Thursday, July 18, 2013
No takers for tourism projects (Herald)
19/07/2013
No takers for tourism projects
“ The tourism sector, perhaps the only milch cow left in Goa after the mining ban, is grappling with adrying up of investment. JULIAN D’CRUZ crunches some hard numbers to find out just how bad the situation is
TEAM HERALD G oa has a lot to boast about when it comes to the impressive growth in tourist arrivals. The case though is quite different when it comes to attracting investments in the State’s primary economic sec- tor, the tourism industry. Over 2.6 million tourists trav- elled to holiday here, lured by the call of the sun and sand last year. While traffic in tourist arrivals by the long- haul charters has shown an impressive growth of 10 to 15 per cent seasonally, the investment graph has remained stagnant . Except for investments in the small luxury and semi- luxury ho- tels that have set up shop in the State, high end tourism projects that would have added value to brand ‘ Goa’ have eluded this sea- side destination. This though is not to say that there have not been any serious en- quiries. The government received several proposals, but most of them have remained only on paper, and in many cases they have been shelved. One of the biggest problems, it appears, is the poor PR on the part of the authorities. The State gov- ernment has made little headway in creating a friendly environment to attract agencies and consor- tiums that might have been eyeing Goa as an investment opportunity.
Last year the Goa Chamber of Commerce and Industry ( GCCI) had told Herald that a few tourism investment proposals had been re- ceived, but they made no progress. A year later, GCCI’s director gen- eral Ramakant Kamat says: “ One of the proposals might be revived. If it does, it will be a boost to fam- ily and entertainment tourism in Goa”. But Kamat underscored that things are still at a very prelimi- nary stage on this project. Goa could see a better flow of tourism investments after the State’s tour- ism master plan is ready, he felt. This though could take another year, as the consultant is still to be appointed. “ Both the tourism master plan and the Regional Plan are the need of the hour,” Kamat stresses.
“ The general feedback is that nobody is willing to invest in Goa at the moment, given that the Regional Plan 2021 has not been finalised, in addition to land prices soaring. There is also the complex issue of the numerous hassles involved in getting a property with a clear title on lease.
The general feedback is that no- body is willing to invest in Goa at the moment, given that the Region- al Plan 2021 has not been finalised, in addition to land prices soaring. There is also the complex issue of the numerous hassles involved in getting a property with a clear title on lease. The unavailability of suitable land to invest in, according to chamber officials, is driving in- vestors— particularly from the hotel industry— to look for oppor- tunities in neighbouring States to off- load their capital. Going by statistics from the tour- ism department, not a single A cat- egory hotel has been registered in Goa over the last year. Even though “ The absence of the single window clearance system is turning investors away from Goa, more particularly because they have investment options available elsewhere.
there have been new reg- istrations numbering about 60, nearly half of these were guest houses, and around 15 each were registered in category B and C. Gaurish Dhond who heads the Hotels and Res- taurants Association said, “ There are hotels coming up in Goa such as Milroc and Hilton, but we also need to add other facilities to ensure that the average stay of the tourist increas- es.” Critics say that the ab- sence of the single window clearance system is turn- ing investors away from Goa, more particularly because they have investment options available elsewhere. Even projects like the helicop- ter rides, cable cars, London duck boats and amphibian aircraft have been stuck with the government for more than a year. “ It’s no surprise that Goa woke up to the idea of starting the sea planes in October this year,” said one of the critics. He points out that Kerala already has an edge over Goa, having started the sea plane adventure activity recently. The tourism ministry is hoping to bring in high- end tourism proj- ects like marinas, golf courses, theme parks, adventure sports and more hotels as soon as its tourism master plan rolls out. The Travel and Tourism As- sociation of Goa ( TTAG) which represents the tourism trade segment firmly believes that Goa must focus on developing its basic infrastructure first after which investments will begin to pour in. The association has appealed time and again for the government to sort out infrastructural issues such as the garbage problem, the dedicated service for water and power supply, roads and lower tax- es for the tourism industry.
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