Tourism Investment Opportunities
Presented by
G. Kamala Vardhana Rao
Secretary, Kerala Tourism
Kerala, India’s Tourism Superbrand
• India’s only Tourism Superbrand, selected by the
Superbrand Council
• India’s No.1 upscale tourist destination
• One of the 50 must-see destinations of a lifetime –
National Geographic Traveler
Kerala Tourism, Spectacular Growth
• International tourist arrivals:
2003: 2,94,621
2014: 9,23,366
• Domestic tourist arrivals:
2003: 58,71,228
2014: 1,16,95,411
• Average Duration of Stay (in no. of days)
2003: 14.1
2013: 16.1
Source: Research Division, Dept. of Tourism, Kerala
Kerala, Excellent Connectivity
• 3 International Airports • Connect to Middle East, South East
Asia
• Connect to all major cities in India
• 17 international airlines & 4 domestic
airlines operate to Trivandrum
Airport on a daily basis
• 20 international airlines & 7 domestic
airlines to Cochin
• 10 international airlines & 4 domestic
airlines
• Well connected by Rail and Road
network to major cities in India
• NH network of 1523 kms
• State Highway of 4655 kms
• Intricate network of roads and canals
connect even the remotest part
Kerala, Growth Enabling
Environment
Government of Kerala
• Facilitator for tourism as an Industry
• Aggressive marketer of Kerala Tourism
• Partner in progress with private sector
Kerala Tourism Investment
Promotion Board
• The State had constituted Kerala Tourism Investment
Promotion Board recently
• Clear intention is to attract more Private investment in
the tourism sector
• Chief Minister will be the chairman of the board with
Tourism Minister as Vice Chairman and Tourism
Secretary as Convener
• Government will remain as a catalyst and facilitator to
create enabling environment for private investments.
Ease of Doing Business in Kerala
• Industrial promotion agencies like KSIDC, KINFRA,
INKEL, SIDCO etc will facilitate in organizing and
assisting new investment proposals in the State
• Single window clearance system introduced for new
proposals in 20 different departments
• A committee under Chief Secretary with trade
representatives as members is entrusted with the task
of Single window clearance for projects
Subsidies to Tourism industry
• Various subsidies offered to investors in the tourism
sector
• Main incentives include investment subsidy limited to
10% of the total Investment, maximum 10 lakhs and
the subsidy on Electricity tariff
• 25% of investment subsidy to the approved
Girihasthali Scemes , maximum 5 Lakhs
Kerala Tourism, Investment
Opportunities
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Destination Development
Development of Resorts/ Hotels
Adventure Activities
MICE Facilities
Human Resource Development
Master Plan for Major Destinations
• Development Master plans with a 30 year inclusive
growth vision finalized for Kovalam, Kumarakom,
Thekkady & Fort Cochin
• Pilgrimage tourism master plans for Sabarimala, Sree
Padmanabha Temple, Malayator Church, Cheraman
Mosque will be ready by end of this year
Kovalam – Poovar Corridor
Kovalam
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Internationally renowned beach side destination
Favorite beach of foreign tourists
3 adjacent crescent-shaped beaches
Offers a variety of activities on the beach
Kovalam – Poovar Corridor
Poovar
• Small Coastal Village 25 km south of Kovalam
• An Estuary which connects with the Sea during high tides is the major attraction
Kovalam – Poovar Corridor
Major Investment Projects in PPP model
• Water Sports facilities including Scuba diving in 5 different
spots ( Expected investment – 10 Cr)
• Conversion of Vattappara quarry as an adventure
destination with bungee jumping, rappelling and a
suspended restaurant ( Expected investment – 10 Cr)
• Sea Viewing restaurant on the cliff at Kovalam palm beach
( Expected investment -1.5 Cr)
Kovalam – Poovar Corridor
Major Investment Projects in PPP model
• Entertainment zone ( Amusement Park / Gallery/
Oceanarium/ Sand sculptures etc) at Poovar Estuary
(Expected investment - 50 Cr)
• Solid waste management and bio gas plant (Expected
investment - 5 Cr)
Destination - Kumarakom
 Serene village on the banks of Vembanad lake
 Favorite holiday destination of Celebrities
 Houseboats with over night stay facilities
Kumarakom – Major Investment
Projects in PPP Model
• Traditional Water sports complex at Cheerpunkal
(Expected investment – 2Cr)
• Developing budget accommodation units . Recent
feasibility study had identified a gap of 3000 beds in the
destination
• Hospitality Training institute (Expected Investment -1.2
Cr)
• Ayurvedic Village / Rejuvenation Centre / Ayurveda
Institute ( Expected Investment - 50 lakhs)
Kumarakom – Major Investment
Projects in PPP Model
• Convention Centre for MICE tourism (Expected
investment – 50 Cr)
• Theme based park for recreational activities (Expected
investment - 2.5 Cr)
• Cultural Handicrafts Village ( Expected investment – 10
Cr)
Destination - Thekkady
 One of the finest wildlife reserves in India
Thekkady – Major Investment
Projects in PPP Model
• Proposed projects for private investment
• Alternate Transport Modes ( Battery Operated Vehicles)
for Tourist transport
• Tourist rest areas and toilet facilities
• Floating area
• Rock garden and recreational facilities at Urumbikkara
Destination – Fort Cochin
 The first European township in India
 Hub of Spice Trade and Key Port in Spice Route
Kochi, Host city of India’s first Biennale
Government of Kerala is the primary sponsor of the Kochi-Muziris Biennale
Contributed Rs 9 crores towards KMB 2012
Other Major Investment Projects
• Hop-on hop-off service in Cochin. DoT will arrange all
necessary clearances, marketing support and other
infrastructural requirements other than the vehicles
• Digital Museum or Heritage Village in Veli
• Budget accommodation units in Parunthumpara,
Idukki and at Ilaveezhapoonchira, Kottayam which are
emerging destinations. Land available on PPP model
Other Major Investment Projects
• Clean Kerala. Destination and household garbage
collection and disposal. STP to be set up. The project will
be on User fee model
• Multi level Vertical Parking in Kovalam, Munnar,
Thekkady, Varkala, Fort Cochin, Kumarakom. Ideal
model for Kerala where land availability is a major issue
• Caravan Tours in Munnar, Thekkady, Wayanad etc.
Tourism & Forest departments will jointly develop
facilities for interested Operators
Other Major Investment Projects
• 9-hole golf course and an eco-resort in Vagamon
• 3 star eco friendly Resort and Convention Centre at
Karapuzha, Wayanad
• Adventue Sports Zone and Backwater Resort at Kappil
beac, Varkala
• Cable cars at Munnar
Potential Investment Destination
Kannur International Airport
• Second Greenfield airport in PPP model in Kerala
• The new airport will provide an international gateway in
the northern Malabar region with state-of-the art facilities
• Will act as air cargo hub for Malabar region
• The new airport will be fully operational in 2016
Potential Investment DestinationsAthirapally Waterfalls
Potential Investment Destinations-Wayanad
Potential Investment Destinations
Bekal Fort
Facilitating Industry
in Kerala
Dr. M Beena IAS
Managing Director
Kerala State Industrial Development Corporation Ltd. (KSIDC)
Government of Kerala
Essential Facts
• Area: 38,863 sq.km (1.18%)
• Population: 33.3Mn (2.75%)
• Coastal length: 600km (8%)
• Literacy rate: 94% (74%)
• High life expectancy: 74 yrs (67 yrs)
• High PQLI
Network of Government Agencies
• KSIDC – Dedicated Parks & Financial
Support
• KINFRA – Dedicated Parks
• K-BiP – Investment Promotion Support
• INKEL – Infrastructure Support
• KFC – Financial Support
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Kerala Core Competencies
• Tourism
• Food Processing
• Wellness/ Health Care
• Bio - Sciences / Technology
• Information Technology
• SMEs
• Manufacturing
• Innovation Ecosystem
At a Glance
•
Premier agency for industrial & investment promotion
•
Single point contact for investments to the State
•
Single window clearance cell
•
1200 Acres of developed land with plug and play facility
•
Assisted more than 700 projects with Investment outlay of Rs. 26,300
crores
•
Employment: Direct - 78,000 , Indirect - 3,92,000
•
Mega Projects worth Rs. 1,00,000 crores in the pipeline
Range of Services
•
Industrial & Investment Promotion
•
Infrastructure Development
•
Mega Projects – Facilitation/PPP
•
Identification of Investment Ideas & Facilitation
•
Feasibility Study, Project Evaluation, Financial Structuring
•
Single Window Clearance
•
Project Financing(Equity / Debt assistance)
Term Loan Assistance from KSIDC
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Term loan assistance given for medium to large scale projects above
Loan assistance is given up to Rs. 35 Crores
Consortium based funding in coordination with major public sector Banks
Rs. 2 crores
General Industries
Tourism
11.25%- 13.25%
10.25% to 12.25%
Interest Rate
(Depending
rating)
on
credit
DE Ratio
Up to 1.5:1 with primary security
Up to 1:1 with primary security
Up to 2:1 with collateral security
Up to 1.5:1 with collateral for the excess loan above 1.5:1
security for the excess loan
above 1:1
Moratorium
1 year moratorium from commercial operation date for principal
repayments
Repayment period
5-8 years depending on project cash flow after moratorium period
IGC Kannur
Location
• Area acquired for IGC - 250
Acres
• Location - Valiyavelicham,
Koothuparamba,
Kannur
District.
• Nearest Airport - Kozhikode
International Airport – 120
km
• Nearest Railway Station Thalassery Railway Station 21 km
• Nearest Sea Port - Mangalore
Port - 110 km
IGC Kinalur
Place
Kinalur, Balussery
Extent of
land
308 acres (123.2
hectares)
District
Kozhikode
Nearest
Railway
Station
Kozhikode (25 km)
Nearest
Airport
Kozhikode
Nearest
Seaport
Kochi (200 km)
IGC Cherthala
Place
Pallippuram,
Cherthala
Extent of land
278.79 acres
(111.5
hectares)
District
Alappuzha
Cherthala (7
km)
Nearest Railway Cherthala (8
Station
km)
Nearest Town
Nearest Airport Kochi (70 km)
Nearest Seaport Kochi (30 Kms )
Kerala USPs
Ayurveda
Hill Stations
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Western Ghats
Undulating hills & valleys
Backwaters
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Continuous, unbroken tradition
Advantageous terrain and climate
Rich bio-diversity
Largest pool of qualified, trained manpower
Beaches
• Unbroken coastline of more than
600 km
• Beautiful shallow beaches
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44 Rivers
Vast network of lakes
1500 Km of Canals
Over 300 species of birds
Kerala USPs - Wellness / Healthcare
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Kerala - India’s best healthcare indices - well
accepted by public
Health tourism - a fast emerging sector
More than 25 super specialty hospitals, 15 medical
colleges in the private sector and 8 Medical
colleges and 4 Dental colleges in government
sector
High density of healthcare professionals
Opportunities
• Super-specialty
Hospitals
&
personalized
healthcare system, R&D facility, para medical and
nursing
institutions
&
medical
device
manufacturing
• INKEL Towers, Malappuram- 100 acres for health
care industries
Kerala USPs - Kerala Ayurveda
• Home for Ayurveda
• Ashtavaidya tradition
• Geographical spread
• Medicine Availability
• Renowned Ayurvedic centres &
Centres of Excellence
• Well trained medical & para-medical staff
• Good Manufacturing Practices for medicinal preparations
KERALA USP’s - SPICES
• The value of spices exports from Kerala increased at a
CAGR* of 26.1 per cent between 2007-08 and 2011-12.
• Exports reached a volume of 421,570 tons in total from
India, with Kerala being the major contributor.
Kerala Specialties
 Mineral Sands - Ilmenite, Rutile, Zircon, Monazite,
Sillimanite, etc. Titanium Sponge production – 500TPA;
scope for massive scaleup
Marine products – exports worth approx. $1.5bn
 Natural Rubber – 90% of total rubber production in
India
Kerala,
Life In God’s Own Country
What makes Kerala so fascinating?
• Green, diverse nature with rich bio-diversity
• Open, welcoming people
• Strong cultural heritage with an array of classical, folk art
forms and festivals
Nature…Beaches
580 km long coastline…
Nature…Hillstations
High ranges of Kerala is one of the
biggest producers of spices
Nature… Wildlife
Unique flora & fauna
Nearly one-fourth of Kerala is forested and
has 15 Wildlife Sanctuaries and 4 National
Parks
Unique Offerings; Houseboat Holidays
Houseboats – traditional kettuvalloms
Ideal MICE Destination
• World class infrastructure in accommodation and conferencing with national
and international hotel chains including Taj, Oberoi, Leela, Le Meridien,
CGH Earth, Abad Group of Hotels, KTDC Hotels & Resorts…
• Excellent connectivity with 3 international airports, which makes an airport
only 3 hours drive away from any part in Kerala; well-knit rail and road
network
• India’s most advanced communication infrastructure with 100% digital
telephone exchanges, high-speed international submarine cable landings,
OFC backbone…
Le Meridien International Convention Centre, Kochi – a unit assisted by KSIDC
Footprint of KSIDC in Tourism
• Total units assisted – 59
• Project Cost – Rs. 973 Crores
• Employment Generated - 5410
Aveda Resorts
Crowne Plaza
Vasundhara Sarovar Premiere
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Innovation Ecosystem
• KSEDM – Entrepreneurship development Mission
• Second edition of YES to be held during September 2015
• Women Entrepreneurship Mission
• Built-up space on nominal lease rent
• Angel Investment Fund by KSIDC
• Mentoring support
• Incubation Support – Assumption College, Changanacherry
• Kayal, Silk Route Escapes – unit supported by KSIDC
• Kerala Ayurveda Mart
Thank You