In a significant move to boost the tourism and hospitality industry, the state government has offered incentives of Rs 1,666 crore this fiscal and the same amount for the next 10 years to attract investments worth Rs 1 lakh crore. It is estimated that the new tourism policy announced last week has the potential to generate direct and indirect employment for 18 lakh people in a decade. River cruising has been made the central theme in the policy, with Nandurbar-Statue of Unity being the key route, besides new ports will be created on the Konkan coast. Vasishti river in Konkan and Godavari river in Nashik, along with major water bodies across the state, have been opened for cruise tourism. Apart from capital investment incentives of 15-20 per cent or Rs 15-20 crore, whichever is lower, the state has also offered 50 per cent to 100 per cent rebate on SGST, electricity duty, power charges and stamp duty depending on the eligibility period of the project ranging from five years to 15 years. “In addition, 5 per cent interest subsidy on loans, viability gap funding and tax exemptions are other attractions for ambitious project developers in the tourism and hospitality sector. In case of smaller projects like caravanning, adventure, beach huts, agro or eco-tourism, the minimum eligibility period for attracting concessions has been kept at three years,” the policy states. The hotel industry in the state has welcomed the policy. “This progressive framework aimed at establishing Maharashtra as a leading global tourist destination is a game-changer for our industry. Additional FSI, relaxed building restrictions to expedite projects, capital subsidy, SGST reimbursement, power duty waiver and interest subsidy on loans are some of the key requirements of the industry and we believe that once implemented, it will be a huge boon for the state’s tourism and hospitality sector.” Past budgetary and institutional provisions have made Maharashtra the fifth most visited state in India with 15.50 crore annual visitors. The new policy is expected to double the number of tourists to 31 crore. The State Planning Department has already set a target of US$1 trillion for the state’s economic development, and the tourism sector can make a significant contribution by attracting investments and providing direct and indirect employment opportunities.
Under this vision, the state has announced the development of 50 sustainable special tourist destinations across the state to help generate employment for local people. The key themes identified for tourism under the programme include: (i) culture and heritage (ii) spiritual tourism (iii) adventure tourism (iv) eco-tourism (v) wellness tourism (vi) MICE tourism (vii) rural tourism (viii) beach tourism (ix) cruise-marine and inland tourism, and (x) niche tourism.
Earlier, the interim budget allocated Rs 2,479.62 crore for tourism, an increase of 46.54 per cent from the last year’s revised budget of Rs 1,692 crore. The allocation for central sector schemes increased from Rs 1,939.22 crore to Rs 2,080.03 crore, reflecting the commitment to enhance tourism infrastructure. Other provisions include developing tourist circuits, eco-tourism, adventure tourism; developing less explored destinations; and improving connectivity by increasing investment in road, rail and air connectivity.
The policy states, “River cruise tourism is an emerging sector within the broader cruise industry, and Maharashtra, with its network of rivers, has the potential to further develop this sector. Maharashtra has many rivers, including the Narmada, Godavari, Vashishti, Savitri, Krishna and Tapi. Travellers can explore local villages, historical sites and experience traditional Maharashtrian hospitality, food and art along the river. The state’s rivers flow through diverse landscapes, including wildlife sanctuaries. River cruises can provide ecotourism opportunities, such as bird watching, nature walks and visits to conservation areas. Maharashtra’s river regions are known for agriculture, and river cruises can integrate agritourism. Unlike sea cruises that may be seasonal due to monsoons, river cruises can potentially operate throughout the year, weather permitting.”
The tourism department has planned a special task force to implement the policy. Its functions will include identifying top tourist destinations attracting a high influx of tourists and deploying tourism friendly officers, providing necessary information to tourists and visitors about laws, customs, culture and nearby attractions, assisting in ensuring sustainable (eco-friendly) practices, providing security to women and monitoring adventure activities for safety.
Apart from bringing in technical know-how, managerial and organisational skills through the private sector, the policy aims to double the tourist inflow by developing destinations and tourism infrastructure and incentivising tour operators. MICE (meetings, incentives, conferences and exhibitions) and destination wedding operators are being targeted mainly through the policy. The aim is to seek private participation to offer world-class services by developing the residential tourism sector to attract international tourists and thus create a supplementary environment for state revenues, suggests the policy which emphasises on enhancing innovation, productivity and competitiveness of the sector through the use of digital technologies and new tourism products and services.
