Tourism and hospitality industry in Gujarat is expected to see heavy investment inflow during the Vibrant Gujarat Global Investors' Summit (VGGIS) 2011, as the government has chalked out a lucrative hotel policy for new investors and proposed an up gradation of prominent tourist destinations including beaches, cultural heritage and religious monuments in the state.
The minister of state for tourism and health, Government of Gujarat (GoG), Jaynarayan Vyas on Monday informed that tourist arrivals in the state is improving with rapid pace and the infrastructure development at key tourist destinations would provide growth to the industry. Addressing a seminar on 'Gujarat Tourism and Aviation: Exploring Investment Opportunities' in Ahmedabad, Vyas said, "In order to develop state tourism industry, the government has slashed electricity duties on the power used by hoteliers and also the government will provide interest subsidy of 6 per cent with an upper limit of Rs 50 lakh. Both the incentives will be applicable to any hotel unit coming up in the state. A government resolution will soon be issued by the department."
The state hotel industry is charged with commercial power tariff for their electricity consumption despite the sector being considered as an industry in the state, where industries get a comparatively cheaper power. With the fresh announcement, the sector will have a relaxation of up to Rs 1.5 per unit on their power tariff. Further, the state government official informed that tourism in Gujarat will see a huge investment inflow during the upcoming VGGIS, scheduled to be held in Gandhinagar during January 12-13, 2010. Speaking on the sidelines of the event, Vipul Mitra, secretary, tourism and civil aviation, GoG said, "The tourism sector had seen Rs 50,000 crore worth of memorandum of understanding (MoUs) happening during the previous VGGIS held in 2009, while this year, the tourism sector is expected to see MoUs worth Rs 60,000 crore and aviation sector is believed to see an investment inflow of Rs 20,000 crore in the upcoming VGGIS, 2011." The state is preparing for privatisation of 12 airports, while new airports are chalked out for religious destinations like Dwarka and Ambaji. "At Dwarka, the airport project is awarded to the Kolkata-based SREI Infrastructure Ltd and the construction work is expected to be over by 1.5 years," said Mitra, adding that for Ambaji airport, the government is looking for partners. Banking on its 1600 km long coastal line, the Gujarat government has identified 14 beaches along the coastline to be developed for tourism purposes and to be promoted as entertainment zones. Vyas informed that some of the identified beaches include Mandvi beach in Kutch, Nargol in Valsad and Suvali beach near Surat, of these only Suvali beach is expected to see an investment inflow of Rs 7000 crore for the makeshift. The state offers investment opportunities for restaurant operators to set up their projects along the highways in a stretch of Vapi to Kutch. The government is proposing a restaurant with key amenities to be located at every 200 km gap on this stretch.
The Gujarat government has floated a joint venture company, Gujarat Tourism Project Development Co Ltd, with 50:50 JV with IL&FS Infrastructure Development Corporation Ltd and Tourism Corporation of Gujarat Ltd, focusing on infrastructure and tourism projects in the state. The company has so far prepared 50 projects and they are slated to be placed in front of the investors in the upcoming investment summits.