Karnataka Tourism Policy



















Karnataka Tourism Policy 2015-2020







Department Of Tourism Government of karnataka















































Nandi at Chamundi Hills, Mysuru


Message











I am very much delighted and pleased to launch the New State Tourism Policy for 2015-20.
The Tourism Sector has been identified as one of the key sectors propelling the country’s economic growth.
Karnataka State has been ranked as the 4th preferred destination among domestic tourists and 3rd preferred destination for investments in the tourism sector.
Karnataka’s thriving economy has created many opportunities across the State in the last decade. The growth of our resource and business sectors has brought more visitors to our shores and driven growth in our cities and regions.
For our Government, the tourism sector constitutes a real priority because it is an important sector for the generation of
employment. We are therefore taking various initiatives with the involvement of all stakeholders, both public and private, that will foster a more favourable environment for the development and consolidation of the tourism sector. One of the initiatives in this direction is the formulation of Karnataka Tourism Policy for 2015-20.
Our Government is committed to providing a congenial environment for development of tourism in the State.
We want to encourage the investors to invest in the tourism sector. We are providing a host of incentives and concessions to the investors in tourism sector, in the New Tourism Policy for
2015-20. I hope that the new tourism policy would go a long way in improving the tourism sector in the State.
I request all the stakeholders to join us in our venture of developing Karnataka State as a vibrant, sustainable and the most-favored tourism destination.

Siddaramaiah
Hon’ble Chief Minister Govt. of Karnataka



















































Sharavati River Uttara Kannada


Foreword











I am pleased to present the Karnataka Tourism Policy 2015 -20. The Policy sets a direction for the Karnataka tourism industry over the next five years.
As the State progresses, Government of Karnataka is determined to boost the tourism industry in the State as well. We have to look beyond mere tourist numbers and make a strategic shift towards quality tourism. This will emphasise hospitality, service standards, innovative developments and rejuvenation of older tourist attractions, with the aim of offering visitors the experience that will be commensurate with higher expectations.
The Policy aims to increase the contribution of tourism sector to the State GDP. The Karnataka Tourism Policy 2015-20, hereby, supports existing Government policies and adopts an integrated approach for developing a sustainable tourism industry in the State, backed by relevant infrastructure, effective institutional mechanisms and enhanced capacities to deliver on these targets.
The state Government is taking severals steps to improve tourism. Setting up of tourist mitra police, rating of tourism facilities, enactment of Tourism Trade Facilitation Act, involving corporates in adopting and improving tourist destinations are some such measures. All the steps along with the new tourism policy would place the state of Karnataka at the forefront of tourism in the country.
I thank the Department of Tourism, other government agencies and our industry partners for their participation, support and commitment in preparation of this Policy.

R.V. Deshpande
Minister for Higher Education and Tourism Government of Karnataka




















































Kaupu Light House Beach Udupi is the best beach on the coastal belt of
Dakshina Kannada & Udupi.


From the Chair,
Karnataka Tourism Vision Group




The Karnataka Tourism Policy 2015-20 aims to position Karnataka as a visible global brand in tourism for visitors as well as investors by encouraging development of relevant infrastructure through partnerships between private sector, Government and the community. Strategic intervention areas have been identified
with a view to support local entrepreneurship and assist in creating livelihood options for all sections of the society in a non- discriminatory manner.


The Policy provides detailed guidelines for development of
tourism infrastructure, products and services, to ensure quality and minimum standards of development. Thrust is on growth of the sector in an inclusive manner, by encouraging women, backward sections of the society and local level institutions to actively participate in the development process.
The Policy lays emphasis on streamlining the application and clearance procedures and recommends that all the clearances/ approvals be availed online through the e-portal facility, to ensure transparency and faster clearances.
It is my sincere endeavor to provide the necessary facilitation for the implementation of the Policy and I request all stakeholders to join us in this effort of making Karnataka one of the top tourist destinations in the world.

T.V. Mohandas Pai
Chair
Karnataka Tourism Vision Group


Table of Contents
10



1. Introduction 11
2. Vision, Mission and Objectives 13
3. Strategic Framework & Thrust Areas 14
Position Karnataka as a Preferred Tourism Destination 15
Improve Infrastructure, Tourism Products and Services 17
Guidelines for development of Tourism Products and Services 23
Human Resources Development & Capacity Enhancement 23
Institutional Structures 25
4. Concessions & Investment Subsidies 27
Concessions 29
Investment Subsidies 34
Supporting provisions for
availing Concessions and Investment Subsidies 47
5. Implementation Framework 48
‘Sakala’ - Government’s E-governance platform for delivery of serv4ic8es
Project approvals and sanction of investment subsidies 48
6. Targets & Timelines 50
Annexure 1: 53
Annexure 2: 58
Annexure 3: 59
Annexure 4: 70
Annexure 5: 72

1. Introduction


Karnataka is home to several forts, architectural marvels and is blessed with a rich cultural heritage. Other diverse visitor attractions include pilgrim sites, coastal landscape
and wildlife / national parks. The state also offers a variety of tourism products that cater to the demand from different visitor segments, such as, eco-tourism, wellness tourism and adventure tourism. Over the years, Karnataka has emerged as one of the most sought after tourism destinations in the country and
also created a space for itself in the international tourism circuit. As of 2013, the State was ranked as the fourth1 preferred destination among domestic tourists and ranked third2 with regard to attracting investments in the tourism sector.
During the policy period 2009-14, about 318 project proposals with a proposed investment of about
Rs.950 crores was approved by the Department of Tourism, Government of Karnataka. Of the total number
of project proposals approved, 126 projects3 were completed and
investment subsidies were disbursed.
The government has constituted a Karnataka Tourism Vision Group (KTVG)4 in 2013 , comprising eminent citizens and sector specialists to provide a road map for making Karnataka a tourist experience destination on par with international standards. The KTVG



11



in its report has estimated the quantum of employment possibilities, additional revenue potential and the investments needed for providing a fillip to tourism in the State. As per the KTVG’s report, the tourist traffic in the state is projected to increase from the current 100 million to 210 million by 2024. An investment of
Rs. 54,000 crores has been estimated in the sector over the next five years (2015-20) and about half of this investment is likely to be mobilized from the private sector5.
The ‘Karnataka Tourism Policy 2015- 2020’ focuses on accelerating and facilitating private investments in
the tourism sector, and strives to be an outcome based initiative. The Policy follows a non-discriminatory approach to promote balanced regional development by attracting investments from the private sector and local entrepreneurs. The
Policy strives towards creating an enabling environment for safe and sustainable tourism in Karnataka and lays emphasis on providing quality experience to tourists.
The Policy encourages a positive shift in attitudes - from regulation and control to decentralization and empowerment at local levels; from patronage to building partnerships; and from linear government-led structures to alliances with diverse stakeholders in the sector.





1. India Tourism Statistics at a glance, 2013, Ministry of Tourism, Government of India.
2. Indian Tourism Industry: The way forward, The Associated Chambers of Commerce and Indu
3. Department of Tourism, Government of Karnataka
4. Vide Government Order TD / 237 / PraVaE / 2013 dated September 04, 2013
5. Recommendations Report, Karnataka Tourism Vision Group















































Mullayanagiri is the highest peak of Karnataka located in Bababudangiri Chikkamagaluru District.


2. Vision, Mission and Objectives
13




Vision
Karnataka aims to be in the top two tourism destinations in India and top fifty in the world. The vision articulated for the tourism sector is as follows:
‘To develop Karnataka as a safe, sustainable and most-favoured tourism destination - by increasing domestic & international visitations; offering high quality experience to visitors; facilitating and accelerating investments; and improving livelihood opportunities at the local level.’


Mission
 Promote tourism products and services which will encourage repeat visits, increased length of stay and spending by tourists.
 Preserve the social and cultural fabric of the state, while stimulating economic growth and raising quality of service to global standards.
 Protect the environment & ecology and encourage safe, sustainable and responsible tourism in the state.

Objectives
To achieve the vision, mission and set the direction for the tourism industry over the next five years, the following objectives are outlined:
 Accelerate and facilitate private investments; and encourage entrepreneurship in the tourism sector.
 Motivate and enthuse different segments of the society to contribute towards development of the sector.
 Provide a ‘total quality’ experience to visitors, from before arrival till after departure.
 Facilitate effective inter- departmental co-ordination, streamline processes to improve sector performance.
 Enhance skills, knowledge and professionalism in the tourism industry.
 Encourage local employment opportunities.
 Support the use of Information & Communication Technology (ICT) based initiatives in improving quality of services to tourists.

3. Strategic Framework & Thrust Areas
14





To realize the core objectives of the Policy, the Government of Karnataka has identified the following strategic intervention areas:
 Position Karnataka as a preferred tourism destination at state, national and international levels
 Facilitate improvement of Infrastructure, Tourism Products and Services
 Streamline processes for obtaining approvals and clearances
 Prioritise Human Resources Development & Capacity Enhancement
 Promote ICT based initiatives for providing timely and reliably information services to tourists
 Create institutional structures for effective implementation of the Policy
 Provide attractive concessions and investment subsidies for various tourism products and services
The Government endeavours to pursue these strategic intervention areas by encouraging local entrepreneurship, promoting private sector participation, identifying additional means of raising finances and supporting the interventions through its own budgets and resources.

The thrust will be on:
 Encouraging mega tourism projects of Rs.100 crore and above to facilitate creation of tourism hubs.
 Setting up a Tourism Infrastructure Company for development of tourism infrastructure and support facilities through dedicated SPVs, PPP frameworks, Joint Ventures, and other appropriate structures.
 Bringing in a Karnataka Tourism Trade (Facilitation and Regulation) Bill for enabling investments in tourism, ensuring safety & security
of tourists and strengthening accountability at various tiers of government.
 Encouraging corporate groups to invest in tourism projects related to community involvement and rural tourism through their Corporate Social
Responsibility (CSR) initiatives.
 Leveraging existing financing options extended by multi- lateral agencies.
 Efficiently utilizing funds available under State and Central government sponsored schemes.
A set of actions have been identified for each of the strategic intervention areas, which are explained in
the following sections.

Position Karnataka as
a Preferred Tourism Destination
15





Prioritising activity in key tourism markets and across market segments is critical to achieve the objectives set out in the Policy. The Department of Tourism endeavours to undertake the following actions to position Karnataka as a preferred tourism destination within the State and, at national and international levels.
 Increase branding, marketing and promotional activities across different visitor groups.
 Create a calendar of events to support marketing and promotional activities.
 Develop data/ information repositories, MIS and other tools for enabling decision making at government level and attracting investments by the private sector.
Branding, Marketing and Promotional Activities
 An integrated marketing approach will be adopted to ensure tourism related information and products are communicated to target
markets which can be factored into downstream product development and in-bound tour offerings.
 Promotional activities through conferences, road shows, fairs, festivals and exchange programs will be undertaken
to increase the brand exposure of Karnataka at national and international levels.

5 Year Event Calendar
 A five-year calendar of tourism related events (including
4-5 hallmark events) across Karnataka will be drawn up.
 Innovative tourism products will be offered as a part of each
such event to integrate business with leisure.
 Facilitate processes pertaining to trading hours, liquor
licenses etc. to cater to visitor expectations.
Tourism Information Repository
 The Government will create a data repository of various tourism locations/ attractions in the state, the status of
infrastructure at these locations, industry service providers, etc.
 The Department will set up a State Tourism Database
Repository, publish an annual industry status report and organise annual industry outlook conferences.
 A ‘Tourism Industry Profile’, shall also be prepared to aid in planning and decision- making for both industry and government. The profile will be created based on surveys and research studies.








Entertainment Rural Tourism

















Heritage















Religious Tourism Urban Tourism
















Urban Tourism Film induced Tourism







Improve Infrastructure, Tourism Products and Services
17





To achieve increased visitation and duration of stay and ensure a ‘Total Quality Experience’ to tourists, the following actions will be pursued.
 Assist and facilitate development & maintenance of basic tourism infrastructure and facilities at destinations
 Encourage development of new and innovative tourism products and services
 Improve connectivity infrastructure
 Improve access and delivery of tourism information services
 Enable safety and security of tourists
Basic tourism infrastructure and facilities at destinations
Tourist Accommodation
 Facilitate the development of accommodation for all customer segments through hotels, resorts, home stays and youth hostels.
 Encourage and support home stays at tourist destinations
to provide tourists a homely, friendly and a hospitable environment that exposes them to the local culture.
 Encourage corporate homes, operated by corporate entities at tourist destinations providing local experiential tourism.
 Encourage use of heritage buildings as hotels for providing accommodation facilities to tourists.

Tourism Related Infrastructure at Tourist Destinations and Wayside Amenities
 Support and encourage development of wayside amenities at intervals of about 50 km along connecting roads leading to major tourist
destinations. Wayside amenities especially benefitting local communities will be encouraged.
 Retail for local produce, handicrafts will be encouraged, wherever possible. Initiatives for physical manifestation of brand perceptions will be supported; for instance, silk in Mysuru, wooden toys in Channapatna, etc.
 Amenities including parking at the entrance of major tourist destinations will be encouraged to regulate vehicular movement, with special access for differently-abled persons.
 Information centres/ kiosks and interpretation centers will be encouraged at all major tourist destinations. Accredited tourist guide services will also be emphasised.
 Community kitchens and public conveniences at rural locations will be encouraged, largely through private entrepreneurs/ franchisees and communities.

Improve Infrastructure, Tourism Products and Services
18





Tourism products and services
Mega Projects
& Entertainment Products
 Mega projects such as golf courses, cruise tourism, large entertainment studios, entertainment parks (small,
medium and large), cable cars, tourism trains, filmcity, etc to cater to different user segments will be promoted.
 World-class and state of the art exhibition and convention centres would be encouraged through appropriate Public Private Partnership (PPP)
framework in Bengaluru, Mysuru and other strategic locations in the state.
 Facilitate ease of doing business by fast tracking approvals and clearances. Project specific
land acquisition processes, concessions and investment subsidies would be facilitated for private enterprises seeking to establish mega projects and entertainment products.
Heritage zones and clusters
 Heritage zones will be earmarked around the sites of Hampi, Pattadakal, Badami, Aihole, Bidar, Vijayapura,
etc. and development will be supported in accordance with the master plans prepared for such locations.

 Strategies for development of tourism in places such as Melkote, Somnathpur,
Shravanbelagola, Talakad and the entire Western Ghats would be formulated to encourage overnight stays through compelling experiences and engaging activities.
 Efforts would also be made to include more heritage sites into the UNESCO’s list of World Heritage Sites for bringing
in significant international recognition and tourist traffic into the State;
 Adoption/ management/ sponsorship programs in heritage zones would be supported
to create ownership between locals/corporate for monuments, temples and destinations and
to improve the maintenance of existing tourist destinations.
Marine/ Coastal Tourism
 Cruises of international standards would be encouraged in Mangaluru and Karwar, especially through appropriate PPP frameworks.
 Coracles, catamarans, traditional sail boats and houseboats will be emphasized at identified destinations.
Eco Tourism
 Eco-tourism would be encouraged in close collaboration with the Karnataka Eco-tourism Development Board.

Improve Infrastructure, Tourism Products and Services
19





 An eco-tourism zone stretching from Coorg to Karwar will be identified and a chain of nature camps will be encouraged as ‘Eco-Trails’ in the zone.
 Trekking and nature walks would be actively encouraged to provide tourists an exposure to natural environments.
Rural Tourism
 Rural tourism will be encouraged to showcase rural life, art, culture, cuisine and heritage
at villages/ countryside and will provide opportunities for economic and social development of the local communities.
Wellness & Holistic Health Tourism
 Karnataka’s potential to develop as a unique destination for spiritual healing and wellness tourism will be explored.
 Emphasis will be on supporting traditional systems of medicine and wellness like Ayurveda, Homeopathy, Yoga, Unani, Siddha, etc.
Adventure Tourism
 Support will be provided to adventure tourism activities in the State, under three heads - Aero Adventure, Aqua Adventure and Land Adventure by collaborating with national and international adventure tourism and activity operators.

Weekend Tourism
 Weekend getaway destinations would be encouraged to provide recreational and leisure avenues for tourists planning weekend trips.
 Tourist destinations in close proximity to major urban centres in the State would be identified and encouraged to be developed as weekend tourism destinations, where visitors can reach in shorter travel time and enjoy
a two day stay with engaging activities.
Health Care Tourism
 The potential for Karnataka as a quality health care destination would be unleashed and initiatives for attracting tourists from outside the State and the country for availing of benefits of advanced medical treatment facilities would be encouraged.
 Bengaluru and Mangaluru are identified as potential health care tourism clusters, and PPPs in development activities of these clusters would be encouraged.








Health Care Tourism Weekend Tourism

















Coastal Tourism
















Eco tourism Adventure Tourism















Wellness & Holistic Health Tourism Weekend Tourism







Improve Infrastructure, Tourism Products and Services
21





Urban Tourism
 Six major urban centres have been identified in the State for tourism development -
Bengaluru, Mangaluru, Mysuru, Belagavi, Hubballi, Dharwad and Tumkuru.
 Emphasis will be given to activities that create positive experiences for tourists in these urban areas through development of tourist
attractions, entertainment parks, golf courses, museums, galleries, art & craft villages, etc.
Religious Tourism
 Karnataka is home to many famous temples and pilgrim sites in the country. The rock cut cave temples and the
architectural monuments built by various dynasties are important attractions in the state.
 Efforts will be made to encourage tour operators and facilitate pilgrimage tourism between various religious attractions.
Film induced Tourism
 Film shootings at tourist locations will be encouraged, provided
due measures are taken to protect the natural environment and promote the destination’s, local art, craft and culture.

Connectivity infrastructure
Transport and Aviation
 Efforts will be made to increase entry points into the State; improve direct access to different destinations across the State for international, inter-State and intra-State visitors; encourage development of new routes and expand existing airport capacity.
 Development of low cost terminals along with the use of smaller aircrafts, airfields/ air strips would be encouraged.
Tie-ups with flying clubs will be used to provide access to smaller aircrafts and airfields that may be underutilized.
Last mile connectivity
 Improving last mile road/ rail connectivity to tourist
destinations such as, multiple transport options links from railway stations and bus terminals, etc. would be emphasized and the Department of Tourism would co-ordinate with other government agencies/ departments in facilitating these developments.
Coastal transport system
 The coastal transport system would be strengthened to move people along the coast and also support cruise tourism activities.

Improve Infrastructure, Tourism Products and Services
22





Zero pollution modes of transport
 Environment friendly vehicles having a minimum impact on the ecology of the destination would be encouraged at tourist destinations in the State.
Access and delivery of tourism information and other services
Tourist Amenities/ Kiosks
 Development of tourist amenities such as information kiosks, trained guides, audio guides, interpretation centres, etc. would be encouraged at all major tourist destinations.
Information, Communication & Technology (ICT)
 Initiatives to provide adequate and reliable information about destinations, accommodations, itinerary, events, online bookings and other offerings through various modes such as online web portals, mobile applications, tourism offices, flyers, brochures, maps, etc. would be encouraged.
 Provision of audio guides, mobile technology, Wi-Fi facilities at major tourist destinations would be encouraged.
 Technology interventions for social networking and data management would be
encouraged in order to support tourism activities in the State.

 Digital marketing, information collaterals, and development of information and interpretation centers at tourist destinations will be supported and encouraged.
Safety and security of tourists
 The tourism police force referred to as the “Tourist Mitra”, would be deployed for visible policing in key tourist destinations for the safety and security of visitors.
 A disaster management plan is proposed to be developed for major tourist destinations in order to be prepared for any eventuality.
 A dedicated helpline number would be launched exclusively for the convenience of tourists.
 Convenient and safe access for differently-abled persons would be emphasized at all major tourist destinations.

Guidelines for development
of Tourism Products and Services
23




Detailed guidelines for undertaking activities in the identified strategic areas will be issued and made available on the website of the Department at www.karnatakatourism.org
within 30 days of publishing the Policy.

Human Resources Development & Capacity Enhancement


As per the KTVG Report, it is estimated that about 30 lakh jobs would be created in the sector during the policy period, but the skills required for these jobs requires to be strengthened. To address
the skill gaps and provide better employment opportunities for the people, efforts would be made to undertake the following actions:
 Facilitate training to different stakeholder groups and handhold local communities through customized capacity building programs, exposure visits, vocational courses, short-term courses in hospitality, tourist guide training and other tourism related programs.
 Encourage vocational training institutes at strategic locations, offering a range of courses.
 Assist in developing curriculum of tourism courses / programs to enhance employment opportunities for guides, housekeeping staff and other hospitality related workforce.

Human Resources Development & Capacity Enhancement
24





Training / Capacity Building
Karnataka Tourism Human Resources Strategy / Policy
 Efforts would be made to collaborate with experts and resources available with international tourism training organizations towards developing a Karnataka Tourism Human Resources Strategy.
 Emphasis will be on developing a strong Human Resource Policy that enables the community
to seek employment in the hospitality and tourism sector.
 Training would be imparted to government officials, guides, hospitality staff, including homestay hosts, tour operators, AYUSH Therapists, etc.
Licensing & Certification of tour guides
 A new category of skilled guides would be trained to provide authentic information and communicate effectively with tourists.
 The Department would draw
up a mechanism for licensing & certification of tour guides and accreditation of travel agents, to standardize service quality.
Capacity enhancement at local level
 Education and enhancement of competencies for local communities in the vicinity
of tourism clusters would be encouraged, in order to catalyse economic opportunities from tourism activities.


Vocational Skills Training
Keeping in mind the additional employment possibility that the tourism sector would generate in the next five years, efforts would be made to introduce training for tourist guides and support staff in
housekeeping, front office, reception, and other areas of hospitality.
Convergence of programmes with education department and other departments would be considered to ensure availability of larger work
force in non-core areas of hospitality, such as security, kitchen stewarding, maintenance and cleaning services.


Institutional Structures
25





To implement the strategic interventions and undertake various activities outlined in the Policy, it is critical to establish appropriate institutional structures for implementation. The following actions are envisaged to be undertaken in this regard:
 Encourage and support investments in the sector coming in through public private partnerships and joint ventures.
 Implementation of the Policy through highest level of coordination between various stakeholders, across the infrastructure sector.
 Streamline existing governance structures to enable better governance and accountability of the stakeholders involved.
Tourism Infrastructure Company
 The Government is setting up a Tourism Infrastructure Company to facilitate development of tourism projects in the state through dedicated project SPVs and leveraging private capital to the extent possible.
 All land assets that are currently under the governance and administration of the Department of Tourism would vest with the Company. Further, the Company would become responsible
for the, leasing, renting, concessioning, etc. of these land assets.

 Various options for funding the projects would be explored by the Company. It will co-ordinate with various funding agencies such as the Government of India, multi-lateral agencies, corporates etc. for availing financial assistance to develop tourism projects in the state.
Karnataka Tourism Trade (Facilitation and Regulation) Bill
 The Government has approved the Tourism Trade (Facilitation and Regulation) Bill for enabling investments in tourism, ensuring safety & security of tourists and strengthening accountability at various tiers of government.
 The Bill details out the institutional framework for enabling the Policy and improving overall governance in the sector.


Institutional Structures
26





Advisory & Approval Committees
 Four committees (existing and proposed) are identified to encourage good governance in the sector, facilitate speedy clearances & approvals, regular monitoring of the projects & services and ensure accountability at all levels of government.
 District Tourism Committe,e under the chairmanship of the Deputy Commissioner of the respective district and shall perform the following functions for effective implementation of the policy:
Approve the proposals received for Projects upto Rs. 15 Crores;
Co-ordinate clearances
/ approvals from other government agencies/ department as may be required for implementation of projects;
Monitor the progress of implementation of the projects approved by it;
 Empowered Committe,eunder the chairmanship of the Hon’ble Minister of Tourism and shall perform the following functions for effective implementation of the policy:
Co-ordinate and ensure timely issue of Government Orders by various departments;
Approve the proposals received for Projects of Rs. 15 – 100

Crores and co-opt members and stakeholders whose consent or expertise is required for approval of the projects;
Recommend enabling mechanisms from time to time for smooth implementation of the policy;
 State Level Tourism Advisory Committee6
under the chairmanship of the Hon’ble Chief Minister shall perform the following functions for effective implementation of the policy;
Shall be the authority to interpret the Policy and investment subsidies.
Approve the guidelines related to tourism projects; and
Monitor and assess regularly, progress of implementation of the policy.
 State High Level Clearance Committee7
under the chairmanship of the Hon’ble Chief Minister;
Approve the proposals received for Projects of Rs. 100 Crores and above;
Shall be the final authority for granting approvals for the projects placed before it.
(The constitution of the Committees is provided in Annexure 4. Refer Section 5 of the Policy for approvals regarding commencement of projects
and sanction of investment subsidies).




6. ConstitutedvidenotificationNo.PraE170,PraVaE2013,BengaluruTdoautreisdm3SrdeJcurleyt,a2r0ia1t4by
7. ConstitutedvidenotificationNo.C1162SPI2001,Bengalurudated26thJuly,2004byCommerce&In

4. Concessions & Investment Subsidies
27





The Government proposes to offer concessions and investment subsidies to Eligible Entities willing to develop Tourism Projects in the State. The concessions granted in the Policy are in the form of rebates/ exemptions on applicable taxes, charges, duties, etc. Investment subsidies granted under the Policy are in the form of subsidies for investment made in tourism projects and tourism related services.

Eligible Entities: shall mean any one of the following:
Companies registered under the Companies Act 1956/2013, partnership firms, proprietorship
firms, Trusts, Societies, Companies under Section 25 of the Companies Act (Section 8 as per the new Companies Act, 2013), not-
for-profit Non-Government Organisations (NGOs), Community Based Organisations (CBOs) and individuals / entrepreneurs.
Tourism Projects shall mean:
Development, operation and management of tourism projects and tourism related services and shall include accommodation facilities (hotels & heritage hotels, yatri niwas, dormitories); amusement parks; convention / exhibition centers;
film city; museums; galleries; caravan parks; wayside amenities; adventure tourism; eco-tourism; agri-tourism; rural tourism; marine

& cruise tourism; wellness tourism; information kiosks; information & interpretation centers; event based tourism (art, craft & culture festivals open to public); tourism related vocational training institutes; and other tourism related projects/ services approved by the Department of Tourism from time to time.
Further,
Mega Projectsare Tourism Projects with an investment in fixed assets above Rs. 100 Crore and upto Rs. 500 crore.
Ultra Mega Projectsare Tourism Projects with an investment in fixed assets above Rs. 500 Crore and upto Rs. 1000 crore.
Super MegaProjectsare Tourism Projects with an investment in fixed assets above Rs. 1000 crore.

4. Concessions & Investment Subsidies
28





A. “Industry” status for conventional tourism projects
Conventional tourism projects such as hotels shall be accorded an “industry” status and shall be
eligible for property tax concessions, power & water tariffs as per industrial norms/ tariffs. However “industry” status shall not be applicable for non- conventional tourism projects such as home stays, agri-tourism, eco- tourism, etc.
B. Type of Tourism Projects eligible for availing Concessions and Investment Subsidies
The concessions and investment subsidies under this Policy will be available for new projects and expansion of existing tourism
projects, and are defined as follows:
1) New Projectsshall mean greenfield Tourism Projects developed during the Policy period 2015-20. Existing tourism facilities requiring complete renovation shall also be considered as a New Project.
2) Expansion Projectsshall mean Hotels & Resorts that have been operational for more than two years and the existing capacity is being augmented by at least 50%. The Eligible Entities shall during the tenure of this Policy, add rentable double rooms
with attached bathrooms in accordance with the guidelines, to be qualified for obtaining concessions and investment subsidies. However, for projects developed under PPP framework, the criteria for additional rooms

shall not apply and the same shall be decided on a case to case basis. All other criteria for availing concessions and
investment subsidies outlined in the Policy shall apply.
C. Parameters for assessing quantum of Investment Subsidies by Eligible Entities
The quantum of investment subsidies that can be claimed by Eligible Entities for developing tourism projects / tourism related services would vary based on the following parameters:
1) Region/ taluka / focus tourism destination where the investment is proposed
(a) Focus Tourism Destinations (FTD) as identified by the Karnataka Tourism Vision Group, and defined in Annexure 2.
(b) Hyderabad Karnataka Region (HKR) as classified iAnnnexure .1
(c) Backward Regions of the state, further classified into 4 categories
- Category 1 being the ‘Most Backward’, Category 2 being ‘More Backward’, Category 3 being ‘Backward’ and Category 4 being ‘Not Backward’.
The talukas in these respective categories are set out in Annexure 1.
2) Type of Eligible Entity Eligible Entities as defined in this Policy shall be entitled for concessions and investment subsidies for development of various tourism projects and services, based on (1) above.


Concessions
29





The Government of Karnataka offers the following concessions for developing Tourism Projects
in the State.

Exemption on Stamp Duty
Stamp duty to be paid in respect of
(i) loan agreements, credit deeds, mortgage and hypothecation deeds executed for availing loans from State Government including VAT loan from State Financial Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, KVIB / KVIC, Karnataka State SC/ ST Development Corporation, Karnataka State Minority
Development Corporation and other institutions which may be notified
by the Government from time to time for the initial period of five years only and (ii) for lease deeds, lease-cum-sale and absolute sale
deeds executed in respect of Tourism Projects shall be exempted as below:
 100% exemption on stamp duty for development of Tourism Projects in FTD, HKR and talukas under Categories 1 and 2.
 75% exemption on stamp duty for development of Tourism Projects in talukas classified under Category 3.
 50% exemption on stamp duty for development of Tourism Projects in talukas classified under Category 4. However, no exemption on stamp duty with respect to development of Tourism Projects within

the jurisdiction of the Bruhat Bengaluru Mahanagara Palike (BBMP).
Concessional Registration charges
For all loan documents and sale deeds as specified under the head “Exemption on Stamp Duty” above, the registration charges shall be
at a concessional rate of Re.1 per Rs.1000.
Reimbursement of Land Conversion Fee
The payment of land conversion fee for converting the land from agriculture use to non-agricultural use for development of Tourism Projects shall be reimbursed as detailed below:
 100% reimbursement on land conversion fee for Tourism Projects undertaken in FTD, HKR and talukas classified in Categories 1 and 2.
 75% reimbursement on land conversion fee for Tourism Projects undertaken in FTD, HKR and talukas classified in Categories 3 and 4.
 No reimbursement on land conversion fee for conversion of land located within the jurisdiction of Bruhat Bengaluru Mahanagara Palike (BBMP) and Bengaluru Metropolitan Region Development Authority (BMRDA).


4.1 Concessions
30





Transfer of Land on Lease Basis
For development of tourism infrastructure projects, government land could be leased to the private developer / entrepreneur for a period of 30 years, renewable by another 30 years (through appropriate lease/ development agreements) and shall be decided by the Department of Tourism/ agency concerned on a case to case basis.

Interest Free Loan
For Mega Projects, Ultra Mega Projects and Super Mega Projects, loan to the extent of 100% of Value Added Tax8 shall be sanctioned as interest free loan from the date of commencement of commercial operations. The interest subsidy is limited to either the period of the loan or loan limit whichever is reached earlier and no carry forward is permitted.



The tenure and extent of investment limit for the loan is set out in the table below;


Tourism Projects Category Max Period Investment Limit
(% of EPC)
Mega Project 1 10 80
2 9 60
3 8 50
HKR 11 90
FTD 11 100
Ultra Mega Project 1 11 85
2 10 75
3 9 60
HKR 12 95
FTD 12 100
Super Mega Project 1 13 95
2 12 85
3 11 75
HKR 14 100
FTD 14 100




8. VATisapplicableonlyuntilsuchtimeGSTcomesintoeffect.Afreshnotificationinthisregardwouldbe GSTnotificationofGovernmentofIndiaforthestates.




31





Exemption on Entry Tax
Entry tax on plant & machinery and capital goods for development of Tourism Projects shall be
100% exempted for an initial period of 3 years from the date of commencement of project implementation. Wherever
applicable, on raw materials, inputs, component parts & consumables (excluding petroleum products) for a period of 5 years from the date
of commencement of commercial production.
In the case of Mega Projects, entry tax on plant & machinery and capital goods for development of Tourism Projects shall be 100% exempted for an initial period of 5 years from the date of commencement of project implementation.
Reimbursement of Entertainment Tax
The payment of Entertainment Tax by Entertainment Parks that are classified as Ultra Mega Projects and Super Mega Projects shall be reimbursed for the first 5 years from the date of commencement of operations of such Entertainment Parks.
Exemption on Luxury Tax
On actual room charges of Rs. 5000 or below per day, no luxury tax would be payable for upto 10 years from the date of commencement
of operations. This exemption of payment of luxury tax applies to

rooms in home stays, yatri niwas, youth hostels / dormitories.
Exemption on Motor Vehicle Tax
During the policy period 2015-2020, new vehicles purchased by tourism project proponents in Karnataka, for carrying out tourism related activities shall be exempted from payment of Motor Vehicle Tax (pro rata to the life time tax applicable for the category of vehicle as per The Karnataka Motor Vehicles Taxation Act, 1957).
The above said exemption is valid only: (a) only during the policy period 2015-2020, (b) for tour operators registered with the
Department of Tourism, Government of Karnataka, and (c) on purchase of a maximum of 5 vehicles per tour operator per year.
Development Rights for Heritage Buildings (DRHB)
Development of heritage buildings for tourism related activities
shall be eligible for the award of development rights certificate from the local body concerned, as per prevailing development regulations and approvals. However, the private operator/ entrepreneur shall not use the Heritage Building for any other purpose other than the
purpose for which it was granted the development rights certificate, for at least a period of 10 years from the date of issue of the certificate.























































Janapada Loka Museum of Folk Art Karnataka.









Concessions
33




Rating of Tourism Products and Services
All tourism products developed in the state shall be certified by an Accreditation Agency, to ensure delivery of quality services to tourists at acceptable standards.
Concessions for Homesta9 ys
The following concessions shall be applicable for certified home stays in the state, subject to compliance with the guidelines:
 Exemption from Luxury Tax on actual room charges of Rs. 5000 and below per day.
 Payment of electricity and water charges at domestic tariffs.
 Property tax rates as prescribed for residential purposes.
Recognition for Corporate Homes10
Department of Tourism shall encourage corporate homes in tourist destinations of the state by recognising, approving and providing accreditation to such corporate homes that comply with the guidelines issued by the Department.
Note: All tax concessions will be as per notifications issued by the relevant Authority and subject
to such terms and conditions as prescribed in the notifications.





9. Homestayisaprivatehouseofalocalfamilyoffering accommodation to visitors/ tourists on rent basis.
10C. orporate Homes are accommodation facilities in a homelikesettingofferedbycorporatefirms.


Investment Subsidies
34





The Government is committed to improving the tourism industry in the State by adopting an inclusive and balanced regional development approach. Investment subsidies to encourage participation of private sector and local entrepreneurs have been structured, based on the classification of talukas, nature of Tourism Projects to be developed and type of Eligible Entities.
The actual quantum of investment subsidies eligible for a project would depend on the extent the equipment is being utilized for providing tourism related activities. The decision of the Department of Tourism in this regard is final and binding on the parties.
Further, Tourism Projects have been classified into the following three categories, for availing investment subsidies:
(a) Tourism Infrastructure and Products
(b) Equipment for tourism related activities
(c) Tourism related soft activities

Tourism Infrastructure and Products
Tourism Infrastructure and Products include those Tourism Projects that involve land based development of tourism related infrastructure. The definition of projects, documents required to be submitted and the indicative range of investment subsidies for development of Tourism Infrastructure and Products in the State are set out below. For details on the eligibility criteria and development norms, the Guidelines for each of the products that would be made available on www.karnatakatourism.org
may be referred.




35




A. Definition of Projects


Project Definition

Hotels & Resorts ‘Hotel’ is an establishment providing accommodation, meals, and other services for travellers and tourists, in tourist destinations of the state.
‘Resort’ shall include a hotel and is a place used for relaxation, recreation, attracting visitors for vacations and/or tourism.
The Hotels and Resorts shall provide accommodation facilities for tourists with at least 20 rentable rooms with attached bathrooms.
Caravan Parks ‘Caravan Park’ is a facility developed for parking of Caravans in allotted spaces and includes other amenities. The caravan park would need to be
developed in an area of at least two acres and include at least five parking bays.
Museums & Galleries ‘Museum’ is an institution that cares for or conserves a collection of artifacts and other objects of scientific, artistic, cultural, or historical importance and makes them available for tourists viewing through exhibits.
‘Galleries’ includes roofed premises in which paintings, sculptures and other art forms are exhibited for purposes of information dissemination/ sale and is accessible by the tourists..




36




37



















Cruise Tourism ‘Cruise Tourism’ is defined as leisure travel between tourist destinations along the coastline or major rivers in Karnataka on a ship/ cruise liner and also involves development of a cruise terminal;

Adventure Tourism ‘Adventure Tourism’ involves infrastructure and activities that provide the tourists with an opportunity to explore adventure and includes activities such as the following;
(a) Land based – mountaineering and trekking
(b) Water based – river running, kayaking, river rafting, scuba diving, snorkeling, water skiing, jet skiing, boat based fishing, surfing, sail boarding and wind surfing
(c) Air based – paragliding, parasailing and bungee jumping

Entertainment Park ‘Entertainment Park’ is an outdoor recreation park and shall mean either of the following - a theme park, an amusement park, a water park. An entertainment park offers relaxation and/ or recreation to visitors and includes amusement rides, games, entertainment options.

Wayside Amenity ‘Wayside Amenity’ is defined as a facility comprising resting areas, toilets, cafeteria, mini store/ pharmacy and an information / souvenir booth; located on National, State and District Highways; for the benefit of travelers/ tourists.




38














Dormitories / ‘Youth Hostel’is defined as a facility which provides
Youth Hostel budget/ inexpensive overnight lodging, particularly
(Yuva for budget tourists who are unable to afford expensive
Vasatigraha) hotels.




l.

Tourist Interpretation Centre ‘Tourist Interpretation Centreis’ a facility for dissemination of knowledge of natural or cultural heritage to tourists; it provides a visitor an interpretation of the place of interest through a variety of media, such as video displays and exhibitions of material.




39










.



Tourist Information Centre ‘Tourist Information Centreis’ a facility located at
a public place or at transit points such as bus station, railway station, airport, sea port, etc.; which in addition to providing basic information to tourists, also enables hassle free travel/ tour/ stay for tourists. It would provide services including but not limited to the following;
(a) Plan and customize tour/ travel/ stay in the city/ State based on tourist requirements
(b) Book accommodation in hotels/ home stays/ etc.
(c) Book travel through taxi/ bus/ train/ flight/ ferry, etc.

Vocational Institutions established for providing training and skill
Training development courses for tour guides, tour operators
Institutes and in areas such as culinary skills, hotel management,
(Training tourism facility management.
and HRD
Infrastructure)




40





B. Documents to be submitted
For obtaining project approvals
 Project Report detailing out the Project facilities and plan for development. The Project Report shall also provide estimates of the Project prepared by a registered engineering firm, having atleast 3 years experience in undertaking civil construction works.
 Supporting document for proof of Eligible Entity11.

For sanction of investment subsidies
 Title Deed of the land / Record of Rights, Tenancy and Crops
(RTC) document (where land is in possession of the Eligible Entity).
 Original Plan approved by the Gram Panchayat / Municipality
/ Corporation / Town & Country Planning Department / Local Planning Authority.
 Supporting documents as proof of compliance for project specific conditions set out in the Guidelines issued by the Department of Tourism.
 Certificate from a Chartered Account (in case of own finance) or from a Scheduled Commercial Bank / Financial Institution (in case of availing loan), certifying the Eligible Project Cost.
 Documentation certifying that the Project is operational and
providing services to tourists, such as No Dues Certificate (NDC) from Department of Commercial Taxes, Electricity Bill from the ESCOM

concerned, employment details (disaggregated by Kannadigas and non-Kannadigas), etc.
 Occupancy / Completion Certificate obtained from the Gram Panchayat / Municipality / Corporation.
C. Investment subsidies
Investment subsidies for development of various Tourism Projects defined in A
above will be calculated as a percentage of Eligible Project Cost (EPC) and subject to a maximum amount.
 Eligible Project Co(sEt PC) means investment in fixed assets for the purposes of developing Tourism Projects defined in this Policy. EPC shall mean costs incurred towards civil construction (including
toilets, access to differently-abled, electrification) and for providing utilities such as safety equipment, water purification, DG sets, air conditioning, lifts, sewage treatment plant, rain water harvesting, solar heating/ lighting systems, bore wells and equipment necessary to undertake tourism related activities as defined in Section 4.2.2 A (Equipment Cost). EPC does not include costs towards purchase of land, interiors, lighting / chandeliers,
furnishings, kitchen utensils, ceramic products, etc.
 Investment Subsidiepsroposed are based on the location of the Tourism Project and the type of eligible entity developing the Tourism Project.
The table given below sets out the investment subsidies proposed for development of Tourism Infrastructure and Products,




41





Taluka Investment Subsidy
General Category Women, SC, ST and differently-abled entrepreneurs
Category 1 Upto 35% of EPC subject to a maximum of Rs. 105 lakhs




Additional 10% of EPC subject to a maximum of
Rs. 5 lakhs
Category 2 Upto 30% of EPC subject to a maximum of Rs. 90 lakhs
Category 3 Upto 25% of EPC subject to a maximum of Rs. 75 lakhs
Category 4 Upto 20% of EPC subject to a maximum of Rs. 60 lakhs
HKR Upto 40% of EPC subject to a maximum of Rs. 120 lakhs
Focus Tourism Destinations(FTDs)* Upto 40% of EPC subject to a maximum of Rs. 120 lakhs

* An additional 10% investment subsidy (over and above project specific investment subsidies) shall be provided for development of tourism circuits within a Tourism Cluster. A tourism circuit is defined as a route within a single Tourism Cluster, in which at least three Focus Tourism Destinations are located such that none of these are in the same town, village or city. Please refer to Annexure 2for Tourism Clusters and Focus Tourism Destinations.














11. Acompanyshouldfurnishcertificateofincorporation,memorandumofassociationandarticleofassoci Aregisteredpartnershipfirmshouldfurnishincometaxreturnsforthelasttwofinancialyearsorregistr undertheregistraroffirmsorthepartnershipdeedexecutedbetweenthepartnersasproofofidentity. ASoleProprietorshipfirmshouldfurnisheithertheSales/VAT/ServicetaxorITreturnsforthelasttwofi proof of identity.




42





Equipment for Tourism Related Activities
The details of equipment for tourism related activities, documents required to be submitted and the indicative range of investment subsidies are set out below.
A. Definition
Equipment necessary to undertake air, land and water based adventure tourism activitie12sshall be eligible for

 Certificate from a Chartered Account (in case of own finance) or from a Scheduled Commercial Bank/ Financial Institution (in case of availing loan), certifying the Equipment Cost.
C. Investment subsidies
The quantum of investment subsidies for tourism equipment will be calculated as a percentage of Equipment Cost and subject to a maximum amount.

investment subsidies. Guidelines tourism  Equipment Cost (ECm) eans

equipment would be made available on www.karnatakatourism.org
may be referred.
B. Documents to be submitted
For sanction of investment subsidies
 Supporting document for proof of Eligible Entity13 .
 Project Report detailing out the Project facilities and utilization of the equipment purchased for tourism related activities.
 Supporting documents as proof of compliance for project specific conditions set out in the Guidelines issued by the Department of Tourism.
 Self-attested copy of Purchase Invoice.

costs incurred towards procurement of equipment for undertaking activities listed in ‘A’ above. EC includes costs towards off road vehicles such as all-terrain bikes, quad bikes,
electric vehicles for commutation of tourists, etc., but does not include vehicles, ferry boats and other equipment which are not directly utilized for undertaking tourism activities.
 Investment Subsidiepsroposed are based on the location of the Tourism Project and the type of entity developing the Tourism Project for which equipment are purchased. The table given below sets out the investment subsidies:




12. Ridesforentertainmentparks(excludingFEC),Trekking,Mountaineering,Camping,Rappellinga SportClimbing,RockClimbing,Riverrafting,Scubadiving,Snorkelling,RiverraftinWg,aRteivrerrunning, Skiingandwakeboarding,Kayakingandcanoeing,Sailboarding,Kitesurfing,windsurfing,sailboar Parasailing,Paragliding,Bungeejumping,QuadBiking,RescueBoats.
13. Acompanyshouldfurnishcertificateofincorporation,memorandumofassociationandarticleofassoci Aregisteredpartnershipfirmshouldfurnishincometaxreturnsforthelasttwofinancialyearsorregistr undertheregistraroffirmsorthepartnershipdeedexecutedbetweenthepartnersasproofofidentity. ASoleProprietorshipfirmshouldfurnisheithertheSales/VAT/ServicetaxorITreturnsforthelasttwof proof of identity.




43





Taluka Investment Subsidy
General Category Women, SC, ST and differently-abled entrepreneurs
Category 1 Upto 35% of EC subject to a maximum of Rs. 105 lakhs




Additional 10% of EPC subject to a maximum of
Rs. 5 lakhs
Category 2 Upto 30% of EC subject to a maximum of Rs. 90 lakhs
Category 3 Upto 25% of EC subject to a maximum of Rs. 75 lakhs
Category 4 Upto 20% of EC subject to a maximum of Rs. 60 lakhs
HKR Upto 40% of EC subject to a maximum of Rs. 120 lakhs
Focus Tourism Destinations(FTD)* Upto 40% of EC subject to a maximum of Rs. 120 lakhs


* An additional 10% investment subsidy (over and above project specific investment subsidies) shall be provided for development of tourism circuits within a Tourism Cluster. A tourism circuit is defined as a route within a single Tourism Cluster, in which at least three

Focus Tourism Destinations are located such that none of these are in the same town, village or city.
Please refer toAnnexure 2for Tourism Clusters and Focus Tourism Destinations.























































Hampi is a The ruins are a UNESCO World Heritage Site Karnataka
During the 14th century empire it was the kingdom of Vijayanagar.




45





Tourism Related Soft Activities
Tourism related soft activities shall mean and include;
 ICT (Information and Communication Technologies) initiatives shall mean those technology based systems/ applications, especially internet based and mobile applications, audio guides, developed for promoting tourism in the state and enriching tourist experience.
 Skill development courses for conducting heritage walks & nature trails; training for guides & tour operators; specialised training programs in areas such as culinary skills, hotel management.
 Event based tourism such as art, craft and culture programmes in tourist destinations, organised by not-for-profit organisations and open for general public. Such events shall promote experiential tourism to visitors and promote longer duration of stay.
 Film induced tourism – Film shootings at tourist destinations mentioned in Annexure 3 provided that due measures are taken to protect the natural environment of the tourism destination and promote the
destinations’ locale art, craft and culture.

A. Documents to be submitted
For obtaining approvals
 Concept Plan detailing out the methodology and description
of the skill development course/ event for which investment subsidies are being sought.
 Supporting documents for proof of Eligible Entity14
For sanction of grants
 Documentation certifying that the initiative has been undertaken and /or providing services to tourists.
B. Grants
Upto a maximum of Rs. 25 lakhs, subject to due diligence and necessary approvals required by the Department of Tourism and other agencies concerned.



14. Acompanyshouldfurnishcertificateofincorporation,memorandumofassociationandarticleof association as proof of identity.
Aregisteredpartnershipfirmshouldfurnishincometaxreturnsforthelasttwofinancialyearsorregistr undertheregistraroffirmsorthepartnershipdeedexecutedbetweenthepartnersasproofofidentity. ASoleProprietorshipfirmshouldfurnisheithertheSales/VAT/Servicetaxor ITreturnsforthelasttwofinancialyearsasproofofidentity.




























































Chandramouleshwar Temple Hubli

Supporting provisions for availing Concessions and Investment Subsidies
47





1. The Karnataka Tourism Policy 2015-20 will come into force
from the date of issue of enabling Government order and will be in operation for five years or as revised by the Government. Once the Karnataka Tourism Policy 2015-20 comes into operation the Karnataka Tourism Policy 2009-14 stands withdrawn. However, Tourism Projects under earlier policies shall continue to enjoy those benefits
as per respective project approval/ sanction orders.
2. Concessions and investment subsidies under the Policy will be
granted to only such entities for such Tourism Projects that are described in the Policy and approved by the Committee concerned. The projects would need to comply with the

based on the GST notification of Government of India for the states.
5. To avail the concessions and investment subsidies stated in this Policy, the interested party must obtain necessary approvals from the Committees concerned prior to commencement of the Tourism Project.
6. Tourism Projects can avail concessions and investment subsidies under multiple policies of different departments of Government of Karnataka and /or Government of India. However,
if the same component is claimed under different policies, the quantum is limited to the maximum of the component in any one of the Policy.

guidelines issued by the Government.7. Mega Projects, Ultra Mega Projects

3. All Tourism Projects developed shall necessarily provide access and facilities for differently-abled persons and ensure safety and security of tourists.
4. The Concessions and investment subsidies under the Policy will be available to all new and additional investments made during the Policy period for eligible Tourism Projects and Expansion Projects mentioned in the Policy. However, tax exemptions are applicable only until such time GST comes into effect. A fresh notification for tax exemptions under the Policy would be issued

and Super Mega Projects would be eligible for a special package decided by the Department of Tourism/ Government of Karnataka on a case-to-case basis. The package could include assistance in land acquisition; provision of core infrastructure such as water, connecting roads, electricity; taxes and concessions as relevant.
8. Entities are eligible to claim investment subsidies under the Policy only upon obtaining
the approval of the Committee concerned and commissioning of the Tourism Project.


5. Implementation Framework
48





A streamlined implementation framework is developed for assisting investors through the process of project development – assistance in land acquisition / land conversion
& purchase, approvals for commencement of Project activities and sanction of investment subsidies post commissioning of the Projects.
‘Sakala’ - Government’s E-governance platform for delivery of services
Any Eligible Entity desirous of obtaining approvals for development of Tourism Projects and services
in the state, and for seeking concessions and investment subsidies under the Policy shall submit their proposals on the
e-governance website of the Government, www.sakala.kar.nic.in

The e-governance platform enables tracking the status of proposals submitted and ensures transparency and accountability to citizens/ entrepreneurs.
Project approvals and sanction of investment subsidies
Department of Tourism on receiving applications from Eligible Entities for development of Tourism Projects shall place the application before the authorities concerned, within a period of one month from receiving such applications.
The authorities concerned for project approvals and sanctions based on the Eligible Project Cost of Tourism Projects are provided in the table below:




49





Eligible Project Cost Authority for Project Approvals Authority for Sanction of Investment Subsidies Timeframe for completion of projects
Rs. 0 – 15 District Tourism District Tourism 2 years
Crores Committee, under Committee under
the chairmanship the chairmanship
of Deputy of Deputy
Commissioner Commissioner
of the respective of the respective
district district
Rs. 15 – 100 Empowered Empowered 3 years
Crores & Soft Committee for Committee for
activities Tourism under the Tourism under the
related to chairmanship of chairmanship of
Tourism Hon’ble Minister of Hon’ble Minister
Tourism of Tourism
Mega Projects, State High State High 5 years
Ultra Mega Level Clearance Level Clearance
Projects and Committee Committee
Super Mega (SHLCC) under (SHLCC) under
Projects (more the chairmanship the chairmanship
than Rs. 100 Crores) of Hon’ble Chief Minister15 of Hon’ble Chief Minister


Refer Section 4.2 for documents to be submitted for obtaining project approvals and investment subsidies











15.ConstitutedvidenotificationNo.C1162SPI2001,Bengalurudated26thJuly,2004byCommerce&I


6. Targets & Timelines
50




An estimated investment of Rs. 54,000 crores and an employment generation of about 30.38 lakhs are envisaged in the tourism sector during the policy period (2015-20)
as per the Recommendations Report of KTVG. The cumulative estimated investments and employment generation year-on-year from the start of the policy period is set out in the table below.


End of Year Cumulative Estimated Investments(Rs. Crores) Cumulative Anticipated Employment Generation (Lakhs)
2015 – 16 5400 3
2016 – 17 27000 9
2017 – 18 37800 15
2018 – 19 45900 23
2019 - 20 54000 30


The strategic interventions and corresponding action points would be implemented over the five year Policy period. The timelines for implementation are indicated below:




51





Short Term (1-3 Years)
 Position Karnataka as a preferred tourism destination at state, national and international levels. Undertake extensive marketing of tourism products through web, road shows, electronic and print media.
 Develop a five year event calendar which would be synchronized with other themes and business events to attract tourists and extend duration of their stay.
 Carry out feasibility studies for establishing demand for various tourism facilities, such as coastal tourism, cruise tourism, agri tourism, rural tourism, etc.
 Set-up a Tourism Infrastructure Company under the aegis of Department of Tourism.
 Tie-ups with training institutes to conduct capacity building programs for creating skilled manpower in the sector.
 Facilitate in development of accommodation facilities at various tourism destinations and wayside amenities.
 Identify/map culture and heritage assets and prepare a plan for protection and management of the same.

Medium Term (3-5 Years)
 Design tour packages based on specific themes, preferably those that involve the geographical boundary and heritage of more than one State,
 Facilitate development of new destinations that offer innovative tourist products, such as, caravan tourism, wellness tourism, tribal tourism, monsoon tourism, beach tourism, etc.
 Provide investment subsidies and technical assistance to entrepreneurs, especially local artisans and cottage industries producing high quality handicrafts.
Long Term (5 - 10 Years)
 Assess brand value and impact achieved and thereby plan further developments.
 Develop large scale, flagship and iconic projects.
 Generate a strong industry profile for targeted marketing and promotional activities.



Annexure 1:
Classification of Talukas
53




Note: For any Tourism Project, Eligible Entities claiming investment subsidies for development in Focus Tourism Destinations are not eligible to claim investment subsidies for development of the same Tourism Project under any other category.


16. Category1,2&3arebasedon"ReportoftheHighPowerCommitteeforRedressalofRegionalImbala Karnataka",Dr.NanjundappaCommitteeReport,2002.Are“absancokwtcairntdeth”geoRrizeepdoartsare classifiedunderCategory4basedontheextentofdevelopment.
17. HK includes those talukas that fall under the Hyderabad Karnataka region of Karnataka




54




55




56




57


Annexure 2:
58
Tourism Clusters & Focus Tourism Destinations


The list is only indicative and not exhaustive. Eligible Entities, seeking to develop other tourism circuits
and Focus Tourism Destinations in the state, may submit their proposals to the Department of Tourism to
avail concessions and investment subsidies as stated in the Policy.


No Tourism Cluster Focus Tourism Destinations
1 Urban tourism Mysuru, Coorg, Belur-Halebeedu, Srirangapatna, Kalaburgi
2 Heritage tourism Hampi, Badami, Aihole, Pattadakal, Vijayapura, Kalaburgi, Bidar
3 Nature Tourism - Western Ghats Shivamogga, Uttar Kannada, Chickkamagalur, Hassan, Kodagu
4 Wildlife tourism Nagarhole, Bandipur, BRT, Kavery, Bannerghatta
5 Wellness tourism Mysuru
6 Religious tourism Mookambika, Udupi, Dharmasthala, Karkala, Muradeshwar, Gokarna, Shravanabelagola, Kalaburgi, Vijayapura, Bidar, Ramnagar (Sufi)
7 Coastal Tourism Mangaluru, Udupi, Kundapur, Muradeshwar, Karwar & Gokarna


Note: An additional 10% investment subsidy (over and above project specific investment subsidies) shall be provided for development of tourism circuits within a Tourism Cluster. A tourism circuit is defined as a route within a single Tourism Cluster, in which at least three Focus Tourism Destinations are located such that none of these are in the same town, village or city.


Annexure 3
59
319 Tourism Destinations Pan
Karnataka


No Taluka Location
Bagalkote
1 Badami Banashankari, Badami, Pattadkal, Mahakoota, Shivayogi Mandira
2 Bagalkote
3 Bilagi
4 Hungund Kudalasangama, Aihole
5 Jamkhandi
6 Mudhol
Bengaluru Rural
7 Devanahalli Devanahalli , Tippu's Birth Place & Fort
8 Doddaballapur Ghati Subramanya, Kannaswadi, Madure Temple
9 Hosakote
10 Nelamangala Shivagange, Vittal Mandir
Bengaluru Urban
11 Anekal Bannerghatta National Park, Muthyalamaduvu
12 Bengaluru North Lalbagh, Cubbon Park, Bull Temple, Tippu Pa-l ace, Fort , Someshwara Temple, ISKON, Vishweshwariah Museum
13 Bengaluru South
14 Bengaluru East

319 Tourism Destinations Pan Karnataka
60

Sr. Taluka Location
Belagavi
15 Athani
16 Bailahongala Kittur, Sri Sogala Kshetra, Degam/Degavi
17 Belagavi Ramthirtha, Rajahansaghad, Navilutheertha
18 Chikkodi
19 Gokak Gokak Falls, Godachinamalki Falls, Doopadal
20 Hukkeri Ghataprabha
21 Khanapur Halasi
22 Raibag
23 Ramadurg Shabari Valley, Nidasosi
24 Soundatti Yallama Temple Savadatti, Malaprabha Dam
Bellary
25 Bellary Bellary Fort, Kenchanagudda, Nagalakere, Sanganakallu
26 H. B. Halli
27 Hadagalli Kuruvathi, Mailara
28 Hosapete Hampi, Tungabhadra Dam, Daroji Bear Park
29 Kudlugi Kotturu, Ujjini
30 Sandur Thorangal, Ramgad
31 Siriguppa
Bidar
32 Aurad
33 Basavakalyana Basavakalyana, Narayanapura
34 Bhalki Karanja Project
35 Bidar Bidar, Bidar Fort,Gurudwara, Papanashini
36 Humnabad Humnabad, Jalasangi




61



























m

319 Tourism Destinations Pan Karnataka
62

Sr. Taluka Location
Chickamagaluru
52 Chickamagaluru Mullayyanagiri, Bababudangiri, Hiremagalur, Muthodi Game Sanctuary, Belvadi
53 Kadur Ayyanakere
54 Koppa Hirekodgi
55 Mudigere Kalasa, Horanadu, Kudremukh, Angadi, Ballalarayanadurga
56 N. R. Pura
57 Shringeri Shringeri, Kigga
58 Tarikere Kemmannugundi, Amruthapura Bhadra Project
Chitradurga
59 Challakere Thipperudraswamy Temple Nayakanahatti, Doddagudda
60 Chitradurga Chitradurga Fort, Chitradurga, Chandravalli, Jogimatti
61 Hiriyur Vanivilas Sagar, Marikanive
62 Holalkere Ganesha Temple
63 Hosadurga Haalu Rameshwara
64 Molakalmuru
Dakshina Kannada
65 Bantwal
66 Belthangadi Dharmastala, Venur, Jamalabad Kote (Nas- a simagad)
67 Mangaluru Surathkal, Panambur, Ullal, Someswara, Kate-e lu, Moodabidre, Thaneer Bhavi, Pilikula Nisar- gadham
68 Puttur Bendretheertha, Shiradi, Uppinangadi, Mahalin- geswara Temple
69 Sulya Kukke Subramanya Temple




63

Sr. Taluka Location
Davanagere
70 Channagiri Shanthisagara
71 Davanagere Kondajji Kere
72 Harihara Harihara, Harihareshwara Temple
73 Harappanahalli Bagali,Kalleswara
74 Honnali Santahebennure Pushkerni /Uchangi Durga, Thirtharameswara
75 Jagalur
Dharwad
76 Dharwad Sadhankere Lake, Nrupathunga Betta Sadanakere
77 Hubballi Siddaroodha Matha, Varooru, Sanjivini Park
78 Kalghatagi
79 Kundagol
80 Navalgund Navalgunda
Gadag
81 Gadag Lakkundi, Gadag, Beeshma Kere
82 Mundaragi Singatalur
83 Naragund Naragund
84 Ron
85 Shirahatti

319 Tourism Destinations Pan Karnataka
64

Sr. Taluka Location
Kalaburagi
86 Afzalpur Ganagapura, Datta Temple
87 Aland Aland
88 Chincholi Chandrampalli Dam, Chincholi
89 Chittapura Khaja Bandhe Nawaz Darga, Chayabhagawathi, Sannathi,Kalgi
90 Kalaburgi Kalaburgi
91 Jevargi Jevargi
92 Sedam Sedam,Malkhed
Hassan
93 Alur
94 Arakalgod Ramanathpur, Gorur Dam
95 Arasikere Haranahalli
96 Belur Belur, Halebidu
97 Channarayapatna Shravanabelagola
98 Hassan Hassan, Mosale Hosahalli, Shanthigrama, Koramangala, Doddagaddavalli
99 Holenarsipura Sri Ramadevara Betta
100 Sakeleshpura Maragunda
Haveri
101 Byadagi Kaginele
102 Hanagal Hanagal
103 Haveri
104 Hirekerur Aabalur
105 Rannebennur
106 Savanur
107 Shiggaon Shiggaon, Shishunala,Bada




65

Sr. Taluka Location
Kodagu
108
Madikeri Madikeri, Abbey Falls, Talacauvery, Nalkunadu Palace, Bhagamandala, Omkareshwara Temple, Kakkabbe Shri Iguthappa
109 Somwarpet Cauvery Nisargadhama, Harangi Dam, Kudige, Chattahalli Farm, Nisargadhama
110 Virajpet Nagarahole National Park, Irurpu, Kundada Betta
Kolar
111 Bangarapet Kotillinga Kammasandra, Kurudumale, K.G.F., Bethamangala
112 Kolar Anthargange
113 Malur Avani, Bangara Tirupathi
114 Mulbagal Mulbagal, Budikote
115 Srinivasapura
Koppal
116 Gangavathi Anegundi, Kanakagiri
117 Koppal Koppal, Hulligemma Temple, Gavi Matha
118 Kushtagi
119 Yelburga Itagi, Kuknur

319 Tourism Destinations Pan Karnataka
66

Sr. Taluka Location
Mandya
120 Krishnarajpet Daria Daulath, Hosaholalu, Kikkeri, Hemagiri Falls, Basaralu
121 Maddur Kokkarebellur
122 Malavalli Shivanasamudra
123 Mandya Hanumanthanagara Eco Park, Gaanadalu, Ho-s abudanur
124 Nagamangala Adhichunchanagiri
125 Pandavapura Melkote, Thonnurkere
126 Srirangapattna Srirangapatna, Nimishamba Temple, Brindavan Gardens, Ranganthittu, Hulikere, Krishnar-a jasagara dam
Mysuru
127 H.D.Kote Kharapura
128 Hunsur Gomatagiri
129 K.R. Nagar
130 Mysuru Mysuru, Mysuru Palace & Art Gallery, Chamun- di Hills, Sri Chamarajendra Zoological Gardens
131 Nanjanagud Nanjanagud, Suthoor Matha, Sri Kanteshwara Temple
132 Periyapatna Bylukuppe Golden Temple
133 T Narasipur Talakad, Somanathapur, Gargeshwari
Raichur
134 Devdurga Gabbur
135 Lingasugar Hatti, Mudagal Maski
136 Manavi Manvi, Kallur
137 Raichur Raichur, Naradagedde, Maliabad
138 Sindanur Ambadevi Matt




67










,

319 Tourism Destinations Pan Karnataka
68

Sr. Taluka Location
Tumkuru
150 Chikkanaya- kanahalli Theertha Ramalingeshwara Swamy - Vajra, Handanakere
151 Gubbi Gubbi
152 Koratagere Goravanahalli Laxmi, Koratagere, Siddara Betta, Theeta Reservoir
153 Kunigal Yediyur, Yediyuru Siddalingeshwara Temple, Markonahalli
154 Madhugiri Nidagal
155 Pavagada Pavagada
156 Sira Sira
157 Tiptur Araluguppa
158 Tumkuru Siddaganga, Kaidal, Devarayana Durga
159 Turuvekere Turuvekere
Udupi
160 Karkala Karkala, Karkala Jaina Basadi, Someshwara Beach
161 Kundapura Kundapura, Maravanthe, Kollur, Anejari
162 Udupi Udupi, Malpe, St. Mary’s Island, Kapu Kudlu Thirtha, Sri Krishna Temple




69

Sr. Taluka Location
Uttara Kannada
163 Ankola Ankola
164 Bhatkal Murudeshwara, Bhatkal
165 Haliyal Haliyal, Dandeli, Dandeli Wild Life Sanctuary, Ambika Nagara Power Statio(nno tourism activities permitted due to security reasons)
166 Honnavar Basavaraj Durga, Idugunji, Kasarkod Beach
167 Joida(Supa) Ulavi, Ramanagar, Castle Rocks
168 Karwar Karwar, Kurmgad, Anjadev Island, Devagad
169 Kumta Kumta,Gokarna, Yana, Dhareswara, Om Beach Rabindranath Tagore & Devabhag Beach
170 Mundagod Ativari Bird Sanctuary
171 Siddapura Siddapura, Unchalli Falls
172 Sirsi Sirsi, Sonda, Banavasi
173 Yellapur Yellapur, Sathodi and Magodu Falls, Lalguli Falls
Yadgir
174 Shahapura Sleeping Buddha
175 Surpura Narayanapur Dam, Bonala Bird Sanctuary, Rajavenkatappa Nayaka Kote and Palace
176 Yadgir Yadgir Fort, Sannakere


Annexure 4
70
Constitution of Special Committees for granting approval to
Tourism Projects and sanction
of Investment Subsidies under the Policy




71





A. District Tourism Committee
The District Tourism Committee will be headed by the Deputy Commissioner and comprises the following members
 Chief Executive Officer, Zilla Panchayat
 The Commissioner or Chief Officer of City Municipal Corporation or Municipal Council
 The Jurisdictional Executive Engineer, Electricity Supply Company Limited
 The Jurisdictional representative of the Karnataka State Financial Corporation
 The Lead District Manager of the Lead Bank
 The Jurisdictional Joint or Deputy Commissioner of Commercial Taxes
 The Commissioner, Urban Development Authority
 The Assistant Director, Town Planning
 Joint Director, District Industries Centre
 Deputy Director (Tourism) / Assistant Director (Tourism)
/ Tourism-in-charge officer (Convener)

B. Empowered Committee for Tourism
The Empowered Committee for Tourism will be headed by Hon’ble Minister for Tourism, Government of Karnataka and comprises the following members:
 Additional Chief Secretary/ Principal Secretary to Government, Department of Tourism
 Additional Chief Secretary/ Principal Secretary to Government, Commerce & Industry Department
 Additional Chief Secretary/ Principal Secretary to Government, Urban Development Department
 Principal Secretary to Government, Infrastructure Development Department
 Chairman, Karnataka Eco- Tourism Development Board
 Principal Secretary to Government, Finance Department
 Principal Secretary to Government, Kannada & Culture, Information Department
 Principal Chief Conservator of Forest, Forest Department
 Director, Commerce & Industry Department
 Director, Department of Tourism (Convener)
 Other members as required on a case-to-case basis may be co- opted as special invitees




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