Though having a vast potential for generating high foreign exchange, tourism sector in the country is bogged down by several factors, mainly high taxes and difficult visa process. When compared to other South East Asian countries, the tourist inflow from other countries to India is comparatively less, says Sanjiv Agarwal, organiser of Travel and Tourism Fair (TTF).
Sanjiv, who is in Hyderabad as part of the three-day Travel Trade Show of TTF, which is its 105th show in the country, says that higher taxes is the main reason for higher prices of every thing right from hotel accommodation, air travel, bus and other modes of transport.
‘’In hotels, luxury tax and service tax are levied very high, which makes the stay in hotels across the country a very costly affair. I had recently stayed in a five star hotel in Delhi, where inbound tourist traffic from other countries is high. The luxury tax charged was 20 percent,’’ he said.
Even the air travel is not cheaper, though air service providers like Indigo, Spicejet, Jet Airways claim to provide no frills air travel, he said. According to several travel and tourism operators, the foreign tourists to the country could be much higher, if not for high rates of taxes.
They say transport including air travel has become costly owing to high taxes on fuels including aviation fuel and ground handling charges. “Because of travel and accommodation being pricey, the tourism potential is not being realised as it should be,’’ opines Sanjiv.
According to World Travel and Tourism Council, tourism sector was predicted to grow at an average annual rate of 7.7 percent in the current decade. But, it is rather doubtful, whether the predicted growth is being realised or not.More number of travel and tour operators are concentrating on outbound tourism to survive in their business.
Even the air service providers are doing good in that regard with less competition with some players like Kingfisher and Deccan Airways not in race any more. A report from the tourism department in Delhi in 2000 had mentioned that constraints like lack of proper infrastructure facilities, knowledgeable and skilled human resources, lack of inter-department coordination need to be overcome to attain the full potential of tourism sector in the country, which can emerge as a major employment source and revenue earner.
“Another important constraint is tedious visa process. Though the government had taken up a pilot project to introduce tourist visa on arrival for tourist from some selected countries, it should be made a general practice. There are always rules that can prevent the unwanted from entering the country,’’ Sanjiv says.
He says it is high time the policy-makers think about treating tourism sector like IT sector and provide it with incentives etc.