Addressing a meet-the-press programme here, he said funds would not be a hurdle for the development of the sector.
A collective effort of the Union and state governments and private players was needed for the sector's growth, the Union minister of state (independent charge) for tourism said at the press club.
"The annual foreign tourist arrivals in India is only 88 lakh...the number should increase and multiply. A country like Malaysia attracts an estimated 2.4 crore tourists each year," he said.
He said the focus should also be on domestic tourism.
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"The tourism sector should be developed as an area garnering the highest GDP by increasing the footfall of foreign tourists. It should generate employment also," the minister added.
As regards Kerala, he said despite its unique features, the state ranked 12th in the country in terms of tourism and added that it needed a "comprehensive masterplan to develop tourism without harming the nature".
He said he had asked his Kerala counterpart, Kadakampally Surendran, to submit a plan for the infrastructure development of the beaches in the state.
The minister added that there should more "cost-effective hotel rooms" at popular tourist destinations of the state such as Munnar and Vagamon.
Kannanthanam claimed that demonetisation had not had an adverse impact on the tourism sector, which he said registered a 15.5-per cent growth in the last six months.
Asked about former finance minister Yashwant Sinha's recent criticism of the NDA government's financial policies, he claimed that they were part of the veteran BJP leader's "personal agenda" as, according to him, he was not fond of current Finance Minister Arun Jaitley.
Asked about RSS chief Mohan Bhagwat's recent remarks against Kerala, Kannanthanam parried the question, saying the state BJP president would answer it.
Addressing RSS workers in Nagpur on Vijaya Dashami, Bhagwat had said "jihadi" and "anti-national" forces were at work in Left-ruled Kerala and Mamata Banerjee-ruled West Bengal and the governments of these states were not only indifferent towards them, but at times, lending a helping hand to those forces to "appease" a section of voters for "petty political interests".
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