NEW DELHI: The Tourism Ministry is all set to roll out its ambitious challenge-based scheme to boost the country’s tourism sector, under which up to 50 destinations across India will be transformed into “global-standard” tourist hubs.
Financial assistance of up to Rs 500 crore per project will be provided.
The proposed programme, aimed at improving hygiene, safety, visitor experience and tourism infrastructure, will also introduce real-time tourist feedback dashboards and mandatory third-party audits to monitor performance and ensure better management and accountability of states.
According to the framework and guidelines prepared by the ministry, each selected destination could receive financial support of up to Rs 500 crore, of which Rs 200 crore will be earmarked specifically for destination management systems, while the remaining Rs 300 crore will be spent on infrastructure development.
The scheme is in accordance with the Prime Minister's vision of “One State: One Global Destination”.
Officials said that the financial assistance, however, would not be disbursed up front.
Instead, funds will be released in phases linked to performance benchmarks cleared by the states. The ministry has drafted a four-level funding mechanism under which destinations will have to meet predefined standards and clear periodic assessments before becoming eligible for the next tranche of assistance, officials added.
While presenting the Union budget in February last year, Finance Minister Nirmala Sitharaman announced that at least 50 destinations would be selected and developed as a complete package of tourism.
She further explained that the destinations would be selected through challenge mode using an integrated and innovative approach, while the focus of development of tourism would be on domestic as well as foreign tourists.
Under the scheme, the ministry is looking at developing tourism hubs alongside the identified destinations to address shortages in accommodation and visitor facilities while encouraging private investment through public-private partnership (PPP) models.
“We need an infrastructure upgrade to develop a tourism hub, we need to increase capacity; more hotel rooms. The Centre will put some money into developing the infrastructure. The idea is to get a Public Private Partnership (PPP) route to get investments into it. Rs 500 crore for each destination is the threshold ... Every time a state reaches a level, it will qualify for the next level,” said officials, privy to the matter.
For monitoring and to ensure that the scheme yields desired results, the ministry has planned to undertake a third-party assessment.
“At every level, the state will have to perform. If the third-party assessment comes out well, then you automatically qualify for the second level. And we will also have a public dashboard. In which people will be able to give their feedback on these destinations in real time. The framework is ready and will be launched as soon as it gets a nod,” an official added.
The industry welcomed the “challenge mode” scheme announced by the finance minister, stating that it could help promote lesser-known circuits and identify niche tourism sections such as wellness, eco and astro tourism.
The General Secretary, Federation of Associations in Indian Tourism & Hospitality (FAITH), Rajiv Mehra, said that the challenge mode signifies a major change in the approach; however, everything that is proposed should have a time-bound implementation process.
“Tourism in India so far has been a case of missed opportunity. We all agree that tourism creates employment and everybody, whether hotels, taxis, local artisans, guides, restaurants and small businesses, benefits, but we need to see implementation of the policies on the ground, for which coordination between central, state and local authorities is a key factor,” he said.