The Hotel and Restaurant Association of Orissa (HRAO) has suggested that the state government needs to invest at least Rs 2,000 crore on the tourism sector over the next five years to boost tourist inflow and help the state to emerge as one of the most sought after tourist hubs.
HRAO also feels that the Orissa government should offer incentives and subsidies to help attract leading hoteliers and tour operators, both domestic and overseas.
The association has pointed out that at least Rs 30 crore needs to be spent every year on tourism promotion campaigns in other states of the country as well as abroad and industrial tariff on electricity should be subsidised by the state tourism department.
Addressing mediapersons, JK Mohanty, president, HRAO, said, "Orissa needs 2,500 hotel rooms in the next five years out of which 2,000 rooms will be in the three star hotel category while the balance 500 rooms will be in the five star hotel category. The addition of 2,500 hotel rooms in Orissa will involve an investment of Rs 1,100 crore and the state government needs to offer five per cent interest subsidy to the hotel investors on term loans." At least 500 acres of land in special tourism zones should be identified and alloted to prospective hotel chains and entrepreneurs and priority needs to given to the local developers. The state government also needs to have land banks for setting up new hotels as taking possession of land is one of the major problems faced by the hotel chains", he added.
Mohanty further said that as land costs form a major part of the project cost of hotels; land should be alloted in installments payable in seven years at a price which is 50 per cent less than the prevailing market rates. The addition of 2,500 hotels will create direct and indirect employment for 25,000 people and also generate an income of Rs 2,500 crore. He pointed out that as many as 70,318 hotel rooms of 924 projects, entailing an investment of about Rs 346 crore were under construction across the country out of which Orissa accounts for only 158 rooms adding "Orissa would lag behind if enabling steps are not taken to upgrade tourist infrastructure facilities in the form of adding adequate hotel rooms and setting up an international airport."
Mohanty stressed on developing an international airport in the state over an area of 4,000 acres on the public-private partnership mode to attract more foreign tourists. "Our association is of the view that the state tourism department should have a full-time principal secretary along with two directors, one for administration and the other for investment and promotion. Moreover, a separate financing corporation for tourism projects can be planned by the state government", he stated.
