Tourism Policy 2021-25 in Gujarat Highlights

We are here producing few Highlights for Recently announced Tourism Policy 2021-25 in Gujarat by our honorable CM Vijaybhai Rupaniji. The given points are given on the basis of announcement, detailed G.R and guidelines will be published by Gujarat Government shortly.

Tourism sector – A key contributor to India’s economy

Global Travel and Tourism Scenario

The travel and tourism industry is one of the crucial sectors driving socio- economic growth in an economy, which is evident by the fact that it contributes  around 10% to the global GDP, valuing close to USD 9 trillion. In terms of employment, the travel and tourism industry employed around 330 million people globally in 2019; which means 1 out of every 10 jobs globally was supported by travel and tourism industry. The travel and tourism industry has the potential to stimulate economic growth, create employment and business opportunities, and bring social inclusiveness.

India-10th Largest tourism economy globally in terms of GDP contribution

India too is one the key nations in global travel and tourism industry. According to the World  Travel and Tourism Council estimates, India ranked 10th among the 185 countries in term of travel and tourism industry’s total contribution to GDP in 2019. Globally, India is the only country after China and Philippines that has showcased a higher tourism industry GDP growth (~5%) than that the global average (~3.5%) . Some of the quickly key facts about the sector’s  contribution and its role in India’s economy are highlighted below.

Impact of Tourism Sector in India’s economy

Source : India Tourism Statistics 2020, Ministry of Tourism, Government of India. Data is for the year 2019, unless otherwise specified.

Gujarat- A roaring lion of Tourism in India

A 3500 year old heritage, diverse natural, cultural and geographical history, the vibrant stage of Gujarat occupies 6% of India’s geographical area, making it the 5th Largest Indian state. Strategic location, longest coastline, wildlife sanctuaries, natural grandeur and globally recognizes heritage sites are gifts of Gujarat. Centuries old sculpture, handicrafts, arts, and festivals make the state culturally rich. not only this, Gujarat is at the forefront on various aspects of tourism such as:

• World’s tallest statue – Statue of Unity ( Kevadia)
• World’s only home for Asiatic lions – Gir forest
• Asia’s longest ropeway – Girnar ropeway
• India’s first world Heritage City by UNESCO – Ahmedabad city
• World’s earliest known dock and India’s first port city – Lothal
• Home to one of the India’s exemplary city planning model of Indus Valley Civilization – Dholavira
• Home to one of the Blue Flag Certification beaches in India – Shivrajpur beach ( Dwarka )
• india’s first seaplane service- Sabarmati Riverfront in Ahmedabad to Statue of Unity in Kevadia

such diversification and richness on many fronts have helped Gujarat achieves an immense growth in the total tourist football. In the span of 9 years (2009-2018) ,  it has grown at 15% CAGR, surpassing India’s total tourist football growth at 12%. Gujarat ranked 9th in terms of domestic tourists and 12th in terms of FTAs in India in 2018.

Vision, Mission and Objectives

Vision:

Positioning Gujarat as the foremost tourist destination in India by developing it in a sustainable, responsible and inclusive manner, with focus on investment and livelihood opportunities.

Mission:

• Significantly augment tourist football in Gujarat by providing better facilities and enhanced experience to visitors.
• Develop livelihood opportunities.
• To propel economic growth through tourism in sustainable and exclusive manner.
• To promote balanced regional development and diversification given the inherent strengths of Gujarat.
• To create an enabling ecosystem for investors and other tourism stakeholders.

Objectives :

• To became one of the leading states in India in terms of tourism football.
• Strive to double the employment in tourism sector.
• To increase sectoral contribution in range of 5%-7% of GSDP.
• Ensure at least 50% of the new and 30% of the existing projects comply to sustainability standards.
• Ensure the benefits of the developments are percolated to local community.
• Position Gujarat as one of the top 5 MICE destinations in India.
• Introduce innovative tourism products & offering to ensure round the year tourism.
• Walk the path of “Aatmanirbhar”  and ‘Vocal for Local’ principles to maximize benefits.
• Encouraging accreditation to all the key service providers within the state and create an exhaustive database.
• Streamline investment facilitation for encouraging investments in the tourism sector.

Strategies

Towards sustainability

While the global travel and tourism industry contributes to 10% of the global GDP, valuing close to USD 9 trillion, it contributes to around 8%  of the world’s carbon emission. Various aspects such as transport, lodging, construction, food and beverages and such tourism related activities contribute to tourism’s footprint. As per the estimates by United Nation World Tourism Organization (UNWTO), transport related emissions from tourism are expected to account for 5.3% of all made CO2 emissions  by 2030. India’s tourism sector carbon footprint is the fourth largest in the world and with the growth of the sector, shifting gears to encourage investments in green (energy efficient ) buildings, low carbon transport systems and such sustainable measures is the need of the hour.

Gujarat has already taken a step towards sustainability by adopting the “Sustainable Tourism Criteria for India” laid down by the Ministry of Tourism (MOT), Government of India, and undertaking concerted activities under

“Swachh Bharat” and “Swachh Gujarat” Taking a step further, the Gujarat Tourism Policy 2021-25 now encourages and incentivities:

• Adoption of E-Vehicle by tourism service providers.
• Projects obtaining Green Building or Sustainability Certification under IGBC or GRIHA or LEED or any such international accreditation / certification as identified by SLEC  from time to time.
• Establishment of E-Vehicle charging stations.
• Obtaining GSTC certification through GSTC accredited agencies by tour operators.

Tourist-centric approach – Atithi Devo Bhava

“Atithi Devo Bhava” – Going tourism Policy 2021-25 strives o improve the host- guest relationship by ensuring a safe, comfortable and exclusive experience for all tourists. For ensuring hassle free experience to the foreign tourists visiting the state digital inventions shall facilitate payments at registered hotels and resorts across the state. tourists availing this facility are eligible for discount up to Rs. 20,000.

Vocal  for Local – Promoting unique and lesser explored products

Banking on the central government’s vision of going “Vocal for  Local” , the Gujarat Tourism Policy 2021-25 intends to promote unique and lesser explored products that exhibits Gujarat’s art and culture. An integrated approach will be adopted to further increase the visibility of indigenous products and truly wlk the path of “Vocal for Local”.

A Hand- in-Hand – Augmenting tourist infrastructure

A Hand-in-Hand- Augmenting tourism infrastructure

Augmenting tourist infrastructure  would be one of the key focus areas for the state tourism department to position Gujarat as the foremost tourist destinations in India . The state tourism department would work in tandem with the other concerned authorities and departments on the following areas:

• Encouragement for development of facilities and services required for tourist reception including but not limited to hotels, wellness resorts, convention centers, wayside amenities, commercial places, and such tourist facilities as and when decided by the state tourism department.
• Granting additional financial support for tourism development at identified High priority Tourism Centers.
• Upgradation and/or development of the tourism infrastructure within the vicinity of major tourist destinations. Standards hygiene and sanitation facilities to be developed on the national/state highways connecting the tourism destinations.
• Leveraging various central government’s schemes and assistance for tourism infrastructure development.

Giving a boost to the service sector

Tourism is deemed as one of the dynamic sectors globally owing to its seasonal and cyclic nature, along with diverse base of customers. To turn this dynamism into an opportunity, the state tourism department is extending support to the entire ecosystem of tourism sector including hotels/wellness resorts, convention centers, theme parks, tour operators, tourist guides and other tourism service providers to create direct and indirect job opportunities.

Ease of Doing Business

An inevitable aspect for achieving the stated Vision, would be creation of an investor friendly conductive environment. The aim is to create an enabling ecosystem for the prospective investors that addresses their concern in a timely manner, strives to streamline procedures and creates the possibility of effective and smooth implementation of the policy aspects. The state tourism department would work towards the following aspects to facilities an ease in doing business

• Strengthening of the institutional framework and mechanism for timely implementation.
• Business process re-engineering to simplify existing processes and reduce turnaround time.

Development of single window clearance mechanism.

• strengthening partnership with central government and other state governments and the private stakeholders of the tourism industry.

Ensuring coordination among all the concerned state government departments.

Operative period of the policy

This Policy shall come into force effect from 1st January 2021 and shall remain in force till 31st December 2025.

Tourism product offerings  

The Gujarat Tourism Policy 2021-25 offers a wide spectrum of tourism product offerings, which has been made possible given the natural cultural and geographical richness of Gujarat.

Incentives

Hotel:

Capital subsidy of 20% on the eligible capital investment, for setting up a project at the identified High Priority Tourism Centers in Gujarat, with minimum capital investment of ₹  1 Cr.

Theme Park / Amusement Park:

Capital subsidy of 15% on the eligible capital investment, for setting up a world class theme park/ amusement park with capital investment ranging from ₹ 50 Cr. to ₹ 500 Cr. In case of capital investment of more than ₹ 500 Cr. for setting up a new project, 15% of the eligible capital investment and if required, land on lease to be provided by the State Government.

Convention Center ( along with related facilities) with at least one hall with seating capacity of 2,500 persons or more:

Capital subsidy of 15% on the eligible capital investment and if required, land on lease to be provided by the State Government.

NABH accredited Wellness Resort:

Capital subsidy of 15% on the eligible capital investment, for setting up a project.

Tourism Hospitality and Training Institute :

Capital subsidy of 15% on the eligible capital investment, for setting up a project.

Tented / Container Accommodation / Motel / Wayside Amenities / Bhunga /Cottage / Log hut:

Capital subsidy of 15% on the eligible capital investment, for setting up a project.

Tour Operator / Hotels / Wellness Resorts and others

1) Capital subsidy of 15% of the eligible capital investment for Caravan, up to ₹ 10Lakh,

2)  Capital subsidy of 15% of the eligible capital investment for adventure tourism equipment, up to ₹  15 Lakh and

3) Capital Subsidy of 15% of the eligible capital investment for sailing infrastructure of river cruise, up to ₹ 25 Lakh.

Capital subsidy of 15% of the eligible capital investment for E-Vehicles (2/3/4 wheeler and above ) and getting  registered at the identified High Priority Tourism Centers, up to ₹ 2 Lakh. ( Also applicable for Tourist Transport Operator)

Interest subsidy of 5% , up to ₹ 3 Lakh per annum for 5 years for setting up new offices in Municipal corporation area, and 7%  up to ₹ 5 Lakh per annum for 5 years for setting up new offices in area other than Municipal Corporations. (Also applicable to travel Agent)

Any private player:

Capital subsidy of 25% on the eligible capital investment for setting up public charging station for E- Vehicles, up to 10 Lakh.

Foreign Tourists:

Discount of 5% on stay at registered hotels and resorts & 10% on purchase of products from Garvi Gujarat via Gujarat Tourism Card / E- Vouchers and issue of online Tourism Vouchers with a total limit of 20,000.

MICE Event Organizer:

For organizing international events, assistance of ₹ 5,000 per foreign participant for overnight stay, with maximum assistance up to ₹ 5 Lakh per event. For organizing domestic events, ₹ 2 lakh per event, with a limit of 3 events per organizer per year.

Rural Tourism Fair Organizer:

Assistance of ₹5 lakh per year per Rural Tourism Fair Organizer, for organizing all inclusive annual fairs and festivals for showcasing indigenous culture, dance, handlooms, handicrafts, etc. within Gujarat.

Recognized Tour / Hotel Associations / Chamber of Commerce:

Assistance of ₹5 lakh per year association/chamber of commerce for undertaking market research studies pertaining to tourism industry.

Sustainable Tourism:

Reimbursement of 50% of the certification fees paid, up to ₹ 10 lakh to hotel/ wellness resort obtaining Green Building Certification under IGBC/GRIHA/LEED or any such international accreditation/ certification as identified by SLEC from time to time.

Reimbursement of 50% of the certification fees paid, up to ₹ 5 lakh to Tour Operator for obtaining GSTC certification through GSTC accredited agencies.

Payroll incentive:

Reimbursement to Hotel/Resort/Tour Operator for providing employment to tourist guides by providing payroll incentive of 25% of the monthly remuneration deposited in account of the tourist guide, up to ₹4,000 per guide per month for a duration of 6 months for a period of 5 years.

Marketing & Promotion:

1) For participation in National/international exhibition within Gujarat, reimbursement of 50% of the space rent up to ₹ 30,000

2) For participation in National Level exhibition outside Gujarat, reimbursement of 75% of the space rent up to ₹ 2 lakh,

3) For participation in international level exhibition outside Gujarat, reimbursement of 75% of the space rent up to ₹  2 lakh and

4) For participation in exhibition outside India, reimbursement  of 60% of the space rent up to ₹ 5 lakh as well as reimbursement for expenses on economy airfare for round trip up to ₹ 40,000. ( applicable to Hotel/Wellness Resort/ Convention Center/ Tented Container Accommodation / motel / Wayside Amenities/ Bhunga/ Cottage/ Log hut/  Heritage units/ Homestays)

General Benefits:

100% exemption from electricity duty for a period of 5 years ( applicable only to new projects ). 100% reimbursement of Stamp Duty/Registration fee.

Note: The incentive mentioned in this blog /document are suggestive in nature. The detailed GR/Guidelines shall be  released covering the final incentives and benefits under the Gujarat Tourism Policy 2021-25  by Government of Gujarat in future.

Implementation Mechanism

A 3- tier institutional framework constituting of State Level Empowered Committee (SLEC), State Level  Implementation Committee (SLIC) and Project Management Unit ( for monitoring, investment promotion and implementation) has been proposed under The Policy.

Annexure 

List of High Priority Tourism Centers in Gujarat