Ppp final project tourism infrastructure
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Transcript of Ppp final project tourism infrastructure
Potential of PPPs to Increase Heritage Site Tourism in India
Unsolicited proposal by:ABC Consultancy
India Tourism Statistics
Domestic tourists in 2013: 11 Billion
Foreign tourists in 2013: 19.5 Billion
Revenue from Domestic tourists in 2013: USD 73.8 Billion
Revenue from Foreign Tourists in 2013: USD 18.2 Billion
Domestic tourists revenue contributed to 82.2% of total
revenues.
Scope for increase in revenue, employability and overall
sector growth if foreign tourists were targeted better.
Heritage sites
32 UNESCO world heritage
sites in India.
As of 2015 there are tentative
submission for another 46
UNESCO world heritage sites.
That makes the total number
of most important heritage
sites for the country 78.
Need for protection, preservation and maintenance
Social Need
Indian tourism must be
representative of
cultural heritage
and attract international tourists
Economic Need
Quality and quantity of
tourism equates to increase in revenues,
employment generation, and earning
foreign exchange.
Political Need
To preserve and protect
heritage sites is a politically correct need.
Local constituencies
must feel cared for
emotionally and through
revenue generation
Execution Need
Maintaining heritage sites need constant
revenue stream from
tourism and it must outweigh
the growing need for
additional space for modern
development.
Main Organizations supporting Tourism Ministry of Tourism
• 20 offices in India, 14 abroad .In charge of promoting and enhancing tourism in India
Ministry of Culture
• Dedicated to promotion of art and culture of India, all National museums and art galleries fall under this ministry.
India Tourism Development Corporation (ITDC)
• Hospitality, retail and Education company owned by the Government,
Archeological survey of India (ASI)
• Government agency dedicated to archeological excavation, preservation and conservation.
National cultural fund
• Fund set up by Ministry of Tourism and Ministry of Culture for protection and preservation of tangible and intangible Indian Assets.
Indian National Trust for Art and Cultural Heritage
• NGO set up to protect and conserve India’s cultural Heritage sites both natural and man-made.
Problems with current system Irregularity with land laws and ASI mapping:
Chennai Case study: Communities harassed, asked to move elsewhere. Lack of coordination between town planning and development, ministries,
institutions and knowledge dispersion to public Lack of budget:
For maintenance of heritage sites (preservation, restoration processes, employees, information desks and necessary counters)
To build new infrastructure to enhance tourist visits (resorts, hotels, restaurants)
Lack of connection/ coordination between relevant organizations: State tourism websites are good, but not linked to main tourism website.
Dysfunctional phone and online bookings, difficult to access tourism information, not so professional local tour guides, unavailability of pamphlets, etc. show lack of organizational coordination.
Lack of incentives: Identification, needs assessment, preservation, restoration, protection, daily
maintenance and promotion of site. These call for: o long term planning, commitment, vision and engagement of expertise
How Private Sector may help? Financial Resources:
Potential for constant revenue stream with increase in tourism. Value for money+ cost quality + cost benefits > current system
provision Dedication to proper usage of funds pool (INTACH, ITDC, NCF)
Expertise and burden sharing: Ministry of Tourism and ASI have many sites, not enough manpower
or incentive to make these sites rich sources of revenue. Private sector by virtue of their business will be dedicated to an area
won through tender. Quality control and accountability:
A well thought out framework, clear project cycle checklists and a good contract will ensure quality controls and less finger pointing currently present among various ministries.
Transparency to ensure business keeps on going, more procurement from the government.
Capacity development Rules and Regulations, provision of uniformity, easy access to
knowledge, increase in tourism, increase in standard of living for communities nearby, higher GDP and economic growth.
Reasons for Private Sector to Participate Presently, a closed sector:
Traditionally heritage site tourism has been the mainstay of the Government. The private sector has not had a chance to tap this potential except in peripheral activities.
Reasons: land acquisition, public perception, coordination between many stakeholders, licensing and royalty fees.
A PPP would be apt in dealing with the current need to preserve, maintain , protect and promote heritage sites.
Good revenue stream: PPP innovation models for medical tourism, religious pilgrimage tourism,
hiking tourism, beach tourism, wildlife tourism etc. more robust statistics on where to concentrate, where to develop and where to invest.
Expertise will ensure innovative packages for both domestic and foreign tourists.
So far, we do not have any successful tourism PPP’s in the country. We need steep learning curves for much needed improvement.
Incentives Private sector with a good revenue model are more than willing to undertake
long term planning , implementation , monitoring and evaluation, name recognition, Corporate Social Responsibility (CSR)
Potential Distribution of Services
Solution •Need: To preserve and protect all 78+ cultural sites.•Way Forward: Flourish sites as tourist destinations to maintain upkeep and ensure revenue stream vital for maintenance.
Public Sector •Market research and statistics•Tourism promotion (Incredible India ads, )•Joint revision (all stakeholders) on laws and regulations on land acquisition,
Private sector •Investments in infrastructure eg. Hotels, restaurants, roads, ropeways, cultural shows (eg. light and sound night shows) •Assurance of Corporate social responsibilities•Proper ticketing system, transparent pricing
Joint operations •NGO- skills development/ human resources for training of tour guides•Transportation services: bus, rail, tram, private vans or cars, hop on and off services.•Sustainability analysis, monitoring, evaluation and reporting needs capabilities.
PPP for Heritage sites- Risk Management Identification:
State Laws, Land Acquisition risks, upset social groups Sub- contracting: for eg. Road which leads to a heritage site- who will
collect the toll, chain of command for revenue deposit. Extrapolation of predicted tourists to heritage sites. Extrapolation of forecasted revenues. Cost over-runs with preservation, restoration procedures. Lack of available expertise- historical, archeological
Allocation:◦ In principle, the party most capable to take on particular risks should be
allocated that risk.◦ Government should ensure minimum assurance of monetary return to
the private firm. This can be taken from the funds.◦ Specific allocations will depend on the specific heritage site and its needs.
Conclusion Immense potential:
◦ We recognize that the tourism industry has immense potential not just for preservation of our heritage but also increase in employability, knowledge dissemination and economic growth.
Current system unworkable:◦ Government, for future growth, needs private partnership and skills .◦ Volume of financial needs for heritage sites and related tourism is huge and can
be offered by private sector. It is not possible to rely on tax funded government revenues to develop this sector extensively.
PPP’s have proved to be a great boon for places where they have been developed through proper frameworks and project cycle monitoring.
We believe that PPP’s can assist in infrastructural development of the heritage areas. We also recognize that these require significant consultations with stakeholders.
We propose to start with the non descript heritage sites present in less populated areas and move to the more renowned sites. This will allow for any flaws to be addressed, garner positive public perception, target local private sectors which can deliver.
References: http://tourism.gov.in/writereaddata/CMSPagePicture/file/marketresearch/New/DTVs
%20&%20FTVs%202013.pdf http://tourism.gov.in/Default.aspx http://www.slideshare.net/IBEFIndia/tourism-and-hopitality-august-2013 http://asi.nic.in/asi_monu_whs.asp http://www.pppinindia.com/policy-initiatives-uttaranchal.php http://indianexpress.com/article/cities/delhi/intach-out-asi-to-restore-monuments-at-
lodi-gardens/ http://tourism.gov.in/writereaddata/CMSPagePicture/file/marketresearch/New/DTVs
%20&%20FTVs%202013.pdf http://www.pppinindia.com/policy-initiatives-uttaranchal.php http://indianexpress.com/article/cities/delhi/intach-out-asi-to-restore-monuments-at-
lodi-gardens/ http://timesofindia.indiatimes.com/city/ahmedabad/Gujarat-lacks-vision-to-preserve
-monuments-Senior-archaeologist/articleshow/47705394.cms http://timesofindia.indiatimes.com/city/delhi/ASIs-revised-policy-bats-for-plain-conse
rvation/articleshow/31559441.cms http://timesofindia.indiatimes.com/city/chennai/Government-to-clear-bottlenecks-on
-Archaeological-Survey-of-India-protected-sites/articleshow/21890230.cms http://www.adb.org/news/videos/public-private-partnerships-india