Documentation Update-June 2002 - Equitable Tourism Options

cr from Tourism set for the year 2001-02 would be missed by a margin of 30 percent. (Tourism industry may suffer Rs 4000-cr loss, ET, 13/1 0/01)Persons going abroad on private travel or tours now need not get the endorsementof FE dealers on their passport for the exchange released. Till now is was mandatoryfor authorised dealers to endorse on the traveller's passport the foreign exchangereleased for travel and tourism. The RBI sent out a statement mentioning that thebasis of this declaration given by the traveller regarding the amount of FE availedduring the year, authorised dealers may release exchange for travel and privatepurposes. (Travellers' forex procedure eased, BL, 25/1 1/01)Tourism InfrastructureThe Uttar Pradesh Government has prepared an Rs 1020-cr scheme for theDevelopment of Tourism Infrastructure in the Buddhist Circuit that will be fundedand implemented by the Japan Bank of International Co-operation. (Rs 1020-crscheme for tourislIl, BL, 20/9/01, B31/COO)I '"COl Tourism Sector Budgets SOl• I , • "' ''' I ' nBudgetary allocation for the Tourism Industry has been fixed at Rs 155-cr for thenext financial year, up from Rs 135-cr allotted in the current fiscal. According tosources, allocation for the itldustry was earlier fixed at Rs ISO-cr. The forthcomingBudget for the first time might have a separate paragraph, which would bededicated to the tourism industry. The Tourism Ministry was also looking forwardto the sanctioning of several new schemes designed by it to Promote Tourism.(Tourism outlay at Rs IS5-cr, FE, 13/2/01)Planning Commission Deputy Chairperson K.C. Pant is learnt to have cleared therelease of Rs Sl-cr in plan funds for overseas tourism marketing, over-riding a SOper cent cut decision by a commission worried about the way these funds werebeing used.The decision comes from Union Tourism Minister Jagmohan requesting Mr Pant'sintervention, promising a fresh look at the overseas marketing effort andrestructuring exercise by March 31.At the Government Level, the Tourism Department's 18 overseas offices weregetting Rs SI-cr a year for the first four years of the Ninth Plan. This year, it wasreduced to Rs 25-cr, the Commission feeling the need for a relook at these offices.The issue, it seems, could not be resolved at the bureaucratic level. So, Mr JagmohanDecember 19 letter to Mr Pant, making essentially four points for restoration.One, rupee-dollar parity has become unfavourable, so actual remittances havegone down greatly. Two, activity has come to a "near standstill" at a time whencompetitors like Malaysia and Singapore have stepped up promotional efforts tofill the post-September 11 vacuum. Three, it's too late in the year to cut funds.Lastly, Mr Jagmohan spelt out his plans to establish brand equity based on thecountry's civilisation and culture. (Rs 51-cr allotted fo r tourism, Chillldrika Mago,TOl, M, 29/1 2/01)C02 Foreign Investment in Tourism Sector '" ., "0,; ., I , '. J .11The UK-based Forte Group of Hotels has outlined plans to introduce its leadingbudget hotel Brand Travelodge in India. The group plans to have 75 Travelodgeby way of Joint Venture over a three·year period. India will be the only marketoutside UK to have Travelodges hotel brand. The Forte group will also be theFirst Foreign Hotel chain to have a presence through foreign direct investment19