PUBLIC -PRIVATE PARTNERSHIP FOR PROMOTING TOURISM PRESENTATION BY Ms.ARCHANA CAPOOR CHAIRMAN &...

PUBLIC -PRIVATE PARTNERSHIP FOR

PROMOTING TOURISM

PRESENTATION BY

Ms.ARCHANA CAPOOR

CHAIRMAN & MANAGING DIRECTOR

TOURISM FINANCE CORPORATION OF INDIA LTD.

avantika dhar:avantika dhar:avantika dhar:avantika dhar:

HELPING TOURISM GROW

Presentation out line

Brief Introduction about TFCI Tourism overview & Benefits Global and Indian Tourism scenario Tourism in India- Key Potential & Issues Tourism infrastructure –Definition Why Public Private Partnership(PPP) Benefits of PPP in tourism Role of stakeholders in PPP Project Development Strategy The Thenmala Eco-Tourism Story


TOURISM FINANCE CORPORATION OF INDIA LIMITED (TFCI)

A SPECIALISED FINANCIAL INSTITUTION FOR PROMOTION AND FUNDING OF TOURISM RELATED PROJECTS

CATERS TO THE NEEDS OF INDIAN TOURISM INDUSTRY

PARTNER IN THE GROWTH OF TOURISM


ABOUT - TFCI

Incorporation-Based on the recommendations of the National Committee on Tourism (Yunus Committee) TFCI was incorporated as a Public limited company under the Companies Act. TFCI is a Public Financial Institution under section 4A of Companies Act.

Regd. Office:- IFCI Tower, New Delhi. Branch Offices:- Chennai, Mumbai. Sponsors:- All India Financial Institutions & Banks. Status/Objective:- All India Financial Institution for

funding Tourism related projects.


TOURISM - AN OVERVIEW

"Travel & Tourism provides an economic incentive to conserve a community's natural environment and cultural heritage

Stimulates jobs across the economy, creates people to people contact and boosts cultural and environmental awareness."

Travel & Tourism is an engine for sustainable growth that can benefit all nations - both developed and emerging .

Job creating potential of tourism is tremendous., IT provides jobs to technically qualified but tourism provides jobs to illiterates .

Tourism is a continuing activity touching every human being

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BENEFITS OF TOURISM

Evidence of economic impact of tourism is so

overwhelming that it is no wonder that undeveloped

countries seek it and industrialised nations wish to

protect it.

The economic benefit of tourism is best understood

as a “gross increase in the wealth or income

measured in monetary terms , of people located in an

area over and above the levels that would prevail in

the absence of activity under study”.


Global and Indian Tourism scenarioTravel& Tourism Contributes 10% of the

Global GDPGlobal Travel & Tourism activity expected

to increase by 5% in the next ten yearsIndiaForeign Tourists arrivals to India increased

by 12% to 4.98million in 2007Foreign Exchange earnings from Tourism

amounted to US $11620 million in 2007


Key issues and Potential in Indian Tourism Key Potential Adventure Tourism Pilgrimage Tourism Natural & Wildlife Tourism Recreation & Leisure

Tourism Cultural Tourism

Key Issues Regional Linkages,Access

& Connectivity Accommodation

Infrastructure – High end as well budget

Basic Civic Infrastructure Tourist amenities Financial Infrastructures Service Delivery &

Hospitality Institutional and Regulatory

IssuesHELPING TOURISM GROW

INFRASTRUCTURE FOR TOURISM-WHAT DOES IT INFRASTRUCTURE FOR TOURISM-WHAT DOES IT INDIICATEINDIICATE

Infrastructure still remains the most important impediment in realising the high potential that the tourism industry holds for India. Inadequate AccommodationRoad infrastructureAir connectivityLack of basic amenities at tourist centresLack of developed tourism circuits Adventure Tourism Tourist trains


INFRASTRUCTURE- Public Sector-Influenced Investments Air Service

Road Network Public Transportation Vibrant Urban Centers Safety / Security Beaches Public Park Systems Historical Sites Museums Cultural Arts Festivals / Events Sports Facilities Convention Centers Zoos / Aquaria

10 HELPING TOURISM GROW

INFRASTRUCTURE -Private Sector-Influenced Investments

Hotels Conference Centers Restaurants Destination Shopping Theme/Amusement

Parks Sports Facilities Golf Courses Nightlife Gaming

11 HELPING TOURISM GROW

WHY Public-Private Partnership

“PPPs enable the public sector to benefit from commercial dynamism, the ability to raise finances in an environment of budgetary restrictions, innovations and efficiencies, harnessed through the introduction of private sector investors who contribute their own capital, skills and experience.


PUBLIC - PRIVATE PARTNERSHIP WHY ?

Greater integration of policies and practices relating to tourism planning by the public and pvt. sector is possible.

Tourism infrastructure- most critical component can be financed jointly.

Public private involvement can help development and beautification of tourism projects

Guides Private enterprises into areas and programs in which it would be more successful.


NEED FOR PUBLIC-PRIVATE PARTNERSHIP (PPP)

Need to leverage available State finances

Efficiency improvements in operating systems

Great need for Infrastructure

Capital in search of Investments

with Steady Returns


Need for PPP (contd)

Stand alone commercial viability is neither necessary nor sufficient for success of PPP Make Projects viable Leverage scarce resources Varying degrees of risk transfer

User fee based Annuity models Revenue Sharing


Need for PPP (contd)

Private Capital is not only driverEfficiency gains in the systems must for sustenance of

projectIntegrated Contracts

Design, Construct and operateRisk Management

Incentive & Penalty Contractual structures to ensure Appropriate service levelsWell defined performance parametersContinued improvements through investments


Strategy & Project implementation under PPP

Choose the projects based on the following: Project parameters

Adequate Financial & economic rate of return Minimal & Mitigable environment and social impact Related to Tourism infrastructure

Development Parameters : Funding development cost fully tied up Meaningful achievable project implementation time

schedule Long term vision for sustainable development

In line with the objectives of the State tourism policy, to meet the socio-economic needs and as part of long-term strategy


Role of State Governments

Umbrella Cover: Providing policy over-all support to the initiative

Land : Provisioning of Land for projects to be developed

Financial : Financing Support where necessary Clearances : Provision of statutory and project

specific clearances within its control Fiscal Concessions : Grant of Fiscal concessions

to projects Project performance : Monitoring


Role of private sector Build and manage the required tourist facilities

in places of tourist interests. To undertake industry training and manpower

development to achieve excellence in quality of services.

To participate in the preparation of investment guidelines and marketing strategies and assist in database creation and research.

To ensure preservation and protection of tourist attractions and take lead in green practices.


ROLE OF PRIVATE SECTOR

Build and operate the required tourist facilities in places of tourist interests.

To undertake industry training and manpower development to achieve excellence in quality of services.

To participate in the preparation of investment guidelines and marketing strategies and assist in database creation and research.

To ensure preservation and protection of tourist attractions, heritages and take lead in green practices.


Role of Public Sector

Provide public infrastructure facilities including local planning and zoning arrangements.

Provide support facilities and facilitation services to private enterprises.

Introduce regulatory measures to ensure social, cultural and environmental sustainability.

Create nucleus infrastructure in the initial stages of development to demonstrate the potential of the area.


Role of public sector cont...

Ensure that the local community is fully involved and the benefits of tourism accrue to then.

Ensure that the type and scale of tourism development is compatible with the environment and socio-cultural milieu of the area.

Undertake research, prepare master plans, formulate marketing strategies and organise overseas promotion and marketing jointly with the industry.


Role of Public sector ( Contd)

Provide public infrastructure facilities including local planning and zoning arrangements.

Provide support facilities and facilitation services to private enterprises.

Introduce regulatory measures to ensure social, cultural and environmental sustainability.

Create nucleus infrastructure in the initial stages of development to demonstrate the potential of the area.

To identify and establish clear objectives as to the range of public and private sector development as considered appropriate.


ROLE OF PUBLIC SECTOR (CONT…)

Ensure that the local community is fully involved and the benefits of tourism accrue to them.

Ensure that the type and scale of tourism development is compatible with the environment and socio-cultural milieu of the area.

Undertake research, prepare master plans, formulate marketing strategies and organise overseas promotion and marketing jointly with the industry.


Benefits of PPP in Tourism Sector Acceleration of Infrastructure provision Faster Implementation Value for money Partnership Building Enhanced Public Management Genuine Risk Transfer Output specification Asset Performance & Reduced costs Performance Related Reward Private investment promotion Improved quality service


Benefits of PPP

The synergy between the public and private sectors has been a major force in stimulating tourism competitiveness in a number of countries at national , state/ regional and local levels.

The development of tourism is best possible if created jointly by government and private sector with pvt. Sector as dominant partner.

The private sector can also play a greater role in the preservation of monuments .


PARAMETERS FOR SUCCESSFUL CULMINATION OF PUBLIC-PRIVATE SECTOR PARTNERSHIP

Clear planning of respective roles

Identification of benefits to each partners

Establishing long term commitment of both partners

Periodic evaluation of the efficacy of each other role.


Some of the successful PPP projects

Necklace Road Tourism Development Project Hyderabad, Andhra Pradesh

Snow world theme park near Hussain Sagar lake by APTDC

JalMahal Project Jaipur RajasthanThenmala Eco-Tourism Project Kerala“Nirmala Bangalore” a public sanitation

program through PPP mode


THE THENMALA STORY

Thenmala Eco-tourism" has been conceived as a first planned eco-tourism destination in India The degraded forest area, in the outskirts of the Sanctuary is maintained as a familiarization zone. Eco-friendly General Tourism is planned in the periphery of the sanctuary. The real eco-tourism is takes place in sanctuary and only eco-tourists are encouraged for that. Others can experience the eco-friendly products such as small nature trails, elevated walkway through canopies, mountain biking etc.

Thenmala story has been catalogued by WTO in its publication of “Sustainable Development of Eco-Tourism- A Compilation of good practices”


The resultsTOURIST ARRIVALS TO THENMALA

0

20000

40000

60000

80000

100000

120000

140000

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

YEAR

NU

MB

ER

OF

TO

UR

IST

S

Thenmala Eco-tourism Promotion Society (TEPS) adopted a strategy to co-ordinate with Forest Department, the Irrigation Department and Tourism Department and implement various activities in association with each Department and each department is also represented in the society. The products such as trekking, bird watching trails etc. developed and implemented through the institution of Eco-development Committees, thereby ensuring benefits to local people

The project was opened to the public in 1999

The project has achieved growth in terms of arrivals and revenue generation

Revenue Generated

4.5

11.4

21.5

40.4

35.639.3

49.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

year

Ru

pp

ee

s in

lak

h


Lessons Learnt from Thenmala

A community based PPP project requires more than planning and funding. The model for development which get people interested. Affirming their abilities in implementing the project.

Importance of involving local people in tourism development and resources management not only to improve the economic conditions of the local but also as an essential element for effective development.utilization and management of natural resources.

Zoning and effective compliance with land use regulation for the different zones are essential

Any tourism beyond the acceptable carrying capacity should be strictly prohibited. The carrying capacity can be physical, social and economic

TrIbal and local people are being involved as guides and helpers in fostering eco-tourism centres activities.which resulted in new developmental pattern of rural areas.


THANK YOU

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PUBLIC -PRIVATE PARTNERSHIP FOR PROMOTING TOURISM PRESENTATION BY Ms.ARCHANA CAPOOR CHAIRMAN &...

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