Documentation Update-June 2002 - Equitable Tourism Options

DOC.M, ', - '-------------... ,-" ,., 0 0 0 " , "'_J,, "• 100 per cent FDI in courier services, hotels and tourism, development oftownships, airports, pharmaceuticals.(100 Pc. FDl fo r Airport Projects, Defence sector opened up for private participation,FDl, TH, 10/5/01)In a bid to exploit the Tourism Potential in the State, the Union Governmentapproved its first 100 per cent foreign equity in Agasthya Resorts and ToursPrivate Ltd (ARTP), engaged in Promoting Tourism. The Minister for Commerceand Industry, Mr Murasoli Maran, cleared the ARTP's proposal for Hiking ForeignEquity to 100 per cent from the existing 99 per cent at Rs 1 cr. Va rious other HotelChains were assured of increased investments. (100 pc FDJ for Agastllya Resorts,Bt, 21/6/01)Indian Hotels Company Ltd. (IHCL) has initiated talks with the Singapore AirportTerminal Services (SATS) to form a Joint Venture for handling Hospitality AirCatering Business for Airlines. (Tata-SJA joint venture in air-catering, TH, 19/7/01)The Central Government has cleared 29 FDI proposals worth Rs 135-cr mainly inthe areas of electrical, engineering, tourism and merchant banking. The proposalapproved by the Government in the Tourism Area was for Development of Leisureand Amusement Industry with 100'X, FDI to a tune of Rs 14.10-cr by MohammedAl Otaiba Group Est of Abu Dhabi. (Govt clears 29 FDJ proposals worth RS 135-cr,DH, 22/8/01)International Travel House, which has acquired the exclusive franchise for NorthIndia from the US-based Gray Line, is to launch Gray Line Luxury Coach operationsin India. They would at a later date look at extending the service to other KeyTourism Circuits including using Bangalore and Mumbai as a hub to launch toursin South and Western India respectively. (lTH gets Gray Line franchise, AshwiniPlladnis, Bt, 10/9/01)The Government has cleared 33 Foreign Direct Investment (FDI) proposals worthRs 380 Cr. The Major Investment Proposals, cleared by Commerce and IndustryMinister Murasoli Maran pertain to engineering industry, software development,machine tools, electrical and electronics components, tourism, leather, footwearand consultancy. With relation to the Tourism Industry the proposal put forth bythe British Travel and Tour Major Thomas Cook Overseas Ltd s proposal ofincreasing stake in its Indian subsidiary by 20 per cent to 60 percent. This willresult in Rs 105.31-cr as FDI inflow and the parent has already launched an openoffer for the public shareholders of the Indian subsidiary to increase its stake,(Govt clears 33 FDf proposals, DH, 20/10/01)A total of 13 projects involving Investments worth around Rs 29,OOO-cr have beeneither stalled or deferred during the first seven months of the current financialyear. Chateau International Inn Private Ltd's ambitious Rs 1,445-cr Floating Hotel(Folatel) Project in Mumbai has been cancelled following opposition from thelocal fishermen and death of the main promoter. (Projects worth Rs 28,921-crpostponed, Bt, 22/11/01, C11 /COl).Notwithstanding the current slowdown in the domestic scenario, global hotelchain Best Western International Inc plans to almost double its existing presencein the country to 30 hotels 2004.They plan to work through franchisees where it extends the Brand Name to aHotel in lieu of license fees rather than manage it. The chain which was launched21