suitable to be developed as a social and entertainment hub. Apart from the months of May & June, Chandigarh weather is suitable for outdoor activities Evenings - Mid March to end April, July to November During the Day - December to mid March A social and entertainment hub would require Shopping for aspirational items. This trend already exists in Sector 17. Opening hours should allow for late shopping. Night market stalls of handicraft items should be allowed Special Sales periods/ Shopping Carnivals should be announced in advance Range of F&B outlets. There is a reasonable range of outlets. These should be encouraged. Liquor licences should be made more easily available and extension of service should be allowed till 1am. Entertainment Movie Halls/ multiplexes/ open air movies and documentaries Video parlours/ Bowling alleys/ slot machines Street entertainment. Local performing artists and those performing at Kalagram, All the Chandigarh festivals could be moved to Sector 17 – April Fools Day, Mango Festival, Indo-Pak Mushaira, Chrysanthamum Show Administration Energising the City Centre would require the active involvement of the Sector 17 shop keepers who have the most to gain from this initiative. They should be brought into the very initial planning stages. These activities do not require large funding, but coordination is crucial for success. Committees comprised of shop keepers and Chandigarh Administration should be formed for various types of activities. Funding As noted, large funds are not required. It should be possible to levy a small cess on shop turnover to fund activities. Marketing This is aimed to provide a focal point for Chandigarh residents. Communicating events will not require more than posters in Sector 17 and other sector markets. Attracting Private Sector Investment In Tourism Sector 1. Taxes 1.1 Rationalisation of taxes Expenditure tax is imposed by National Government while Luxury tax by State Governments. With the Expenditure tax, which is being levied at 10% where room charges are Rs. 3000 or more, being discontinued from 1 June 2003 as per the Union Budget 2003 and no Luxury tax levied, Chandigarh has an advantage over its neighbouring States. Incase in future Expenditure tax or any other tax is levied, then it is preferable to review the effect of total tax while calculating the taxes to be levied on the hotel industry. Moreover these taxes may be charged on the actual room tariff rather on published tariff rate card. 1.2 Other taxes In addition Service tax by Center and Entertainment tax by UT are also being imposed on the hotels. In the Union Budget 2003 services provided by the Hotels are exempted from Service tax. The rates of these taxes, together with expenditure tax and luxury tax, may be decided considering the composite tax (indirect taxes) rate for the hotel industry. The composite tax on hotel industry in India vis-à-vis neighbouring countries is presented in the table below: Composite Tax on Country Hotel Industry (%) India 30* Indonesia 21 Thailand 17 Malaysia 15 Singapore 14 Source: PHDCCI * Estimation includes 10% expenditure tax. 1.3 Sales Tax The Sales tax on beverages and liquor is 12% in the UT, which is moderately higher, compared to other states like Uttar Pradesh, Himachal Pradesh, Punjab, Delhi, etc. Keeping in view the tax structure of other States and especially neighbouring States, Chandigarh may reconsider the sales tax rates for these. 1.4 Transport tax Chandiragh has no transport tax while its neighbouring states Punjab and Haryana are charging the same. A single point tax collection system may be implemented in order to simplify the procedure and ensure smooth movement of tourist inter-states. Further, the tax rate per quarter levied on air-conditioned and non air-conditioned tourist vehicles may be limited by an overall cap amount for the country. 1.5 Power The cost of electricity is a major component in the overall cost structure for a hotel and hence may need to be maintained in line with other comparative States. 1.6 Foreign exchange earnings The UT may consider requesting the Centre for the extension of the time frame of income tax exemption on export earning under section 80HHD of the Income Tax Act 1961. The tourism sector may be granted this extension as like other exporters they too export their services and earn foreign exchange for the country. However, we may mention that it is unlikely that Centre will agree to this request as it has announced phasing out of such incentives. 1.7 Income Tax The UT may also request Centre for providing investments in hotels as well as other industry in the tourism sector with Tax Holiday for a pre-determined period which can be decided in consultation with the various departments and the private sector participants. In order to promote new investments in a particular industry, request for tax holiday for about 5 years for new investments, applicable for 2 year from the current financial year, may be sought. This may likely create positive interest among private sector to invest in these industries with in 2 years to avail the tax holiday. Here too, we may like to mention that the Centre providing such benefits is very unlikely. 2. Investment 2.1 Land rates The Government may consider providing land at concessional rates for construction of hotels and other infrastructure for tourism by private investor. Alternatively, Government may provide land free of cost and acquire stake in the new project constructed on it by private sector through a join venture. The Government has draft a joint venture policy for attracting private sector, a review of which is also incorporated in this report. 2.2 Stamp duty Chandigarh may consider reducing the stamp duty levied especially in the area related to pilgrimages, rural area, etc. 2.3 One window clearance Chandigarh may provide one window clearance to the prospective private sector willing to invest in the UT. This will ensure speedy and efficient investment procedure for the private sector thereby attracting necessary investments. 3. Administrative Structure 3.1 Tourism Advisory Board The UT may strive towards constituting a board or a council comprising members from Tourism Development Corporation, Investment Promotion Board, Industrial Development Corporation, National Tourism Corporation/Department, etc. which will be primarily responsible for co-ordination and monitoring of tourism related activities and projects to ensure proper implementation of Tourism Policy. A detailed suggestion is set out in this report earlier. 3.2 Tourism Development Fund The UT may implement Targeted Funding approach by creating Tourism Development Fund (TDF) which will be recipient of all revenues generated from tourism and tourism related businesses. The Fund will be created by raising low interest loans from multilateral agencies that are actively involved in providing financial assistance to public/private sectors for infrastructure development. A Special Purpose Vehicle may be created where all the funds raised will be parked and a deployed in developing infrastructure to enhance tourism sector. The identification of infrastructure for the development can be done in consultation with other administrative bodies, which are also responsible in developing infrastructure of the state to ensure proper co-ordination between all such bodies. 4. Infrastructure The Government may try to identify areas of strategic importance and involve private sectors in non-strategic areas. Further it may try to segregate core and non-core activities involved in the areas of strategic importance e.g. maintenance of railway platform, maintenance of bus station, etc. and allow private sectors in these activities. Such activities may be provided on a license basis, lease basis, etc. as decided after a proper study of the same. The funds raised by disinvesting of these non-core activities can be utilised in developing infrastructure of the UT. 5. Promotion Chandigarh may plan for an advertising strategy, which will attract tourist from the desired regions and thus benefiting the tourism industry in the UT. This will increase the interest of the private sector in investing in the tourism sector in the UT. The advertising strategy may include amongst others: Shopping festivals, Fun and Fair festivals, Rural art and handicraft festivals, etc. Options for Attracting Private Sector Participation The projects in tourism, like infrastructure projects, too have long gestation period and requires huge capital investment initially. Further, the feasibility of tourism related projects are contingent on development and quality of infrastructure of the region like power, road, railway, water and communications. No single individual agency either the private sector or the Government could finance the sector all alone as the investment required are large and the risk too is relatively higher. Hence part of the load of development of tourism sector may be shared by the inclusion of private sector There are primarily two ways of sharing the responsibility with the private sector: Attracting Private Sector for new projects on all alone basis, Creating Public Private Partnership for new projects, Creating Public Private Partnership for existing projects owned by Government bodies, and Privatisation of existing projects to private sector. A brief note on each method of involving private sector is set out below: 1. Attracting Private Sector for new projects: The private sector may be attracted towards new projects related to tourism like Leisure centers, entertainment parks, theatres, health spa, hotels, etc. by providing incentives for such investments. The list of incentives, applicable period, industry, investment amount, etc may be decided once the type of industry in the tourism sector is identified where Government would like the private sector to accept the responsibility. 2. Creating Public Private Partnership for new projects: The strategy to encourage Public Private Partnership include creating a Tourism Development Finance Company and developing alternative options for partnerships. 2.1 Tourism Development Finance Company A TDFC may be formed with the investment from various state as well as centre owned financial institutions and inviting private sector and international agencies too may be considered. The main role of TDFC will to promote investment in tourism sector by providing long term debt and equity for the same. 2.2 Alternative Models The alternative models for Public Private Partnership for new projects is set out below: Build Operate Transfer (BOO) The private participant invest, executes the project, runs the business and transfer the property to the Government after the agreed span of period is over. Build Operate Lease Transfer (BOLT) The private sector will invest, execute the project, operate the business and then transfer the assets to the Government on completion of agreed span of time. After the hand over of the assets to the Government the private participant will get fixed income by way of lease, which is agreed during the inception. Build Own Operate and Transfer (BOOT) The private sector will invest, execute the project, own the assets created, operate the business and then transfer the assets to the Government on recovery of investments made at a designated rate of return. Until such time the hand over of the assets to the Government is completed, the private participant is responsible for maintenance and operation of the assets. 3. Creating Public Private Partnership for existing projects owned by Government bodies: The private sector may be interested in few existing projects owned by the Government, which the latter may like to share the responsibility of day-today-operation of the business but at the same time would also like to retain stake in the assets. We may like to mention that such properties may be spun-off as a separate entity and private sector may be invited to run the business in following two ways: Formation of Joint Venture by inclusion of a private strategic partner: The private participant will invest funds in the new entity (existing project spun-off) and in return the Government will provide stake in the entity. While the private participant will be primarily be responsible for operating and strategic management decisions, approval of key decisions will required an concurrence from the Government. Issuing license for management control to private parties and retaining ownership with the Government: The private participant neither provides any fund to the Government nor invests funds in the existing project. The ownership of the entity lies with the Government whereas the day-to-day operations are carried out by the private participant for a fixed fee or a revenue sharing model as agreed upon. 4. Privatisation of existing projects to private sector: The step wise strategy for privatisation of the tourism related properties is set out below: 4.1 Setting up a Commission The UT/Center may initiate the process of privatisation by setting up a Privatisation Commission (or Disinvestment Commission) for the purpose of privatisation of Government owned Tourism related properties. The commission will be primarily responsible for reviewing all properties with respect to the financial status of the properties, priority of privatisation, the strategic importance of the property, etc. 4.2 Identification of Tourism Properties Subsequently, the commission will identify the Government owned properties related to tourism to be disinvested and the approach in which the privatisation process will be adopted. The various strategies, which may be considered for the privatisation, are set out below: a. The related properties may be clubbed together and privatised, b. Create chain of hotels, chain of restaurants, chain of dhabas, etc and privatise each chain, c. Sell certain properties on stand alone basis, etc. d. Create a trail and sell the trail, etc. We may mention that the Government may appoint an advisor at this stage to assist in the process of formulation of detailed property-wise strategy, implementation of the strategy, structuring of the deals in terms of creation of Special Purpose Vehicles, spun-off of units, regulatory requirements, etc. marketing of the transactions and advise Government in the process till the transactions are completed. A detailed scope of work for the advisor may be drafted once the list of properties to be privatised in prepared. Funding Of Tourism Projects Type of Funds The funds required to be raised for projects can be categorised broadly under three heads: Equity, Quasi equity, and Loans. The mix of funding will depend upon the nature of project undertaken, the risk involved, the cash flows envisaged in future, creation of physical assets in order to leverage the project, etc. Source of Fund Most of the Financial Institutes provide all kinds of plain vanilla funds, which are set out above. In addition, they also provide funds such as syndicate loans, Interest rate hedging/swaps, currency hedging loans, etc. in order to match the requirements of the projects. An indicative list of Financials Institutions who may be approached for assistance in investments in Tourism sector are set out below: 1. Domestic Financial Institutes Tourism Finance Corporation of India Infrastructure Leasing Finance of India Industrial Development Bank of India Industrial Finance Corporation of India ICICI Limited Industrial Development Finance Corporation Limited Investment Institutes Life Insurance Corporation of India General Insurance Corporation of India United Trust of India State Financial Institutes Haryana State Industrial Development Corporation Haryana Financial Corporation 2. International Financial Institutes International Monetary Fund World Bank Asian Development Bank International Finance Corporation(only to private sector) KFW Line of Credit International Bank of Reconstruction Overseas Private Investment Corporation Application for Fund There is no standard application form for financing a project as it varies from one Financial Institution to another. A company or entrepreneur, foreign or domestic, seeking to establish a new venture can approach the FI by submitting an Investment Proposal. The proposal submitted to FI for consideration should include the preliminary information as set out in Annexure A. Terms and conditions of Funding Terms A list of terms, which are usually a part of any funding agreement, is set out below: Currencies The currency of the loan/fund to be disbursed by the Lender, payment of interest and repayment of the principal amount to the Lender is specified under this head. Lending Rate Lending rate can be broadly of three types: Floating rate: 6-month London Interbank offered rate (LIBOR) for the US dollar and Japanese Yen and 6-month euro interbank offered rate (EURIBOR) for the euro plus a lending spread. Fixed rate : The cost of Bank’s fixed rate borrowing of US dollars, Japenese yen or Swiss francs plus a lending spread. Resetter : Its is similar to fixed rate loans for the initial period which is tailored to the borrower’s need after a specified period. It is charged as a % per annum on progressive amount of undisbursed loan Commitment Fee balance. Its is a flat percentage fee of the loan amount Front-End Fee As may be determined based on project needs and could comprise of a Maturity grace period and a repayment period with final maturity. Following conversion options would be available subject to the Bank’s Loan Conversion conversion procedures as may be applicable at the time of conversion. Options Transaction Fees Disbursement schedule Prepayment Cancellation Repayment Lending Rate Reset / Payment Dates Currency Conversion: The undisbursed amounts/disbursed amounts in whole or part of the undisbursed balance/disbursed amount of the loan may be converted into the three offered currencies. Interest Rate Conversion: The floating lending rate on the whole or part of the disbursed balance may be converted into a fixed-rate at the prevailing market rate or vice versa for whole or part of the loan's residual maturity. Interest Rate Caps and Collars: A cap or collar on the floating lending rate may be purchased for up to the entire disbursed amount, for the whole or part of the residual maturity. A transaction fees may be charged pertaining to the above referred loan conversion. Amount and timing of loan disbursement are structured as per the project needs. All or part of the disbursed and outstanding loans may be prepaid. Floating rate loans could be prepaid on an interest payment due date without a prepayment premium. Prepayment of floating rate loans on a date other than the interest payment due date will attract payment of a premium based on the difference, if any, between the rate at which the proceeds from the prepayment could be reinvested and Bank’s funding cost for the prepaid amount. Prepayment of fixed rate loans or floating rate loans that involve conversion and a corresponding hedge requiring termination will attract payment of hedge unwinding costs, if any. Borrower may cancel all or a part of the undisbursed balance at any time. Equal principal or annuity repayments. Lending rate for floating rate loans are generally reset every six months on an interest payment date. Interest payment are generally due either on the 1st or 15th day of a calendar month and semiannually thereafter. Conditions The primary objective of introducing conditions while providing loan/funds is to ensure that the proceeds of the loan are used only for the purposes for which the loan was granted and with due attention to considerations of economy and efficiency. Thus, the Lender’s loan documents (e.g., loan agreement, guarantee agreement, where relevant project agreement, etc.) stipulate the loan covenants that are considered necessary to ensure the efficient implementation of, and the full realisation of benefits from, projects financed by Lender. The loan covenants can be divided broadly into two categories: general covenants and special covenants: (i) General Covenants General covenants are standard assurances and undertakings that the Lender requires from all borrowers, guarantors, if any, and executing agencies for projects financed by the loans regardless of the special features of a particular project. General covenants include obligations on the part of the borrower, guarantor, if any, and the executing agency: to carry out the project with diligence and efficiency; to repay the loan; to procure goods and services and engage consultants in accordance with specified procedures; to maintain project records and accounts; to provide local currency funds, facilities, and other resources required for carrying out the project; to submit financial statements/ progress reports; and to establish and maintain adequate auditing arrangements with the provision that the Lender will retain the option to communicate directly with the auditors. (ii) Special Covenants Special covenants are those assurances and undertakings which the Lender considers necessary or desirable to obtain from the borrower, guarantor, if any, and the executing agency for each project, having regard to the special features, identified difficulties, and reference points for monitoring of each project. Special covenants are an important part of the loan documents and are so designed that compliance with these covenants will further ensure the successful implementation of the project, sustainable operation of the facilities, and full realization of its benefits. They also provide a basis for the Lender to monitor project implementation and performance. To facilitate monitoring of compliance, special covenants should indicate, wherever possible, the dates by which compliance is expected of various items therein, on the basis of a realistic assessment of project-specific requirements and the related government policy and procedure. Where special circumstances so warrant, special covenants may be used to require the borrower, if any, or the executing agency/guarantor to undertake necessary action even after completion of project implementation so as to ensure sustainability of project benefits. Compatibility of Loan Covenants with Local Laws Covenants are generally compatible with local laws, administrative practices and procedures, sectoral/subsectoral requirements, and socioeconomic conditions of developing member countries. Interventions required Sr Suggestions Agencies Involved 1 Taxation Rationalisation, reduction and SEB, Finance Department tax holidays. and Government of India 2 Land rates Concession CITCO 3 One window Creation of a body for one stop CITCO and SEB clearance processing 4 Structure Creation of a Tourism Advisory Government of Chandigarh Body Creation of Tourism Finance Deparment and Development Fund CITCO 5 Infrastructure Development of infrastructure CITCO, PWD, Finance and involvement of private Department. sector 6 Marketing Promotion of Chandigarh CITCO Tourism 7 Attracting Private Providing incentives SEB, Ministry of Finance and Sector Participation Government of India, L&DO New Joint Ventures (PSP) CITCO, Finance Department Joint Ventures for existing CITCO projects Privatisation CITCO and Finance Department Annexure A IN\DICATIVE INVESTMENT PROPOSAL OUTLINE There is no standard form for applications. This is an indicative framework providing key heads to be covered in an Investment Proposal to be submitted for funding. 1. Executive Summary Summarise all the important points of the proposal. 2. Lender’s role Propose an equity, debt, or cofinancing arrangement. 3. Background to the project Brief introduction and history of the borrower State the need to undertake the project. Briefly describe the project, including the implementation and operation philosophy. Specify the support obtained from government, lending institutions and investors for the project. State the need for the assistance required from the Lender. 4. The Market Describe the market and marketing arrangements. Include all the following: Basic market orientation: local, national, regional, or export. Projected production volumes, unit prices, sales objectives, and market share of proposed venture. Potential users of products and distribution channels to be used. Present sources of supply for products. Future competition and possibility that market may be satisfied by substitute products. Tariff protection or import restrictions affecting products. price sensitivity market risks Critical factors that determine market potential. 5. Feasibility Study Present a feasibility study establishing the technical, financial, economic, and environmental viability of the project, prepared by a reputable consultant. 5.1Technical feasibility, manpower, resources, and environment: Brief description of the process. Availability of manpower and of infrastructure facilities (transport and communications, power, water, etc.). Breakdown of projected operating costs by major categories of expenditures. Proposed location in relation to markets, infrastructure and manpower. Proposed capacity in comparison with other known competitors. Potential environmental issues and how these issues are addressed. 5.2 Cost Estimates Provide cost estimates for the project, analyzed two ways: major cost category local and foreign currency cost. 5.3 Investment requirements, project financing, and returns: Estimate of total project cost, broken down into land, construction, installed equipment, and working capital, indicating foreign exchange component. Proposed financial structure of venture, indicating expected sources and terms of equity and debt financing. Type of financing (loan, equity, quasi-equity, a combination of financial products, etc.) and amount required from the Lender. Projected financial statement, information on profitability, and return on investment. Critical factors determining profitability. 5.4 Financial and Economic Evaluation Calculate the economic and financial rates of return as well as return on the equity investment. 5.5 Analysis Analyze the risks in implementing and operating the project with the accompanying mitigating measures showing which party will bear the risk and/or pay for the mitigating measures. The risk analysis should be accompanied by a list of proposed insurance coverages for both implementation and operation of the project. 6. Ownership of the project Describe the proposed ownership and management structure of the project. 7. Government support and regulations: Project in context of government economic development and investment program. Specific government incentives and support available to project. Expected contribution of project to economic development. Outline of government regulations on exchange controls and conditions of capital entry and repatriation. 8. Environmental Aspects Provide a site-specific environmental impact assessment report, highlighting environmental impacts and mitigating measures, prepared by an acceptable consulting firm in accordance with Lender’s guidelines. 9. Permitting and Licensing List all permits and clearances required for implementing and operating the project, the issuing authority, and the date of issue or expected issue. 10. Implementation Arrangements Explain the implementation and contractual arrangements for the project, including the construction and supervision methodology. Make sure the followings are included: a bar chart showing major scheduled achievements and completion for each of the major components of the project draft construction contracts sources of possible cost increases and delays Detailed description of liquidated damage provisions and performance bond requirements. Attracting Private Sector Investment In Tourism Sector 1. Taxes 1.1 Rationalisation of taxes Expenditure tax is imposed by National Government while Luxury tax by State Governments. With the Expenditure tax, which is being levied at 10% where room charges are Rs. 3000 or more, being discontinued from 1 June 2003 as per the Union Budget 2003 and no Luxury tax levied, Chandigarh has an advantage over its neighbouring States. Incase in future Expenditure tax or any other tax is levied, then it is preferable to review the effect of total tax while calculating the taxes to be levied on the hotel industry. Moreover these taxes may be charged on the actual room tariff rather on published tariff rate card. 1.2 Other taxes In addition Service tax by Center and Entertainment tax by UT are also being imposed on the hotels. In the Union Budget 2003 services provided by the Hotels are exempted from Service tax. The rates of these taxes, together with expenditure tax and luxury tax, may be decided considering the composite tax (indirect taxes) rate for the hotel industry. The composite tax on hotel industry in India vis-à-vis neighbouring countries is presented in the table below: Composite Tax on Country Hotel Industry (%) India 30* Indonesia 21 Thailand 17 Malaysia 15 Singapore 14 Source: PHDCCI * Estimation includes 10% expenditure tax. 1.3 Sales Tax The Sales tax on beverages and liquor is 12% in the UT, which is moderately higher, compared to other states like Uttar Pradesh, Himachal Pradesh, Punjab, Delhi, etc. Keeping in view the tax structure of other States and especially neighbouring States, Chandigarh may reconsider the sales tax rates for these. 1.4 Transport tax Chandiragh has no transport tax while its neighbouring states Punjab and Haryana are charging the same. A single point tax collection system may be implemented in order to simplify the procedure and ensure smooth movement of tourist inter-states. Further, the tax rate per quarter levied on air-conditioned and non air-conditioned tourist vehicles may be limited by an overall cap amount for the country. 1.5 Power The cost of electricity is a major component in the overall cost structure for a hotel and hence may need to be maintained in line with other comparative States. 1.6 Foreign exchange earnings The UT may consider requesting the Centre for the extension of the time frame of income tax exemption on export earning under section 80HHD of the Income Tax Act 1961. The tourism sector may be granted this extension as like other exporters they too export their services and earn foreign exchange for the country. However, we may mention that it is unlikely that Centre will agree to this request as it has announced phasing out of such incentives. 1.7 Income Tax The UT may also request Centre for providing investments in hotels as well as other industry in the tourism sector with Tax Holiday for a pre-determined period which can be decided in consultation with the various departments and the private sector participants. In order to promote new investments in a particular industry, request for tax holiday for about 5 years for new investments, applicable for 2 year from the current financial year, may be sought. This may likely create positive interest among private sector to invest in these industries with in 2 years to avail the tax holiday. Here too, we may like to mention that the Centre providing such benefits is very unlikely. 2. Investment 2.1 Land rates The Government may consider providing land at concessional rates for construction of hotels and other infrastructure for tourism by private investor. Alternatively, Government may provide land free of cost and acquire stake in the new project constructed on it by private sector through a join venture. The Government has draft a joint venture policy for attracting private sector, a review of which is also incorporated in this report. 2.2 Stamp duty Chandigarh may consider reducing the stamp duty levied especially in the area related to pilgrimages, rural area, etc. 2.3 One window clearance Chandigarh may provide one window clearance to the prospective private sector willing to invest in the UT. This will ensure speedy and efficient investment procedure for the private sector thereby attracting necessary investments. 3. Administrative Structure 3.1 Tourism Advisory Board The UT may strive towards constituting a board or a council comprising members from Tourism Development Corporation, Investment Promotion Board, Industrial Development Corporation, National Tourism Corporation/Department, etc. which will be primarily responsible for co-ordination and monitoring of tourism related activities and projects to ensure proper implementation of Tourism Policy. A detailed suggestion is set out in this report earlier. 3.2 Tourism Development Fund The UT may implement Targeted Funding approach by creating Tourism Development Fund (TDF) which will be recipient of all revenues generated from tourism and tourism related businesses. The Fund will be created by raising low interest loans from multilateral agencies that are actively involved in providing financial assistance to public/private sectors for infrastructure development. A Special Purpose Vehicle may be created where all the funds raised will be parked and a deployed in developing infrastructure to enhance tourism sector. The identification of infrastructure for the development can be done in consultation with other administrative bodies, which are also responsible in developing infrastructure of the state to ensure proper co-ordination between all such bodies. 4. Infrastructure The Government may try to identify areas of strategic importance and involve private sectors in non-strategic areas. Further it may try to segregate core and non-core activities involved in the areas of strategic importance e.g. maintenance of railway platform, maintenance of bus station, etc. and allow private sectors in these activities. Such activities may be provided on a license basis, lease basis, etc. as decided after a proper study of the same. The funds raised by disinvesting of these non-core activities can be utilised in developing infrastructure of the UT. 5. Promotion Chandigarh may plan for an advertising strategy, which will attract tourist from the desired regions and thus benefiting the tourism industry in the UT. This will increase the interest of the private sector in investing in the tourism sector in the UT. The advertising strategy may include amongst others: Shopping festivals, Fun and Fair festivals, Rural art and handicraft festivals, etc. Options for Attracting Private Sector Participation The projects in tourism, like infrastructure projects, too have long gestation period and requires huge capital investment initially. Further, the feasibility of tourism related projects are contingent on development and quality of infrastructure of the region like power, road, railway, water and communications. No single individual agency either the private sector or the Government could finance the sector all alone as the investment required are large and the risk too is relatively higher. Hence part of the load of development of tourism sector may be shared by the inclusion of private sector There are primarily two ways of sharing the responsibility with the private sector: Attracting Private Sector for new projects on all alone basis, Creating Public Private Partnership for new projects, Creating Public Private Partnership for existing projects owned by Government bodies, and Privatisation of existing projects to private sector. A brief note on each method of involving private sector is set out below: 1. Attracting Private Sector for new projects: The private sector may be attracted towards new projects related to tourism like Leisure centers, entertainment parks, theatres, health spa, hotels, etc. by providing incentives for such investments. The list of incentives, applicable period, industry, investment amount, etc may be decided once the type of industry in the tourism sector is identified where Government would like the private sector to accept the responsibility. 2. Creating Public Private Partnership for new projects: The strategy to encourage Public Private Partnership include creating a Tourism Development Finance Company and developing alternative options for partnerships. 2.1 Tourism Development Finance Company A TDFC may be formed with the investment from various state as well as centre owned financial institutions and inviting private sector and international agencies too may be considered. The main role of TDFC will to promote investment in tourism sector by providing long term debt and equity for the same. 2.2 Alternative Models The alternative models for Public Private Partnership for new projects is set out below: Build Operate Transfer (BOO) The private participant invest, executes the project, runs the business and transfer the property to the Government after the agreed span of period is over. Build Operate Lease Transfer (BOLT) The private sector will invest, execute the project, operate the business and then transfer the assets to the Government on completion of agreed span of time. After the hand over of the assets to the Government the private participant will get fixed income by way of lease, which is agreed during the inception. Build Own Operate and Transfer (BOOT) The private sector will invest, execute the project, own the assets created, operate the business and then transfer the assets to the Government on recovery of investments made at a designated rate of return. Until such time the hand over of the assets to the Government is completed, the private participant is responsible for maintenance and operation of the assets. 3. Creating Public Private Partnership for existing projects owned by Government bodies: The private sector may be interested in few existing projects owned by the Government, which the latter may like to share the responsibility of day-today-operation of the business but at the same time would also like to retain stake in the assets. We may like to mention that such properties may be spun-off as a separate entity and private sector may be invited to run the business in following two ways: Formation of Joint Venture by inclusion of a private strategic partner: The private participant will invest funds in the new entity (existing project spun-off) and in return the Government will provide stake in the entity. While the private participant will be primarily be responsible for operating and strategic management decisions, approval of key decisions will required an concurrence from the Government. Issuing license for management control to private parties and retaining ownership with the Government: The private participant neither provides any fund to the Government nor invests funds in the existing project. The ownership of the entity lies with the Government whereas the day-to-day operations are carried out by the private participant for a fixed fee or a revenue sharing model as agreed upon. 4. Privatisation of existing projects to private sector: The step wise strategy for privatisation of the tourism related properties is set out below: 4.1 Setting up a Commission The UT/Center may initiate the process of privatisation by setting up a Privatisation Commission (or Disinvestment Commission) for the purpose of privatisation of Government owned Tourism related properties. The commission will be primarily responsible for reviewing all properties with respect to the Funding Of Tourism Projects Type of Funds The funds required to be raised for projects can be categorised broadly under three heads: Equity, Quasi equity, and Loans. The mix of funding will depend upon the nature of project undertaken, the risk involved, the cash flows envisaged in future, creation of physical assets in order to leverage the project, etc. Source of Fund Most of the Financial Institutes provide all kinds of plain vanilla funds, which are set out above. In addition, they also provide funds such as syndicate loans, Interest rate hedging/swaps, currency hedging loans, etc. in order to match the requirements of the projects. An indicative list of Financials Institutions who may be approached for assistance in investments in Tourism sector are set out below: 1. Domestic Financial Institutes Tourism Finance Corporation of India Infrastructure Leasing Finance of India Industrial Development Bank of India Industrial Finance Corporation of India ICICI Limited Industrial Development Finance Corporation Limited Investment Institutes Life Insurance Corporation of India General Insurance Corporation of India United Trust of India financial status of the properties, priority of privatisation, the strategic importance of the property, etc. 4.2 Identification of Tourism Properties Subsequently, the commission will identify the Government owned properties related to tourism to be disinvested and the approach in which the privatisation process will be adopted. The various strategies, which may be considered for the privatisation, are set out below: a. The related properties may be clubbed together and privatised, b. Create chain of hotels, chain of restaurants, chain of dhabas, etc and privatise each chain, c. Sell certain properties on stand alone basis, etc. d. Create a trail and sell the trail, etc. We may mention that the Government may appoint an advisor at this stage to assist in the process of formulation of detailed property-wise strategy, implementation of the strategy, structuring of the deals in terms of creation of Special Purpose Vehicles, spun-off of units, regulatory requirements, etc. marketing of the transactions and advise Government in the process till the transactions are completed. A detailed scope of work for the advisor may be drafted once the list of properties to be privatised in prepared. State Financial Institutes Haryana State Industrial Development Corporation Haryana Financial Corporation 2. International Financial Institutes International Monetary Fund World Bank Asian Development Bank International Finance Corporation(only to private sector) KFW Line of Credit International Bank of Reconstruction Overseas Private Investment Corporation Application for Fund There is no standard application form for financing a project as it varies from one Financial Institution to another. A company or entrepreneur, foreign or domestic, seeking to establish a new venture can approach the FI by submitting an Investment Proposal. The proposal submitted to FI for consideration should include the preliminary information as set out in Annexure A. Terms and conditions of Funding Terms A list of terms, which are usually a part of any funding agreement, is set out below: Currencies The currency of the loan/fund to be disbursed by the Lender, payment of interest and repayment of the principal amount to the Lender is specified under this head. Lending Rate Lending rate can be broadly of three types: Floating rate: 6-month London Interbank offered rate (LIBOR) for the US dollar and Japanese Yen and 6-month euro interbank offered rate (EURIBOR) for the euro plus a lending spread. Fixed rate : The cost of Bank’s fixed rate borrowing of US dollars, Japenese yen or Swiss francs plus a lending spread. Resetter : Its is similar to fixed rate loans for the initial period which is tailored to the borrower’s need after a specified period. It is charged as a % per annum on progressive amount of undisbursed loan Commitment Fee balance. Its is a flat percentage fee of the loan amount Front-End Fee As may be determined based on project needs and could comprise of a Maturity grace period and a repayment period with final maturity. Following conversion options would be available subject to the Bank’s Loan Conversion conversion procedures as may be applicable at the time of conversion. Options Transaction Fees Disbursement schedule Prepayment Cancellation Repayment Lending Rate Reset / Payment Dates Currency Conversion: The undisbursed amounts/disbursed amounts in whole or part of the undisbursed balance/disbursed amount of the loan may be converted into the three offered currencies. Interest Rate Conversion: The floating lending rate on the whole or part of the disbursed balance may be converted into a fixed-rate at the prevailing market rate or vice versa for whole or part of the loan's residual maturity. Interest Rate Caps and Collars: A cap or collar on the floating lending rate may be purchased for up to the entire disbursed amount, for the whole or part of the residual maturity. A transaction fees may be charged pertaining to the above referred loan conversion. Amount and timing of loan disbursement are structured as per the project needs. All or part of the disbursed and outstanding loans may be prepaid. Floating rate loans could be prepaid on an interest payment due date without a prepayment premium. Prepayment of floating rate loans on a date other than the interest payment due date will attract payment of a premium based on the difference, if any, between the rate at which the proceeds from the prepayment could be reinvested and Bank’s funding cost for the prepaid amount. Prepayment of fixed rate loans or floating rate loans that involve conversion and a corresponding hedge requiring termination will attract payment of hedge unwinding costs, if any. Borrower may cancel all or a part of the undisbursed balance at any time. Equal principal or annuity repayments. Lending rate for floating rate loans are generally reset every six months on an interest payment date. Interest payment are generally due either on the 1st or 15th day of a calendar month and semiannually thereafter. Conditions The primary objective of introducing conditions while providing loan/funds is to ensure that the proceeds of the loan are used only for the purposes for which the loan was granted and with due attention to considerations of economy and efficiency. Thus, the Lender’s loan documents (e.g., loan agreement, guarantee agreement, where relevant project agreement, etc.) stipulate the loan covenants that are considered necessary to ensure the efficient implementation of, and the full realisation of benefits from, projects financed by Lender. The loan covenants can be divided broadly into two categories: general covenants and special covenants: (i) General Covenants General covenants are standard assurances and undertakings that the Lender requires from all borrowers, guarantors, if any, and executing agencies for projects financed by the loans regardless of the special features of a particular project. General covenants include obligations on the part of the borrower, guarantor, if any, and the executing agency: to carry out the project with diligence and efficiency; to repay the loan; to procure goods and services and engage consultants in accordance with specified procedures; to maintain project records and accounts; to provide local currency funds, facilities, and other resources required for carrying out the project; to submit financial statements/ progress reports; and to establish and maintain adequate auditing arrangements with the provision that the Lender will retain the option to communicate directly with the auditors. (ii) Special Covenants Special covenants are those assurances and undertakings which the Lender considers necessary or desirable to obtain from the borrower, guarantor, if any, and the executing agency for each project, having regard to the special features, identified difficulties, and reference points for monitoring of each project. Special covenants are an important part of the loan documents and are so designed that compliance with these covenants will further ensure the successful implementation of the project, sustainable operation of the facilities, and full realization of its benefits. They also provide a basis for the Lender to monitor project implementation and performance. To facilitate monitoring of compliance, special covenants should indicate, wherever possible, the dates by which compliance is expected of various items therein, on the basis of a realistic assessment of project-specific requirements and the related government policy and procedure. Where special circumstances so warrant, special covenants may be used to require the borrower, if any, or the executing agency/guarantor to undertake necessary action even after completion of project implementation so as to ensure sustainability of project benefits. Compatibility of Loan Covenants with Local Laws Covenants are generally compatible with local laws, administrative practices and procedures, sectoral/subsectoral requirements, and socioeconomic conditions of developing member countries. Interventions required Sr Suggestions Agencies Involved 1 Taxation Rationalisation, reduction and SEB, Finance Department tax holidays. and Government of India 2 Land rates Concession CITCO 3 One window Creation of a body for one stop CITCO and SEB clearance processing 4 Structure Creation of a Tourism Advisory Government of Chandigarh Body Creation of Tourism Finance Deparment and Development Fund CITCO 5 Infrastructure Development of infrastructure CITCO, PWD, Finance and involvement of private Department. sector 6 Marketing Promotion of Chandigarh CITCO Tourism 7 Attracting Private Providing incentives SEB, Ministry of Finance and Sector Participation Government of India, L&DO New Joint Ventures (PSP) CITCO, Finance Department Joint Ventures for existing CITCO projects Privatisation CITCO and Finance Department Annexure A IN\DICATIVE INVESTMENT PROPOSAL OUTLINE There is no standard form for applications. This is an indicative framework providing key heads to be covered in an Investment Proposal to be submitted for funding. 1. Executive Summary Summarise all the important points of the proposal. 2. Lender’s role Propose an equity, debt, or cofinancing arrangement. 3. Background to the project Brief introduction and history of the borrower State the need to undertake the project. Briefly describe the project, including the implementation and operation philosophy. Specify the support obtained from government, lending institutions and investors for the project. State the need for the assistance required from the Lender. 4. The Market Describe the market and marketing arrangements. Include all the following: Basic market orientation: local, national, regional, or export. Projected production volumes, unit prices, sales objectives, and market share of proposed venture. Potential users of products and distribution channels to be used. Present sources of supply for products. Future competition and possibility that market may be satisfied by substitute products. Tariff protection or import restrictions affecting products. price sensitivity market risks Critical factors that determine market potential. 5. Feasibility Study Present a feasibility study establishing the technical, financial, economic, and environmental viability of the project, prepared by a reputable consultant. 5.1Technical feasibility, manpower, resources, and environment: Brief description of the process. Availability of manpower and of infrastructure facilities (transport and communications, power, water, etc.). Breakdown of projected operating costs by major categories of expenditures. Proposed location in relation to markets, infrastructure and manpower. Proposed capacity in comparison with other known competitors. Potential environmental issues and how these issues are addressed. 5.2 Cost Estimates Provide cost estimates for the project, analyzed two ways: major cost category local and foreign currency cost. 5.3 Investment requirements, project financing, and returns: Estimate of total project cost, broken down into land, construction, installed equipment, and working capital, indicating foreign exchange component. Proposed financial structure of venture, indicating expected sources and terms of equity and debt financing. Type of financing (loan, equity, quasi-equity, a combination of financial products, etc.) and amount required from the Lender. Projected financial statement, information on profitability, and return on investment. Critical factors determining profitability. 5.4 Financial and Economic Evaluation Calculate the economic and financial rates of return as well as return on the equity investment. 5.5 Analysis Analyze the risks in implementing and operating the project with the accompanying mitigating measures showing which party will bear the risk and/or pay for the mitigating measures. The risk analysis should be accompanied by a list of proposed insurance coverages for both implementation and operation of the project. 6. Ownership of the project Describe the proposed ownership and management structure of the project. 7. Government support and regulations: Project in context of government economic development and investment program. Specific government incentives and support available to project. Expected contribution of project to economic development. Outline of government regulations on exchange controls and conditions of capital entry and repatriation. 8. Environmental Aspects Provide a site-specific environmental impact assessment report, highlighting environmental impacts and mitigating measures, prepared by an acceptable consulting firm in accordance with Lender’s guidelines. 9. Permitting and Licensing List all permits and clearances required for implementing and operating the project, the issuing authority, and the date of issue or expected issue. 10. Implementation Arrangements Explain the implementation and contractual arrangements for the project, including the construction and supervision methodology. Make sure the followings are included: a bar chart showing major scheduled achievements and completion for each of the major components of the project draft construction contracts sources of possible cost increases and delays Detailed description of liquidated damage provisions and performance bond requirements. Prioritisation of selected projects Activity Short term Medium Long term 1-5 years term 5-10 10-20 years years Basic Tourism Infrastructure Projects 1. Setting up a system of coordination between Departments through a “Mission Approach” 2. Assessing the economic impact of tourism in Chandigarh through annual surveys and the use of multipliers 3. Setting up police outposts in the new concept “Cultural/ Tourism Centre” 4. Setting up a system for accreditisation of shops and transportation 5. Creating Tourist/ Cultural center Visitor generating projects 6. Promoting traditional cuisine 7. Horse Race track 8. Amusement Park 9. Linking the sightseeing 10. Conference center to attract business travelers 11. Developing the City Centre 12. Adventure tourism & Wildlife Tourism Job creation Potential of Projects Activity Total Project Direct jobs Indirect cost created jobs created Basic Tourism Infrastructure Projects 1. Setting up a system of coordination between Nil Departments through a “Mission Approach” 2. Assessing the economic impact of tourism in Rs 10 lakhs 50 50 Chandigarh through annual surveys and the use per year of multipliers 3. Setting up police outposts in the new concept Nil 5 20 “Cultural/ Tourism Centre” 4. Setting up a system for accreditisation of shops Nil 5 20 and transportation 5. Creating Tourist/ Cultural center Rs 75 lakhs 350 1000 Visitor generating projects 6. Promoting traditional cuisine Nil 7. Horse Race track Rs40 –50 1000 4600 crores 8. Amusement Park Rs 30 crores 1000 4000 9. Linking the sightseeing Rs 70 lakhs 100 400 10. Conference center to attract business travelers Rs 10 crores 300 1200 11. Developing the City Centre Nil ? 12. Adventure tourism & Wildlife Tourism Nil - Funding of Projects Activity Total Cost to Other project cost Govt funding sources Basic Tourism Infrastructure Projects 1. Setting up a system of coordination between Departments through a “Mission Approach” 2. Assessing the economic impact of tourism in Rs 10 lakhs/ Rs 10 lakhs/ Chandigarh through annual surveys and the use yr year of multipliers 3. Setting up police outposts in the new Nil Nil concept “Cultural/ Tourism Centre” 4. Setting up a system for accreditisation of Negligible Neglibible shops and transportation 5. Creating Tourist/ Cultural center Rs 75 Lakhs Rs 75 lakhs Corporate Visitor generating projects 6. Promoting traditional cuisine Nil 7. Horse Race track Rs 40-50 Variable Pvt Sector crores 8. Amusement Park Rs 30 crores Variable Pvt Sector 9. Linking the sightseeing Rs 70 lakhs Rs 70 lakhs Lease 10. Conference center to attract business Rs 10 crores Rs 10 crores Some travelers Corporate 11. Developing the City Centre 12. Adventure tourism & Wildlife Tourism Nil Economic impact of short term projects Activity Total Potential Multiplier Project Ongoing Effect Cost Revenues Basic Tourism Infrastructure Projects 1. Setting up a system of coordination between Departments through a “Mission Approach” 2. Assessing the economic impact of tourism in Chandigarh through annual surveys and the use of multipliers 3. Setting up police outposts in the new concept “Cultural/ Tourism Centre” 4. Setting up a system for accreditisation of shops and transportation 5. Creating Tourist/ Cultural center Rs 75 lakhs Rs 42 lakhs Rs85 lakhs Visitor generating projects 6. Promoting traditional cuisine Nil Rs 33 lakhs Rs70 lakhs 7. Horse Race track Rs 40-50 Rs 3.13 Rs 6.5 crores crores crores 8. Amusement Park Rs 30 Rs 10 Rs 20 crores crores crores 9. Linking the sightseeing Rs 70 lakhs Rs 27 lakhs Rs 55 lakhs 10. Conference center to attract business Rs 10 Rs 2.6 Rs 5.5 travelers crores crores crores 11. Developing the City Centre 12. Adventure tourism & Wildlife Tourism Name of AnnualGrowthrate Year Year Year Year Year Project Financial Parameters Rate Year 1 Year 2 Year 3 Year 4 5 6 7 Year 8 9 10 Cultural/ Tourist centres Project Funding-Rs lakhs 75 Funding Yrs 1-5 75 Funding Yrs 6-10 Funding Yrs 10-20 Revenues Rental/ lease- Rs.lakhs 5% 42.4 44.52 46.75 49.08 51.54 54.11 56.82 59.66 62.64 Operational Costs 5% 24 25.2 26.46 27.78 29.17 30.63 32.16 33.77 35.46 Operating profits 18.4 19.32 20.29 21.3 22.37 23.48 24.66 25.89 27.19 Traditional Cuisine Project Funding-Rs lakhs Nil Revenues Visitor numbers 000's 5% 45000 47250 49613 52093 54698 57433 60304 63320 66485 69810 Visitor spends-Rs.lakhs Rs 60/ 5% 27.02 28.37 29.79 31.28 32.85 34.49 36.21 38.02 39.92 41.92 Rental/ lease- Rs.lakhs 5% 6.75 7.09 7.44 7.81 8.20 8.61 9.05 9.50 9.97 10.47 Total Revenues 33.77 35.46 37.23 39.1 41.05 43.1 45.26 47.52 49.9 52.39 Operational Costs-Rs lakhs 5% 24 25.20 26.46 27.78 29.17 30.63 32.16 33.77 35.46 37.23 Operational Profits 9.77 10.26 10.77 11.31 11.88 12.47 13.10 13.75 14.44 15.16 Name of AnnualGrowthrate Year Year Year Year Year Project Financial Parameters Rate Year 1 Year 2 Year 3 Year 4 5 6 7 Year 8 9 10 Horse Race Track & Club Project Funding-Rs lakhs 5,000 Funding Yrs 1-5 4,000 Funding Yrs 6-10 1,000 Funding Yrs 10-20 Revenues- Rs lakhs Visitor numbers 000's 5% 105.0 110.3 115.8 121.6 127.6 134.0 140.7 Club Memberships 25/yr 600 625 50 50 50 50 50 50 50 Monthly dues 5% 4.2 4.41 4.63 4.86 5.11 5.36 5.63 Corporate Boxes 5% 50 52.50 55.13 57.88 60.78 63.81 67.00 Programme 5% 47.6 49.98 52.48 55.10 57.86 60.75 63.79 Share of tote/ Race charges 5% 111 116.55 122.38 128.50 134.92 141.67 148.75 Gate money-Rs.lakhs 5% 43.5 45.68 47.96 50.36 52.87 55.52 58.29 Rental/ lease- Rs.lakhs 5% 11.25 11.81 12.4 13.02 13.67 14.36 15.08 Total Revenues 600 625 317.6 330.9 345 359.7 375.2 391.5 408.5 Amusement Park Project Funding-Rs lakhs 3,000 Funding Yrs 1-5 3,000 Funding Yrs 6-10 Funding Yrs 10-20 Revenues Visitor numbers 000's 5% 500 525 551.3 578.8 607.8 638.1 670 703.6 738.7 Visitor spends-Rs.lakhs Rs200/ 5% 1000 1050 1103 1158 1216 1276 1340 1407 1477 Total Revenues 1000 1050 1103 1158 1216 1276 1340 1407 1477 Note : These two projects should be tendered out. The above spreadsheets give Operational revenues and visitor numbers for decision making purposes Name of AnnualGrowthrate Year Year Year Year Year Project Financial Parameters Rate Year 1 Year 2 Year 3 Year 4 5 6 7 Year 8 9 10 Linking the sightseeing Project Funding-Rs lakhs 70 Funding Yrs 1-5 70 Funding Yrs 6-10 Funding Yrs 10-20 Revenues Visitor numbers 000's 550 5% 550 577.5 606.4 636.7 668.5 702 737.1 773.9 812.6 Visitor spends-Rs.lakhs Rs5/ 10% 27.5 31.76 33.35 35.02 36.77 38.61 40.54 42.56 44.69 Operational Costs-Rs lakhs 5% 15 15.75 16.54 17.36 18.23 19.14 20.1 21.11 22.16 Operational Profits 12.5 16.01 16.81 17.65 18.54 19.46 20.44 21.46 22.53 Conference Centre Project Funding-Rs lakhs 1,000 Funding Yrs 1-5 1,000 Funding Yrs 6-10 Funding Yrs 10-20 Revenues Conference visitors 000s 5% 55 57.75 60.64 63.67 66.85 70.2 73.71 77.39 81.26 Visitor spends-Rs.lakhs Rs200/ 5% 110 121.3 127.3 133.7 140.4 147.4 154.8 162.5 170.6 Rentals -Rs lakhs 5% 18 18.9 19.85 20.84 21.88 22.97 24.12 25.33 26.59 Exhibition visitors 000s 5% 60000 63000 66150 69458 72930 76577 80406 84426 88647 Visitor spends-Rs.lakhs Rs 25/ 5% 15 16.54 17.36 18.23 19.14 20.1 21.11 22.16 23.27 Rentals- Rs lakhs 5% 18 18.9 19.85 20.84 21.88 22.97 24.12 25.33 26.59 Social function visitors 000s 5% 50000 52500 55125 57881 60775 63814 67005 70355 73873 Visitor spends-Rs.lakhs Rs200/ 10% 100 115.5 121.3 127.3 133.7 140.4 147.4 154.8 162.5 Total Revenues 261 291.1 305.7 321 337 353.8 371.5 390.1 409.6 Operational Costs-Rs lakhs 5% 112 117.6 123.5 129.7 136.1 142.9 150.1 157.6 165.5 Operational Profits 149 173.5 182.2 191.3 200.9 210.9 221.5 232.5 244.1
Dadra and Nagar Haveli

Dadra and Nagar Haveli

Administration of Union Territory of Daman & Din and Dadra r Nagar Haveli District Izzduatriea Centre, Department of Industries N O T I F I C A T I O N no. ore/mums/ir-zo1a/aoia-1s/ l9 nat«a $ /oz/fora The Administrator of UT Administration of Daman & Diu and Dadra 8s Nagar Haveli is pleased to introduce Industrial Policy — 2018 to provide fresh impetus to industrial growth and employment generation in line with new policy initiatives of the Union Government with mission to create Daman 8s Diu and Dadra 8s Nagar Haveli region as a valued investment destination with best-in-class infrastructure by providing an investor friendly, efficient and transparent business climate, the right resources and market linkages to make these UTs a preferred investment destination. The Policy enclosed herewith shall come into effect from the date of its notification. This is issued with the approval of the Hon’ble Administrator, Daman & Diu and Dadra & Nagar Haveli vide Diary No. 350607 Dated 14/05/2018. By order and in the name of the Administrator, Daman 8s Din and Dadra 8s Nagar Haveli Encl: Industrial Policy — 2018 (Pg. 1 to 25) Copy to:- l) PPS to Administrator, DD & DNH ( Ch i Parekh J General manager (DIC} Department of Industries 2) PA to Advisor to Administrator, DD & DNH 3) All Secretaries, DD & DNH 4) All H.O.s, DD & DNH 5) All Industrial Association, DD & DNH 6) Dy. Secretary (Official Language), DD for translation in Hindi 7) The SIO, NIC, DD & DNH for uploading on website 8) Dy. Director (Printing), DD & DNH for publication in Official Gazette U.T.s of Daman & Diu and Dadra & Nagar Haveli Industrial Policy —2018 The UT Administration is committed to the sustainable and inclusive development of the UT of Daman & Diu and Dadra & Nagar Haveli. The Government is keen to accelerate the economic and industrial development of these UTs through growth and employment oriented policies and schemes that turn the UTs of Daman & Diu and Dadra & Nagar Haveli, into the most preferred investment destination. The UT Administration had adopted the existing Industrial Policy in the year of 2015. However, the need for adopting an updated policy framework, incorporating new schemes and thrust areas, was increasingly being articulated by key stakeholders of the economy - the Government, Industries and the Business Community. This new Industrial Policy is a first step in the direction of making the UT of Daman & Diu and Dadra & Nagar Haveli a preferred Industrial and Investment Destination. The policy aims for sustainable industrialization with focus on employment generation, product competitiveness, value addition in products and higher export oriented growth while conserving all aspects of environment. It envisages strong and specific initiatives to ensure timely and hassle-free guidance / clearances to new entrepreneurs. The policy has specific monitoring mechanism with provision for regular assessment of its performance. The new Policy intends to leverage the comparative strengths of the UT and to propel it among the most preferred global business destinations. The new Industrial Policy will be an instrument through which the Administration could achieve the vision of “Prosperous UT o/ Damon & Diu and Dadra & Nagar Haveli” Post 1991 period, the Indian economy has witnessed remarkable economic growth, riding on the strength of huge private investment, infrastructure improvements and regulatory changes. Progressive Page 1 of 25 Thank you for using www.freepdfconvert.com service! Only two pages are converted. Please Sign Up to convert all pages. https://www.freepdfconvert.com/membership
Delhi Tourism Policy

Delhi Tourism Policy

CHAPTER-10 TOURISM Delhi city is sprinkled with dazzling gems: captivating ancient monuments, fascinating museums and art galleries, architectural wonders, a vivacious performing-arts scene, fabulous eating places and bustling markets. With its rich and diverse cultural heritage, Delhi is also used as a gateway for traveling to cities of India. The city is significant for the role it has played throughout history, having been the centre of an empire for the majority of this millennium. It is an important city in the Indian sub continent and comparisons have often been made to other great cities of the world. However, very few cities carry with them, to such an extent, the weight of several layers of continuous history. One can have a fascinating glimpse into the past in Old Delhi, with its labyrinth of narrow lanes, old havelis, and colourful bazaars. Rickshaws wind their way through this crowded, bustling capital of the Mughals, where life continues, much as it did hundreds of years ago. Modern Delhi has a lot more to offer. Delhi has a modern, well-planned and extensive Metro network that connects all corners of Delhi; this network is still growing. New roadways and flyovers have improved connectivity, the latest of which is the Signature Bridge, an ambitious project of Delhi Tourism. Delhi Tourism is on a mission to change status quo and ensure that Delhi becomes a world-class tourist destination and the leader in art, culture, music, theatre, film and entertainment. In 1911, British shifted their capital from Calcutta to Delhi. After independence in 1947, New Delhi was officially declared as the Capital of India. Delhi being National Capital Territory, received maximum foreign travelers and NRIs visiting India. There are Outlays to make Delhi an environmental & eco friendly tourism and cultural & heritage destination. There is need to spread awareness among tourists as well as its citizens regarding Delhi’s glorious past. The schemes of Tourism Department have been implemented by the DTTDC, an undertaking of the Government of National Capital Territory of Delhi incorporated in 1975 to promote tourism in Delhi. Delhi being National Capital Territory, received a large number of foreign travelers and NRIs visiting India. Revised outlay & expenditure of Annual Outlay 2016-17, Approved outlay & Revised Annual Outlay 2017-18 and Annual Outlay 2018-19 for Tourism Department are as under: [` in crore] Sector 2016-17 2017-18 2018-19 BE RE Exp BE RE Exp Tourism 26.00 8.08 117.00 18.00 13.18 44.00 Total Outlay of ` 46.21 crore kept in B.E. 2018-19 on Tourism. This includes revenue budget of ` 46.06 crore and capital budget of ` 0.15 crore. An amount of ` 44 crore is kept for implementation of various schemes, programmes and projects under Tourism sector. 1. Tourism Infrastructure Budget Allocation 2018-19 : ` 500 Lakh I. Up-gradation of Food courts, temporary shops / craft stalls etc. at Dilli Haat, INA Dilli Haat, INA was constructed and inaugurated in March 1994. The Haat needs up gradation in view of wear and tear of infrastructure and changes in user requirements. Most of the area needs face lifting works. However, Food courts, temporary shops and adjoining areas are in very bad condition and needs suitable up gradation and face lifting works. Temporary shops are made with thatch roofing which is of temporary in nature and needs frequent replacement and causes leakages which damage the articles of the artisans, hence the roofing may upgraded to semi permanent structure. Due to frequent damages it gives bad look. Food courts which are in very bad condition also required to be upgraded since no major face lifting had been done since its construction. II. Renovation and Up-gradation of Coffee Home – Connaught Place The Coffee Home is situated in prime location of Connaught Place and serves the cuisines and coffee tea for visitors. Since its inception no major renovation work was taken up. The upgradation work planned to be taken up with some of the alterations. There is only one existing entry from side to coffee home hence one additional entry from main path have been proposed to be opened in up gradation phase. Better Public Conveniences are to be provided at a suitable place in the coffee home since existing conveniences are on back side of Coffee Home. The up gradation work will also consist of suitable furnishing also. III. Development of Open Air-theatre, etc. at Kala Gram near Garden of Five senses DTTDC has in its possession a plot measuring 5.27 acres adjacent near Garden of Five Senses. The plot of land has been allotted by the Development Department, Government of Delhi. DTTDC proposes to develop this site as venue for holding concerts and festivals. The basic infrastructure like water, electricity, barricading, public conveniences, cafeteria, parking etc. would be developed by DTTDC. For day to day operation an operator may be appointed by DTTDC through E-tendering process. This is a on-going state plan-scheme. Development of plot for holding concerts and festivals. During the year 2017-18, an Open air theater has been developed. Further development of venue on this piece of land is to be done during 2018-19. IV. Conceptualization / Documentation Appointment of Transactional Advisor for Development of Tourism Projects It is proposed to take up and develop new Tourism Projects in Delhi. For development of new Tourism Projects, it is required to conduct preliminary feasibility study, conceptualize the new ideas and other related work prior to the actual start of the work for the new Tourism Projects. For these works, the expenditure may be incurred on account of consultation fee to Architect, transaction advisor etc. To prepare concept paper on tourism projects at various existing properties of the Corporation, there is a need of Transactional Advisor/Consultant. V. Renovation & up-gradation of Azad Hind Gram DTTDC has set up Azad Hind Gram at National Highway-10 before Bahadurgarh Border in Tikri Kalan Village. The complex is spread over 06 acres and has a memorial on Netaji Subhash Chandra Bose depicting select episodes from his life. The complex also houses a museum on Indian National Army with audio visual facility. The complex has a life size statue of Netaji Subhash Chandra Bose. DTTDC would like to upgrade and renovate the Netaji Memorial, Indian National Army Museum, public conveniences and parking facility at the Complex. Repair and Up-gradation of pond and renovation of Restaurant complex and Kiosks. VI. Construction of Coffee Home at Janak Puri DTTDC proposed to construct a Coffee Home at Janak Puri subject to more allocation of funds during the year. VII. Construction of Coffee Home at I.P. Extension DTTDC proposes to construct a Coffee Home at I.P. Extension subject to more allocation of funds during the year. An expenditure of about ` 320 lakh incurred during the year 2017-18 on Tourism Infrastructure. 2. River Front Development of Yamuna Budget Allocation 2018-19 : ` 5 Lakh Every city in the world is associated with a river flowing through it. More than 40 kms. of Yamuna River flows through Delhi. Every Major city like London, Paris etc. has developed the river front of its city and is a major tourist’s attraction. Even in India River Sabarmati in Ahmedabad has been developed by the State Government and has become a public place for its citizens. The Yamuna River to the north of the Wazirabad Barrage is the most pristine stretch of the river in Delhi. The east bank of the river in the stretch along Sonia Vihar is to be developed in an ecological manner to enhance and improve natural habitats and the biodiversity of the riverfront area. The Area of intervention consists of the following: • Around 700 Acres of Land between the Yamuna River and the Sonia Vihar- Pushta Road • Around 5.8 km of the Sonia-Vihar Pushta Road from the Wazirabad Road intersection to the Delhi Border Proposals have already been submitted to the Delhi Govt. for approval of Cabinet. Once the proposal is approved by the Cabinet, consultant for the project will be appointed. Since the project involves development of river fronts the approval of National Green Tribunal will be required and consultant appointed will develop the scheme of the project according to the compliance of the guidelines issued by NGT. Once the project proposal is approved by the NGT, NOC from the Land Owning Agency i.e. Delhi Development Authority will require. However in a meeting held with VC, DDA and Minister of Tourism, Delhi Govt., it was assured by the VC, DDA that once the proposal is agreed by the NGT requisite NOC of DDA will be issued. Once the above approvals/NOC issued, the development work may be started by DTTDC. To begin with, it is proposed to develop the River front in Delhi upstream of the Wazirabad Bridge. The River front would consist of public conveniences, promenades, jogging track, cycle track, sandpit, volleyball courts, restaurants, snack bars and parks. 3. Promotion of Tourism - Delhi as a Destination Budget Allocation 2018-19 : ` 1055 Lakh This scheme has been divided in Three parts (Part A & B). Part A Budget Allocation 2018-19 : ` 1045 Lakh Branding Delhi: It is proposed to create a new campaign called “Brand Delhi”. We will re- develop the online presence of destination Delhi through websites, Apps, Maps, Social Media and Micro-sites. Delhi, bearing a rich heritage and history, has immense potential to become one of the most preferred tourist destinations not only in India but also globally. It is land of monuments, dotted with ruins forts, temples with many chapters of history that have unfolded to make Delhi what is today. Myriad episodes of history, a lineage and significant monuments like the Qutab Minar, the stunning Humanyun’s Tomb, the magnanimous Red Fort, the city of Old Delhi. This Delhi, the Old Fort and many more are epitomes of varied historical eras and this is where the real strength of the City lies as far as the tourism in Delhi is concerned. Delhi has a lot to boast about and hence arises the dire need to promote Delhi as one of the most sought after tourist destinations not only in the domestic but also in the international arena. Undoubtedly, tourism requires careful Outlayning and management and in the absence of a concrete Tourism Policy, there is no set Outlay drawn to market the city in the International market so as to showcase the potential of the city as a Tourist Friendly destination. There is a need to initiate steps to market Delhi more effectively and in a strategic manner on the lines of other state Tourism Boards. In order to keep pace with the growing competitive market, it is proposed that, on the lines of other state Tourism departments to carry out aggressive campaigns to Brand Delhi. With an objective to promote tourism in and around the capital city, Delhi Tourism & Transportation Development corporation Ltd. has been playing a role of catalyst and been taking proactive steps in making the city a Tourist Friendly destination. The activities proposed to be undertaken under the scheme emphasized the need to aggressively Brand Delhi through various available mediums. Production of Tourist Literature, Folders, Leaflets, Maps, City Guides, Brochures, CDs : To market Delhi more effectively and in a strategic manner on the lines of other state tourism Boards. DTTDC plans to undertake campaigns for Branding Delhi as a Tourism Destination at national level through various mediums including release of advertisements / advertorials in Travel magazines & Press advertisement, online social media, production of pictorial brochures on Delhi, Radio Jingles, outdoor publicity through Hoardings, Street Furniture, Metro Stations etc. It is also proposed to produce short films on promotion of Delhi – as a tourism Friendly destination and telecast as TV commercials on various channels. Publicity through Print and Electronic Media/ Internet : The plan includes: Production of Film on Delhi: Promoting Delhi as a Tourist Destination and as Film Shooting Destination – Edited versions of both the films for TVC. Promotions through TVCs on various channels, Release of Advertisements in Magazines (Travel & Tourism), Outdoor publicity through Metro Stations, Backlit panels at Airport, Bus shelters, Street Furniture, Air Baggage tags etc., publicity for Delhi Tourism activities like Tours, Travel, Adventure Activities, Dilli Haats through release of advertisements in newspapers and magazines and Social Media. Organization of Fairs & Festivals : Delhi Tourism has been actively organizing cultural events in Delhi to showcase this capital city as a tourist and cultural friendly destination not only for foreign tourists but for domestic travelers and the citizens of Delhi. In this context, it is pertinent to mention that the promotion of cultural tourism has been the main stay of Indian Tourism policy and accordingly, the rich heritage of our country at large and Delhi as a city in particular has been projected from time to time. Our neighboring states such as Rajasthan, Madhya Pradesh, Himachal Pradesh etc. are excellent examples where cultural tourism has already acquired international positioning and has acted as a catalyst to attract large number of tourists to these destinations. Apart from National & International tourists, NCT of Delhi has its own population of more than 20 million. The citizens of Delhi attend the Fair & Festivals organized by Delhi Tourism with fun and frolic. Participation in National Fairs/ Conferences/ Marts/ Exhibitions : National tourism fairs, conferences, travel marts and travel exhibitions are important for interaction with travel industry, media, airlines and other opinion makers. Further, this is helpful in direct marketing of tourist products and services to the consumers by direct interfacing. Presently, DTTDC participates in limited national tourism fairs. These interactive activities will also be organized in Delhi and simultaneously Delhi will also participate in such exhibitions, marts and conferences within India. Ek Bharat Shreshtha Bharat : The scheme of “Ek Bharat Shreshtha Bharat” launched by Ministry of HRD, Govt. of India which envisages strengthening of existing emotional bonding between the people of our country by promoting and showcasing the rich heritage and culture, tourism, wealth, educational specificities, agricultural traditional practices etc. of each state allowing people to understand and appreciate the diversity that is India, while fostering a sense of common identity. Accordingly engagement matrix for NCT of Delhi has been earmarked with the 8 states of North-Eastern States: with Sikkim & Assam (2016-17), Tripura & Mizoram (2017-18), Arunachal Pradesh & Meghalaya (2018-19) and Manipur & Nagaland (2019-20). The DTTDC proposed to organize culinary festivals with opportunity to learn culinary practices, promotion of Home Stay for visitors, promotion of Rajya- Darshan for tourists, organizing familiarization tour for tour operators of one state, prepare and share with the partner states a book containing information on their culture, customs, traditions, flora & fauna etc. for dissemination to schools colleges, organizing film-festival in the partner state with sub-title, showcase wearing of additional attire of the partner state. Promotion of Delhi as a Film Shooting Destination : Govt. of Delhi under the directions of Ministry of I & B, Govt. of India has appointed MD & CEO, DTTDC as the nodal officer for facilitating Film Shootings in Delhi vide order no. F2/797/TSM/11 dated 3rd August, 2016 of Dy. Secretary (Tsm), GNCTD. Cinema is undoubtedly a powerful tool for the development of a nation. Its impact is immense and it plays an important role in economic expansion. Delhi has been a part of films for a long time now. Its scenic beauty, picturesque locations and historical monuments form interesting backdrops for movies. Delhi also embodies the stark, almost absurd, contrasts of India: A World- Class metro system, the chaos of Old Delhi and the Colonial Serenity of Lutyen’s Delhi. Subsequently, a Film Shooting Facilitation Cell was created within the corporation on the direction of the Chief Secretary, Govt. of Delhi with an objective that DTTDC acts as a nodal agency to act as a bridge between the filmmakers and the stakeholder agencies for facilitating single window clearances of permission for Film Shootings in Delhi. DTTDC is in the process of introducing “Single Window Clearance Mechanism” for film making facility so that the legal formalities to shoot in the city can be performed by visiting only one Government Office. Several steps are being taken to introduce a smooth system for granting permission to Film Producers, to provide them consolidated information on instructions/ guidelines issued by various Departments of Delhi and Ministries of the Government, and to make film shooting a hassle-free experience. Major Tourism Events Sponsored by the Govt. City Information Service (1280) Part B Bed & Breakfast Scheme Budget Allocation 2018-19 : ` 10 Lakh This scheme started in the month of October, 2007 and to be continued during the year 2018-19 to provide budget accommodation to tourists coming to Delhi and enjoy the traditional Indian Home & Culture and also have the confidence of the families support and protection and go back with pleasant memories. In the Bed & Breakfast accommodation in Delhi, there are two categories facilities i.e. Silver and Gold. The Registration Fee for Gold Category is ` 5000/- and for Silver Category ` 3000/-. The basic facilities available under the Silver and Gold Categories are: Facilities Silver Gold Floor Area of Room 120 sq. ft. 200 sq. ft Size of Bathroom 30 sq. ft 40 sq. ft Washing Machine Not Mandatory Mandatory Refrigerator in the room Not Mandatory Mandatory Telephone with Extension Not Mandatory Mandatory In the bedroom, double bed, AC, Furnishing etc., is mandatory. Maximum 06 rooms can be given to the establishment. The total number of Gold and silver category establishment and rooms registered under this scheme as on 31.03.2017 and target for FY 2018-19 is given below: Status till 31.03.2018 Target 2018-19 Category No. of Establishment No. of Rooms No. of Establishment No. of Rooms Gold 39 160 45 185 Silver 233 965 245 1015 Total 265 1131 290 1200 The list of Bed & Breakfast Establishments registered under the scheme is available on the website of DTTDC and Directory of Bed & Breakfast Accommodation in Delhi was also published and distributed from time to time. An expenditure of about ` 655 lakh incurred during the year 2017-18 on Promotion of Tourism in Delhi. 4. Beautification of Entry Points of Delhi Budget Allocation 2018-19 : ` 250 Lakh Development of Guru Tegh Bahadur Memorial at NH-I and other entry points of Delhi (i) Entry Point-I at NH-8 (ii) Entry Point-II at Ghazipur (iii) GTB Memorial at NH-I DTTDC proposes to beautify the road entry points to the city. These entry points would have the facility of tourist information office, public convenience, snack- bar, parking, first-aid facility etc. The entry gates would highlight the rich heritage of the city. DTTDC has constructed Guru Tegh Bahadur Memorial at Singhu Border (NH- 1), G.T. Karnal Road, spread over land measuring 11.87 acres as a deposit work of Urban Development Department. The project was set-up under the scheme of beautification of entry point of Delhi. In the landscaped tranquil background, the 24 metres high central pylon with petals at the base represents the Guru and his strength. The C arches denote his three followers and the monoliths represent the 10 Sikh Gurus with their sayings inscribed on them. Urban Development Department has transferred the project to Tourism Department, Govt. of NCT of Delhi. DTTDC is the executive agency for upkeep, maintenance and operation of the project. The MOU between DTTDC and Tourism Department was done in the March 2017 and expenditure of about 243 lakh incurred during the year 2017-18 for upkeep, maintenance and operation of the project. 5. Grant-in-Aid to DTTDC for Tourist Information Centres Budget Allocation 2018-19 : ` 150 Lakh Delhi Tourism is running Tourist Information Centers at all the main embarkation points in Delhi besides information offices in Kolkata and Chennai. Delhi Tourism disseminates information and distribute literature to the tourists from these offices and a large number of foreign and domestic tourists avail these facilities. The information centers are at the following places in and outside Delhi: • Domestic Airport- Terminal-I • New Delhi Railway Station • Coffee Home, Baba Kharak Singh Marg • I Center, Baba Kharak Singh Marg • Govt of India Tourist Office, Janpath • Dilli Haat, INA • Kolkatta • Chennai 6. Grant-in-Aid to Delhi Institute of Hotel Management & Catering Technology (DIHM & CT) Budget Allocation 2018-19 : ` 100 Lakh (This is GIA but used for capital works) a. Construction of Researcher Block (Boy’s & Girls Hostel) b. Construction of Residential Staff quarters c. Purchase of equipments for labs Delhi Institute of Hotel Management & Catering Technology is an autonomous body established in the year 1983 at Kashmere Gate. The institute was upgraded to the present new building in the year 2012 where the basic infrastructure was available for conducting the classes. During the same year, there was an increase in intake of the students from 60 to 120. Phase- I of the building which includes the academic and administrative block, has been completed and handed over by PWD in 2007 to DIHM & CT. Outlay kept in the Annual Outlay 2018-19 is for construction of Researcher Block (Boys & Girls Hostel) and Residential Staff quarters. During 2013-14, an amount of ` 3 crore was released by the Govt. of NCT of Delhi to DIHM&CT and also DIHM&CT received grant of ` 2 crore from Govt. of India. DIHM&CT has planned to start some revenue generating courses in 2018-19 and impart the in service training to the cooks, waiters, housekeeping and other MTS staff of Government Guest Houses, Govt. Offices, Canteens and Cafeteria etc.. DIHM&CT will start short term summer courses in four trades i.e. Bakery & Patisserie, Indian Cookery, Snacks Cookery and Chinese Cookery for general people, specially students, ladies and housewives. 7. Skill Development of Students in Government Schools Budget Allocation 2018-19 : ` 100 Lakh The Scheme “Skill Development of Students in Government Schools” (Aatm Nirbharta Ki Aur) is an initiative of Govt. of NCT of Delhi. It is a skill development scheme, aims to channelize the energy of the young students who have passed 8th & 10th standard and are 18 to 28 years age group. Aspirant students will be given training in the hospitality sector in the field of cookery, bakery, housekeeping etc. DIHM&CT is the implementing agency of the scheme. The venue will be the schools under the Education Department, GNCTD. During 2015-16, GIA of ₹ 75 lakh has been released to DIHM&CT towards implementation of this scheme. Initially, 4 Govt. schools has been identified by the Education Department, GNCTD. The DIHM&CT will recruit co-ordinators, data entry operators on contract for monitoring and guiding the schools and trainees. Government will incur the cost of course expenditure on equipment charges which are one time charge. 8. INFRASTRUCTURE DEVELOPMENT FOR DESTINATIONS AND CIRCUITS (CSS) Budget Allocation 2018-19 : ` 2240 Lakh Under this scheme, the following sub-schemes are covered: a. Tourist Complex at Said-ud-Azaib (CSS) b. Grant-in-aid to DTTDC for Chhawala and Kanganheri Water Sports (CSS) c. Grant-in-aid to DTTDC for development of Soft Adventure Park at Sanjay Lake (Capital Assets) (CSS) d. Grant-in-aid to DTTDC for new facilities in Delhi Haat INA, New Delhi (Capital Assets) (CSS) e. GIA to DTTDC for Development of Delhi Haat, Pitampura (CSS) f. GIA to DTTDC for Development of Delhi Haat, Janakpuri (CSS) g. GIA to DTTDC for celebration of Incredible India Festival (CSS) h. GIA to DTTDC for Swadesh Darshan (CSS) The Ministry of Tourism extends Central Financial Assistance to the State Governments/Union Territory Administrations for tourism projects identified in consultation with them for the improvement of existing tourism products and also for developing new ones. Under the Centrally Sponsored Scheme, “Infrastructure Development for Destinations and Circuits”, 100% Central Assistance is given for development of destinations/ circuits including mega projects of world standard and also for rural tourism infrastructure development. The Ministry of Tourism provides financial assistance up to ` 5 crore for the development of Destinations and ` 8 crore for Circuits. The upper limit of financial assistance has been increased to ` 25 crore and ` 50 crore for development of identified mega destinations and circuits respectively. The focus under this revised scheme will be on the improvement of existing product and developing new tourism products to the world standard. It will also focus on Integrated Infrastructure Development of the tourist sites. These tourist sites/destinations would be carefully selected based on its tourism potential. The aim would be to provide all infrastructure facilities required by the tourists within such destinations and circuits. Master Outlaying of these destinations and circuits will be undertaken so as to develop them in an integrated holistic manner. The aim will be convergence of resources and expertise through coordinated action with State Governments / U.Ts and Private Sectors. Tourist Destinations and Circuits in each State would be identified in consultation with the State Governments and would be taken up for development. This would include activities ranging from preparation of a master Outlay to implementation of the master Outlay. Projects to be taken up under this scheme should follow an integrated, projectised, area development approach. Comprehensive DPRs should be prepared for each project after consultations with all the stakeholders. Some of the projects implemented by Delhi Govt. under CSS are as discussed below: I) Tourist Complex at Said-ud-Azaib (CSS) Outlay 2018-19 : ` 35 Lakh (For Capital Assets) DTTDC has developed one of the finest Gardens spread over an area of 20 acres of Garden of Five Senses, Said-ul-Ajaib. Garden of Five Senses is also the venue for the DTTDC flagship festival i.e. Garden Tourism Festival which is held every year. DTTDC is developing the following theme garden at Garden of Five Senses:- • Herbal Garden • Rose Garden • Cacti Garden • Butterfly garden • Fragrance garden Ministry of Tourism, GOI sanctioned an amount of ` 192.45 lakh for the project “Development of Theme Garden at Garden of Five Senses, Said-Ul-Ajaib, New Delhi” during 2011-12 with sanction accorded for release of ` 153.96 lakh being 80% of CFA as the first installment for starting the work. Tourism Department has issued a Sanction dated 28.03.2012 of ` 50 Lakh (CFA) to DTTDC for Development of Theme Garden at Garden of Five Senses, Said-Ul-Ajaib, New Delhi under CSS- Outlay out of GOI released amount ` 153.96 lakh. Under this scheme, there was unspent balance of ` 53.96 lakh as on 01.04.2014. An expenditure of ` 40.00 lakh has been incurred during 2014-15. No expenditure has been incurred during 2017-18. There is unspent balance of ` 13.96 lakh as on 01.04.2018. Ministry of Tourism, GOI will release balance amount of ` 40 lakh after furnishing of UC by the DTTDC. II) GIA to DTTDC for Development of Water Sports Complex at Chhawla and Kanganheri (CSS) Budget Allocation 2018-19 : ` 40 Lakh (For Capital Assets) Chhawla Water Sports Complex: DTTDC has taken 2.77 acres of land at Chhawla from Irrigation and Flood Control Department on lease basis. DTTDC has set up Chhwala Tourists Complex on Island in Nazafgarh Drain near the campus of Border Security Force. The site is well connected by Road via Nafargarh – Kapashera Road and Metro Line Via Dwarka Sector -21. The following facilities are being created at this site:- • Elevated Walk ways, Restaurant, Boat Jetty, fish Jetty, Toilet Block, Machan, Parking, Pedestrian Path and Club House. Ministry of Tourism, GOI sanctioned an amount of ` 297.87 lakh during 2007-08 and released an amount of ` 238.30 lakh. DTTDC has already submitted the UC of an amount of ` 381.89 lakh to MOT, GOI for release of balance funds of ` 48.92 lakh. Kanganheri Water Sports Complex: This project is being developed on the piece of land measuring 11.44 acres, which is approximately 2 km from Chhawla Bridge and is located in Kanganheri Village in South West Delhi. The project has accessibility through Nafargarh – Kapasehra Road and Metro Line via Dwarka Sector 21. The following facilities are being created at this site:- • Platform for tents, administrative block, canteen, toilet block, pantry, balloon plaza, water body, overhead tank, underground tank, cycle track, store block and paved parking. Ministry of Tourism, GOI sanctioned an amount of ` 416.21 lakh during 2007-08 and released an amount of ` 332.97 lakh. DTTDC has already submitted the UC of an amount of ` 414.81 lakh to MOT, GOI for release of balance funds of ` 59.57 lakh. III) GIA to DTTDC for Development of Soft Adventure Park at Sanjay Lake (CSS) Budget Allocation 2018-19 : ` 30 Lakh (For Capital Assets) DTTDC has taken over 6.3 acres of land at Sanjay Lake on license fee and revenue sharing basis from DDA for a period of 20 years. The DTTDC has also been allowed boating activities in the lake adjacent to the park. The following structures / works have been completed at the project:- 1. Restaurant Block having carpet area of 119 sq. mts. This includes sitting area, pantry, store, kiosks and publicity utility. 2. Portal cabin structures:- a. Souvenir Shops b. Ticket window c. Toilet block {2} d. Rooms {4} 3. Rain water Harvesting 4 Elevated walk way : 90 M (approx) 5. Walk way along lake : 250 M (approx) 6. Outlayters : 280 M (approx) 7. Pedestrian walk way The boundary wall has been constructed on three sides of the plot of land and on one side the area is protected by the lake. DTTDC is in the process of selection of operator for this project. Basic structure will be provided by the DTTDC and operator will set up the required equipment to operate the Park. The investment is likely to be about ₹ one crore to make the project operational towards the cost of equipment for the activities being proposed, which are as under:- Inflatable Rock Climbing Wall, Rock Climbing (permanent), Burma Bridge, Monkey Bridge, Spider Web, Dismantle able tented accommodation, Monkey crawling, Mountain Biking, Paint ball, Archery, Rifle shooting, Pit Jump, Rappelling, Zorbing, Commando net, Cat walk, Flying Fox, Dirt Track, Day and overnight camping and Bungee Jumping water based game/boating in the lake is also proposed to be allowed. In addition the operator shall also be required to activate the Restaurant Block and other facilities created at the project. Ministry of Tourism, GOI sanctioned an amount of ` 451.82 lakh during 2010-11 as CFA on 07.05.2010 and released an amount of ` 361.46 lakh being 80% CFA as the first installment for starting the work. DTTDC has already submitted the UC of an amount of ` 400.75 lakh to MOT, GOI for release of balance funds of ` 39.26 lakh. An expenditure of ` 499 lakh (` 56 lakh during 2010-11, ` 304 lakh during 2011-12, ` 75 lakh during 2012-13, ` 64 lakh during 2013-14) has been incurred till April 2014 by the DTTDC. An Amount of ` 361.46 lakh (released by GOI earlier) kept in GNCTD account has been released to DTTDC during 2014-15. IV) GIA to DTTDC for Up-gradation of Dilli Haat at INA (CSS) Budget Allocation 2018-19 : ` 10 Lakh (For Capital Assets) DTTDC had set up a tourism project, Dilli Haat at INA, in pursuance of Government Policy for promoting and preserving our immense heritage of human skill. The objective of this first Haat of its kind in the country was to provide a platform to the artisans of different parts of the country to display their ethnic wares. A take off from the traditional ‘bazaar’ where local artisans sell their merchandise, it offers the visitors a fascinating glimpse of India through its array of crafts, foods and folk performances. The project attained vast popularity among foreign & domestic tourists and won PATA Gold Award in the year 1993 and titled with the award of first barrier free project in the year 2005 in view of its wide success. The Haat fascinated Prince Charles so much that he stretched his whistle-stop visit to an hour long fiesta during his visit in the year 2003 and desired to put up a similar Haat in London. The Corporation has organized Dilli Haat exposition at Trafalgar Square in London in association with Govt. of India, Ministry of Tourism in June 2005. The Haat is being visited by most of the foreign delegations during their visit to India. The Haat has completed its 14 years of success, however requires the additions of new concepts like Art Gallery, International Fine Dining, Museum, setting up of more craft stalls in view of meet out the increasing demands. Ministry of Tourism, GOI sanctioned an amount of ` 72.85 lakh during 2011-12 and released an amount of ` 58.28 lakh. DTTDC has already submitted the UC of an amount of ` 249.05 lakh to MOT, GOI for release of balance funds of ` 14.57 lakh. V) GIA to DTTDC for Development of Dilli Haat at Pitampura (CSS) Budget Allocation 2018-19 : ` 10 Lakh (For Capital Assets) VI) GIA to DTTDC for Development of Dilli Haat at Janakpuri (CSS) Budget Allocation 2018-19 : ` 100 Lakh (For Capital Assets) Delhi Tourism & Transportation Development Corporation Ltd. (DTTDC) has developed 3rd Dilli Haat at Janakpuri. This project has been developed on a land measuring 08 acres allotted by DDA to DTTDC on lease for 20 years on revenue sharing basis. This Dilli Haat is set up with an objective to promote the national and international tourism activities and to cater the growing tourism needs in West Delhi and Delhi. This project is going to add value to the entire Township, residency and officers in and around west Delhi. 1. The following facilities are provided in Janakpuri Dilli Haat :100 craft shops – to be allotted to the registered artisans of DC (Handloom) and DC (Handicrafts), Ministry of Textile, Govt. of India. 2. 85 open platforms shops - to promote art, craft and handloom and in line with Dilli Haat vision. 3. Dormitory (80 beds) – for specific use for artisans and craft men at nominal charges. 4. Food court - 14 shops are being created to provide food of different states on India through state tourism corporations. 5. Exposition hall – to promote art, cultural events and various initiative / exhibition etc. 6. Music store and museum in two baskets towers – to promote and provide platform for Indian classical music and literature, keeping in view the theme of this Dilli Haat, which is Music. 7. Auditorium and Amphitheatre – an open auditorium with seating capacity of 800 persons and air conditioned auditorium with seating capacity of 800 persons. 8. Public convenience Public convenience such as parking, drinking water, toilets, tourist facilitation center, landscaping, seating spaces, elevators etc. will be provided. ATM and courier services are also proposed. In addition to the above some commercial activities are also incorporated including air conditioned shops, food courts, cafeteria, and fine dining restaurants with banqueting facilities. Originally, Finance Department has restricted and approved the estimated cost of the project as ` 79.96 crore after approval of the EFC of ` 81.44 crore in the meeting held on 20.12.2011. (With GNCTD share of ` 25 crore, GOI share of ` 25 crore and DTTDC share of rest amount of ` 29.96 crore). Govt. of NCT of Delhi already released an amount of ` 25 crore as financial support to DTTDC as mentioned in the EFC minutes in the approved EFC cost of ` 79.96 crore. Ministry of Tourism, GOI has sanctioned an amount of ` 24.36 crores, out of which ` 8.85 crore were released earlier, ` 4.50 crore in 2015-16 and ` 10 crore in 2017-18 by the Ministry of Tourism, GOI. VII) GIA to DTTDC for Celebration of Incredible India Festival (CSS) Budget Allocation 2018-19 : ` 15 Lakh DTTDC organized Incredible India Festival at Baba Kharak Singh Marg, New Delhi from 1st - 15th October 2010. The best of Indian Handicrafts, Handlooms and variety of Indian Cuisine was available to the tourists during the festival. The festival was organized on turnkey basis through an agency. The expenditure incurred on this festival was ` 94.92 lakhs. Ministry of Tourism, govt. of India sanctioned ` 100 lakhs and released ` 80 lakhs for this festival. Utilization Certificate has already been submitted for release of balance payment of ` 14.92 lakhs. VIII) GIA to DTTDC for Swadesh Darshan (CSS) Budget Allocation 2018-19 : ` 2000 Lakh The scheme is 100% centrally funded and funds are available under this scheme for development of theme based tourism circuits. Project is of development of 7 Heritage Routes with special focus on Mehrauli Node along with construction of elevated walkways connecting Qutub Metro Station to Qutub Minar. Delhi Heritage Circuit comprises of 7 circuits Mehrauli, Tughlaqabad & Suraj Kund, Hauz Khas & Safdarjung’s Tomb, Nizamuddin, Purana Qila & Lodhi Gardens, Shahjahanabad and New Delhi. Spiritual circuit comprises of Dargah Matka Pir, Dargah Hazrat Nizamuddin, Dargah at Chirag Delhi and Quttub Bakhtiyar Kaki, Mehrauli. The Metro Station of Qutub is very far from Qutub Minar and visitors coming to Qutub Minar on Metro find it difficult to reach Qutub Minar due to poor connectivity. Adjacent to Qutub MInar is Mehrauli Archaeological Park which has a number of notified monuments like Jamali Kamali, Quli Khan’s tomb, Raja ki Baoli, Metcalf house besides a number of other monuments. It is proposed that an elevated walkway may be constructed connecting Qutub Metro Station with Qutub Minar which may pass through Mehrauli Archaeological Park. The elevated walkway may have the facility of getting down near important notified monuments like Jamali Kamali, Quli Khan’s Tomb etc. in the Mehrauli Archaeological Park and may finish at Qutub Minar. The cost of the project is approx. ` 100.00 Crores. The appointment of consultant for preparation of detailed project report is under process. After preparation of DPR by the consultant, the Ministry of Tourism, Govt. of India will consider & sanction the scheme. Afterwards, the clearances from different agencies will be taken up.
Chandigarh Tourism Policy

Chandigarh Tourism Policy

GOVERNMENT OF INDIA MINISTRY OF TOURISM AND CULTURE DEPARTMENT OF TOURISM MARKET RESEARCH DIVISION Final Report On 20 YEAR PERSPECTIVE PLAN FOR SUSTAINABLE TOURISM DEVLOPMENT IN UNION TERRITORY OF CHANDIGARH March 2003 Submitted by India Tourism Development Corporation TLC Marketing Pvt. Ltd. Deloitte Touche Tohmatsu India Private Limited 20 year Perspective Tourism Master Plan for Chandigarh Contents for the 20 Year perspective Tourism Master Plan 1. Executive Summary 1 2. The approach a. Guidelines for developing 20 year perspective Master Plans as issued by the Department of Tourism, Government of India 6 b. Background of Consortium partners 11 i. ITDC ii. Deloitte Touche Tohmatsu iii. TLC Marketing Pvt Ltd c. Approach 15 d. Approach to Environmental Impact Assessment 19 3. Background on the State 21 a. History b. Physical features, Flora and Fauna c. Current infrastructure i. Access – Road, Rail, Air ii. Water & Sewage iii. Power – Electricity iv. Industrial Estates – list of major corporates d. Demographics versus other Northern States District Profiles e. Chandigarh Headquartered Corporate Houses 4. Current Tourism scenario in the State 38 a. Current Chandigarh Tourism Policy b. Inventory of Accommodation c. Current Tourism Statistics 1 20 year Perspective Tourism Master Plan for Chandigarh i. By city ii. Comparative with other Indian States – employment, project spends d. Taxes on Tourism activities e. Fairs & Festivals f. Roles of relevant bodies i. State Tourism Development ii. Urban Development & Town Planning iii. Industrial Development g. Tourism activities of contiguous States 5. Assessment of Tourism Attractions of the State 65 a. How other “City States” have developed tourism b. Inventory of attractions i. Versus criteria ii. By type of tourist and linkages c. Current State Tourism Policy versus National Tourism Policy d. Potential markets and market segments for the State e. Shortlisted projects f. Approach to Environmental Impact Assessments 6. Marketing State Tourism. Case studies of Kerala, Rajasthan and Uttaranchal 79 7. Implementation of shortlisted projects 90 a. Setting up a system for coordination of Departments b. Assessing the economic impact of tourism 2 20 year Perspective Tourism Master Plan for Chandigarh c. Setting up Police outposts d. Setting up a system for accreditisation of shops and transporters e. Creating a Tourist/ Cultural Centre f. Promoting traditional cuisine g. Horse race track & Club h. Amusement park i. Linking the sightseeing j. Conference Centre k. Adventure Tourism and Wildlife Tourism 8. Attracting the Private Sector investments in Tourism 126 9. Summary Tables 147 a. Prioritisation of projects b. Job creation c. Funding of projects d. Visitor numbers e. Economic impact 3 EXECUTIVE SUMMARY This 20 year perspective Tourism Master Plan for Chandigarh attempts to identify short, medium and long term tourism projects for the Union Territory of Chandigarh using the National Tourism Policy as a guideline. However, all existing and planned projects of Chandigarh Tourism have also been addressed. In these cases, thoughts that complement/ supplement the current thinking have also been listed. We have examined the success of several other “City States” and how they have positioned themselves. Very few, like the Vatican, have the benefit of historical attractions. Some like the Bahamas, Bermuda and Mauritius have natural attractions like beaches. Some traditional trading centers like Hong Kong, Singapore and Dubai have developed as financial hubs. In nearly all cases, however, city states have developed man made attractions with an emphasis on world class recreation and leisure. Gambling – Macau, Monaco & Sun City Horse Racing in Hong Kong & Dubai Sporting events – Singapore, Hong Kong, Dubai, Monaco and Sun City Entertainment events – in all the above, Seychelles etc. Interestingly, most do not rely on immediate neighbouring countries as source markets. Several suggested projects do not have any precedent in India. As such, projections of usage and hence revenues are difficult to make. However, these projects have been endorsed by knowledgeable individuals in the Travel & Tourism industry based on their personal experiences. The Plan makes some observations on current practice. Several specific actions and projects have been recommended. These have been divided into those projects to develop and sustain tourism infrastructure and those that generate visitors. These are summarized in the following pages. In all cases, the involvement of the private sector has been examined. The Plan shortlists the following projects Basic Tourism Infrastructure Projects 1. Setting up a system of coordination between Departments through a “Mission approach” on the lines of Rajasthan’s Rajiv Gandhi Mission on Tourism Development a. Coordination between Chandigarh Tourism/ Chandigarh Hotels/ Town Planning/ PWD (B&R)/ PHD/ Police/ Trade Associations/ NHAI/ Indian Railways b. The Mission should have a mission statement, a manageable number of objectives and specific activity milestones for effective review. 2. Assessing the Economic Impact of Tourism in Chandigarh. Tourism will not get the attention it deserves unless it can demonstrate the economic and social benefits it generates. a. We have suggested annual surveys and the use of multipliers to measure the impact of tourism investments and of tourist spendings 3. Tourism Police outposts. Safety and security are a major concern of travelers. a. We have suggested Tourism Police outposts be set up in the proposed “Tourist Centres” in Chandigarh. The list of locations can be expanded over the Plan period. 4. Accreditisation of Shops and transporters. These are two areas where most tourists feel most insecure in terms of being cheated. a. For shops, we have suggested accreditising shops that have price tagged items and a reasonable return/ refund policy. Shops will carry a Chandigarh Tourism plaque and be advertised in an official map. For Taxis/ auto rickshaws. Must be metered and carry tariff cards. These will be identified with a plaque 5. Cultural/ Tourism Information Centre. This should showcase Chandigarh and be a cross between Dilli Haat and The National Crafts Museum. This center should provide information and reservation capabilities for potential tourists to Chandigarh and neighbouring States. These will provide employment to artisans/ performing artists a. We recommend arts/ crafts, State cuisine and performing arts be showcased b. We recommend some permanent stalls backed by open spaces for stall for celebrating State festivals c. Incorporated into “Recreation & Leisure Centres” in Kishangarh 6. Promoting Traditional Cuisines. Chandigarh has eight neighbouring States each with a rich cultural tradition. We propose that food and cultural festivals be held on a regular basis. We further propose that the existing facility of Kalagram, which has held successful festivals in the past, be utilised. 7. Horse Race Track & Club. There is no good Horse Race track in North India. North India is also home to about 10 stud farms. Hotels in cities like Pune and Bangalore have their week end occupancies boosted by punters from major metros. The Race Club can have other facilities to attract a permanent membership. 8. Amusement park. The Rock Garden/ Sukhna Lake/ Golf Course area is already one hub of tourist activity. An area for an amusement park, for a Sports Complex and a Tourist Health Resort have already been ear-marked in the Chandigarh Master Plan. We propose the Amusement Park be marketed to families traveling Delhi- Shimla with young children to encourage an overnight break. 9. Linking the sightseeing. The distance between the Rock Garden and the area identified for the Amusement park is a long walk but a short auto-rickshaw ride. We propose a vintage narrow gauge railway be set up to link all the points in this Recreation & Entertainment area. 10. Conference Center to attract Business Travellers. Chandigarh Tourism has already identified a plot in Sector 31 next to the CII Regional HQ. We believe that this can cement Chandigarh as the commercial center of North India. 11. Developing the City Centre – Sector 17 – as a social and cultural hub. There is already a trend in this direction. We recommend a partnership between the Sector 17 shop owners and Chandigarh Tourism to develop a calendar of events. We also recommend a relaxation in Excise rules in terms of bar licence costs and hours of operation. 12. Adventure Tourism & Wildlife Tourism. We do not recommend any additional activity in this area other than the ongoing levels. 13. Attracting the Private Sector. We have recommended a package of incentives to attract the Private Sector to invest in tourism related projects in Chandigarh. In all visitor generating projects we have recommended roles for the private sector As a “City State”, Chandigarh does not have the scope – or the space - to develop new projects over a 20 year time span. There is no particular need either in terms of funds or manpower to spread the suggested projects. Guidelines of Dept. of Tourism for 20 year Perspective Tourism Master Plans 1. Year wise phasing of investments required having regard to resources available 2. Plan should indicate short term & long term plans, targets and ground realities. 3. Plan should indicate all activities by agency with timeframes 4. Assess the existing tourism scenario in the state/UT with respect to existing traffic levels and inventory of - Natural resources - Heritage & other socio-cultural assets - Quantitative/ demographic factors - Services & infrastructure available 5. Plan should review the status of existing development/ investment for the development of tourism in the region 6. List and evaluate existing potential tourist destinations and centers and categorise them on the basis of - inventory of attractions - infrastructure available - degree of popularity - volume of traffic flow 7. Plan should analyse and categorise existing destinations and centers as - stand alone - part of a circuit - niche attractions for special interests 8. Plan should assess the existing infrastructure levels at identified destinations/ centers in terms of - quality of roads/ transportation facilities - civic amenities - en route transit facilities - boarding and lodging facilities 9. Plan should assess traffic flow for assessment of infrastructure requirements based on - Past growth - Suggested links and integration - Future expected developments - Likely investments from State - Investment climate/ incentive for private sector 10. Plan should attempt indicative cost configuration of likely investment on infrastructure under different heads and prioritise investment needs over 20 years 11. Plan should identify existing as well as new tourism projects including - expansion/ augmentation, - upgradation of services/ facilities - Destinations & centers 12. Plan should undertake product conceptualization cum feasibility for identified projects covering - locational evaluation - schematic product planning - quantification of individual product parameters - assessment of investment levels - project viability 13. Action plan for implementation of identified projects along with development of infrastructure in conformity with - State/ Central policy objectives & guidelines - National development and funding agencies - WTO’s Bali declaration 14. Project wise potential for employment generation including for women 15. Projection of domestic and foreign tourist arrivals for each proposed tourist place 16. Prioritise schemes based on employment potential and tourist arrivals 17. Prepare inventory of existing accommodation including paying guest and proposed needs split by various providers including various State Govt depts 18. Each project to be scutinised and finalized with a view to suggesting State Tourism projects to foreign funding agencies 19. Explore sources of funding such as FIs, TFCI. - Suggest incentives for private sector 20. Suggest institutional machinery in the State to oversee/ supervise the development of Tourism infrastructure 21. Build in facilities for performance of local artistes, cultural troupes 22. Cultural complexes to be suggested with the financial help of the State Dept of culture 23. Handicraft shops to be suggested. These can be run by women 24. Include development of potential health resorts. 25. Plan should have an Executive summary 26. Plan should include attractive packages/ schemes to attract private sector investments 27. Environmental issues shouls be dealt with in sufficient detail and EIA made in respect of new projects 28. Plans should include - carrying capacities - instruments of spatial and land use planning - instruments for architectural controls - strategy for local community participation & protection of cultural identity - Awareness programmes for local 29. Measures for mitigating adverse environmental impact and rehabilitation 30. Strategy for privatisation of State and State Tourism Corp owned tourism related properties 20 year Perspective Tourism Master Plan THE CONSORTIUM We believe that 20-year Tourism Master Plans require detailed knowledge in several domains. To address this need we have formed a consortium of experts. The consortium comprises of India Tourism Development Corporation – ITDC – Consultancy Division with relevant past experience in Master Plans, Technical Consultancy and project execution. TLC Marketing Pvt.Ltd, a marketing consultancy empanelled by The World Tourism Organisation (WTO), Madrid for various aspects of Tourism Development. TLC Marketing will ensure a balanced tourism plan that is marketable to both developers and the Tourist industry Deloitte Touche Tohmatsu, an international firm of Chartered Accountants and consultants with a wide range of experience in perspective planning in various industries. Deloitte Touche Tohmatsu also have access to their global expertise in the area of Tourism Master Planning. RELEVANT EXPERIENCE India Tourism Development Corporation ITDC was established in 1966 with the objective of developing tourism infrastructure and promoting India as a tourism destination. ITDC has a Consultancy Division which has completed many projects. ITDC has the capability of conducting Techno-Economic feasibility studies, providing Engineering and Technical Services, Mangement Consultancy and Advisory services, consultancy for Adventure Tourism. Assignments already completed by ITDC include Feasibility Reports for hotel projects in Baroda, Calicut, Cochin, Kanpur, Kohlapur, Lucknow, Nagpur, Nainital, Pine, Rishikesh, Varanasi, Raipur, New Delhi, Calcutta, Bangalore and Agartala 20 year Perspective Tourism Master Plan Tourism Master Plans for Assam, Nagaland, Orissa, Pondicherry, Sikkim, Punjab and Tripura. Technical consultancy for multiple hotels, youth hostels, forest lodges and restaurants Special projects for Rail Yatri Niwas, Indian Railways Catering, College of Combat, Institute of Water Sports at Goa. Project consultancy/ Execution – 28 hotels, the IITTM in Gwalior. TLC Marketing Pvt Ltd. The Directors of TLC Marketing have been involved with Tourism Development for almost 30 years and have had exposure to Tourism Planning in Egypt, Mexico and India. This has been mainly from the project developer’s aspect and are familiar with the requirements of the parties that invest in Tourism Development. They are also familiar with all aspects of tourism including resorts, cruises, timeshare, charters, conferences etc. Some relevant projects undertaken by the directors of TLC Marketing include Study for the India Convention Promotion Bureau on promoting conferences of various sizes to India Assignment with The Planning Commission for Tourism Development Plans for Uttaranchal and Uttar Pradesh. This included the development of a “tourist train” concept Review of Hotel classification norms covering Heritage and Resort hotels for the Govt. of India, Department of Tourism Feasibility studies for business and leisure hotels at over 40 destinations all India. Entry strategy for a hotel company into India looking at mid level hotels. This involves studying business destinations across India Strategy for a chain of Ayurvedic Spas, initially in the North of India Entry strategy into Timeshare for both mid-market and Luxury Resorts Launch of an Outbound Adventure Tour Operator 20 year Perspective Tourism Master Plan Deloitte Touche Tohmatsu India Private Limited Deloitte Touche Tohmatsu believes that for achieving a client’s business objectives, a variety of knowledge and skills are required. Our national coverage and international experience allows access to professionals in the industry and other areas of specialisations. Our clients include government bodies, non-government organisations, public sector organisations, private companies and international agencies. Brief details of some of our assignments in the hospitality, tourism and entertainment sectors is set out below: International assignments in hospitality and the tourism sector are detailed below: • Privatisation of Hungary Hotels, which comprises some 45 hotels and over 250 restaurants, in association with the Swiss Bank Corporation and Cazenove & Co. Our UK offices worked with our Budapest office on this extensive assignment. • Business valuation of Astir Hotel Company. We assisted the National Bank of Greece on the proposed sales as part of the Government’s privatisation programme. • Advised the public enterprises reform and divestiture secretariat of the Ministry of Finance, Government of Uganda, on the divestiture of Government owned hotels. • Valuation of four state-owned hotels in Morocco prior to their intended privatisation and sale for the Government of Morocco. In conjunction with the Deloitte & Touche Corporate Finance Group, investment memoranda were subsequently prepared to assist in the privatisation process. Indian assignments in Hospitality and Tourism Sector • Strategic advice to Quality Inns Private Limited. • Business plan for a holiday resort based in Kerala. This is under implementation. • Advisory services provided to an international chain of hotels • Business advisory services for Resort Condominiums International • Business advisory services for Singapore based company, for setting up operations in India in the area of serviced apartments and estate development. 20 year Perspective Tourism Master Plan • Business valuation and due diligence review for Landbase India Limited, • Business advisory services for The Radisson Hotel. • Entry strategy, valuation, negotiations and joint venture identification for Keystone and Venkys. • Trade survey for travel agents and tour operators for a large multinational company. • Review of project parameters and returns compiled for the airport expansion planned for Chennai by the Airports Authority of India. • Economic Feasibility study for setting up a permanent Trade Fair Venue, Madras International Exposition Limited, under the aegis of Federation of Indian Export Organisations (FIEO). Privatisation/ Disinvestment experience • Bharat Heavy Plates & Vessels Ltd., Visakhapatnam • RBL Limited, Calcutta • Tractors Corporation Limited • Bharat Goldmines Limited • Lamps Division of HMT Limited • Paradeep Phosphates Limited Ongoing disinvestments assignments include • IDCOL Cement Limited • The Fertiliser and Chemicals Travancore Limited • Instrumentation Limited • Braithewaite & Co. Limited • Bharat Heavy Plate limited 20 year Perspective Tourism Master Plan APPROACH Our approach is as follows 1. Review existing Tourism Policy a. This is reviewed in conjunction with stated National Tourism Policy as State Tourism activities should be in synch with National Policy b. Thisis also reviewed in terms of “Best Practice” of other Indian States and some Internationally successful players. 2. Validate Proposed projects a. Plans still to be implemented were reviewed to validate their broad feasibility 3. Suggest new Tourism Products a. This is done with costs, revenues, timelines and responsibilities. b. A broad Economic Impact assessment is made for each suggested product for both primary and secondary effects. Objective Our objective is to develop 20-year Perspective Tourism Master Plans that encourage sustainable tourism by achieving a balance between the growth of tourism on one hand and the impact on natural, heritage and cultural resources on the other. Criteria The Critical Criteria would be that the Plan should be viable. In other words, it should be attractive and marketable to all agencies involved – The traveler, the Travel industry, State and Government agencies, Financial Institutions, Tourism project developers and last but not least to the local population. The Plan will Clearly indicate short term and long term projects and targets Identify agencies involved and the actions required to be taken by each 20 year Perspective Tourism Master Plan Ensure that each action will have a time frame and an indicative cost Ensure each project will also indicate possible developers and possible sources of funding. Financial structuring arrangements, where relevant will also be indicated. Endeavour to involve the private sector in the development of the plans. This will ensure a buy-in to the finished product. Be based on secondary data – published data, supplied by the State and information obtained in discussions with informed individuals. METHODOLOGY Conduct Inventories Identify existing and potential - attractions - Infrastructure - Access - Environmental impact - Human factors Identify Specific projects Develop balanced Tourist products around each identified attraction Detailed Project analysis Identify each element, the possible developers, sources of funds, incentives etc Final Recommendations Shortlist projects, prioritise over 20 years. - Tourist projections - Employment and other economic benefits Identifying the attractions – the reasons for visiting. 1. The first step would be to make an inventory of all possible visitor attractions both current and potential. These would be studied under a. Long stay – natural and activity resorts such as hill/ beach/ health & fitness/ sports/ wildlife/ shopping and other activities 20 year Perspective Tourism Master Plan b. Short Stay destination – Business visitors, conferences, weekend stays, pilgrimage c. Short stay itinerary – where the attraction is part of an itinerary and dependent on other links 2. Each attraction will be assessed for “Carrying capacity” using absolute numbers as well as indices such as Tourists/ sq.km, Tourists/ 1000 population. This assessment will use international benchmarks and Best Practices. 3. The Environmental sensitivities will be addressed by a strategy to measure the impact on a. Air quality b. Water and water bodies c. Nature, both flora and fauna d. And on the attraction itself. 4. Based on the above, an assessment of the present and future needs of infrastructural services will be undertaken to cover a. Water b. Electricity c. Sewage and waste disposal d. Communications 5. Based on the potential markets for visiting the attraction, an assessment of the present and future requirements for access will be identified by a. Road b. Rail c. Air d. Water transport 6. There are Human Factors that will also be addressed. These will cover a. Employment b. Inflationary impact c. Cultural impact d. Alienation of locals/ Displacement 20 year Perspective Tourism Master Plan Identifying and Conceptualising Specific Tourism Products Having assessed the attractions available and the broad feasibility of each, the Plan will e develop a balanced Tourist product around each attraction. The Tourist product consists of the following 1. The attraction – the reason for the visit 2. Accommodation – requirements at each level a. Propose incentives for balanced development 3. Recreational facilities – to supplement the attraction. Eg. a hill resort could have rock climbing, paragliding, river & lake fishing, golf, entertainment and shopping 4. Local transportation a. Airport/ station transfers, shuttles, city sightseeing, public transportation 5. Information a. Signage, guides, brochures, photo ops 6. Wayside amenities a. Rest stops, service stations 7. Safety & Security a. Accreditisation of shops etc b. Tourism police Detailed Analysis and Final Recommendations After identifying the Tourism Products to be developed, the Plan will prioritise them over the 20-year perspective, each project will be analysed to detail The key agencies/ organizations involved in developing the product The investment required Identify possible investors and sources of funds and the processes to access these Possible incentives for the development Identify environmentally threatened places and buildings for restoration. Projection of tourist numbers – domestic and international Employment potential – occupations and income levels Other economic, social and cultural benefits Suggestions on marketing the products Environmental Impact Assessment Studies Environmental Impact Assessment (EIA) studies are complex exercises. They are also dependent on the specific projects. For example, projects next to water bodies would require a much deeper assessment of impact on water than other projects that would confine the study to the impact on ground water resources. In the Technical Bid for this project, the Consortium had clearly stated that we are not competent to undertake EIA and would not include them in the final report. However, we are listing out the essential aspects of EIAs. Each attribute must be monitored on a regular basis. Frequency of monitoring may vary from daily for some air samples to annually for soil characteristics. EIAs are best undertaken by specialist organizations like TERI, TARA etc. Attribute Parameters Ambient air quality SPM, RPM, SO2, NO2, CO, CO2, HC etc. Usually 24 hour samples twice a week. Meteorology Surface wind speed and direction, temperatures, relative humidity, rainfall Water quality Physical, Chemical and bacteriological parameters of surface and ground water Ecology Existing flora and fauna. For environmentally sensitive projects, inventory and state of health Noise levels Noise levels in DB(A) Light Lighting levels and impact on fauna, insects Soil Characteristics Parameters relating to agriculture and afforestation potential Land use Trends in land use change for different categories Socio Economic aspects Socio-economic characteristics, labour force characteristics, population statistics and existing amenities, current inflation Geology and mining Geological history, minerals details Hydrology Drainage area and pattern, nature of streams, acquifier characteristics of the area 20 year Perspective Tourism Master Plan for Chandigarh HISTORY India attained Independence in 1947; but in the process the territory of British India was partitioned to form India and Pakistan. The large and prosperous Province of Punjab, was divided and Lahore, its capital, fell within the borders of Pakistan, leaving Indian Punjab without a capital. Those who had been compelled to migrate to India keenly felt the loss of Lahore, a city much loved by its inhabitants. Though there was a temporary secretariat at Shimla in Himachal Pradesh, the political leadership decided on the construction of a modern and accessible capital. In March 1948, the Government of Punjab in consultation with the Government of India approved a 114.59 sq. km tract of land at the foot of the Shivalik Hills in Ropar district as the site of the new capital. The city was named after the Mother Goddess Chandi, (Chandi - Goddess of Power + garh - fortress). The temple of the Goddess is on Chandigarh-Kalka Road. The temple is known by the name of Chandi Mandir. Prior to the construction of Chandigarh, the present site was a typical rural tract, with a rainfed subsistence agricultural economy. It was dotted with 24 village settlements, surrounded by cultivated land parcelled into consolidated irregular, small fields. Each settlement had a number of mango groves remnants of which are still visible in parts of the city. There were banyan or pipal trees within the settlements or near village ponds. The majority of houses were kutcha or partially pucca. Among the physical features, the choes, with their broad, shallow, and dry sandy beds, constituted an important element of landscape. These represented undulations in an otherwise level topography. Hills and mountains provided a panoramic background. The new city was needed not only to serve as a capital but also to resettle thousands of refugees who had been uprooted from West Punjab. India’s first Prime Minister, Jawaharlal Nehru enthusiastically supported the project and took sustained interest in its 20 year Perspective Tourism Master Plan for Chandigarh execution. When he visited the project on April 2, 1952, he declared: “Let this be a new town symbolic of the freedom of India, unfettered by the traditions of the past, an expression of the nation’s faith in the future.... The new capital of Punjab will be christened as Chandigarh-a name symbolic of the valiant spirit of the Punjabis. Chandigarh is rightly associated with the name of Goddess Chandi — Shakti, or power.” The responsibility for the design was given to the French architect Le Corbusier or the Crow. With the help of his cousin Pierre Jeanneret, and that of the English couple Maxwell Fry and Jane Drew (alongwith a number of Indian architects prominent amongst them Chief planner Narinder S. Lamba & Chief Engineer J.C. Verma) Chandigarh, the present capital, came into existence at the foothills of the Shivaliks. Profile of People It was built in 1953 and serves as the capital of two states, i.e. Punjab and Haryana. It is administered by the Central Government and is hence classified as an Union Territory. Since 1986 there has been much talk about officially handling it to Punjab on the basis of demography. The issue however continues to be a matter of discussion with many political disputes. Chandigarh had to be a city of migrants as it was built on the land acquired and cleared of existing settlements. One of its objectives was to rehabilitate persons displaced from Pakistan in 1947. Early settlers in the city were government officials transferred from Shimla, the temporary capital of Punjab after partition and displaced persons from Pakistan in search of a new home. According to 1991 census data, around two-third of the city's population were migrants, the remaining one-third were locally born. About one-third of the migrants hail from Punjab, Uttar Pradesh comes next, having contributed one-fifth of them. Haryana, Himachal Pradesh and Delhi are other important contributors of migrants. The city has 20 year Perspective Tourism Master Plan for Chandigarh attracted migrants from distant states, such as Bihar, Tamil Nadu, West Bengal and Maharashtra. The number of migrants from Nepal is also considerable. Over one-half of migrants to Chandigarh came from other urban places; the rest had a rural base. An urban origin was more typical of migrants from nearby states, such as Punjab, Haryana, Delhi, and Jammu and Kashmir. Migrants from relatively distant states, such as Uttar Pradesh, Bihar, and Tamil Nadu, mostly had a rural origin. According 1991 census the Pakistan-born displaced persons reduced to about 4% of all in-migrants. In the early sixties, they accounted for nearly 40% of the total population. PHYSICAL FEATURES Location Chandigarh is located in the Northern part of India and bound by two states, Chandigarh has Punjab to its north and west and Haryana to its south and east. Chandigarh lies at 30o 44'N latitude, 76o 53"E longitude. 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Map 20 year Perspective Tourism Master Plan for Chandigarh ROAD MAP Road Transportation The Union Territory of Chandigarh is well served with by an excellent network of roads. The National Highway 21 ( Ambala – Simla) and 22 ( Chandigarh – Manali) link Chandigarh to rest of the country Buses of seven State Road Corporations connect Chandigarh with many cities and towns of neighboring states. The important cities that are connected by buses with Chandigarh are Delhi, Dehradoon, Simla, Manali, Jammu and major Towns of Punjab and Haryana. 20 year Perspective Tourism Master Plan for Chandigarh National Highway Development Project – Golden Quadrilateral & North South East West Corridors Note: Red Line: North South East West Corridors Blue Line: Golden Quadrilateral 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Rail Network : Rail Transportation Chandigarh is well connected on the rail network. The main railway routes passing through Haryana are: Kalka-Delhi, Chandigarh-Delhi, Kalka-Amritsar, Kalka-Jodhpur,Kalka-Hawrah,Amritsar-Hawrah, Kalka- Sir Ganganagar (Rajasthan). 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Air Network: Air Transportation Chandigarh Airport is 12 kms. from City Centre, Indian Airlines and Jet Airways connect Chandigarh with Delhi, Leh and Amritsar. Jet has daily flights Delhi – Chandigarh – Delhi. Indian Airlines has a weekly flight Leh – Chandigarh – Leh. 20 year Perspective Tourism Master Plan for Chandigarh Physical Features The geographical area of the U.T. Chandigarh is 114 sq. km. and another 25.42 sq. km. of the hilly area, which has now been declared as 'Sukhna Wildlife Sanctuary' was acquired for soil conservation works. Chandigarh lies at 280 feet above sea level, with an average altitude of 362m (m.s.l.). The location of Chandigarh is unique as it lies in the foot hill region and is also adjacent to the plains of north India. As such it contains the vegetation of the foot hills and the north Indian plains.Chandigarh has 27 villages in its jurisdiction and two satellite towns, Sahibzada Ajit Singh Nagar, conveniently shortened to SAS Nagar, now Mohali, in the Punjab territory and Panchkula in the Haryana territory. Climate Four seasons are noticeable as (i) the rainy season (late-June to mid-September); (ii) the post monsoon or transition season (mid September to mid-November); (iii) the winter of cold season (mid November to mid-March) and (iv) summer or hot season (mid-March to Mid-June). Southwest monsoons commence in late June and usually continue up to mid-September when there are high intensity showers and the weather is hot and humid. May and June are the hottest months of the year with mean daily maximum temperature being about 40oC and mean daily minimum temperature being about 25oC.January is the coldest month with a mean maximum being around 24oC and a mean minimum being around 1.8oC. Fauna In the small and large water bodies there are about a dozen types of fishes, of which Mahseer , Thail and Rohu are more well known. The common frog is Rana tigrina (Indian Tiger Frog) but the other ones are Indian Rice Frog and Indian Burrowing Frog. Two types of tortoise are found. Three four types of lizards are found in buildings, lawns, hedges, etc. and one of these attracts the attention by its brilliant vermilion colour during mating season. Snakes are of quite a many types as Russels Viper, Cobra, Blind Snake, Indian Python, Sand Cobra, Rat Snake etc. 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh has numerous types and the permanent population of birds, which may consist of over 100 different kinds. There are also migratory birds visiting during winter from as far off a region as Siberia. It is estimated that about 100 to 200 types of birds primarily visit Sukhna Lake. The number of migratory birds varies from year to year. The common mammals are Grey Musk, Shrew Monkey, Langur, Flying Fox, Tickellis Bat, Stripped Squirrel, Indian Rat, Common Rat, House Mouse, Porcupine, Indian Hare, Common Mongoose, Stripped Hyena, Jackal, Indian Fox, Nilgai, Blackbuck and Chital. Flora The flora of Chandigarh area is in fact very rich, existence of 860 species of flowering plants in Chandigarh and its neighborhood. This excludes the ornamentals species whose number is anybody's guess because amongst the residents of Chandigarh and neighboring areas garden culture and love for ornamental herbs and shrubs is fast growing. Chandigarh region is home to number of plant species with Medicinal importance. Areas like Shivalik Reserve Forests, Sukhna Catchment area, Rock Garden, Rose Garden, adjoining villages, are among the various places where different kinds of Medicinal plants and few to endangered species of the same can be found. The most fascinating feature of the City's landscaping is perhaps the Tree Plantation along avenues, open spaces, green belts and around building complexes. The total forest cover in Chandigarh is 32.42 sq. km., which forms 23.5% of the total area. The green spaces like Parks, Gardens, Green belts, Leisure valley and Road avenues etc. are in addition to the forest cover of 23.5 %. Thus the green cover in the city is more than 33 % with 26 types of flowering trees and 33 types of evergreen trees in Chandigarh. 20 year Perspective Tourism Master Plan for Chandigarh DEMOGRAPHIC INDICATORS Unit Year Haryana Himachal Jammu & Madhya Punjab Rajasthan Uttar Delhi Chandi All India Pradesh Kashmir Pardesh Pradesh garh Sq.Km. 1982 44212 55673 222236 443446 50362 342239 294411 1483 114 3287263 Share in India Percent 1982 1.34 1.69 6.76 13.49 1.53 10.41 8.96 0.05 0 100 Population Million 1991 16.46 5.17 7.72 66.18 20.28 44 139.11 9.42 0.64 846.3 Share in India Percent 1991 1.94 0.61 0.91 7.82 2.4 5.2 16.44 1.11 0.08 100 Population Density Per sq.km. 1991 372 93.0 76.0 149.0 403.0 129.0 473.0 6352.0 5632.0 274.0 Avg Annual Growth in Percent 1981-91 2.42 1.89 2.54 2.38 1.89 2.5 2.27 4.15 3.54 2.14 Population (1981-91) Population (Projection) Million 2001 20.1 6.8 10.1 81.2 23.8 54.5 174.3 14.4 0.8 1012.4 Urban Population (Projection) Million 2001 27.5 - - 26.9 31.9 25.4 22.7 - - 28.8 Sex Ratio Females/ 1991 865 976 923 931 882 910 879 827 790 927 1000males Urbanisation Ratio Percent 1991 24.6 8.7 25.5 23.2 29.5 23.0 19.8 90.0 89.7 27.0 Urban Density Per sq.km. 1991 5309 2114 3132 6054 4997 2238 4364 14313 8433 4092 Death Rate Per '000 1996 8.1 8 - 11.1 7.5 8.9 10.2 6.05 4.1 9 Live Birth Rate Per '000 1996 28.2 23 - 32.4 23.5 32.3 34 24.6 16.9 27.5 Work Participation Rate Percent 1991 31 42.83 NA 42.82 30.88 38.87 32.20 31.64 34.94 37.46 Male Percent 1991 48.51 50.64 NA 52.26 54.22 49.30 49.68 51.72 54.34 51.55 Female Percent 1911 10.76 34.81 NA 32.68 4.40 27.40 12.32 7.36 10.39 22.25 Source: PHD Chambers of Commerce. 20 year Perspective Tourism Master Plan for Chandigarh MACRO ECONOMIC INDICATORS Unit Year Haryana Himachal Jammu & Madhya Punjab Rajasthan Uttar Delhi All India Pradesh Kashmir Pardesh Pradesh Net State Domestic Product (NSDP) at Factor Cost*: - At current prices Rs. Million 1998-89 383990 49310 58120 610187.8 342900 **586500 1527260 365040 8755940 - At 1980-81 prices Rs. Million 1997-98 75450 $14,190 #17540 147480 101420 @116480 273650 *75740 323820 - At 1993-94 prices Rs. Million 1998-99 254090 NA NA NA NA **379720 971390 251650 NA NSDP Growth 1980-81 prices Percent 1997-98 1.1 NA NA 3.1 2 @0.4 2.2 3.3 87.3 Gross State Domestric Product Rs. Million 1997-98 374270 65040 72930 708320 503580 678050 1299770 445100 NA Per Capita Income at 1993-94 Rs. 1998-99 13084 8864 6658 7350 15504 7694 5890 19091 9739 Prices* 2.00 Sectoral Shares: - Agriculture Percent 1997-98 39 27.6 43 41.4 44 **34.2 37 1 31 - Industry Percent 1997-98 21 32.3 8 26.3 15 **24.088 20 83 28 - Services Percent 1997-98 40 40.1 49 32.3 41 **41.72 43 16 41 Sectoral Growth Rates: - Agriculture Percent 1995-96 -6 9 4 -2 0 -6 2 -40 -1 - Forestry & Logging Percent 1995-96 7 10 5 -12 1 2 -25 - -1 - Fishing Percent 1995-96 16 10 14 15 8 -12 6 3 5 - Mining & Quarrying Percent 1995-96 1 14 10 5 16 -18 1 -58 7 - Manufacturing Percent 1995-96 9 13 3 11 10 6 4 13 14 Per Capita Consumption Rs. 1995 5127 4347 7080 3442 5750 4503 3852 NA NA Expenditure * Note: Owing 10 differences in source material used, figures for different States are not strictly comparable. $: 1995-96 #: 1996-97 @: 1998-99 **: 1999-2000 Source: PHD Chambers of Commerce. 20 year Perspective Tourism Master Plan for Chandigarh MINIMUM MONTHLY WAGES OF WORKMEN Haryana Himachal Jammu & Madhya Punjab Rajasthan Uttar Delhi Pradesh Kashmir Pardesh Pradesh Chandigarh With effect from Jul-00 Jan-99 Mar-93 Mar-00 Nov.99 Feb-00 Jan-96 UNSKILLED 1914.86 1530 NA 825 1796.5 1560 1920 2419 1350 SEMI UNSKILLED A 1964.86 1695 NA 928 1941.55 928 2220 2585 1495 SEMI UNSKILLED B 1989.86 NA NA NA 1875.45 NA NA NA NA SKILLED A 2039.86 1950 NA 1032 2104.55 1032 2660 2843 1657 SKILLED B 2064.86 NA NA NA 1983.45 NA NA NA NA HIGHLY SKILLED 2114.86 NA NA NA NA NA NA NA NA EDUCATIONAL FACILITIES SCENARIO Recognised Educational Institutions in Northern Region (1998 - 99) State University Professional Colleges for High Middle / Sr.Basic Primary/Jr. * Education general Education School/Jr. School Basic College School HARYANA 5.00 45.00 169.00 3785.00 1788.00 10269.00 HIMACHAL PRADESH 3.00 6.00 557.00 1525.00 1189.00 7732.00 JAMMU & KASHMIR 3.00 12.00 38.00 1351.00 3104.00 10483.00 MADHYA PRADESH 17.00 70.00 413.00 8341.00 21108.00 86858.00 PUNJAB 5.00 64.00 193.00 3325.00 2527.00 12633.00 RAJASTHAN 10.00 70.00 267.00 5633.00 14807.00 35077.00 UTTAR PRADESH 28.00 174.00 676.00 8339.00 20675.00 94476.00 DELHI 11.00 24.00 64.00 1459.00 601.00 2676.00 CHANDIGARH 2.00 7.00 12.00 107.00 34.00 48.00 NORTHERN REGION 84.00 472.00 2389.00 33865.00 65833.00 260252.00 % TO ALL INDIA 35.44 22.17 31.88 30.12 34.62 41.52 INDIA 237.00 2129.00 7494.00 112438.00 190166.00 626737.00 * Includes Deemed Universities and Institutes off National Importance Source: PHD Chambers of Commerce. 20 year Perspective Tourism Master Plan for Chandigarh WATER SUPPLY Items Unit Period 1990-91 1998-99 1999-2K 2000 - 01 1 2 3 4 5 6 No. of Water Works Nos. NA 5 5 5 (Cums.) No. of Metered Connection Nos. 74892 82184 84294 120000 No. of Un-metered Nos. 9360 23464 23656 20241 Connection WATER CONSUMPTION (A) Domestic Kiloliters 67933 5227262 5334897 5943761 (B) Commercial / Industrial Kiloliters 7992 1833205 1881295 4940444 Per Capita Consumption Kiloliters 97 70 67 95 20 year Perspective Tourism Master Plan for Chandigarh POWER Items Unit Period 1990-91 1998-99 1999-2K 2000 - 01 1 2 3 4 5 6 Electricity Consumed Lakh KWH 5240.80 8401.89 8491.04 8715.36 Per capita Consumption KWH 816 988 964 955 Agricultural Consumption Lakh KWH 12.71 25.58 26.59 23.02 Industrial Consumption Lakh KWH 2005.16 1792.34 1865.46 1916.35 20 year Perspective Tourism Master Plan for Chandigarh POPULATION DATA 2001 - CENSUS (P) Population Total Rural Urban Population as per 2001 Persons 900914 92118 808796 Census Males 508224 56837 451387 Females 392690 35281 357409 Decennial Population Growth Absolute 258899 25932 232967 1991 - 2001 %age +40.33 +39.18 +40.46 Density of Population Sex PerSq.Kms 7903 2658 10194 Ratio No.of females per 1000 773 621 792 Males Population of 0-6 years* (I) Absolute 109293 14007 95286 Persons Males 59238 7562 51676 Females 50055 6445 43610 (II) Percentage of Total 12.13 15.21 11.78 Population Persons Males 11.66 13.30 11.45 Females 12.75 18.27 12.20 Literacy : (I) Absolute 647208 59547 587661 Persons Males 384563 40178 344385 Females 262645 19369 243276 (II) Literacy Rate 81.76 76.23 82.36 Persons Males 85.65 81.54 86.16 Females 76.65 67.17 77.53 * 6 years means completed 6 years as on 01.03.2001 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Corporates Name of the Organisation State Amrit Banaspati Co. Ltd. Chandigarh Bank of Punjab Limited Chandigarh Bhushan Industires Limited Chandigarh Bhushan Steel & Strips Ltd Chandigarh Chandigarh Distillers & Bottlers Ltd. Chandigarh Chandigarh Industrial & Tourism Development Corporation Chandigarh Control & Switch Gear Company Ltd. Chandigarh Dhillon Kool Drinks & Beverages Chandigarh Golden Laminates Limited Chandigarh Gorz-Beckert Asia Ltd Chandigarh Guru Nanak Paper Mills Ltd. Chandigarh IPF - Vikram India Ltd. Chandigarh Indian Acrylics Limited Chandigarh Indo - Swift Limited Chandigarh Industrial Cables India Limited Chandigarh JC Coach Builders Limited Chandigarh Kamla Dials & Devices Ltd. Chandigarh Khandelia Oil & General Limited Chandigarh Metro Expoters Limited Chandigarh Modern Steel Limited Chandigarh Mohan Meaken Limited Mohangram (Chandigarh) Munak Chemicals Limited Chandigarh PCP International Ltd. Chandigarh Punjab Alkalies & Chemicals Ltd Chandigarh Punjab Chemicals & Pharmaceuticals Ltd Chandigarh Punjab State Civil Supplies Corpn. Ltd Chandigarh The Punjab State Co-oop Milk Producer's Federations Ltd Chandigarh Rana Polycot Limited Chandigarh Shivalik Agro Poly Product Limited Chandigarh Singhania & Co. Chandigarh Surya Medicare Limited Chandigarh Variendera Agro Chemicals Limited Chandigarh Winsome Textiles Industries Ltd Chandigarh POPULATION DATA 2001 - CENSUS (P) Population Total Rural Urban Population as per 2001 900914 92118 808796 Census Persons Males 508224 56837 451387 Females 392690 35281 357409 Decennial Population 258899 25932 232967 Growth 1991 - 2001 Absolute %age +40.33 +39.18 +40.46 Density of Population PerSq.Kms 7903 2658 10194 Sex Ratio No.of females 773 621 792 per 1000 Males Population of 0-6 years* (I) Absolute 109293 14007 95286 Persons Males 59238 7562 51676 Females 50055 6445 43610 (II) Percentage of 12.13 15.21 11.78 Total Population Persons Males 11.66 13.30 11.45 Females 12.75 18.27 12.20 Literacy : (I) Absolute 647208 59547 587661 Persons Males 384563 40178 344385 Females 262645 19369 243276 (II) Literacy Rate 81.76 76.23 82.36 Persons Males 85.65 81.54 86.16 Females 76.65 67.17 77.53 * 6 years means completed 6 years as on 01.03.2001 Name of the Organisation State Amrit Banaspati Co. Ltd. Chandigarh Bank of Punjab Limited Chandigarh Bhushan Industires Limited Chandigarh Bhushan Steel & Strips Ltd Chandigarh Chandigarh Distillers & Bottlers Ltd. Chandigarh Chandigarh Industrial & Tourism Development Corporation Chandigarh Control & Switch Gear Company Ltd. Chandigarh Dhillon Kool Drinks & Beverages Chandigarh Golden Laminates Limited Chandigarh Gorz-Beckert Asia Ltd Chandigarh Guru Nanak Paper Mills Ltd. Chandigarh IPF - Vikram India Ltd. Chandigarh Indian Acrylics Limited Chandigarh Indo - Swift Limited Chandigarh Industrial Cables India Limited Chandigarh JC Coach Builders Limited Chandigarh Kamla Dials & Devices Ltd. Chandigarh Khandelia Oil & General Limited Chandigarh Metro Expoters Limited Chandigarh Modern Steel Limited Chandigarh Mohan Meaken Limited Mohangram (Chandigarh) Munak Chemicals Limited Chandigarh PCP International Ltd. Chandigarh Punjab Alkalies & Chemicals Ltd Chandigarh Punjab Chemicals & Pharmaceuticals Ltd Chandigarh Punjab State Civil Supplies Corpn. Ltd Chandigarh The Punjab State Co-oop Milk Producer's Federations Ltd Chandigarh Rana Polycot Limited Chandigarh Shivalik Agro Poly Product Limited Chandigarh Singhania & Co. Chandigarh Surya Medicare Limited Chandigarh Variendera Agro Chemicals Limited Chandigarh Winsome Textiles Industries Ltd Chandigarh 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Tourism Policy Chandigarh Tourism has declared the following vision “ Tourism as a major industry in Chandigarh is to be developed by Providing leadership, organizational and strategic direction, Improving the quality of tourism products, Developing places of tourist interest, Providing necessary facilities for all categories of tourist and Marketing Chandigarh’s Tourism products internationally and domestically So as to provide employment and economic, environmental, social and cultural benefits to the citizens of the city beautiful – Chandigarh” In the new economic scenario, Chandigarh Tourism has recognized the need to involve the private sector in the development of tourism infrastructure in conjunction with the Government. The following activities are included in the ‘Tourism Industry’ Accommodation facilities Restaurants and fast food facilities Transportation facilities Tourist entertainment Souvenirs With this background, the objectives have developed as 1. Employment generation. Tourism generates both direct and indirect employment 2. Attract private investment 3. Preserve heritage and tradition. As Chandigarh is a new city, the traditions are related with gardens and festivals 4. Preserve the environment 20 year Perspective Tourism Master Plan for Chandigarh 5. Diversification of the Tourism product into adventure sports, entertainment, leisure etc. 6. To provide adequate publicity both domestic and international 7. Create accommodation facilities – renovate and upgrade existing facilities 8. Develop human resources for Hospitality and Tourism. The following strategic projects have been suggested to implement these objectives 1. Develop Chandigarh as a convention city – attract the MICE segment 2. Eco- tourism wildlife park around the Sukhna Bird sanctuary 3. Sound & Light show at the Rock Garden 4. Further development of Tourist amenities at Sukhna Lake 5. Amusement park 6. Translites and signeages for the convenience of tourists 7. Tourist information center to house other State Tourism offices as well as railways, airlines and trade associations 8. Promotion of Rail Tourism – in particular on the Kalka-Shimla line 9. Promotion of Kalagram as a showcase for the Northern States 10. Development of innovative tourism packages o Buddhist places o Pilgrimages - Hindu and Sikh o Holiday packages to Hill stations o Heritage packages o Adventure packages o NRI packages 11. Promotion of off-season tourism 12. Special Tourism packages for NRIs 13. Development of Chandigarh as a Film City 14. Integrate the police to safeguard the interests of tourists 15. Promotion of week end golf packages 20 year Perspective Tourism Master Plan for Chandigarh Another major initiative has been an attempt to integrate Tourism Development in the Northern States of Punjab, Haryana, Himachal Pradesh and Jammu & Kashmir via a ‘Tourism Advisory Board’. The Board would have the Tourism Secretaries of the participating states as members, the Chairmanship rotating between the States. The Board would also have prominent persons from the Tourism industry as members. The primary role is seen as Working out a strategy for integrated approach for promotion of tourism in the region Promotion of interstate Tourism via programmes such as Tourism Trade fairs & Exhibitions Setting up joint information centers Organising interstate package tours Collaboration on Tourism promotion schemes Joint participation in Traevl Industry Trade fairs Joint cultural festivals Linkages of websites Part of this initiative would be to declare a Special Tourism Area for a radius of 100 Km around Chandigarh with the prime objective of allowing the free movement of designated tourism vehicles. 20 year Perspective Tourism Master Plan for Chandigarh FAIRS & FESTIVALS Chandigarh citizens celebrate several festivals that are uniquely their own. The Festival of Gardens This is a three-day extravaganza organized in the last week of February; included on the national calendar of festivals. Initially called the Rose Festival it intended to encourage people to stroll through the Rose Garden and enjoy the sight of the blooms. Each year the festival grew: now it includes performances of music and dance, both classical and folk, flower shows, events for children, exhibitions by local artists, photographers and craftsman and a wide range of amusements. Since 1997 it is known as the Festival of Gardens. The city pulls out all the stops for this celebration, reminiscent of ancient India's Vasant Utsav in honor of spring. April Fools' Day (April 1) On this day poets from all over the country gather at Chandigarh to recite verses in a jocular vein. Even those who do not ordinarily enjoy poetry look forward to the Maha Moorkh Sammelan, or Conclave of Colossal Fools. No other city in India hosts such a gathering. Baisakhi Baisakhi is the first day of the new year in the traditional Vikrami calendar, it celebrates the wheat harvest, and it is one of the high points of the year for Sikhs as it is anniversary of the founding of Khalsa. As the capital of two basically agrarian states, Punjab and Haryana, this day sees festivities organized by both the state governments as well as the Administration of the UT, and of course many institutions in the city. 20 year Perspective Tourism Master Plan for Chandigarh The Mango festival This festival is held in June. Mango-growers from all over India are invited to enter their prize fruits in the various competitions. Visitors to the fair can see and taste all the traditional varieties of the fruit as well as the latest hybrids from the agricultural universities. It is also an occasion for agro-industries, and food industries processing mango into jams, pickles and canned fruit to display their wares. TEEJ Teej is a traditional holiday celebrated by women in the middle of the monsoon season-generally around the first week of August. The Rock Garden with its swings and pavilions is the festival venue and the day is basically a grand picnic with songs and dances, purchase of new bangles, painting the hands with mehndi. The Indo-Pak Mushaira This gathering in December brings together poets from India and Pakistan. The significance of this event is felt especially by the older generation whose memories go back to the years before the partition of India. For the younger generation it brings home the deep commonalties of language and culture that unite the people of two nations. The Chrysanthemum Show - in December turns the Terraces Flower Garden in the city's Sector 33 into a multi-coloured wall-to-wall carpet of chrysanthemums. Hundreds of varieties of the flower are on display and city gardeners vie for coveted honours in the competitions. The Plaza Carnival 20 year Perspective Tourism Master Plan for Chandigarh This Carnival is on every-Saturday-night is held on an open-air stage set up in Sector 17's central piazza. The weekly three-hour programme draws a large crowd and provides an opportunity for talented local singers, dancers, magicians, comedians, actors and acrobats to do their stuff. The Chandigarh Carnival This carnival is a three-day event celebrated in the second week of November shortly before or after Nehru's birth anniversary on November 14,otherwise known as Children's Day. The carnival opens with a colourful procession, which everyone is encouraged to join. The carnival is a time for students to show their talent (or simply have fun) and elders too participate in a number of competitions and exhibits. 20 year Perspective Tourism Master Plan for Chandigarh Roles of relevant bodies in Tourism The main bodies that generate and cater to leisure and business travel to the State are 1. CITCO – Chandigarh Industrial & Tourism Corporation 2. Urban Development and Town Planning Chandigarh Tourism. The Chandigarh Industrial & Tourism Development Corporation Limited (CITCO) was set up in 1974 for construction and allotment of industrial sheds and for supply of iron & steel to the industries in Chandigarh. Its original name was Chandigarh Small Industries and Development Corporation Limited (CSIDC). The Chandigarh Administration transferred Hotel Mountview and other cafeterias to the Corporation in 1982. It's name was first changed to Chandigarh Industrial & General Development Corporation Limited (CIGDC) and finally to Chandigarh Industrial & Tourism Development Corporation Limited (CITCO). In terms of Tourism responsibilities, Chandigarh Tourism plays both developmental and operational roles. Its prime areas of responsibility are 1. Promotion of Chandigarh and its attractions as destinations 2. Creation of tourism related infrastructure 3. Development of accommodation and restaurants 4. Activities pertaining to the preservation of art, culture, history and heritage of the State 5. Establishment of recreation and leisure facilities 6. Tourism related human resource development 7. Promotion of package tours 8. Information and signage 20 year Perspective Tourism Master Plan for Chandigarh Chandigarh Tourism is a profitable venture. A short overview of its performance over various activities is given below Unit Hotel Mountview 1997-98 Rs. - Lacs Sale Profit 824.55 215.71 1998-99 Rs. - Lacs Sale Profit 891.57 266.84 1999-00 Rs. - Lacs Sale Profit 1093.08 323.97 Hotel Shivalikview Hotel Parkview Chef Lakeview 677.08 127.68 111.28 145.49 9.98 16.04 651.46 121.22 117.20 81.74 -47.61 12.43 673.31 124.21 160.69 91.11 -4.60 39.98 Chef Bus Stand Rock Garden Canteen Canteens Tours & Travels 41.56 5.44 9.50 10.47 -14.55 -3.00 -18.59 -15.48 38.50 6.61 17.41 9.80 -10.07 0.14 -23.02 -15.24 36.89 1.24 16.88 7.96 -10.84 -0.54 -23.03 -13.54 20 year Perspective Tourism Master Plan for Chandigarh URBAN PLANNING The Department is headed by the Chief Architect who is the Ex-officio Secretary, Urban Planning. The Department consists of two wings. Architectural Wing Town planning Wing Architectural Wing This wing has five basic duties: • To design buildings for the Chandigarh Administration and work entrusted to it by various departments of the Central and State governments and autonomous bodies • To Co-ordinate with the various wings of the Engineering Department both in the planning and construction phases and to incorporate structural designs and other engineering services into the buildings. • Architectural supervision during the course of construction of works designed by the deptt. • To scrutinize building plans submitted to the Estate Office for approval of the Administration and to inspect commercial buildings for issuance of completion certificates by the Estate Office. The Chief Architect's jurisdiction encompasses the entire Union Territory. Town Planning Unit The Town Planning Unit consist of Senior Town Planner with supporting team of Divisional Town Planner, asstt, Town Planners and other draftsmen in different grades. The Senior Town Planner is responsible for implementing the Chandigarh Master Plan proposals. He prepares project reports dealing with different aspects of the development of the city and its surrounding area. He plans 20 year Perspective Tourism Master Plan for Chandigarh Industrial Development As this, along with Chandigarh Tourism, is part of CITCO, there is complete coordination within their roles and no overlaps. The Corporation was set-up in 1974 primarily for supplying raw-material to the small scale industries and for construction and allotment of industrial sheds. Some more activities were added subsequently. The details of the industrial activities in chronological order are as under: Year Activity 1974 Construction and allotment of industrial sheds. Supply of iron and steel to the SSI Units. 1978 Industrial Development and Facility Centre ( IDFC ). This Centre was setup with the assistance of Industries Department . 1979 Emporium as marketing outlet for the products of SSI units. 1992 Supply of Petroleum products- Agents for IPCL (Indian Petro Chemical Limited) 2000 Consignment Agency of Steel Authority of India Limited (SAIL) 20 year Perspective Tourism Master Plan for Chandigarh the Phase-II and II sectors and the left out pockets of Phase I and II with the aim of bring areas under intensive utilization. HE scrutinizes building plans and cases concerning construction in areas falling under the Periphery Control Act. He studies Urban trends, which will require plan revisions and plans for changing traffic and transportation needs. Rehabilitation and resettlement of squatters settlements and other rehabilitation housing projects come under his purview and he also outlines the statutory zoning plans in respect of land for commercial/residential/cultural/educational purposes. In accordance with the Estate Officer, the Senior Town Planner releases land for auction and sets plinth levels. He provides guidance to the Chandigarh Housing Board and prepares plan for the development schemes of Manimajra. He is involved in planning for the integrated development of the Chandigarh Inter-State Region. The Senior Town Plan's jurisdiction encompasses the entire area of the Union Territory of Chandigarh. 20 year Perspective Tourism Master Plan for Chandigarh Activities of contiguous states UTTAR PRADESH After the formation of separate hill state of Uttaranchal, UP doesn’t account for any breath taking topography as is associated with Uttranchal. Its most important physical feature is the River Ganges, which traverses the length of the state and accounts for some of the oldest cities/ regions of the world. Rivers are a significant physical feature and tourism resource. All important tourist destinations of UP have an attractive riverfront that can be developed. UP Government is concentrating on improving river-based experience by way of improving ghats, improving the experience at the ghats, encouraging water sports, river cruise, Better destination management at key tourism centers by way of urban decongestion, traffic management, ghats and river experience improvement and better accommodation facilities at Varanasi ,Allahabad and Agra. Product Innovation and better packaging of existing products a. The Bundelkhand area has a rich inventory of heritage properties. Lack of connectivity, infrastructure and communication facilities makes it difficult to create a tourism experience. Plans are to start a tourism train to provide connectivity, accommodation and basic infrastructure in a single product. It also provides a “theme” that is attractive and marketable. b. Agra as an International convention and events center. Plans to set up a international size convention facility. Agra has the advantage of instant international positive name recognition. It is well connected with Delhi gateway. Agra has numerous monuments besides Taj Mahal and numerous possible excursions extensions. Agra has ample accommodation in different ranges. 20 year Perspective Tourism Master Plan for Chandigarh UTTRANCHAL Tourism has been identified to have the potential to become the main stay of Uttranchal’s economy, and needs to be developed in planned and time bound manner. To achieve this objective the state has taken following steps The state has constituted a high-level Tourism Development Board, which will replace the existing tourism directorate. The role of the board will be a. Formation of a policy and strategy for development of tourism in Uttranchal b. Preparation of plans and guidelines for developing and strengthening tourism related infrastructure in the state c. Establish standards/norms for and forming policy guidelines for various tourism activities d. Strategy for mobilizing private sector participation and investments in the private sector. e. Single window Information and assistance center. Outsourcing Expertise The Uttranchal tourism board empanelled more than hundred experts/ agencies to seek services of specialists and consultancy agencies. The board identified seven projects and awarded the work to different agencies. These projects are master plans, which dovetail all developments and have a long-term perspective for sustainable tourism products. Destination Management The existing tourism centers need destination management plans to maintain and improve their effectiveness. Haridwar, Mussoorie, Nainital and Rishikesh being the key hubs through which pass the maximum number of tourists in the region would require immediate attention. 20 year Perspective Tourism Master Plan for Chandigarh Plans need to be made for better connectivity, city decongestion, improvements of accommodation etc. The master plan is being prepared for the Char Dham route, and same might be planned for other important destinations mentioned above. New Destinations New tourism destinations have been identified which will develop and marketed as spokes to hubs. These new destinations will also help in decongesting the hubs. Private Sector Participation The areas and opportunities have been identified for the private sector which are development of accommodation facilities for different categories of tourists, tourist resorts, specialized food restaurants, facilities for adventure sports, amusement parks etc. To make these investment opportunities attractive special incentives and concessions have been planned. 20 year Perspective Tourism Master Plan for Chandigarh RAJASTHAN Tourism is a significant contributor to the economy to Rajasthan economy. Rajasthan has adopted the mission approach for tourism sector to accord very high priority and ensure planned and time bound growth and development of tourism industry in the state to make it a truly “people’s industry” in Rajasthan. a. Rajasthan has estimated tourist accommodation of 19000 rooms in 772 hotels and as per assessment of the state tourism department, 20000 additional rooms will be required by year 2005.The state has decided to encourage more private investment. The state will encourage private investment in developing ancient buildings and heritage properties as tourist resorts; this will have dual advantage of preservation of heritage properties and additional accommodation. b. Traditionally Rajasthan has been depending on it heritage to attract tourists. Rajasthan Government is looking at ways and means of enhancing the tourist products. o The State has rich forest reserves and national parks like Sariska, Bharatpur- Ghana and Rathambore. Other areas, which have the potential for Wildlife, will be promoted. o Rajasthan has rich and varied heritage of handicrafts, handlooms and other products, which are appreciated by and purchased by tourists visiting the State. Efforts will be made to improve direct access of tourists to artisans. RTDC will develop shopping arcades in their existing properties and provide space to artisans to display and market their products. Efforts will be made to set up Shilpgrams and a Handicrafts Museum. o Experience has shown that Fairs and festivals have great tourist appeal and promotional value. Some of the fairs and festivals have become internationally popular like the Pushkar and Dessert Festival, 20 year Perspective Tourism Master Plan for Chandigarh Jaisalmer. The Government proposes to consolidate the facilities at such places to make these fairs and festivals more attractive. c. Destination Management o In view of possible exploitation of tourists, Government of may enact a suitable legislation for regulating tourism trade. o The Department of tourism will be empowered to license and inspect such establishments as are engaged in providing services of to tourists. Since there is an existing procedure for classification of Hotels, such establishments will not be brought under the purview of the legislation to avoid duplication of regulatory procedures. o Complaints received through tourists may be readdressed through Tourist Assistance Force. o Care will be taken to avoid unrestricted entry of tourists beyond the carrying capacity of National Parks and Sanctuaries. DELHI Delhi has a rich inventory of heritage properties. Delhi is one of the two major gateways to the country. Delhi has done very little to promote tourism in the state. This tourist has to come to Delhi for visiting all the popular tourist destinations in North India. Delhi is planning to set up 6/8 more Delhi Hatt type of facilities in different parts of Delhi. Efforts are being made to rejuvenate Tuglakabad Fort area. PUNJAB Punjab has done very limited to promote tourism in the state. It has limited heritage assets and the same have been neglected. The Golden Temple or Darbar Sahib is the most frequented pilgrimage center of the state. The Patiala Fort houses the National Sports Academy.Lately the Sheesh Mahal has been used as a backdrop to organize music concerts and contests and the area around the property has been improved. 20 year Perspective Tourism Master Plan for Chandigarh CHANDIGARH HOTELS HOTEL SECTOR AMAR 22 A ALANKAR 22 A AROMA 22 C CHANDIGARH 22 C CLASSIC 35 C DIVYADEEP 22 B G.K. INTERNATIONAL 35 C HERITAGE 35 C HIMANI'S 35 C JASMINE 35 C JAMES PLAZA 17 JULLUNDHAR 22 B KAPIL 35 B KC RESIDENCY 35 D KWALITY RESIDENCY 22 A Le CROWN 35 B MAYA PALACE 35 B METRO 35 35 C MONARCH 35 B MOUNTVIEW 10 B PANKAJ 22 A PARK INN 35 PICCADILY 22 B REGENCY 35 B RIKHI 35 B SAMRAT 22 D SHIVALIK VIEW 17 D SOUTHEND 35 C SUNBEAM 22 B CHANDIGARH YATRI 24 B NIWAS PRESIDENT 26 C SOLITAIRE NAC Shivalik Enclave PANCHKULA HOTELS North Park Panchkula - Shimla Road Prabhat Inn *** Panchkula - Shimla Road Oscar Regency Panchkula - Shimla Road Vikrant Panchkula - Shimla Road ZIRAKPUR HOTELS Mark Royal (10 Kms from Panchkula) Bristol (10 Kms from Panchkula) Shagun (10 Kms from Panchkula) Grow Green (10 Kms from Panchkula) NO OF ROOMS 16 12 30 16 14 14 28 14 17 14 N/A 16 13 26 14 16 26 16 14 156 14 26 48 25 16 16 13 57 20 26 30 20 12 50 30+ Info. Not avail. 12 (approx) 20 year Perspective Tourism Master Plan for Chandigarh State Luxury tax on room Qualifying rate -Rs Actual/ Published Sales tax on Food Sales Tax on softbeverages Sales tax on Liquor Annual Bar licence -Rslakhs Excise onconsumption- BeerRs Excise onconsumption-liquorRs Electricity / unit Elcetricity demandMonthperKVA/ 10 for Andhra Pradesh 5% 300 pub 8% 8% 8% hotel nil nil 4.61 108 Assam 20% all pub 7% nil nil 0.5 1.95+75% 3.75+75% 3.70+ 5% 70 Arunachal nil nil nil nil nil nil 0.5 nil nil 2.15 Bihar 7% 151 act 6+1% 11+1% 25+2% 3 1 6.75 2.92 125 Delhi 10% 500 act 8% 10% 20% 4.5 to 7.5 5.25 to 7.0 Goa 15% 500 pub 15% 20% on foreign 0.6 2.90 to 3.30 110 Gujarat 20% 500 act 12% 0.2 3.5 +45% Haryana nil nil NA 10% 20% 20% 5.75 4.02 Himachal Pradesh 10% 150 pub 8% 33% on out of state 0.7 2.8 Jammu & Kashmir 2% 8% 32% 1 3.18 Karnataka 15% 1,000 pub 10% 10% Indian 10% Foreign 60% 2.08 6.2 Kerala 15% 500 act 9% Local 5% imported 13 2 100% Madhya Pradesh 10% all act 9% 10% nil 2 3.63 122 Maharashtra 10% 1,200 act 20% 20% 20% 1.18 to 3.71 2.64 Orissa nil nil nil 8% Indian nil imported 20% 1.5 3.45 Punjab nil nil nil 9% nil nil 1.2 7.95 88 3.39 120 Indian nil imported Rajasthan 8% 1,200 act 14% 50.6% 1.5 to 6.0 11 31 3.72 20 year Perspective Tourism Master Plan for Chandigarh State Luxury tax on room Qualifying rate -Rs Actual/ Published Sales tax on Food beverages Sales Tax on soft Sales tax on Liquor - Rs lakhs Annual Bar licence Beer - on Rs consumption Excise liquor - on Rs consumption Excise Electricity / unit per KVA/ Month Elcetricity demand Sikkim nil nil nil 8% nil nil 0.06 2.5 Tamil Nadu 20% all Pub 8% 2.2 4 Uttaranchal 5% Uttar Pradesh 5% 1,000 act 8% out of state 32.6% 8 per hotel 8 48 4.13 West Bengal 10% a/c act 17% imported 30% daily 1 to 25 30 to 175 4.88 Chandigarh nil Source : FHRAI 20 year Perspective Tourism Master Plan for Chandigarh Transport taxes Token tax/ qtr Tax perseat/km Tax per day Tax per month Tax per week Total permonth All IndiaTouristPermitpermonth Delhi 35 seat coach 1675 560 1600 Ambassador 850 285 Esteem 1300 433 Haryana 35 seat coach a/c 8.53 4000 35 seat coach non a/c 8.31 Ambassador/ Esteem 875 291 Qualis- 9 seats 3175 1058 Punjab 35 seat coach 3175 nil Ambassador/ Esteem 800 267 Qualis- 9 seats 1000 333 UP & Uttaranchal 35 seat coach 14500 485 4835 Ambassador/ Esteem 730 243 Qualis- 9 seats 4350 1450 Gujarat 35 seat coach 9000 36000 Rajasthan 35 seat coach 20610 20610 2025 Ambassador 1000 1000 Qualis- 9 seats 3400 3400 Himachal Pradesh 35 seat coach 12000 4000 4000 Ambassador/ Esteem 386 130 Qualis- 9 seats 3250 1085 Madhya Pradesh 35 seater coach 3400 21600 Qualis/ Ambasador 210 Source : All India Transporters Association/ PHD Chamber of Commerce Employment in Hotels & restaurants Own Account Ent Establishments Total Number Employed Number Employed Number Employed Andhra Pradesh 69979 131,082 26504 134,009 96483 265,091 Arunachal 446 823 1029 4,740 1475 5,563 Assam 12005 18,186 14713 56,020 26718 74,206 Bihar 39822 62,201 21599 81,870 61421 144,071 Delhi 10917 14,822 10642 65,402 21559 80,224 Goa 1740 2,578 1189 9,331 2929 11,909 Gujarat 14759 22,622 12945 66,042 27704 88,664 Haryana 11971 15,360 5426 18,682 17397 34,342 Himachal Pradesh 7931 9,937 3214 11,651 11145 21,585 Jammu & Kashmir Karnataka 60093 103,972 34429 160,522 94522 264,494 Kerala 71472 101,290 27483 103,657 98955 204,947 Madhya Pradesh 39248 57,836 24412 96,007 63660 153,843 Maharashtra 47828 73,828 52237 312,763 100065 386,591 Manipur 2174 4,400 794 3,169 2968 7,569 Meghalaya 2222 4,430 3100 11,767 5322 16,197 Mizoram 1010 1,635 619 1,706 1629 3,341 Nagaland 589 1,301 949 4,179 1538 5,480 Orissa 34811 60,779 18007 68,292 52818 129,071 Punjab 10006 13,503 6694 23,984 16700 37,487 Rajasthan 29426 38,606 14820 50,224 44246 88,830 Sikkim 261 593 398 1,809 659 2,402 Tamil Nadu 85563 139,566 36637 167,673 122200 307,239 Uttar Pradesh 73911 103,649 28760 102,230 102671 205,879 West Bengal 68179 92,019 26508 115,903 94687 207,922 Andaman & Nicobar Chandigarh Daman & Diu Dadra & Nagar Haveli Lakshwadeep Pondicherry Source : department of Tourism Transport taxes Token tax/qtr Tax perseat/km Tax per day Tax permonth Tax per week Total permonth All IndiaTouristPermitpermonth Delhi 35 seat coach 1675 560 1600 Ambassador 850 285 Esteem 1300 433 Haryana 35 seat coach a/c 8.53 4000 35 seat coach non a/c 8.31 Ambassador/ Esteem 875 291 Qualis- 9 seats 3175 1058 Punjab 35 seat coach 3175 nil Ambassador/ Esteem 800 267 Qualis- 9 seats 1000 333 UP & Uttaranchal 35 seat coach 14500 485 4835 Ambassador/ Esteem 730 243 Qualis- 9 seats 4350 1450 Gujarat 35 seat coach 9000 36000 Rajasthan 35 seat coach 20610 20610 2025 Ambassador 1000 1000 Qualis- 9 seats 3400 3400 Himachal Pradesh 35 seat coach 12000 4000 4000 Ambassador/ Esteem 386 130 Qualis- 9 seats 3250 1085 Madhya Pradesh 35 seater coach 3400 21600 Qualis/ Ambasador 210 Source : All India Transporters Association/ PHD Chamber of Commerce 20 year Perspective Tourism Master Plan for Chandigarh Approach to Assessment of Attractions Successful tourism products are those developed to meet the demands of existing and potential markets. These market segments have also been analysed. While analyzing the attractions of Chandigarh, we kept in mind both Chandigarh Tourism Policy and the National Tourism Policy. The approach has been 1. Identification of market segments 2. Listing of all attractions in Chandigarh 3. Mapping the relationship between Chandigarh Tourism and National Tourism Policies 4. Study of “Best Practice” in other City States 5. From the above, a shortlisting of projects. 1 Fitness Trail High Court The Open Hand/ Dove – symbol of Chandigarh Rock Garden scuplture Marketing State Tourism Three case studies are attached – Kerala, Rajasthan and Uttaranchal – representing “Best Practice” in the Indian context. Recently, Maharashtra has been very active in promotion. Some pertinent observations are 1. Get the basics in place. In other words set the right conditions for enhancing infrastructure for tourism. Some specific actions taken a. Common approach by all Govt.Departments. Rajasthan’s Rajiv Gandhi Mission and Uttaranchal’s Tourism Development Board ensure that various Govt.Depts and private sector are involved in Tourism plans b. Giving Tourism Industry status. Kerala did this in 1986, Rajasthan in 1989 c. Outsource expertise. Uttaranchal and Rajasthan both utilize professionals for surveys and feasibility studies d. Involve Private sector. Kerala Tourism formed JVs with two major hotel chains to attract investments. It has further set up a Tourism Investment Agency. Rajasthan offered further assistance to develop Heritage hotels. Uttaranchal has earmarked accommodation, restaurants, adventure sports, amusement parks for private development. e. Develop Human resources. Rajasthan and Uttaranchal are encouraging private sector to set up Hotel management and Food craft institutes. There is emphasis on guide training and certification. Uttaranchal plans specialist training facilities for adventure sports. Kerala set up an Institute of Tourism & Travel Studies in 1988 in addition to the IHMCT in Kovalam. f. Emphasis on civic infrastructure. Identified by Uttaranchal as a key area. 2. Enhance the Tourism product. Apart from traditional reasons for visits a. Kerala – Ayurveda and Traditional festivals like Boat races, Elephant March, Nishagandhi Dance festival. Also developing a new Hill Station b. Rajasthan – Direct access to Handicrafts and Handloom artisans, Fairs and festivals, Wildlife. c. Uttaranchal – Adventure sports 3. Concentrate on a few destinations/ activities a. Kerala – Ayurveda, Calicut-Kasargod, Quilon-Alleppey b. Uttaranchal – four hubs of Haridwar, Mussoorie, Nainital and Rishikesh. Adventure sports c. Goa – holidays d. Rajasthan - Heritage 4. Manage Destinations. Involve host population – Rajasthan positions this as a ‘peoples industry’, better connectivity, city decongestion, Safety & Security of tourists – Kerala thinking of an insurance scheme, restricting entry into sensitive areas like National Parks, Registration of establishments catering to tourist needs 5. Product Positioning. Each State needs to develop a USP. a. Kerala – God’s own Country b. Uttaranchal – Every season is the reason c. Goa – 365 days on holiday 6. Promotion to target markets. a. Market segmentation – Relevant market segments, both domestic and international, should be identified geographically and by reason for visit. Eg. Kerala also targets NRIs b. Distribution – Ability to reserve hotels/ tours in source markets c. Sales - Participation in domestic and International trade fairs, familiarization trips for identified agents, sales offices in key markets d. Communications - Focused advertising in trade and travel related media, PR, Interactive websites, e-mail magazines, sweepstake prizes for high profile contests, familiarization trips for identified journalists i. Kerala has hired an agency in the US e. Database maintenance f. Marketing alliances – on-line airlines/ transporters, neighbouring States, destination co-op marketing. How other City States/ small countries position themselves Chandigarh is similar in situation to the city states and small countries around the world. The chart below attempts to analyse some of the more successful city states in terms of their drawing power City State Attractions Singapore Trading - Was a trading post to the Far East – Now a Financial hub – Connectivity to the world Manmade attractions – Jurong Bird Park, Night Safari, Sentosa Island & ropeway, Acquarium – Shopping, night markets – Golf Hongkong – now part of Trading China, but mainly unchanged Shopping Sports – Horse racing, rugby Macau Gambling – Casino/ Jai Alai Formula 1 races Monaco Gambling Casino & entertainment Formula 1 races Dubai Trading – similar to Singapore Shopping Sports – horse racing, power boats, golf, tennis, cricket Events Mauritius/ Bahamas/ Bermuda Beaches Off-shore companies Sun City, South Africa Casino, Golf,water sports, events Very few City States have the benefit of historical attractions such as at the Vatican. Some like Bahamas, Bermuda and Mauritius have the natural attractions of beaches. Most, however, have had to depend on manmade attractions. It is obvious that those city states that have had a history of trading, have managed to develop themselves as World Financial Centers. As part of this development, they have installed infrastructure for communications, in particular, very broadband channels for Internet. Another off shoot of this development is the growth in media. Dubai, in fact, is building a media city. However, the one striking feature in all these cases is the emphasis on world class standard Recreation and Leisure facilities. While facilities have been created for visitors, they are also used by the residents. – Gambling is a major attraction in Macau, Monaco and Sun City. – Horse racing is big in Hongkong and Dubai. – Sporting events attract people to Singapore, Hongkong, Dubai, Monaco and Sun City. – Entertainment Events are held in Sun City, Dubai, Hongkong, Singapore, Bahamas, Bermuda, Seychelles etc We believe that Chandigarh does have the potential to become a successful city state based on its own draw. It is interesting to note that city States like Dubai, Singapore, Bahamas, Bermuda, Mauritius etc do not rely on their immediate neighbours. Market segments for Chandigarh Tourism Market Segment Potential demand Potential Solutions Residents of Chandigarh Recreation and Leisure appear to be the main 1. Multiplex cinema halls demands. However, Chandigarh residents tend to 2. Amusement Park finish their working days relatively early and night 3. Night food bazaar cum entertainment entertainment demand is limited. 4. Horse Racing Neighbouring States Delhi 1. Transit traffic, specially families with small 1. Delhi - Transit Stopover traffic to Shimla or children on their way to Kulu/ Manali. These start 2. Haryana Kulu/ Manali later in the day from Delhi and the children get 3. Punjab - Short breaks restless after 4 to 5 hours. A good reason to stop 4. Himachal Pradesh Haryana would be an Amusement park. - Recreation & Leisure 2. Recreation & leisure. See comments above. None - Shopping of the contiguous states has developed good R&L - Business facilities except possibly the Gurgaon and - Meetings & Conferences Faridabad districts bordering Delhi. Punjab 3. Shopping. While Jalandhar and Ludhiana have now - Recreation & Leisure got good shopping facilities, they are still behind - Shopping the range offered by Sector 17. If this is combined - Business with R&L, it makes a powerful attraction. - Meetings & conferences 4. Business. This is normally connected with Himachal Pradesh Government. - Recreation & Leisure 5. Meetings and conferences. Chandigarh being the - Shopping State Capital of Haryana and the Punjab as well as - Medical the Northern Region HQ for several trade bodies, can satisfy this need 6. Medical. Medical facilities at the PGI are excellent. The new Fortis Hospital in Mohalli can also contribute to Chandigarh room occupancies Market Segment Potential demand Potential Solutions The Rest of India Apart from transit to HP, and a very small market No strong offer to attract this segment interested in architecture, the tourism demands from the rest of India are not met by Chandigarh NRIs – Also those of Chandigarh is the Gateway to the Punjab NRI’s could be encouraged to expose their children, many Punjab origin NRI Marriages of whom are negative to India, to the modern city beautiful - Chandigarh Other Foreign No real demand State Tourism Policy > Improving the Developing vs. National Tourism quality of places of Policy tourism tourist vvvv products interest Place Tourism on the Concurrent list Effective linkages and close coordination between Departments Safety & Security of Accreditisation Tourists of Shops, transporters Tourism Accounting System Computerisation Concentrate on one major project as State USP World Heritage sites as opportunity to expand cultural Tourism Themed Cultural Sound & Light Attractions at Rock Garden Providing necessary facilities for tourists Effective signages Have police posts at Tourism Information centres Provide a central reservation facility. Provide linkage between Rock Garden and Sukhna Lake and planned amusement park Other Chandigarh has already declared Tourism as an industry in 1994. However, incentives and concessions need to be reviewed Constitute a State Tourism Board/ Tourism Advisory Council Initiate a system for tracking tourism spends Secretariat & High Court complex?? Develop a documentary on the planning and development of Chandigarh State Tourism Policy Improving the Developing Providing Other > quality of places of necessary vs. National Tourism tourism tourist facilities for Policy products interest tourists vvvv Capitalise on Run regular Food traditional cuisines Festivals featuring foods from other States. Actively promote village tourism Exploit the potential of Sukhna Bird Create wildlife sanctuaries sanctuary awareness of the fauna Develop Adventure Improve the Development tourism with safety tourist amenities of the Sports standards at Sukhna lake. center at Kishangarh Recreation & leisure Develop a Dinner Develop an Multiplex Explore the are a vital component cruise on Sukhna amusement possibility of a of the local & regional Lake park. Race Track. This domestic tourism will help week market end occupancies in the hotels MICE to be developed Develop a for tourism, trade and convention commerce centre Develop Eco-tourism Create Develop the through grassroots, environmental Botanical community based consciousness garden movement through gardens Capitalise on the growing awareness of India’s holistic healing traditions Development of Incorporate shopping centers for traditional arts traditional crafts and and crafts with information on them Kalagram State Tourism Policy Improving the Developing Providing Other > quality of places of necessary vs. National Tourism tourism tourist facilities for Policy products interest tourists vvvv Promote the events, The quality of the A daily night fairs and festivals both Saturday Sector market can be locally and in the main 17 entertainment developed markets needs to be reviewed Provide the Convention infrastructure for center Business travel The following projects have been shortlisted Basic Tourism Infrastructure Projects 1. Setting up a system of coordination between Departments through a “Mission Approach” 2. Assessing the economic impact of tourism in Chandigarh through annual surveys and the use of multipliers 3. Setting up police outposts in the new concept “Cultural/ Tourism Centre” 4. Setting up a system for accreditisation of shops and transportation 5. Creating Tourist/ Cultural center Visitor generating projects 6. Promoting traditional cuisine 7. Horse Race track 8. Amusement Park 9. Linking the sightseeing 10. Conference center to attract business travelers 11. Developing the City Centre 12. Adventure tourism & Wildlife Tourism 13. Attracting the Private Sector Project 1 Effective linkages and close coordination between Departments There is a need to set up a system in Chandigarh to coordinate with other departments whose work has a bearing on Tourism. 1) Currently the following Government agencies have a direct impact on tourism products a) CITCO. Here, both Industrial development and Tourism come under the same department. b) Town Planning c) PWD (B&R) d) PHD for water, sewage & sanitation e) Police 2) Private bodies that are directly involved in tourism are the local chapters of a) FHRAI/ HAI b) TAAI/ IATO c) Transporters association 3) Indirect involvement by private sector corporations for business travel requirements and their related associations i) FICCI/ ASSOCHAM/ PHDCC etc. ii) Informed and committed individuals with current or potential interest in the State 4) Some Central Government agencies are also involved. These are a) NHAI b) Indian railways Two related approaches have been used by other Indian States Rajasthan has used a ‘mission’ approach whereby they have set up the Rajiv Gandhi Tourism Mission. This has the commitment from all State Ministries of giving tourism priority treatment. Uttaranchal is the first State to constitute a ‘Tourism Advisory Board’ with participation of both the Government and private sector The roles in planning and identification of projects, problems and solutions are similar. They vary in that the ‘Tourism Advisory Board’ is a body constituted under an Act with broad powers. The ‘Mission Approach’ is not a legal body and is probably easier to implement in states where tourism is not a major industry. Rajasthan - The Mission Approach This is exemplified by Rajasthan’s Rajiv Gandhi Mission on Tourism Development. While not a legal entity, the mission has A nodal agency in the Dept of Tourism, Art and Culture Collaborating agencies o RTDC o Dept of Urban Development o Dept of Archaeology & Museums o PWD o General Administration & Civil Aviation o Forest & Environment o Industries Dept o Devasthan Dept o West Zone Cultural Centre o Khadi & Village Industry Board o Archaeological Survey of India The Mission is structured with a Chairman – Chief Minister Empowered committee chaired by the Chief Secretary Mission Director – Secretary Tourism, Art & Culture District level Sub-Mission – Chairman is District Collector Site/ Local – mini mission A Mission Statement has been defined. Ten Mission objectives have been identifies and a 12 point strategy developed to implement the objectives. The mission statement seeks “To make Tourism the peoples industry”. The objectives and strategy were developed with the help of task forces that surfaced problems and solutions on a variety of subjects including Policy needs. 10 Milestones have been defined and for each milestone specific activity and deadlines detailed. The mission Director coordinates with other departments as well as professionals. The Directorate has the following Advisors Advisor Heritage Advisor Handicrafts Advisor Economist Advisor Media & Marketing Advisor Human Resource Development Advisor Research & Development Advisor Ecology/ Sociology As well as consultants from the private sector 1. Uttaranchal - Constitution of a Tourism Development Board A high level Tourism Development Board has replaced the Tourism Directorate. The responsibilities of this board are a. Formulation and Strategy for development of tourism in Uttranchal b. Preparation of plans and guidelines for developing and strengthening tourism related infrastructure in the state. c. Preparation of plans for various tourist segments and activities, identification and development of projects and ensuring their timely implementation. d. Establishment of standard / norms and framing of policy guidelines for various tourism activities. e. Formulation of a strategy for mobilizing private sector participation and investment in the tourism sector. f. A single window solution to all tourism related information, sanction for projects, escort services for obtaining clearances and approvals from other departments. 2. Identifying Key Projects - Based on the present tourist interest and the future potential in each destination. 3. Outsourcing Expertise - The tourism board empanelled more than hundred experts/ agencies to seek services of specialists and consultancy agencies. 4. Destination Management - The existing tourism centers need destination management plans to maintain and improve their effectiveness. Plans to be made for better connectivity, city decongestion, improvements of accommodation etc. 5. New Destinations - New tourism destinations have been identified which will developed and marketed as spokes to hubs to help in decongesting the hubs. 6. Private Sector Participation - The areas of accommodation facilities, tourist resorts, specialized food restaurants, facilities for adventure sports, amusement parks etc. Special incentives and concessions have been planned. 7. Human Resource Development - Plans to upgrade existing institutes and set up new institutes for diploma and degree training programmes. a) Specialist training for activities like adventure sports etc. b) Self-employment opportunities for local residents to encourage maximum participation of the host community. 8. Infrastructure Development Establishment of world class infrastructure facilities will be the highest priority of Uttranchal government. In order to do this, special efforts are being made to mobilize institutional resources and private sector investment and participation. Recommendation We recommend that Chandigarh start with a mission approach. This would require the backing of the Governor and the Chief Secretary to make it successful. The mission approach provides the coordination required and gives tourism a better profile with other departments. Project 2 Tourism Accounting System Tourism will not get the attention it deserves unless the positive impacts can be demonstrated. Several measures of the changes in economic activity can be generated. The most common are Changes in Sales or spending - The spending of visitors within the local area becomes sales or receipts for local businesses Changes in regional incomes - This is the sum of wages & salaries accruing to workers in these businesses and owners income and profits Changes in employment - Number of jobs supported by the given level of Sales. What is required to be measured for an impact analysis is the changes that occur with the introduction or closing down of facilities. In simple terms, the economic impact is Economic impact= change in # of visitors * average spend/visitor* Multiplier A visitor is defined by someone who lives outside the region so only ‘new’ spendings are measured. The overall impact is normally arrived at by c) Measuring distinct visitor segments eg. Day trips, transit, stayover, business travel, Government expenditure on tourism related activities including museums, cultural activities, recreational parks etc. d) Measuring spending in distinct categories – lodging, restaurants, meals, petrol etc. e) Allocating spending to receiving sectors and applying ratios and multipliers The first two measure primary effects. Secondary effects are of two types a) Indirect effects are changes in spending, income and jobs within the region in sectors that supply goods and services to the tourism sector. This requires an input-output matrix. b) Induced effects are the increased spends by residents from the incomes earned in tourism and the supporting sectors. Multipliers are required to capture the secondary effects and are generally sxpressed as a ratio to direct effects. These can be sales, income and employment multipliers. The World Bank has estimated that for every Rs 10 lakhs invested in India, the following number of direct jobs are created In Tourism projects 47.5 jobs In Hotels and restaurants 89.0 jobs In agriculture 44.7 jobs In Manufacturing 12.7 jobs Tata Consultancy Service has also estimated that for every direct job created in tourism, 4.62 indirect jobs are created in ancillary areas. The World Travel & Tourism Council uses a ‘Direct Revenue Multiplier’ in tourism of 2.07. While the intention of the Ministry of Tourism is to get a better understanding of the positive effects of tourism, at this stage the mechanism is not in place to collect the details in all sectors. Recommendation We suggest that Chandigarh Tourism puts in place a mechanism to collect data on direct effects. This may initially be in the form of annual surveys extrapolated to cover the State and calculated using the multipliers above. This will give Chandigarh Tourism the hard data required to substantiate the benefits of Tourism. Project 3 SAFETY & SECURITY SPECIAL TOURISM POLICE The National Tourism policy states that “There is a need for the creation of a special tourism police force for deployment at major tourist destinations. This will provide travelers security through a spirit of courtesy and hospitality.” While the creation of a special force at State level may not be feasible, the spirit of providing a sense of security to travelers is an important aspect. At the very least, all Tourist information centers – see note on the concept – should have a police outpost which can deal with crimes against tourists. The awareness of these police outposts should be widely created with hotels, restaurants and shopping centers in the relevant districts. There is no cost involved in this activity PROJECT 4. ACCREDITISATION OF SHOPS AND TRANSPORT AGENCIES Two other areas where most tourists feel insecure in the sense of being cheated are Tourist shops and transportation. It is suggested that Chandigarh Tourism institute a system of accrediting these establishments. For shops, the requirements are simple All items will be price tagged All sales will be subject to return in undamaged condition Shops will carry the accreditisation plaque/ sticker with the number of the monitoring agency For transport, again requirements can be kept simple Taxis/ rickshaws will be metered or carry a tariff sheet No fare will be refused if the taxi/ rickshaw is at a stand Participating transport will carry a plaque/ sticker with the number of the monitoring agency Participating transport drivers may be asked to wear a uniform In both cases, complaints will be taken up with the offending shop/ vehicle owner. A repeat complaint will bar the shop/ vehicle from carrying the plaque/ sticker. Recommendation We recommend that Chandigarh Tourism issue a tourist-cum-shopping guide – preferably in the form of a Chandigarh map - listing accredited shops and transporters. Maps should be given free at hotels, Sukhna Lake, Rock Garden and Sector 17 market. The cost of the guide can be recovered by advertising and sale of guides. PROJECT 6 PROMOTING TRADITIONAL CUISINES Indian cuisine is not just a trend internationally – no longer represented by just Tandoori Chicken – but within the country there is a growing interest in regional cuisine. Kerala vegetarian and non-vegetarian restaurants are thriving. Gujarati, Konkan, Chettinad and Punjabi outlets are being well patronized in the metros. In the past, extremely successful food festivals have been held at Kala Gram. Kalagram is an ideal venue between Chandigarh and Panchkula. It is suggested that State Tourism departments be contacted to conduct food festivals on an ongoing basis. Some arrangement will need to be worked out with the North Region Cultural Centre, but as this is a win-win situation for both parties – and the general public, this should be possible. Kalagram may require additional parking facilities. The neighbouring States of Himachal, Punjab, Uttar Pradesh, Uttaranchal, Haryana, Rajasthan, Jammu & Kashmir and Delhi can all be approached to hold festivals in Chandigarh. Chandigarh Tourism is also looking at promoting outbound traffic to adjoining States, and they may wish to use this platform more often. If the months of May to July are excluded, it should be possible to organize a festival every month, thereby giving Chandigarh residents and visitors an additional area of recreation and leisure. The festivals should be accompanied with performing arts and display the State handicrafts. Recommendation We recommend food festivals of various states be held at Kala Gram on an ongoing basis. This activity does not require much additional infrastructure and is in fact a revenue generating activity. Visitor numbers Past food festivals at Kalagram have generated 4-5000 visitors per festival over a 3-4 day festival period. If festivals are held monthly at a fixed period, say second weekend of the month or the full moon nights, the numbers can be sustained. 9 festivals x 5,000 visitors per festival = 45,000 visitors Revenues Revenues to Chandigarh Tourism/ Kalagram will be generated by entrance tickets and stall rentals. Stall owners – handicrafts/ F&B – will have direct sales revenues. Assume expenditure @ Rs 50 per visitor for handicrafts/ F&B/ parking 9 Food & Cultural Festivals/ annum Entrance fees = Rs 10 x 45,000 Stall rentals @ Rs5000 x 9 festival x 15 stalls Revenues to stall owners 45,000 x Rs 50 Costs = Rs 4.5 lakhs = Rs 6.75 lakhs = Rs 22.5 lakhs Venue costs are minimal as infrastructure exists. There will be promotional costs Project 12 Wildlife Tourism The Government of India, Department of Tourism has identified the development of wildlife sanctuaries as a priority item. Specific suggestions are to improve the quality of tourist facilities including Visitor information/ interpretation centers. Chandigarh has the Sukhna Bird sanctuary. As a reserved forest, people are not allowed without permission. This area should not be developed further. However, Chandigarh also has a wealth of flora. While the gardens attempt to highlight this, it is not generally known that there are over 1000 variety of trees in Chandigarh. Recommendation We do not recommend any additional expenditure other than that normally budgeted for this activity. Project 12 A Adventure Tourism Chandigarh has limited scope for adventure tourism. Apart from promoting serious boating – rowing, sculls, sailing, regattas - in Sukhna Lake, the area is not conducive to pursuing adventure tourism. Recommendation We do not recommend any additional expenditure on this activity other than that normally budgeted. Upgrading the facilities for the above can be taken up by the private sector. Project 5 Concept for Cultural / Tourism Information Centres These should be part of the City ‘Recreation and Leisure’ complex, and are envisioned as centers to showcase the State – a cross between Dilli Haat and National Crafts Museum. At the very least they should have 1. Tourist office with all information on the State 2. Central reservation capabilities for hotel and tour packages. a. These can be manned/ funded by the State Hotel Association & State Travel agent associations b. Space can also be rented to airlines, railways and travel trade associations. 3. A permanent live exhibition of the State’s traditional lifestyle, arts and crafts. This can be modeled on the National Crafts Museum. a. Artisans sell their goods directly and/ or through a central shop. The center provides a platform for the artisan on a revenue share or straight lease. b. State produce can also be sold e.g Basmati rice 4. A permanent restaurant featuring the State cuisine. a. This should be leased with stipulations on the menu and service standards b. The area can also carry periodic photo exhibits/ art exhibits. 5. Some permanent shops can be incorporated and leased out. a. Factory outlets of manufacturers based in the State is one example. 6. An open air amphitheatre to showcase the State’s performing arts a. This should also have screening facilities for documentaries b. This can be leased for private functions including marriages, film shooting 7. Open spaces for putting up stalls for celebrating State festivals a. These can be handicrafts and food stalls leased to private parties. 8. Space should also be allotted to other State Tourism bodies 9. A police outpost where problems faced by tourists can be addressed. Estimated costs for construction of this cultural centers are Activity Budget Tourist office building with space for State tourist offices, Central 50 lakhs reservations office, restaurant and police outpost, other offices Live exhibition of State’s arts and crafts, permanent shops 10-15 lakhs Open air amphitheatre – 750-100 persons 10 lakhs Space for temporary stalls for State festivals 2 lakhs Recommendation This should be set up in the amusement park area planned near Sukhna lake. Visitor numbers The objective of this facility is to provide service, not generate additional visitors, though there will be an indirect effect. Revenues Office rentals 10 offices x Rs10,000/ month Restaurant rental @ Rs 20,000/ month Shop rentals 10 shops x Rs 20,000/ month Amphitheatre rentals 20 functions @ Rs 20,000 Costs = Rs 12.0 lakhs = Rs 2.4 lakhs = Rs 24.0 lakhs = Rs 4.0 lakhs Ongoing costs are for maintenance and common utilities @ Rs 24 lakhs/ year. Funding The initial capital required is Rs 70-75 lakhs. Breakeven is achieved in 4-5 years and thereafter, it is a profitable operation. Attracting the Private Sector While there appears to be no requirement to incentivise the building of hotels, there are other tourism related activities that would need incentives to attract the private sector. We recommend that Chandigarh Government consider the following to develop a package of incentives.. INCENTIVES FOR TRAVEL & LEISURE INDUSTRY 1. Assistance on project report preparation 2. Concessional land for specified projects 3. Entertainment tax exemption for 5 years 4. Capital investment subsidy of 20% subject to a maximum of Rs 20 lakhs 5. Recommendation of loans to Financial Institutions 6. Interest subsidy on loans from approved financial institutions 7. Energy subsidy 8. Concessions on stamp duties/ reimbursement – urban areas, rural areas 9. Concessions on Change in land use fees 10. Excise licence fees concessions 11. Concession on Transport taxes on vehicles used for this activity. INVOLVING THE NON TRAVEL & LEISURE SECTOR IN TOURISM ACTIVITIES Chandigarh has over 25 corporates and PSUs with turnovers of over Rs 100 crores. These all have some commitment to Chandigarh and can be approached for sponsoring various activities that can improve the tourist experience. Greening of the environment – road dividers, green belts, parks Cleaning of the environment – garbage bins and collection Sponsorships of o signage o projects such as handicraft villages o events such as local festivals o information kiosks o tourist literature The companies may be compensated in terms of exposure available. It is also common to have directional signs to the company premises. Project 7 Horse Race Course Horse racing is an activity that draws week end traffic. In India, the main race tracks are in Mumbai and Kolkata. These depend largely on the local population with free income. However, Pune and Bangalore both have successful race tracks where the attendance is from outside the city. The race season in these two cities fills hotels over the normally low weekends. Revenue sources for Race Clubs are Club memberships Sponsorship of Corporate boxes Club house activities F&B concessions/ sales Gate money from attendees. Sponsorship of races. Programme sales Programme advertising Horses pay to race/ stable Share of tote Off-season revenues are buoyed by off track betting. Race tracks around the country pay for live telecasts via satellite. o This brings in viewership of about 2 lakh people Race tracks are also labour intensive, both for the track and for anciliary activities like stud farms, training paddocks, stables and for manning the accommodations for staff, trainers jockeys etc. A quality race course with a 2000 meter track requires an area of about 200 acres depending on the shape of the plot. On clear grounds, a race track can be laid in 100 acres. The area around Chandigarh and Delhi have the best stud farms in the country. Many are owned by political figures. There are at least 10 stud farms in the North where horses are bought for racing across the country. Owners of stud farms currently need to travel to other race tracks to promote their products. The Delhi Race Course does not cater to quality horse races. Setting up a race track is complicated. Tracks like Hongkong, Singapore, Malaysia, Kentucky etc all have their own systems and one suitable for Chandigarh will need to be worked out in conjunction with stud farms, race horse owners, authorities etc. The modern tote systems are totally electronic and cost upto Rs 2 crores. They are backed by broadband access to allow off track betting and satellite broadcast/ reception. The indicated expense of setting up an entire race course with track, club house, stabling, accommodation, tote machines etc is in the region of Rs 40-50 crores minus cost of land. The facility is usually given on long lease. Note Mr. Narendra Lagad from Pune is an acknowledged authority on setting up race courses. He has set up one in Kandy, Sri Lanka. (Contacts are 020-6879495/ 6870217/ 098220-28285 e-mail : narendralagad@hotmail.com ) Recommendation Chandigarh further examine the feasibility of including a Race Course in the Master Plan. The Club can have other sports facilities to attract memberships. Accommodation for out of town visitors should also be examined. The entire project should be in th private sector. Visitor numbers Race attendees 15 race days x 5000 attendees = 75,000 30 off track x 1000 attendees = 30,000 Club Members Permanent members = 500 Out station members = 300 Revenues 1. Gate money Race days 75,000 x Rs50 = Rs 37.5 lakhs Off track 30,000 x Rs 20 = Rs 6.0 lakhs 2. Club memberships 500 members x Rs 2 lakhs = Rs 1000 lakhs 300 outstation x Rs 75,000 = Rs 225 lakhs 3. Monthly dues + usage 300 x Rs 1000 = Rs 3.0 lakhs 300 x Rs 400 = Rs 1.2 lakhs 4. Company sponsored boxes 10 x Rs 5 lakhs/ year = Rs 50 lakhs 5. F&B concessions 45 days x 5 concessions x Rs5000 = Rs 11.25 lakhs 6. Programme sales 1 programme per 4 attendees xRs 10 = Rs 2.6 lakhs 7. Programme advertising @ Rs 1 lakh a programme x 45 = Rs 45 lakhs 8. Race charges 15 races x 8 horses x Rs 5000 = Rs 6.0 lakhs 9. Share of tote 5% of 105K attendees x Rs 200 per = Rs 105 lakhs Plus royalties for live telecasts. Costs - Ongoing 1. Race purses/ prizes – At least 2 prizes per meet can be sponsored by Corporate Houses. 2. Personnel – This includes a. Tote supervisors/ tellers/ gate entrance/ horsemen’s book keeper b. Racing secretariat/ starter/ announcer/ stewards/ paddock judge. Some of these can be voluntary positions c. Club house personnel d. Track maintenance/ security 3. Equipment maintenance. This can be outsourced 4. Insurance 5. Utilities 6. Track Maintenance 7. Advertising. Programme printing Funding recommendation The requirement is Rs 40-50 crores plus cost of land. The entire project should be tendered to the Private Sector. There are a variety of ways this can be managed from JV to fixed leases to profit/ revenue sharing. Project 8 Amusement Park Attracting tourists en route to Himachal Pradesh Up to less than ten years ago, given the state of the highways and the quality of cars, most tourists driving from Delhi to the Himachal destinations of Shimla and Kullu- Manali required up to 6 hours to reach the Chandigarh environments. For many, especially those on their way to Kullu-Manali or those traveling with young children, a stop-over in Chandigarh was very convenient. Today, the distance is covered in 4 hours or less and Chandigarh is now accessed before lunch. Given that the average person can comfortably drive 400 Km or 6 hours a day, they can easily reach Shimla. Also given the fact that car ownership is increasing at over 18% a year and that domestic tourism is increasing at 5% a year, traffic to Himachal out of Delhi will only increase over the next decade. The increased tourism promotion activity of Uttaranchal will also spur the HP Government to promote tourism more actively. Therefore, it is imperative that some portion of the transit traffic to Kullu-Manali is attracted to overnight in Chandigarh. The logical segment to attract is those traveling with children as children tire of long car trips. In short, the attraction should be oriented to children. Therefore, we propose an amusement cum water park. The water park would be a major attraction as most movement to the hills is in the Summer months. This need not be on the scale of a Disney World, but the rides and facilities of Appu Ghar but with quality equipment would suffice. This would also be a facility for the local population of Chandigarh, providing reasonably priced family entertainment, currently available in very limited scope. The ideal location for this facility would be in the Kishangarh area, adjacent to the current leisure areas of Sukhna Lake, the Golf course and the Rock Garden. This has already been identified by Chandigarh Town Planning. The park should be marketed to the specific segment of families with small children traveling to Kulu/ Manali. Possible facilities in an amusement park are listed below. While weekend usage will be high, it is necessary to balance the products to drive traffic throughout the week and throughout the day. The analysis below attempts this. Weekday usage Invest Direct Indirect Attraction AM PM Night ment jobs jobs Amusement Park - Ferris Wheel, slides, rides, dodgem cars Med Hi Hi Animal rides Med Hi Lo Bowling Med Hi Hi Casino/ Slot Machines Lo Med Hi Cultural Centre - Dilli Haat style to showcase the State Hi Hi Hi Fairground stalls - games of chance and skill Med Med Hi Food Court - Vishala/ Chowkidana Lo Lo Hi Go-karting Lo Lo Hi Kiddies play centre - Primeplay, Softlands Hi Hi Med Mini-golf - Putt Putt Med Med Hi Science Centre- Eg. Panorama in Kurukshetra Hi Hi Lo Shopping mall - designer shops a la Santushti, factory outlets, discount clubs Hi Hi Med Roller Skating rink Lo Med Hi Swimming Pool - heated(?) Hi Hi Hi Water Park Lo Med Hi Mini - Zoo Hi Hi Med Name of Park Area in Annual Entrance fees excluding video acres Visitors games and some selected rides. lakhs Child below 1 metre free. Essel World, Gorai 64 18–20 Child Rs.200/ Adult Rs 250 Water Kingdom, Gorai 24 12-14 Child Rs225/ Adult Rs 275 Nicco Park, Kolkata 40 12-13 Kishi Kintha, Chennai 10 VGP Universal, M’puram 8 Appu Garh, Delhi 6-7 MGM, Chennai 5-6 Fun city, Chandigarh 4 Child Rs140/ Adult Rs 140 Fun & Food Village, Delhi 12 5 Nicco Bhubhaneswar 15 2-2.5 Nicco Jamshedpur 8 2-2.5 Great Escapes, Nagpur 2 Visitor numbers Given that Fun City, with its less than prime location, attracts around 5 lakh visitors a year, and that the recommended location can easily attract highway traffic to Himachal, it is not unreasonable to base visitor numbers at 5 lakhs a year going up to 7 over 3-4 years. Visitor spends Factoring in student discounts and free children, Essel World/ Water Kingdom average Rs 175 per visitor. In Chandigarh, the average will probably be around Rs 150. In addition, visitors spend on parking, F&B and souvenirs as also on specialized rides and video games. An average visitor spend on items other than entrance is taken at Rs 50 per visitor. Therefore revenues can be assumed to be 5 lakhs x Rs 150 = Rs 7.5 crores on entrance fees and a further 5 lakhs x Rs 50 = Rs 2.5 crores on other items. Total revenues Rs 10 crores Costs It costs roughly Rs 1.0 crore an acre to create an amusement park. The investment in Chandigarh will be in the region of Rs 15 crores. Funding It is recommended that Chandigarh Tourism tenders the entire project to private sector. There a variety of ways this can be done from JV to various types of leases. Marketing This will be done by the amusement park operator. Project 9 Linking the sightseeing Chandigarh Tourism has recently introduced the Hop-on Hop-off bus linking the sightseeing of Chandigarh in an extremely user-friendly manner. This works very well for attractions that are fairly wide spread from each other where customers are willing to wait the 15 minutes to half an hour for the next lift. However, when attractions are relatively close together, waiting for the bus versus walking to the next attraction becomes a dilemma and an irritant. The main case in point is the 1 km distance between the Rock Garden and Sukhna Lake, both ‘must see’ attractions of Chandigarh. The walk versus the wait for the bus, specially with children, are both unattractive options! The other alternative option is to pay a hefty fare to the auto rickshaws It is understood that Chandigarh Town Planning has proposed leisure activities in the area beyond the Lake and between the existing Golf Course and Kishangarh. These are A sports complex Health resort/ picnic huts Amusement park This, along with the activities already existing in the Sukhna Lake area, make this area a hub of leisure activities, visited by all Chandigarh tourists and most Chandigarh residents. There are several possible solutions to ease this situation for the Chandigarh tourist. Regulate the auto rickshaws to charge the official fares o Auto rickshaws will probably boycott the stand as the potential fare is the minimum drop of flag amount. o It is probably not economically viable to increase the number of buses that would be required to increase frequency over the entire circuit. Introduce a shuttle bus between the two places o This would require one more bus to shuttle every 10 minutes o Customers may not be willing to pay any amount over and above the basic Hop-on Hop-off fare for a bus service that is seen to be part of the same system. Introduce a novel form of cheap transport between the two locations. Some alternatives o Animal drawn buggies o An elevated monorail/ rail system It has been indicated that a 2 Km elevated track would be extremely costly. The monorail is necessarily electric o A conventional rail track with ‘antique’ engines and coaches in miniature. This would be like the narrow gauge railway to Matheran/ Darjeeling. The engine would be a diesel/ electric engine and could be designed like the ‘Fairy Queen’. This would be an attraction in it’s own right. A diesel/ electric train can be run very cost-efficiently. Pollution versus a steam train is minimal Recommendation It is recommended that a narrow gauge track and rake be commissioned to the private sector. Revenues From ticket sales The Rock Garden receives an average of 3,000 – 5,000 visitors a day. All visitors to the Rock Garden also go to Sukhna Lake. With the development of the Recreational Area, the Sports complex, the Tourist & Healht Resort and the Amusement park, the number of visitors can only increase. If 35 -40% of the visitors use the transport, which is an attraction in itself, this is roughly 1500 passengers a day @ Rs 5/ passenger = Rs 2.25 lakhs/ month. If running/ maintenance costs are 50%, net profits are Rs 1 lakh a month for a 70 month breakeven. If the Amusement Park and Tourist Health and Sports Centre are developed in Kishangarh, the numbers will rise dramatically. In addition, there will be opportunity of generating revenues from advertising on the train. Costs The estimated cost for setting down 2 Km of track is Rs 20 lakhs and the cost of the train, 4 coaches with 50 passenger capacity is Rs 20 lakhs. The engine is Rs 30 lakhs for a total project cost of Rs 70 lakhs Sources of funds It is recommended that this project be funded by Chandigarh Tourism. The Indian railways may be approached to set up a mini rail museum in this area. Marketing There is no marketing and promotion necessary and hence no specific marketing costs. Project 10 Conference Centre for Business Travel Businessmen travel to Meet buyers Meet suppliers Visit Home/ branch offices Incentive travel – where the travel is an incentive reward for better performance Attend conferences – own company and business associations The first three reasons for travel cannot be influenced by third parties. Business travel however can be generated to particular destinations through incentive travel and through conferences, conventions and exhibitions. Apart from road, rail and air access which is a common essential to develop these activities, and which is adequate in Chandigarh, each of the above also has its own requirements. Incentive Travel Incentive destinations are typically not those with cultural attractions but those with a wide range of leisure activities and nightlife. The participants of an incentive group are all prize winners of performance awards and are looking for a fun time in a place that ordinarily would be out of reach of their pockets or regular family holiday destinations. Chandigarh is not suited for incentive travel. Meetings, Conventions and Exhibitions Meetings and conferences These are traditionally organized by companies for their own staff, distribution chain and, occasionally, suppliers. They are company need-based to communicate messages that require some interaction to a medium sized audience. The size of the company in terms of number of people and the spread of distribution are the prime drivers of meetings and conferences. Apart from companies headquartered in Chandigarh, those headquartered in the surrounding districts of the Punjab and Haryana are also candidates for holding meetings and conferences in Chandigarh. A listing of such companies is attached. Conventions and Seminars These are meetings held for multiple organizations interested in the same topic. They are usually organized by industry associations, professional associations, management associations, universities and NGOs to discuss topics of common interest. Among the more common conventions are various medical disciplines, religious, environmental subjects etc. However, the local chapter of the association needs to drive the organization of conventions and seminars. Typically, a bid document is put up to the national body that then may make an inspection trip to view facilities. The bid is normally submitted with comprehensive back-up documentation which apart from the core expertise is exhibited, the documentation covers extra-curricular activities during the day for spouses and evening and night entertainment, accommodation facilities, transportation etc. The local chapter must also organize the convention/ seminar. This can be fairly complicated and many organizations do not have in-house expertise. Successful conventions require that organizers are educated in meetings management. Cities that have evolved as convention destinations generally have a dedicated ‘Convention Visitors Bureau’ that works with local organizations to generate conventions. The Bureau has full time employees and a committee made up of representatives from the local tourism, hospitality, transport facilities as well as Associations. The attachment gives some organizations that can generate conventions in Chandigarh. Exhibitions Exhibitions are held to display products. These may be organized by Companies – A launch of new products is usually accompanied by an exhibition Associations – Manufacturing associations, agricultural associations and other industry associations including travel, automobile, job fairs all require exhibition area. Exhibition halls, typically being unfurnished have multi usage potential such as marriages, concerts and other social events. It appears that there is scope for a meetings facility in Chandigarh. Given that hotel capacities, both current and in the future, will be contained by town planning, the conference facility should not be too large. Chandigarh Town Planning has already identified a 7 acre plot in Sector 31, next to the CII Northern region Headquarters. Recommendation It is suggested that this offers A venue for General Body meetings of 600-800 persons (Approx 600-800 sq.mtr). This would be auditorium seating 3-4 break-out rooms. These are not with any fixed seating but should have capacities ranging from 50 to 150 persons theatre style.( Approx 400 sq.mts) Exhibition area of approximately 1500 sq.mtr Business center facilities Restaurant and snack Bar Parking Visitor numbers Typically, utilization of convention and exhibition area space is taken at 25% of capacity, even though it is possible to use spaces more than once a day. Exhibition area space may be better utilised as it has multi-functionality for social occasions. A 600 seat auditorium with break out rooms should see a throughput of roughly 55,000 persons a year. The exhibition space will have utilization for both exhibits and social functions. These are mutually exclusive. If the space is used 25% for exhibitions - 90 days a year including set up and knock down times – in other words exhibits available for 60-65 days, throughput of visitors will be 60-65,000. Of the 270 days available for social functions, we can take a utilization of 40% or 100 days with an average marriage attendance of 500 pax, this will be 50,000 pax. Visitor revenues Revenues from conference hall Rentals per event @ Rs 20,000/event x 90 days = Rs 18 lakhs F&B on attendance of 55,000 x Rs 200 = Rs 110 lakhs Revenues from exhibition hall Rentals per event @ Rs 20,000 x 90 days = Rs 18 lakhs F& B on attendance of 60,000 x Rs 25 = Rs 15 lakhs Revenues on Social functions Attendance 50,000 x Rs 200 = Rs 100 lakhs Total = Rs 261 lakhs Cost The total cost of construction of approximately 3000 sq.mtrs convention center will be in the region of Rs 8-10 crores. Landscaping 7 acres with parking will be around Rs 15 Lakhs. Profitability of rental income is around 80% - Rs 29 lakhs - and F&B income around 50% - Rs 112 lakhs for a total profitability of Rs 140 lakhs approx. Project viability break even in 5 –7 years. Funding Sources Part of the cost of construction can be de-frayed by Corporates paying to have some of the break-out rooms and possibly the main auditorium named after their company/ founder. ASSOCHAM has done this successfully with their HQ in Delhi. Marketing A convention promotion bureau should be set up. Potential clients for conferences and conventions both in India and abroad are easily identified from ICCA and other association lists. The convention bureau will need to work with their India Chapters to prepare attractive bid documents. Project 11 Energising the City Centre Sector 17 is the City Centre of Chandigarh. While most sectors have their own markets for daily essentials, Sector 17 is where aspirational ‘Lifestyle’ products are retailed. The market has been designed with vast pedestrian spaces and is eminently suitable to be developed as a social and entertainment hub. Apart from the months of May & June, Chandigarh weather is suitable for outdoor activities Evenings - Mid March to end April, July to November During the Day - December to mid March A social and entertainment hub would require Shopping for aspirational items. This trend already exists in Sector 17. Opening hours should allow for late shopping. Night market stalls of handicraft items should be allowed Special Sales periods/ Shopping Carnivals should be announced in advance Range of F&B outlets. There is a reasonable range of outlets. These should be encouraged. Liquor licences should be made more easily available and extension of service should be allowed till 1am. Entertainment Movie Halls/ multiplexes/ open air movies and documentaries Video parlours/ Bowling alleys/ slot machines Street entertainment. Local performing artists and those performing at Kalagram, All the Chandigarh festivals could be moved to Sector 17 – April Fools Day, Mango Festival, Indo-Pak Mushaira, Chrysanthamum Show Administration Energising the City Centre would require the active involvement of the Sector 17 shop keepers who have the most to gain from this initiative. They should be brought into the very initial planning stages. These activities do not require large funding, but coordination is crucial for success. Committees comprised of shop keepers and Chandigarh Administration should be formed for various types of activities. Funding As noted, large funds are not required. It should be possible to levy a small cess on shop turnover to fund activities. Marketing This is aimed to provide a focal point for Chandigarh residents. Communicating events will not require more than posters in Sector 17 and other sector markets. Attracting Private Sector Investment In Tourism Sector 1. Taxes 1.1 Rationalisation of taxes Expenditure tax is imposed by National Government while Luxury tax by State Governments. With the Expenditure tax, which is being levied at 10% where room charges are Rs. 3000 or more, being discontinued from 1 June 2003 as per the Union Budget 2003 and no Luxury tax levied, Chandigarh has an advantage over its neighbouring States. Incase in future Expenditure tax or any other tax is levied, then it is preferable to review the effect of total tax while calculating the taxes to be levied on the hotel industry. Moreover these taxes may be charged on the actual room tariff rather on published tariff rate card. 1.2 Other taxes In addition Service tax by Center and Entertainment tax by UT are also being imposed on the hotels. In the Union Budget 2003 services provided by the Hotels are exempted from Service tax. The rates of these taxes, together with expenditure tax and luxury tax, may be decided considering the composite tax (indirect taxes) rate for the hotel industry. The composite tax on hotel industry in India vis-à-vis neighbouring countries is presented in the table below: Composite Tax on Country Hotel Industry (%) India 30* Indonesia 21 Thailand 17 Malaysia 15 Singapore 14 Source: PHDCCI * Estimation includes 10% expenditure tax. 1.3 Sales Tax The Sales tax on beverages and liquor is 12% in the UT, which is moderately higher, compared to other states like Uttar Pradesh, Himachal Pradesh, Punjab, Delhi, etc. Keeping in view the tax structure of other States and especially neighbouring States, Chandigarh may reconsider the sales tax rates for these. 1.4 Transport tax Chandiragh has no transport tax while its neighbouring states Punjab and Haryana are charging the same. A single point tax collection system may be implemented in order to simplify the procedure and ensure smooth movement of tourist inter-states. Further, the tax rate per quarter levied on air-conditioned and non air-conditioned tourist vehicles may be limited by an overall cap amount for the country. 1.5 Power The cost of electricity is a major component in the overall cost structure for a hotel and hence may need to be maintained in line with other comparative States. 1.6 Foreign exchange earnings The UT may consider requesting the Centre for the extension of the time frame of income tax exemption on export earning under section 80HHD of the Income Tax Act 1961. The tourism sector may be granted this extension as like other exporters they too export their services and earn foreign exchange for the country. However, we may mention that it is unlikely that Centre will agree to this request as it has announced phasing out of such incentives. 1.7 Income Tax The UT may also request Centre for providing investments in hotels as well as other industry in the tourism sector with Tax Holiday for a pre-determined period which can be decided in consultation with the various departments and the private sector participants. In order to promote new investments in a particular industry, request for tax holiday for about 5 years for new investments, applicable for 2 year from the current financial year, may be sought. This may likely create positive interest among private sector to invest in these industries with in 2 years to avail the tax holiday. Here too, we may like to mention that the Centre providing such benefits is very unlikely. 2. Investment 2.1 Land rates The Government may consider providing land at concessional rates for construction of hotels and other infrastructure for tourism by private investor. Alternatively, Government may provide land free of cost and acquire stake in the new project constructed on it by private sector through a join venture. The Government has draft a joint venture policy for attracting private sector, a review of which is also incorporated in this report. 2.2 Stamp duty Chandigarh may consider reducing the stamp duty levied especially in the area related to pilgrimages, rural area, etc. 2.3 One window clearance Chandigarh may provide one window clearance to the prospective private sector willing to invest in the UT. This will ensure speedy and efficient investment procedure for the private sector thereby attracting necessary investments. 3. Administrative Structure 3.1 Tourism Advisory Board The UT may strive towards constituting a board or a council comprising members from Tourism Development Corporation, Investment Promotion Board, Industrial Development Corporation, National Tourism Corporation/Department, etc. which will be primarily responsible for co-ordination and monitoring of tourism related activities and projects to ensure proper implementation of Tourism Policy. A detailed suggestion is set out in this report earlier. 3.2 Tourism Development Fund The UT may implement Targeted Funding approach by creating Tourism Development Fund (TDF) which will be recipient of all revenues generated from tourism and tourism related businesses. The Fund will be created by raising low interest loans from multilateral agencies that are actively involved in providing financial assistance to public/private sectors for infrastructure development. A Special Purpose Vehicle may be created where all the funds raised will be parked and a deployed in developing infrastructure to enhance tourism sector. The identification of infrastructure for the development can be done in consultation with other administrative bodies, which are also responsible in developing infrastructure of the state to ensure proper co-ordination between all such bodies. 4. Infrastructure The Government may try to identify areas of strategic importance and involve private sectors in non-strategic areas. Further it may try to segregate core and non-core activities involved in the areas of strategic importance e.g. maintenance of railway platform, maintenance of bus station, etc. and allow private sectors in these activities. Such activities may be provided on a license basis, lease basis, etc. as decided after a proper study of the same. The funds raised by disinvesting of these non-core activities can be utilised in developing infrastructure of the UT. 5. Promotion Chandigarh may plan for an advertising strategy, which will attract tourist from the desired regions and thus benefiting the tourism industry in the UT. This will increase the interest of the private sector in investing in the tourism sector in the UT. The advertising strategy may include amongst others: Shopping festivals, Fun and Fair festivals, Rural art and handicraft festivals, etc. Options for Attracting Private Sector Participation The projects in tourism, like infrastructure projects, too have long gestation period and requires huge capital investment initially. Further, the feasibility of tourism related projects are contingent on development and quality of infrastructure of the region like power, road, railway, water and communications. No single individual agency either the private sector or the Government could finance the sector all alone as the investment required are large and the risk too is relatively higher. Hence part of the load of development of tourism sector may be shared by the inclusion of private sector There are primarily two ways of sharing the responsibility with the private sector: Attracting Private Sector for new projects on all alone basis, Creating Public Private Partnership for new projects, Creating Public Private Partnership for existing projects owned by Government bodies, and Privatisation of existing projects to private sector. A brief note on each method of involving private sector is set out below: 1. Attracting Private Sector for new projects: The private sector may be attracted towards new projects related to tourism like Leisure centers, entertainment parks, theatres, health spa, hotels, etc. by providing incentives for such investments. The list of incentives, applicable period, industry, investment amount, etc may be decided once the type of industry in the tourism sector is identified where Government would like the private sector to accept the responsibility. 2. Creating Public Private Partnership for new projects: The strategy to encourage Public Private Partnership include creating a Tourism Development Finance Company and developing alternative options for partnerships. 2.1 Tourism Development Finance Company A TDFC may be formed with the investment from various state as well as centre owned financial institutions and inviting private sector and international agencies too may be considered. The main role of TDFC will to promote investment in tourism sector by providing long term debt and equity for the same. 2.2 Alternative Models The alternative models for Public Private Partnership for new projects is set out below: Build Operate Transfer (BOO) The private participant invest, executes the project, runs the business and transfer the property to the Government after the agreed span of period is over. Build Operate Lease Transfer (BOLT) The private sector will invest, execute the project, operate the business and then transfer the assets to the Government on completion of agreed span of time. After the hand over of the assets to the Government the private participant will get fixed income by way of lease, which is agreed during the inception. Build Own Operate and Transfer (BOOT) The private sector will invest, execute the project, own the assets created, operate the business and then transfer the assets to the Government on recovery of investments made at a designated rate of return. Until such time the hand over of the assets to the Government is completed, the private participant is responsible for maintenance and operation of the assets. 3. Creating Public Private Partnership for existing projects owned by Government bodies: The private sector may be interested in few existing projects owned by the Government, which the latter may like to share the responsibility of day-today-operation of the business but at the same time would also like to retain stake in the assets. We may like to mention that such properties may be spun-off as a separate entity and private sector may be invited to run the business in following two ways: Formation of Joint Venture by inclusion of a private strategic partner: The private participant will invest funds in the new entity (existing project spun-off) and in return the Government will provide stake in the entity. While the private participant will be primarily be responsible for operating and strategic management decisions, approval of key decisions will required an concurrence from the Government. Issuing license for management control to private parties and retaining ownership with the Government: The private participant neither provides any fund to the Government nor invests funds in the existing project. The ownership of the entity lies with the Government whereas the day-to-day operations are carried out by the private participant for a fixed fee or a revenue sharing model as agreed upon. 4. Privatisation of existing projects to private sector: The step wise strategy for privatisation of the tourism related properties is set out below: 4.1 Setting up a Commission The UT/Center may initiate the process of privatisation by setting up a Privatisation Commission (or Disinvestment Commission) for the purpose of privatisation of Government owned Tourism related properties. The commission will be primarily responsible for reviewing all properties with respect to the financial status of the properties, priority of privatisation, the strategic importance of the property, etc. 4.2 Identification of Tourism Properties Subsequently, the commission will identify the Government owned properties related to tourism to be disinvested and the approach in which the privatisation process will be adopted. The various strategies, which may be considered for the privatisation, are set out below: a. The related properties may be clubbed together and privatised, b. Create chain of hotels, chain of restaurants, chain of dhabas, etc and privatise each chain, c. Sell certain properties on stand alone basis, etc. d. Create a trail and sell the trail, etc. We may mention that the Government may appoint an advisor at this stage to assist in the process of formulation of detailed property-wise strategy, implementation of the strategy, structuring of the deals in terms of creation of Special Purpose Vehicles, spun-off of units, regulatory requirements, etc. marketing of the transactions and advise Government in the process till the transactions are completed. A detailed scope of work for the advisor may be drafted once the list of properties to be privatised in prepared. Funding Of Tourism Projects Type of Funds The funds required to be raised for projects can be categorised broadly under three heads: Equity, Quasi equity, and Loans. The mix of funding will depend upon the nature of project undertaken, the risk involved, the cash flows envisaged in future, creation of physical assets in order to leverage the project, etc. Source of Fund Most of the Financial Institutes provide all kinds of plain vanilla funds, which are set out above. In addition, they also provide funds such as syndicate loans, Interest rate hedging/swaps, currency hedging loans, etc. in order to match the requirements of the projects. An indicative list of Financials Institutions who may be approached for assistance in investments in Tourism sector are set out below: 1. Domestic Financial Institutes Tourism Finance Corporation of India Infrastructure Leasing Finance of India Industrial Development Bank of India Industrial Finance Corporation of India ICICI Limited Industrial Development Finance Corporation Limited Investment Institutes Life Insurance Corporation of India General Insurance Corporation of India United Trust of India State Financial Institutes Haryana State Industrial Development Corporation Haryana Financial Corporation 2. International Financial Institutes International Monetary Fund World Bank Asian Development Bank International Finance Corporation(only to private sector) KFW Line of Credit International Bank of Reconstruction Overseas Private Investment Corporation Application for Fund There is no standard application form for financing a project as it varies from one Financial Institution to another. A company or entrepreneur, foreign or domestic, seeking to establish a new venture can approach the FI by submitting an Investment Proposal. The proposal submitted to FI for consideration should include the preliminary information as set out in Annexure A. Terms and conditions of Funding Terms A list of terms, which are usually a part of any funding agreement, is set out below: Currencies The currency of the loan/fund to be disbursed by the Lender, payment of interest and repayment of the principal amount to the Lender is specified under this head. Lending Rate Lending rate can be broadly of three types: Floating rate: 6-month London Interbank offered rate (LIBOR) for the US dollar and Japanese Yen and 6-month euro interbank offered rate (EURIBOR) for the euro plus a lending spread. Fixed rate : The cost of Bank’s fixed rate borrowing of US dollars, Japenese yen or Swiss francs plus a lending spread. Resetter : Its is similar to fixed rate loans for the initial period which is tailored to the borrower’s need after a specified period. It is charged as a % per annum on progressive amount of undisbursed loan Commitment Fee balance. Its is a flat percentage fee of the loan amount Front-End Fee As may be determined based on project needs and could comprise of a Maturity grace period and a repayment period with final maturity. Following conversion options would be available subject to the Bank’s Loan Conversion conversion procedures as may be applicable at the time of conversion. Options Transaction Fees Disbursement schedule Prepayment Cancellation Repayment Lending Rate Reset / Payment Dates Currency Conversion: The undisbursed amounts/disbursed amounts in whole or part of the undisbursed balance/disbursed amount of the loan may be converted into the three offered currencies. Interest Rate Conversion: The floating lending rate on the whole or part of the disbursed balance may be converted into a fixed-rate at the prevailing market rate or vice versa for whole or part of the loan's residual maturity. Interest Rate Caps and Collars: A cap or collar on the floating lending rate may be purchased for up to the entire disbursed amount, for the whole or part of the residual maturity. A transaction fees may be charged pertaining to the above referred loan conversion. Amount and timing of loan disbursement are structured as per the project needs. All or part of the disbursed and outstanding loans may be prepaid. Floating rate loans could be prepaid on an interest payment due date without a prepayment premium. Prepayment of floating rate loans on a date other than the interest payment due date will attract payment of a premium based on the difference, if any, between the rate at which the proceeds from the prepayment could be reinvested and Bank’s funding cost for the prepaid amount. Prepayment of fixed rate loans or floating rate loans that involve conversion and a corresponding hedge requiring termination will attract payment of hedge unwinding costs, if any. Borrower may cancel all or a part of the undisbursed balance at any time. Equal principal or annuity repayments. Lending rate for floating rate loans are generally reset every six months on an interest payment date. Interest payment are generally due either on the 1st or 15th day of a calendar month and semiannually thereafter. Conditions The primary objective of introducing conditions while providing loan/funds is to ensure that the proceeds of the loan are used only for the purposes for which the loan was granted and with due attention to considerations of economy and efficiency. Thus, the Lender’s loan documents (e.g., loan agreement, guarantee agreement, where relevant project agreement, etc.) stipulate the loan covenants that are considered necessary to ensure the efficient implementation of, and the full realisation of benefits from, projects financed by Lender. The loan covenants can be divided broadly into two categories: general covenants and special covenants: (i) General Covenants General covenants are standard assurances and undertakings that the Lender requires from all borrowers, guarantors, if any, and executing agencies for projects financed by the loans regardless of the special features of a particular project. General covenants include obligations on the part of the borrower, guarantor, if any, and the executing agency: to carry out the project with diligence and efficiency; to repay the loan; to procure goods and services and engage consultants in accordance with specified procedures; to maintain project records and accounts; to provide local currency funds, facilities, and other resources required for carrying out the project; to submit financial statements/ progress reports; and to establish and maintain adequate auditing arrangements with the provision that the Lender will retain the option to communicate directly with the auditors. (ii) Special Covenants Special covenants are those assurances and undertakings which the Lender considers necessary or desirable to obtain from the borrower, guarantor, if any, and the executing agency for each project, having regard to the special features, identified difficulties, and reference points for monitoring of each project. Special covenants are an important part of the loan documents and are so designed that compliance with these covenants will further ensure the successful implementation of the project, sustainable operation of the facilities, and full realization of its benefits. They also provide a basis for the Lender to monitor project implementation and performance. To facilitate monitoring of compliance, special covenants should indicate, wherever possible, the dates by which compliance is expected of various items therein, on the basis of a realistic assessment of project-specific requirements and the related government policy and procedure. Where special circumstances so warrant, special covenants may be used to require the borrower, if any, or the executing agency/guarantor to undertake necessary action even after completion of project implementation so as to ensure sustainability of project benefits. Compatibility of Loan Covenants with Local Laws Covenants are generally compatible with local laws, administrative practices and procedures, sectoral/subsectoral requirements, and socioeconomic conditions of developing member countries. Interventions required Sr Suggestions Agencies Involved 1 Taxation Rationalisation, reduction and SEB, Finance Department tax holidays. and Government of India 2 Land rates Concession CITCO 3 One window Creation of a body for one stop CITCO and SEB clearance processing 4 Structure Creation of a Tourism Advisory Government of Chandigarh Body Creation of Tourism Finance Deparment and Development Fund CITCO 5 Infrastructure Development of infrastructure CITCO, PWD, Finance and involvement of private Department. sector 6 Marketing Promotion of Chandigarh CITCO Tourism 7 Attracting Private Providing incentives SEB, Ministry of Finance and Sector Participation Government of India, L&DO New Joint Ventures (PSP) CITCO, Finance Department Joint Ventures for existing CITCO projects Privatisation CITCO and Finance Department Annexure A IN\DICATIVE INVESTMENT PROPOSAL OUTLINE There is no standard form for applications. This is an indicative framework providing key heads to be covered in an Investment Proposal to be submitted for funding. 1. Executive Summary Summarise all the important points of the proposal. 2. Lender’s role Propose an equity, debt, or cofinancing arrangement. 3. Background to the project Brief introduction and history of the borrower State the need to undertake the project. Briefly describe the project, including the implementation and operation philosophy. Specify the support obtained from government, lending institutions and investors for the project. State the need for the assistance required from the Lender. 4. The Market Describe the market and marketing arrangements. Include all the following: Basic market orientation: local, national, regional, or export. Projected production volumes, unit prices, sales objectives, and market share of proposed venture. Potential users of products and distribution channels to be used. Present sources of supply for products. Future competition and possibility that market may be satisfied by substitute products. Tariff protection or import restrictions affecting products. price sensitivity market risks Critical factors that determine market potential. 5. Feasibility Study Present a feasibility study establishing the technical, financial, economic, and environmental viability of the project, prepared by a reputable consultant. 5.1Technical feasibility, manpower, resources, and environment: Brief description of the process. Availability of manpower and of infrastructure facilities (transport and communications, power, water, etc.). Breakdown of projected operating costs by major categories of expenditures. Proposed location in relation to markets, infrastructure and manpower. Proposed capacity in comparison with other known competitors. Potential environmental issues and how these issues are addressed. 5.2 Cost Estimates Provide cost estimates for the project, analyzed two ways: major cost category local and foreign currency cost. 5.3 Investment requirements, project financing, and returns: Estimate of total project cost, broken down into land, construction, installed equipment, and working capital, indicating foreign exchange component. Proposed financial structure of venture, indicating expected sources and terms of equity and debt financing. Type of financing (loan, equity, quasi-equity, a combination of financial products, etc.) and amount required from the Lender. Projected financial statement, information on profitability, and return on investment. Critical factors determining profitability. 5.4 Financial and Economic Evaluation Calculate the economic and financial rates of return as well as return on the equity investment. 5.5 Analysis Analyze the risks in implementing and operating the project with the accompanying mitigating measures showing which party will bear the risk and/or pay for the mitigating measures. The risk analysis should be accompanied by a list of proposed insurance coverages for both implementation and operation of the project. 6. Ownership of the project Describe the proposed ownership and management structure of the project. 7. Government support and regulations: Project in context of government economic development and investment program. Specific government incentives and support available to project. Expected contribution of project to economic development. Outline of government regulations on exchange controls and conditions of capital entry and repatriation. 8. Environmental Aspects Provide a site-specific environmental impact assessment report, highlighting environmental impacts and mitigating measures, prepared by an acceptable consulting firm in accordance with Lender’s guidelines. 9. Permitting and Licensing List all permits and clearances required for implementing and operating the project, the issuing authority, and the date of issue or expected issue. 10. Implementation Arrangements Explain the implementation and contractual arrangements for the project, including the construction and supervision methodology. Make sure the followings are included: a bar chart showing major scheduled achievements and completion for each of the major components of the project draft construction contracts sources of possible cost increases and delays Detailed description of liquidated damage provisions and performance bond requirements. Attracting Private Sector Investment In Tourism Sector 1. Taxes 1.1 Rationalisation of taxes Expenditure tax is imposed by National Government while Luxury tax by State Governments. With the Expenditure tax, which is being levied at 10% where room charges are Rs. 3000 or more, being discontinued from 1 June 2003 as per the Union Budget 2003 and no Luxury tax levied, Chandigarh has an advantage over its neighbouring States. Incase in future Expenditure tax or any other tax is levied, then it is preferable to review the effect of total tax while calculating the taxes to be levied on the hotel industry. Moreover these taxes may be charged on the actual room tariff rather on published tariff rate card. 1.2 Other taxes In addition Service tax by Center and Entertainment tax by UT are also being imposed on the hotels. In the Union Budget 2003 services provided by the Hotels are exempted from Service tax. The rates of these taxes, together with expenditure tax and luxury tax, may be decided considering the composite tax (indirect taxes) rate for the hotel industry. The composite tax on hotel industry in India vis-à-vis neighbouring countries is presented in the table below: Composite Tax on Country Hotel Industry (%) India 30* Indonesia 21 Thailand 17 Malaysia 15 Singapore 14 Source: PHDCCI * Estimation includes 10% expenditure tax. 1.3 Sales Tax The Sales tax on beverages and liquor is 12% in the UT, which is moderately higher, compared to other states like Uttar Pradesh, Himachal Pradesh, Punjab, Delhi, etc. Keeping in view the tax structure of other States and especially neighbouring States, Chandigarh may reconsider the sales tax rates for these. 1.4 Transport tax Chandiragh has no transport tax while its neighbouring states Punjab and Haryana are charging the same. A single point tax collection system may be implemented in order to simplify the procedure and ensure smooth movement of tourist inter-states. Further, the tax rate per quarter levied on air-conditioned and non air-conditioned tourist vehicles may be limited by an overall cap amount for the country. 1.5 Power The cost of electricity is a major component in the overall cost structure for a hotel and hence may need to be maintained in line with other comparative States. 1.6 Foreign exchange earnings The UT may consider requesting the Centre for the extension of the time frame of income tax exemption on export earning under section 80HHD of the Income Tax Act 1961. The tourism sector may be granted this extension as like other exporters they too export their services and earn foreign exchange for the country. However, we may mention that it is unlikely that Centre will agree to this request as it has announced phasing out of such incentives. 1.7 Income Tax The UT may also request Centre for providing investments in hotels as well as other industry in the tourism sector with Tax Holiday for a pre-determined period which can be decided in consultation with the various departments and the private sector participants. In order to promote new investments in a particular industry, request for tax holiday for about 5 years for new investments, applicable for 2 year from the current financial year, may be sought. This may likely create positive interest among private sector to invest in these industries with in 2 years to avail the tax holiday. Here too, we may like to mention that the Centre providing such benefits is very unlikely. 2. Investment 2.1 Land rates The Government may consider providing land at concessional rates for construction of hotels and other infrastructure for tourism by private investor. Alternatively, Government may provide land free of cost and acquire stake in the new project constructed on it by private sector through a join venture. The Government has draft a joint venture policy for attracting private sector, a review of which is also incorporated in this report. 2.2 Stamp duty Chandigarh may consider reducing the stamp duty levied especially in the area related to pilgrimages, rural area, etc. 2.3 One window clearance Chandigarh may provide one window clearance to the prospective private sector willing to invest in the UT. This will ensure speedy and efficient investment procedure for the private sector thereby attracting necessary investments. 3. Administrative Structure 3.1 Tourism Advisory Board The UT may strive towards constituting a board or a council comprising members from Tourism Development Corporation, Investment Promotion Board, Industrial Development Corporation, National Tourism Corporation/Department, etc. which will be primarily responsible for co-ordination and monitoring of tourism related activities and projects to ensure proper implementation of Tourism Policy. A detailed suggestion is set out in this report earlier. 3.2 Tourism Development Fund The UT may implement Targeted Funding approach by creating Tourism Development Fund (TDF) which will be recipient of all revenues generated from tourism and tourism related businesses. The Fund will be created by raising low interest loans from multilateral agencies that are actively involved in providing financial assistance to public/private sectors for infrastructure development. A Special Purpose Vehicle may be created where all the funds raised will be parked and a deployed in developing infrastructure to enhance tourism sector. The identification of infrastructure for the development can be done in consultation with other administrative bodies, which are also responsible in developing infrastructure of the state to ensure proper co-ordination between all such bodies. 4. Infrastructure The Government may try to identify areas of strategic importance and involve private sectors in non-strategic areas. Further it may try to segregate core and non-core activities involved in the areas of strategic importance e.g. maintenance of railway platform, maintenance of bus station, etc. and allow private sectors in these activities. Such activities may be provided on a license basis, lease basis, etc. as decided after a proper study of the same. The funds raised by disinvesting of these non-core activities can be utilised in developing infrastructure of the UT. 5. Promotion Chandigarh may plan for an advertising strategy, which will attract tourist from the desired regions and thus benefiting the tourism industry in the UT. This will increase the interest of the private sector in investing in the tourism sector in the UT. The advertising strategy may include amongst others: Shopping festivals, Fun and Fair festivals, Rural art and handicraft festivals, etc. Options for Attracting Private Sector Participation The projects in tourism, like infrastructure projects, too have long gestation period and requires huge capital investment initially. Further, the feasibility of tourism related projects are contingent on development and quality of infrastructure of the region like power, road, railway, water and communications. No single individual agency either the private sector or the Government could finance the sector all alone as the investment required are large and the risk too is relatively higher. Hence part of the load of development of tourism sector may be shared by the inclusion of private sector There are primarily two ways of sharing the responsibility with the private sector: Attracting Private Sector for new projects on all alone basis, Creating Public Private Partnership for new projects, Creating Public Private Partnership for existing projects owned by Government bodies, and Privatisation of existing projects to private sector. A brief note on each method of involving private sector is set out below: 1. Attracting Private Sector for new projects: The private sector may be attracted towards new projects related to tourism like Leisure centers, entertainment parks, theatres, health spa, hotels, etc. by providing incentives for such investments. The list of incentives, applicable period, industry, investment amount, etc may be decided once the type of industry in the tourism sector is identified where Government would like the private sector to accept the responsibility. 2. Creating Public Private Partnership for new projects: The strategy to encourage Public Private Partnership include creating a Tourism Development Finance Company and developing alternative options for partnerships. 2.1 Tourism Development Finance Company A TDFC may be formed with the investment from various state as well as centre owned financial institutions and inviting private sector and international agencies too may be considered. The main role of TDFC will to promote investment in tourism sector by providing long term debt and equity for the same. 2.2 Alternative Models The alternative models for Public Private Partnership for new projects is set out below: Build Operate Transfer (BOO) The private participant invest, executes the project, runs the business and transfer the property to the Government after the agreed span of period is over. Build Operate Lease Transfer (BOLT) The private sector will invest, execute the project, operate the business and then transfer the assets to the Government on completion of agreed span of time. After the hand over of the assets to the Government the private participant will get fixed income by way of lease, which is agreed during the inception. Build Own Operate and Transfer (BOOT) The private sector will invest, execute the project, own the assets created, operate the business and then transfer the assets to the Government on recovery of investments made at a designated rate of return. Until such time the hand over of the assets to the Government is completed, the private participant is responsible for maintenance and operation of the assets. 3. Creating Public Private Partnership for existing projects owned by Government bodies: The private sector may be interested in few existing projects owned by the Government, which the latter may like to share the responsibility of day-today-operation of the business but at the same time would also like to retain stake in the assets. We may like to mention that such properties may be spun-off as a separate entity and private sector may be invited to run the business in following two ways: Formation of Joint Venture by inclusion of a private strategic partner: The private participant will invest funds in the new entity (existing project spun-off) and in return the Government will provide stake in the entity. While the private participant will be primarily be responsible for operating and strategic management decisions, approval of key decisions will required an concurrence from the Government. Issuing license for management control to private parties and retaining ownership with the Government: The private participant neither provides any fund to the Government nor invests funds in the existing project. The ownership of the entity lies with the Government whereas the day-to-day operations are carried out by the private participant for a fixed fee or a revenue sharing model as agreed upon. 4. Privatisation of existing projects to private sector: The step wise strategy for privatisation of the tourism related properties is set out below: 4.1 Setting up a Commission The UT/Center may initiate the process of privatisation by setting up a Privatisation Commission (or Disinvestment Commission) for the purpose of privatisation of Government owned Tourism related properties. The commission will be primarily responsible for reviewing all properties with respect to the Funding Of Tourism Projects Type of Funds The funds required to be raised for projects can be categorised broadly under three heads: Equity, Quasi equity, and Loans. The mix of funding will depend upon the nature of project undertaken, the risk involved, the cash flows envisaged in future, creation of physical assets in order to leverage the project, etc. Source of Fund Most of the Financial Institutes provide all kinds of plain vanilla funds, which are set out above. In addition, they also provide funds such as syndicate loans, Interest rate hedging/swaps, currency hedging loans, etc. in order to match the requirements of the projects. An indicative list of Financials Institutions who may be approached for assistance in investments in Tourism sector are set out below: 1. Domestic Financial Institutes Tourism Finance Corporation of India Infrastructure Leasing Finance of India Industrial Development Bank of India Industrial Finance Corporation of India ICICI Limited Industrial Development Finance Corporation Limited Investment Institutes Life Insurance Corporation of India General Insurance Corporation of India United Trust of India financial status of the properties, priority of privatisation, the strategic importance of the property, etc. 4.2 Identification of Tourism Properties Subsequently, the commission will identify the Government owned properties related to tourism to be disinvested and the approach in which the privatisation process will be adopted. The various strategies, which may be considered for the privatisation, are set out below: a. The related properties may be clubbed together and privatised, b. Create chain of hotels, chain of restaurants, chain of dhabas, etc and privatise each chain, c. Sell certain properties on stand alone basis, etc. d. Create a trail and sell the trail, etc. We may mention that the Government may appoint an advisor at this stage to assist in the process of formulation of detailed property-wise strategy, implementation of the strategy, structuring of the deals in terms of creation of Special Purpose Vehicles, spun-off of units, regulatory requirements, etc. marketing of the transactions and advise Government in the process till the transactions are completed. A detailed scope of work for the advisor may be drafted once the list of properties to be privatised in prepared. State Financial Institutes Haryana State Industrial Development Corporation Haryana Financial Corporation 2. International Financial Institutes International Monetary Fund World Bank Asian Development Bank International Finance Corporation(only to private sector) KFW Line of Credit International Bank of Reconstruction Overseas Private Investment Corporation Application for Fund There is no standard application form for financing a project as it varies from one Financial Institution to another. A company or entrepreneur, foreign or domestic, seeking to establish a new venture can approach the FI by submitting an Investment Proposal. The proposal submitted to FI for consideration should include the preliminary information as set out in Annexure A. Terms and conditions of Funding Terms A list of terms, which are usually a part of any funding agreement, is set out below: Currencies The currency of the loan/fund to be disbursed by the Lender, payment of interest and repayment of the principal amount to the Lender is specified under this head. Lending Rate Lending rate can be broadly of three types: Floating rate: 6-month London Interbank offered rate (LIBOR) for the US dollar and Japanese Yen and 6-month euro interbank offered rate (EURIBOR) for the euro plus a lending spread. Fixed rate : The cost of Bank’s fixed rate borrowing of US dollars, Japenese yen or Swiss francs plus a lending spread. Resetter : Its is similar to fixed rate loans for the initial period which is tailored to the borrower’s need after a specified period. It is charged as a % per annum on progressive amount of undisbursed loan Commitment Fee balance. Its is a flat percentage fee of the loan amount Front-End Fee As may be determined based on project needs and could comprise of a Maturity grace period and a repayment period with final maturity. Following conversion options would be available subject to the Bank’s Loan Conversion conversion procedures as may be applicable at the time of conversion. Options Transaction Fees Disbursement schedule Prepayment Cancellation Repayment Lending Rate Reset / Payment Dates Currency Conversion: The undisbursed amounts/disbursed amounts in whole or part of the undisbursed balance/disbursed amount of the loan may be converted into the three offered currencies. Interest Rate Conversion: The floating lending rate on the whole or part of the disbursed balance may be converted into a fixed-rate at the prevailing market rate or vice versa for whole or part of the loan's residual maturity. Interest Rate Caps and Collars: A cap or collar on the floating lending rate may be purchased for up to the entire disbursed amount, for the whole or part of the residual maturity. A transaction fees may be charged pertaining to the above referred loan conversion. Amount and timing of loan disbursement are structured as per the project needs. All or part of the disbursed and outstanding loans may be prepaid. Floating rate loans could be prepaid on an interest payment due date without a prepayment premium. Prepayment of floating rate loans on a date other than the interest payment due date will attract payment of a premium based on the difference, if any, between the rate at which the proceeds from the prepayment could be reinvested and Bank’s funding cost for the prepaid amount. Prepayment of fixed rate loans or floating rate loans that involve conversion and a corresponding hedge requiring termination will attract payment of hedge unwinding costs, if any. Borrower may cancel all or a part of the undisbursed balance at any time. Equal principal or annuity repayments. Lending rate for floating rate loans are generally reset every six months on an interest payment date. Interest payment are generally due either on the 1st or 15th day of a calendar month and semiannually thereafter. Conditions The primary objective of introducing conditions while providing loan/funds is to ensure that the proceeds of the loan are used only for the purposes for which the loan was granted and with due attention to considerations of economy and efficiency. Thus, the Lender’s loan documents (e.g., loan agreement, guarantee agreement, where relevant project agreement, etc.) stipulate the loan covenants that are considered necessary to ensure the efficient implementation of, and the full realisation of benefits from, projects financed by Lender. The loan covenants can be divided broadly into two categories: general covenants and special covenants: (i) General Covenants General covenants are standard assurances and undertakings that the Lender requires from all borrowers, guarantors, if any, and executing agencies for projects financed by the loans regardless of the special features of a particular project. General covenants include obligations on the part of the borrower, guarantor, if any, and the executing agency: to carry out the project with diligence and efficiency; to repay the loan; to procure goods and services and engage consultants in accordance with specified procedures; to maintain project records and accounts; to provide local currency funds, facilities, and other resources required for carrying out the project; to submit financial statements/ progress reports; and to establish and maintain adequate auditing arrangements with the provision that the Lender will retain the option to communicate directly with the auditors. (ii) Special Covenants Special covenants are those assurances and undertakings which the Lender considers necessary or desirable to obtain from the borrower, guarantor, if any, and the executing agency for each project, having regard to the special features, identified difficulties, and reference points for monitoring of each project. Special covenants are an important part of the loan documents and are so designed that compliance with these covenants will further ensure the successful implementation of the project, sustainable operation of the facilities, and full realization of its benefits. They also provide a basis for the Lender to monitor project implementation and performance. To facilitate monitoring of compliance, special covenants should indicate, wherever possible, the dates by which compliance is expected of various items therein, on the basis of a realistic assessment of project-specific requirements and the related government policy and procedure. Where special circumstances so warrant, special covenants may be used to require the borrower, if any, or the executing agency/guarantor to undertake necessary action even after completion of project implementation so as to ensure sustainability of project benefits. Compatibility of Loan Covenants with Local Laws Covenants are generally compatible with local laws, administrative practices and procedures, sectoral/subsectoral requirements, and socioeconomic conditions of developing member countries. Interventions required Sr Suggestions Agencies Involved 1 Taxation Rationalisation, reduction and SEB, Finance Department tax holidays. and Government of India 2 Land rates Concession CITCO 3 One window Creation of a body for one stop CITCO and SEB clearance processing 4 Structure Creation of a Tourism Advisory Government of Chandigarh Body Creation of Tourism Finance Deparment and Development Fund CITCO 5 Infrastructure Development of infrastructure CITCO, PWD, Finance and involvement of private Department. sector 6 Marketing Promotion of Chandigarh CITCO Tourism 7 Attracting Private Providing incentives SEB, Ministry of Finance and Sector Participation Government of India, L&DO New Joint Ventures (PSP) CITCO, Finance Department Joint Ventures for existing CITCO projects Privatisation CITCO and Finance Department Annexure A IN\DICATIVE INVESTMENT PROPOSAL OUTLINE There is no standard form for applications. This is an indicative framework providing key heads to be covered in an Investment Proposal to be submitted for funding. 1. Executive Summary Summarise all the important points of the proposal. 2. Lender’s role Propose an equity, debt, or cofinancing arrangement. 3. Background to the project Brief introduction and history of the borrower State the need to undertake the project. Briefly describe the project, including the implementation and operation philosophy. Specify the support obtained from government, lending institutions and investors for the proje