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