Presentation on Indian Tourism Industry

Transcription

1 2007 Presentation on Indian Tourism Industry RAJENDRA SHARMA, CHIEF GENERAL MANAGER TOURISM FINANCE CORPORATION OF INDIA LIMITED 5TH FLOOR, IFCI TOWER, 61 NEHRU PLACE, NEW DELHI INDIA

2 INDIA-THE CUTTING EDGE Fourth largest economy of the World in terms of purchasing-power parity Large and diversified infrastructure spread across the country The policy environment provides clear guidelines for entry, freedom of location, choice of technology, production, repatriation of capital, dividends, and a well- balanced package of fiscal incentives. Availability of Skilled Manpower at affordable cost

3 INDIA- TOURISM AN INSIGHT INTO THE LAND OF MYSTIC BEAUTY

4 Tourism in India 0.53%share in world market Tourist Arrivals( 2006) International 4.47 Million Domestic Tourist 430 Million* Forex earnings US$ 6.57 billion Contribution to GDP (both direct and indirect)5.90% Employment (both direct and indirect) 8.8% * Estimates

5 THE FUTURE India is one of the fastest growing tourism economies in the world today. The travel and tourism economy in India is expected to generate US$90.4 billion and nearly 28 million jobs by The expected capital investment for achieving the same would be US$ 21.4 bn.

6 WTTC s Top Ten Industry Growers ( Annualized Real Growth, Percent) 1 Montenegro China India Croatia Congo, Dem Rep Vietnam Romania Namibia Hong Kong Chad 7.0

7 WTTC s Top Ten Job Creators ( Employment Growth, Jobs) 1 China 3,222,280 2 India 2,714,890 3 Brazil 1,896,923 4 Japan 1,868,803 5 Mexico 1,321,671 6 US 1,085,700 7 Vietnam 890,916 8 Pakistan 828,640 9 Spain 812, France 808,848

8 India Total Demand Personal T&T Business Travel Government Expend. Capital Investment Visitor Exports T&T Industry GDP Employment 2007 is expected to see an even better performance than last year, as the tourism economy gathers momentum. Growth over the next ten years is expected to average over 7%pa. T&T Econ. GDP Employment Ten Year

9 INDIA TOURISM INITIATIVES Policy Direction Position tourism as major engine of economic growth To develop tourism infrastructure with private sector participation To develop tourism circuits based on India s unique civilization, heritage and culture Potential India identified as one of the World s tourist growth centres in the coming decade Tremendous Investment Potential in tourism Sector in India Employment potential for 18 million people

10 FOREIGN DIRECT INVESTMENT (FDI) IN INDIAN TOURISM SECTOR 100% FDI is permissible in the development of Indian Tourism Sector on automatic route basis FDI permissible in the following tourism ventures : Hotels, Motels & Resorts Health Resorts (SPAs) Convention & Conference facilities Restaurants Tourist complexes Travel Agencies and Tour operators Transport operating agencies Surface, air and water-transport facilities Units providing cultural and adventure wild -life experience to tourists Leisure, entertainment and amusement facilities Adventure facilities

11 INCOME REPATRIATION AVAILABILTY A. Investments Repatriation of income by way of interest/dividend subject to taxation and sector-specific guidelines as per applicable Indian Laws /policies B. Technology /Consultancy Agreements Automatic approval for repatriation - Upto 3% of the cost of the project for technical consultancy services fee Upto 3% of net turnover for franchising and marketing/publicity fee Upto 10% of Gross Operating Profit (GOP) for management /incentive fee

12 OPPURTUNITIES IN TOURISM IN INDIA Accommodation units ( Hotels, Motels, Resorts and Serviced Apartments) Conference and Convention Tourism Beach and Coastal Tourism Water-ways Cruises Adventure Tourism Wild -life Tourism Health Tourism Pilgrimage Tourism Rural Tourism Recreational & Entertainment Industries Restaurants/ Food Chains Heritage and Cultural Tourism Air & Surface-Transport Facilities

13 INVESTMENT OPPORTUNITIES STATE- WISE Luxury & Business class hotels at Metro centres viz Delhi, Mumbai, Calcutta, Chennai, Bangalore, Hyderabad and other commercial centres Amusement Parks, Golf Courses Multiplexes, Way-side amenities, etc. across the country Budget hotels at pilgrimage centres across the country such as Monasteries in Ladakh (J&K), Sikkim, Arunachal Pradesh; Buddhist Sites Bodhgaya, Rajgir, Nalanda, Khusinagar, Sarnath in Bihar and Uttar Pradesh. Shirdi in Maharashtra, Vaishno Devi & Amarnath shrines in J&K, Tirupati in Andhra Pradesh, Shiva, Vishnu Temples in Tamilnadu

14 INVESTMENT OPPORTUNITIES Hotels / Resorts at heritage sites situated in Karnataka, Kerala, Madhya Pradesh, Rajasthan, Tamilnadu, Orissa, Maharashtra, etc. Adventure tourism avenues available in the States of Himachal Pradesh, Uttranchal, North- Eastern States of India Beach Resorts in Coastal States of Goa, Kerala, Maharashtra, Tamilnadu, West Bengal and Orissa Hotels/ Resorts at rural locations representing rich cultural ethos across the country

15 INVESTMENT OPPORTUNITIES- WHO CAN BENEFIT? Investment Companies Mutual Funds Hotel/Restaurant Companies Project Consultants Architects, Interior Designers, Contractors, Project-implementation Agencies Hotel- Operating Agencies Plant & Machinery, Equipment Suppliers Furniture, Fixtures and Furnishing Suppliers Hotel-Operating Supplies providers

16 TOURISM FINANCE CORPORATION OF INDIA LIMITED(TFCI) TFCI- A SPECIALISED FINANCIAL INSTITUTION FOR PROMOTION OF TOURISM INFRASTRUCTURE CATERING TO THE NEEDS OF INDIAN TOURISM INDUSTRY PARTNER IN THE GROWTH OF TOURISM

17 BACKGROUND OF TFCI Incorporation-TFCI was incorporated as a Public limited company in 1989 under the Companies Act. TFCI is a Public Financial Institution under section 4A of the Companies Act. Regd. Office:- IFCI Towers, 61,Nehru Place, New Delhi, India. Sponsors:- All-India Financial Institutions & Banks. Objective:- All-India Financial Institution for funding Tourism- related projects. Highlight : A profit-making, company since inception. : Equity Shares held by FIs Banks, Mutual Funds & Public : Stock listed in NSE and other stock exchanges across the country

18 CORPORATE MISSION Catalyze & Channelise investments into various segments of the tourism industry and across various locations in a need- based manner. Take steps to promote tourism industry within the overall framework of the Govt. of India policy Holiday Resorts Hotels Multiplexes Cultural/Entertainment centers Transport Channelise investments to Amusement & Water Parks Treasury Management Advisory services Adventure sports Travel & Tours

19 FORMS OF ASSISTANCE Corporate Advisory Services Rupee Loans Equipment Finance FORMS OF ASSISTANCE Direct Subscription Suppliers Credit Equipment Leasing

20 ADVISORY SERVICES Project- Related: Site evaluation & Market- potential assessment for tourism projects Techno- economic feasibility studies Loan / Equity -syndication services Arrange project- implementation consultants Arrange for franchise & Marketing & Management tie-ups with leading names in tourism sector Financial restructuring of project proposals, review and appraisal/ project management services Advisory services for takeover, merger & amalgamation Property/ Project and management evaluation Other project- related services

21 ADVISORY SERVICES Tourism-Related: Tourism potential studies and identification of tourism circuits. Tourism development Master Plans for State/ travel circuit / destination Tourist profile and image- rating studies Tourism- flow surveys Accommodation and other infrastructure -assessment studies Tourism development, environmentimpact- assessment studies Studies in Wild-life sanctuaries & national parks Assistance in marketing projects identified by State Govts.

22 TFCI S CONTRIBUTION TO ECONOMY ( Upto ) Number of Projects Assisted Assistance Sanctioned Catalytic role enabled investment in these projects USD 680 Mn USD 2355 Mn Cumulative additional rooms (Nos) Direct employment generated by assisted projects (persons)

23 TFCI can assist the Overseas Investors/Entrepreneurs in India in Identifying suitable tourism- related projects which can be developed Assist the Overseas Entrepreneurs in identifying and selecting a local partner (Match-Making) Can provide consultancy services and act as a facilitator for getting various approvals during the project- implementation stages Carry out project appraisal, syndicate long- term capital requirements for project. Act as advisor, custodian to overseas investors in deploying funds in tourism- related sector. Manage funds of overseas investors in tourism sector with assured returns.

24 Contd.. TFCI can jointly organise seminar or investors meet for investments in both countries also depicting the culture of both the countries. Suggest plans for marketing and promotion of China in India

25 TFCI CAN ALSO ASSIST IN TOURISM DEVELOPMENT OVERSEAS Advise and assist from project conceptualization to the Commissioning Work out Tourism Master Plans Identification of tourism potential and means of its commercial `use Identify an Indian or International Partner for tourism ventures Identify technical & operating agencies for the project

26 WHY TFCI? A SPECAILISED INSTITUTION ENGAGED IN DEVELOPMENT OF TOURISM IN INDIA HAVING MORE THAN A DECADE OF EXPERIENCE VARIOUS STATE/PRIVATE/PUBLIC SECTOR PLAYERS BENEFITED BY TFCI S EXPERTISE ACCESS TO LARGE INFORMATON DATA-BASE PROFESSIONALLY QUALIFIED, EXPERIENCED & DEDICATED MANPOWER EXPERTISE AND EXPERIENCE IN Tourism Master Plans Carrying- Capacity & Market Studies Macro/ Micro Surveys Privatisation Area Development Plans Project Appraisal & Financial Engineering HAS PROVIDED FINANCIAL ASSITANCE FOR PLANNED TOURISM DEVELOPMENT IN THE COUNTRY WHICH HAS RESULTED IN SUBSTANIAL GROWTH IN ROOM INVETORY & EMPLOYMENT GENERATION IN INDIA

27 LET US JOIN HANDS FOR MUTUALLY BENEFICIAL ASSOCIATION THANK YOU Tourism Finance Corporation of India Limited 5 th floor, IFCI Towers 61, Nehru Place New Delhi India