avantika dhar:
avantika dhar:
PUBLIC -PRIVATE
PARTNERSHIP FOR
PROMOTING TOURISM
PRESENTATION BY
Ms.ARCHANA CAPOOR
CHAIRMAN & MANAGING DIRECTOR
TOURISM FINANCE CORPORATION OF
INDIA LTD.
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
HELPING TOURISM GROW
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
HELPING TOURISM GROW
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.
HELPING TOURISM GROW
av
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
HELPING TOURISM GROW
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”.
HELPING TOURISM GROW
Global and Indian Tourism scenario
Travel& Tourism Contributes 10% of the
Global GDP
Global Travel & Tourism activity expected to
increase by 5% in the next ten years
India
Foreign Tourists arrivals to India increased
by 12% to 4.98million in 2007
Foreign Exchange earnings from Tourism
amounted to US $11620 million in 2007
HELPING TOURISM GROW
Key issues and Potential in Indian
Tourism
 Key Potential
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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
Issues
HELPING TOURISM GROW
INFRASTRUCTURE FOR TOURISM-WHAT DOES IT
INDIICATE
Infrastructure still remains the most important
impediment in realising the high potential that the
tourism industry holds for India.
Inadequate Accommodation
Road infrastructure
Air connectivity
Lack of basic amenities at tourist centres
Lack of developed tourism circuits
Adventure Tourism
Tourist trains
HELPING TOURISM GROW
INFRASTRUCTURE-
Public Sector-Influenced Investments
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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
HELPING TOURISM GROW
INFRASTRUCTURE Private Sector-Influenced Investments
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Hotels
Conference Centers
Restaurants
Destination Shopping
Theme/Amusement
Parks
Sports Facilities
Golf Courses
Nightlife
Gaming
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.
HELPING TOURISM GROW
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.
HELPING TOURISM GROW
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
HELPING TOURISM GROW
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
HELPING TOURISM GROW
Need for PPP (contd)
Private Capital is not only driver
Efficiency gains in the systems must for sustenance of
project
Integrated Contracts
Design, Construct and operate
Risk Management
Incentive & Penalty Contractual structures to ensure
Appropriate service levels
Well defined performance parameters
Continued improvements through investments
HELPING TOURISM GROW
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
HELPING TOURISM GROW
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
HELPING TOURISM GROW
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.
HELPING TOURISM GROW
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.
HELPING TOURISM GROW
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.
HELPING TOURISM GROW
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.
HELPING TOURISM GROW
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.
HELPING TOURISM GROW
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.
HELPING TOURISM GROW
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
HELPING TOURISM GROW
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 .
HELPING TOURISM GROW
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.
HELPING TOURISM GROW
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 Rajasthan
Thenmala Eco-Tourism Project Kerala
“Nirmala Bangalore” a public sanitation
program through PPP mode
HELPING TOURISM GROW
THE THENMALA STORY
 Thenmala Eco-tourism" has been
conceived as a first planned ecotourism 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”
HELPING TOURISM GROW
The results
TOURIST ARRIVALS TO THENMALA
140000
100000
80000
60000
40000
20000
0
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
YEAR
Revenue Generated
60.0
49.5
50.0
40.4
Ruppees in lakh
NUMBER OF TOURISTS
120000
40.0
39.3
35.6
30.0
21.5
20.0
11.4
10.0
4.5
0.0
2000-01
2001-02
2002-03
2003-04
year
2004-05
2005-06
2006-07
 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
HELPING TOURISM GROW
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.
HELPING TOURISM GROW
THANK YOU
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