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Economic Development Policy

TOURISM  

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INTRODUCTION

The world has become a global community bringing people together and crashing distances between places. Travel has become global and the expanding tourism market has not left any place untouched. Growing wealth and increasing propensity to travel has led to a huge demand for tourism. Tourism has emerged as a major economic activity characterised by the following:
 

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It is a High growth, high potential sector - The travel and tourism industry plays an important role in generating wealth through out the economy. This sector is expected to grow at the rate of 8.4 % per annum in India and therefore offers a huge opportunity.
 
» It is an Employment intensive industry - Tourism generates employment opportunities at various levels especially for the un-skilled and semi-skilled people. By 2010 it is expected to account for at least 1 in every 15 jobs in India. (World Travel & Tourism Council)
 
» It has a  large multiplier effect - A traveller’s spending flows – through the entire economy and increases the circulation of money in the state. 
 
» It catalyses the growth of other sectors – Tourism acts as a catalyst for the development of other sectors. It stimulates the provision for better infrastructure, impacts industry - especially the small scale and rural industry and also creates a pull for agricultural produce
 
Tourism thus has a large role to play in the Economic Development of any state. Madhya Pradesh has the advantage of having a large number of diverse tourist destinations. Tremendous diversity and mystique, the cultural heritage, cuisine, festivals and art and craft make Madhya Pradesh an ideal tourist destination. In view of the huge economic benefits, the potential growth rates, as well as the potential for broad based balanced regional growth that can be achieved, the Government of Madhya Pradesh has identified Tourism as one of its growth engines.

Despite MP’s strengths as a tourist destination and the government’s initiatives, MP has not been able to attract tourists or investors to the state. This can be attributed mainly to issues of connectivity to the destinations, few marketing and promotion initiatives, lack of recreational facilities for the tourist and an unfriendly tax structure.

POLICY THRUST

The state has identified three key intervention areas to give a thrust to the tourism sector in the state. These are
» Ensuring connectivity to destinations
» Marketing and promoting MP as a tourism destination
» Creating a favourable environment for private sector participation in tourism development.
 

The state envisages its role as that of a facilitator, leaving the main thrust of development to the private sector.

PROVIDING ACCESS TO DESTINATIONS                    

The biggest bottleneck in the development of Tourism in Madhya Pradesh has been the lack of physical connectivity to its destinations. The government is therefore committed to provide better connectivity to tourist destinations. It has initiated the following to ensure better access to major tourist towns:

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Providing Air Linkages – The poor air connectivity of Madhya Pradesh with Mumbai and Delhi has been a major inhibiting factor for the foreign tourists. The government of Madhya Pradesh is therefore liaisoning with the Central Government for the following:.
» A Mumbai – Aurangabad – Bhopal – Khajuraho link to enable tourists coming to Mumbai to visit Khajuraho.
 
» Upgradation of Bhopal, Indore and Khajuraho as international airports
 
» Providing Better Road Linkages – The government has undertaken a massive programme of road upgradation and construction to ensure easy access to tourist destinations . As part of the Rs. 500 crore Bond roads program, all major tourist destinations like Khajuraho, Orchha, Pachmarhi, Mandu, Sanchi, Bandavgarh, Kanha, Omkareshwar, Maheshwar, Satna, Maihar, Chitrakoot will have excellent road connectivity. This programme is expected to be completed by the end of the year 2002.
 
» Providing Rail linkages – The government will liaison with the Indian Railways and the Indian Railways Tourism and Catering Corporation for the following:
» Special Circuit trains or coaches on
» Gwalior – Datia – Orchha- Khajuraho – Chitrakoot route
» Bhandhavgarh – Kanha circuit
 
MARKETING & PROMOTING TOURISM IN MADHYA PRADESH        

In the highly competitive global tourism industry, all countries and states are vying with each other to attract tourists. It therefore becomes imperative to aggressively promote and market the state’s relatively unknown tourist destinations.  The state will therefore endeavour to aggressively market the state to domestic as well as foreign tourists. The key areas of government intervention will be 
» A positioning platform for the state
» Increased promotion activities
» Developing joint circuits with other states
 
A Positioning Platform for the State

To differentiate its offerings from those of the other states and to take advantage of its vast natural beauty, the government of Madhya Pradesh has identified “Ecological and Adventure Tourism” as the unique selling proposition for the state. In addition to this the state is also committed to promoting MP as a cultural and heritage centre. All promotion activities and advertising campaigns carried out by the state will endeavour to reinforce this positioning for the state. The state has announced an investor friendly Eco Adventure Tourism Policy, which facilitates private sector participation in developing MP as a centre for Eco-Adventure tourism.

Increased Promotion Activities 

The state will strive to actively promote the state to foreign as well as domestic tourists. To show its commitment, the government has increased substantially the budgetary allocation for promotions. In addition to this the government proposes to co-ordinate closely with different associations of the hospitality industry and with the chambers of commerce to promote MP as a tourism destination.
» The state will endeavour to attract the domestic tourists to the hill stations and places of religious interest in MP. The marketing activities of the state will therefore be heavily oriented towards the domestic tourists.
 
» The state proposes to promote and market Bhopal as both “a tourist hub and a destination”. Bhopal will act as a tourist enabler by attracting, retaining and further diverting the tourist flow to nearby tourist locales like Sanchi and Bhimbetka. The government will also try to develop Bhopal as a leisure and entertainment centre. A step in this direction is the Bhopal Utsav that has been planned for January 2002. The state will endeavour to organise similar events in future also.
 
» Tourism needs are evolving and the tourist is looking at experiencing fun, thrill, and adventure in addition to visiting places. The state government is therefore proposing to develop multiple hooks for an integrated experience for the tourist. The government shall therefore 
» Focus on organising events – building initiatives around local cultures and traditions to provide a unique experience to the tourist
» Encourage the setting up of craft villages, souvenir shops etc., which will also give the rural and handicraft industry a boost
» Create a facilitative environment for private sector participation in providing facilities for world class adventure and sports tourism – trekking trails, camping facilities, paragliding, rock climbing, etc.
 
» To government has decided to proactively promote the state to foreign tourists. The government has therefore proposed the following: 
» The state shall participate in the World Trade Mart London and the ITB Berlin 
 
» Promotional CD's shall be developed for distribution to travel writers & tour operators
 
» Photo banks and short capsules on various destinations that have been prepared will be distributed
 
» Aggressive publicity shall be done through write-ups and advertisements in leading magazines
 
» The state shall play host to travel writers, TV crews and tour operators
 
» The state is in the process of forging a relationship of Partner state with the World Travel and Tourism Council
 
To ensure positive word of mouth publicity the state will endeavour to provide a hassle free experience to the tourists. For this the state proposes the following:
» Providing tourist infrastructure like online reservations and information & tourist reception centres at places of tourist interest

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The state has received a sum of Rs. 45 crores from the eleventh finance commission. This will be used for upgrading the tourist facilities in Kanha, Bandhavgarh & Pench National Parks, and in Bhedaghat, Lamhetaghat, barmanghat, Satna, Chitrakoot, Maihar, Katni and Mandla.
 
» The state is also in the process of laying out a framework for recruitment and training of guides
 
Developing Joint Circuits
» The state is currently liaisoning with the Ministry of Tourism at the centre for developing joint circuits with the neighbouring states. The "Heart of India" circuit involving Rajasthan, Uttar Pardesh and Madhya Pradesh is already in place.
 
» The state will also liaison with the Centre to ensure inter state co-operation for the free movement of tourists.

 

 

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