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Tourism industry sees scope for Rs 200 billion investment

An investment of Rs 200 billion is needed to build more hotels of the approved category for an additional 60,000 rooms in the country to receive targetted five million tourists by the turn of the century.

This was revealed at the three-day annual convention of the Federation of Hotel and Restaurant Associations of India which opened in Jaipur on Friday.

About 125,000 rooms are required to meet the nation's needs. India has only 65,000 rooms or only 50 per cent of the required number.

The document presented at the convention said that a huge amount of investment should come from the private sector. Even if the extension programme was spread over five years it would require an investment of Rs 40 billion per annum.

For facilitating such a huge investment from the private sector priorities and thrust areas in government policies needed to be shifted as only progressive policies on land allotment, land pricing, investment incentives and operational profitability could make the difference.

The document said the Union government had announced a target of five million tourists for ar 2000 but necessary follow up policies had not been undertaken so far and going by the current trends and policies the magic figure of five million tourists might take a long time to come.

UNI