Tourism sector- Akey contributor to India's economy CCN CUE CO ee CuC i The ravel and tourismindustryisone of the crucial sectors driving soco-economicgrowth nan economy, whichis evidentby the factthatit contributes around 10% to the global GDP, valuing close to USD 9 tilion. In terms of employment, the travel and tourism industry emplayed 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 industryhas the potential to stimulate economic growth, reate employment and business opportunities, and to bring socal inclusiveness. India- 10th largest tourism economy globally in terms of GDP contribution Indiatoois one ofthe key nations in global travel and tourism industry. According tothe World Travel and Tourism Council estimate, India ranked 10thamong he 185 countiesinterms of travel and tourism industystatal contibutionto GDPin2019. Globally Indiaisthe only country after China and Philippines that has showcased a higher tourism industy GDP growth (~5%6) than that ofthe global average (3.5%). Someot the quickkey ats about he sector's contibutionanditsolein India’s economy ae highlighted below Impact of Tourism Sector in India’s economy Tourism sector's contribution to India’s GDP 6.8% re eR globally interms of 231d WorldTouristArval Employment generated by the tourism sector 14 Million Total numberof foreign TourtArivals(FAs) 109Milion _ icaspostlonglobayintermsof re Total number of Domestic Tourist visits 2,322 Million Indi’ poston indsiaPaiicRgionin — Earnings from Foreign Exchange USD 30 Billion terms of World TouristArrval FDI inflow in hotel and tourism space ‘USD 13 Billion India's position in Asia Pacific Regionin 6th {April 2000-June 2019) terms of World Tour'sm Receipts ‘Source: IndaTourism Statistics 2020, Ministry fours, Government of india Dataisfortheyear2019,urlessotherwisespectied CTS MCCUE COC ‘A350 year old heritage, diverse natural, cultural and geographical history the vibrant state of Gujaratoccupies 6% of India's geographical area, making it the Sth largest Indian state Strategic locaton, longest coastline, wildlife sanctuaries, natural grandeur and globally recognized heritage sites are gifts of Gujarat. Centuries old sculpture, handicrafts ats and festivals make the state culturally rich. Notonly this, Gujaratis atthe forefront on various aspects of tourism suchas: ‘+ Worldstalleststatue-Statue of Unity (Kevadia) ‘World’sonlyhome forAsiatclions-Girforest Asia's longestropeway-Gimar ropeway India's firstWorld Heritage City by UNESCO-Ahmedabad city ‘World's earlestknown dockand India'sfist port city-Lothal Hometo one ofthe india’ exemplary ciy planning model of Indus Valley Civilization -Dholavira Home to one of the Blue Flag Certification beaches in India-Shivrajpur beach (Dwarka) Indias fist seaplane service: SabarmatiRverrontin Ahmedabad to Statue Unity inKevadia Such diversification and richness on many fronts have helped Gujaratachieve an immense growth inthe total tourist footfall. Inthe pan of 9 years (2009-2018), it has grown at 15% CAGR, surpassing India's total tourist footfall growth at 12%, Gujarat ranked 9th in terms of domestictouistsand 12thintermsaf FAsin India in2018,Vision, Mission and Objectives Positioning Gujaratas the foremost tourist destination in India by developing it ina sustainable, responsible and inclusive manner, wth focus oninvestmentand livelihood opportunites. + Significantly augment ouristfootal in Gujaratby providing betterfacitiesand enhanced experiencetovisitrs + Developlivelinood opportunities, + Topropel economicgrowth through tourism in sustainable, responsible and inclusive manner. + Topromote balanced regional developmentand diversification of tourism oferingsgiventheinherentstrengths of Gujarat + Tocteate an enabling ecosystem forinvestors and other tourism stakeholders. + Tobecome one ofthe eadingstatesin Indiainterms of touistfootal + Strivetodoublethe employmentin tourism sector. + Toincrease sectoral contribution inrange of S8-7% of GSDP. + Ensureatleast 50% of the new and 30% of the existing projects complytosustainal + Ensurethe benefits of he developments are percolated tolocal community. + Position Gujaratasone ofthe top SMICE destinations inindia + Introduceinnovative tourism products &offeringstoensureroundtheyeartourism + Walkthe path ofatmanirbhar® an! Vocal forLocal prnciplesto maximize benefits + Encouraging accreditation toallthe key sewviceproviderswithin the state and create an exhaustive database + Streamline investment facilitation forencouraging investmentsinthe tourism sector. Strategies MOE eee ability While the global travel and tourism industry contibutes to 10% af the global GDP valuing cose to USD 9trlion, itcontributes to around 8%4of the world’s carbon emission Vaious aspects such a transport ladging, constuction food and beverages and such tourism related activities contribute to tourism’s carbon footprints per the estimates by United Nation World Tourism Organization (UNWTO), transport related emissions from tourism are expected to account fr 5.3% ofall man-made CO2 emissions by 2030. India’s tourism sector carbon footprints the fourth largestin the world and with the growth ofthe sector, shitting gears to encourage investments in green (energy efficient) buildings low carbon transportsystemsandsuch sustainable measuresisthe need af thehout Gujarathas already taken a step towards sustainability by adopting the “Sustainable Tourism Criteria fo India’ laid down by the Ministry of Tourism (Mo), Governmentoflindia,and undertaking concerted activitiesunder *Swachh Bharat” and “Swachh Gujarat” Taking a step futher, the Gujarat Tourism Policy 2021-25 now encourages and incentivzes: * Adoption of Vehicles by tourism service providers + Piojets obtaining Green Bulding or Sustainability Certification under GBC or GRIMA or LEED or any such international accreditation! certification asidentfiedby SLEC rom timeto time . Establishment of Vehicle charging stations. + Obiaining STC certification through GSTCaccreditedagenciesby tour operators. TRAC TRL ARAL ARAL ARICA PRA RL CCNTourist-centric approach- Atithi Devo Bhava “mithi Devo Bhava’. Going by this principle the Gujarat Tourism Policy 2021-25 strivesto improve the host-quest relationship by ensuringa safe, comfortable and inclusive experience fa all tourists. For ensuring hassle free experience tothe foreign tourists visting the state digital interventions shal facilitate payments at registered hotels and resorts across the state Tourists availing this facility are eligible for dliscountupt0® 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 Gujara’s art and culture. An integrated approach willbe adopted to further increase the wisibity of indigenous productsandtruly walkthe path of Vocalforocal’ AHand-in-hand- Augmenting tourist infrastructure ‘Atland-in-hand-Augmenting touristinfrastructure Augmenting tourist infastructure would be one of the key focus reas forthe stat tourism departmentto position Gujaratasthe foremost toutist destination in India, The state tourism department would workin tandemuit the other concerned authoritiesand departmentson thefollowing areas: + Encouragement for development of facilities and services required for tourist reception including but not limited to hotels, wellness resors, convention centers, wayside amenities, commercial places, and such tours faites as and when decided by the statetourism department. + Grantingadeltional financial suppor fortourism developmentatidentfiod High Priority Tourism Centers es Upgradation and/or development of the tourism infrastructure within the vicinity of major tourist destinations. Standard hygiene and sanitation faites to be developed onthe national/state highways connecting the tourism destinations e Leveraging various central government's schemes and assistance fortourism infrastructure development. 1g a boost to the service sector Tourism is deemed as one ofthe dynamic sectors globaly owing tits seasonal and cyclic nature, alang with diverse base ofcustomers.To {urn this dynamism into an opportunity, the state tourism department is extending supporto the entire ecosystem of tourism sector including hotelsiweliness resorts, convention centers, theme parks, tour operators tourist guides and other turism service providers to «reatedirectandindirectjob opportunities. Ease of Doing Business An inevitable aspect for achieving the stated Vision, would be creation ofan investor friendly conducive environment The aim isto create an enabling ecosystem forthe prospective investors that addresses their concemsin timely manner, stivesto streamline procedures and caeates the possibility of effective and smoath implementation of the policy aspects. The state tourism departmentwould work towards the following aspectstofaciitatean ease in doing business + Stwengthening of theinsttutional frameworkand mechanism fortimely implementation + Businessprocess reengineering to simply exstng processesandreduce turnaround time. + Developmentof single window clearancemechanism, + Swengthening partnerships wth central government and other state governments andthe privat stakeholders ofthe tourismindust. + Ensuring coordinationamongstallthe concerned state governmentdepartments Operative period of the policy ThisPoliy shall come into force with effectfrom ‘stJanuary2021 and shall remain in force till31st December 2025.Tourism product offerings The Gujarat Tourism Policy 2021-25 offersa wide spectrum of turism product offerings, which hasbeen made possible given the natura, cultural and geographical richness of Gujarat. . Adventure and Wildlife Tourism: . MICETourism . MedicalTourism + Wealnesstoursm . Caravan Tourism . River CruiseTourism . Religious! Spiritual Tourism . Rural Based ExperienceTourism Incentives Capital subsidy of20% onthe eligible capital investment, fr seting up 2 projectat he identified High P Gujarat, wth minimum capitalinvestmentof® 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 Crto® 500 Cr. Incase of capital investment of more than & 500 Cfo setting up new project, 15% of the cligiblecapitalinvestmentandif required, land on lease tobe 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% onthe eligible capital investmentandif required, land on lease tobe provided bythe State Government. UE Ce AN ar Capital subsidy of15% ontheeligibl capital investment for setting up projec. Tourism Hospitality and Training Institute: Capital subsidy of15% ofthe eligible capitalinvestment, for setting up a project, Tented / Container Accommodation/ Motel/ Wayside Amenities/ Bhunga/ Cottage/ Log hut: Capital subsidy of 15% oftheeigible capital investment, forseting upaprojec. Tour Operator / Hotels / Wellness Resorts and others: 1) Capital subsidy of 15% ofthe eligible capital investment for Caravan, up to 10 Lakh, 2) Capital subsidy of 15% ofthe eligible capital investment or adventure tourism equipment, up to& 15 lakh and 3} Capital Subsidy of 15% ofthe eligible capital investment for sailing infrastructure of river ruse, upto® 25 lakh Capital subsidy of 15% ofthe eligible capital investment for Vehicles (2/3/4 wheeler and above) and getting registered at the identified High riot Tourism Centers, up to®Zlakh. (Also apalicableforToutistTransport Operator) Interest subsidy of 5%, up to® 3 lakh per annum for Syearsfor setting up new ofices in Municipal Corporation area, and 7% up to 5 lakh perannumforS yearsforseting up new oficesin areas atherthan Municipal Corporations. (Also applicable to Travel Agent)Any private player: Capital subsidy of 25% onthe eligible capita investment forse ting up publiccharging station forE Vehicles, up toZ110 lakh. Lo Discount of 5% on stay at registered hotels and resorts & 10% on purchase of products from Garvi Gujarivia Gujarat Tourism Card /E Vouchers andissue of online Tourism Vouchers with total imitof120,000. MICE Event Organizers For organizing international events, assistance of € 5,000 per foreign participant for ovemight stay, with a maximum assistance up to %5akh per event For organizing domestic events, 2lakh per even withalimitof 3 events perorganizeper year. Fa 5 a ey = Ej z °o tt ro 3 5 Assistance of 85 lakh per year per Rural Tourism Fair Organizer, for organizing alLinclusive annual fait and festivals for showcasing indigenous culture, dance,handlooms handicrafts, tc. within Gujarat Recognized Tour/ Hotel Associations/ Chamber of Commerce: Assistance of ® 5 lakh per year per association/chamber of commerce for undertaking market research studies pertaining to tourism industry. Reimbursement of 50% of the certification fees paid, up to 10 lakh to hotel / wellness resort obtaining Green Building Certification under GBCIGRIHA/LEED oranysuchinternational accreditation) certificationas identiedby LEC homtimetotime Reimbursement of 50% ofthe certification fees paid, up to ® 5 lakh to Tour Operator for obtaining GSTC certification through GSTC accredited agencies Reimbursement to Hotel/Resort! Tour Operatar fr providing employment o tourist guides by providing payrll incentive of 25% ofthe ‘monthy remuneration depositedinaccount ofthe tourist guide, up 0% 4,000 per guide permanth fra duration of 6 monthsfora period of Syears Marketing & Promotion: 1) For participation in Nationalfinterational exhibition within Gujarat, reimbursement of 50% ofthe space rent up to& 30,000, 2) For participation in National Level exhibition outside Gujarat, reimbursement of 75% ofthe space rent up to8 1 lakh, 3) For participation in International level exhibition outside Gujarat, reimbursement of 75% ofthe space rent up to. & 2 lakh, and ) For participation in exhibition outside India, teimbursement of 60%a the space rentupto® lakh as wel as reimbursement for expenses on economy airfare for round tip up to 8 40,000. (applicable to Hotel Wellness ResortConvention Center/ Tented / Container Accommodation! Motel Wayside amenities! Bhunga/ Cottage! Log hut! Hertage units Homestays) For points 1)and2) combined total of upto S events during the policy period shallbe allowed for claiming benefit whereas for points 3) and) each up to events duing the polit period shal bellowed for claiming benefits CSG ics 100% exemption from electricity duty for a period of 5 years (applicable only to new projects). 100% reimbursement of Stamp DutylRegistation fee Note: The incentives mentioned inthis document are suggestive in nature. The detailed GRIGuidelines shall be released covering the final incentives and beneftsunderthe GujaratTourism Policy 2021-25Annexure Kutch Entire district Dwarka Entire district Narmada Entire district Gir-Somnath Entire district Porbandar Entire district Junagadh Entire district Dang Entire district Jamnagar Jamnagar Rural Mahisagar Balasinor, Santrampur and Kadana Panchmahal Halol and Jambughoda Banaskantha Danta and Suigam Vadnagar, Becharaji, Kadi re and Kheralu Tapi Uchchhal Note Any tack can beaded, andthelstanbe madifiedbySLEC Implementation Mechanism ‘A3ier institutional framework constituting of State Level Empowered Committee (SLEC), State Level Implementation Committee (SUC) and Project Management Unit(for monitoring, investment promotion and implementation) has been proposed under The Policy Surendranagar Vadodara Sabarkantha Valsad Dahod Bhanvnagar Bharuch Amreli Chhotaudepur Aravalli Sidhpur, Patan and Sankheshwar Chotila and Dasada Dabhoi Vijaynagar, Idar and Poshina Umergam, Dharampur and Valsad Vansda and Jalalpore Dhanpur and Devgadh Baria Ghogha, Palitana and Bhavnagar Rural Jhagadia Dhari Chhotaudepur, Kawant, Nasvadi and SankhedaE Industries and , Mines Department GujaratTourism Government of Gujarat www.gujarattourism.com New Sachivalaya, Gandhinagar