public -private partnership for promoting tourism presentation by ms.archana capoor chairman &...
TRANSCRIPT
PUBLIC -PRIVATE PARTNERSHIP FOR
PROMOTING TOURISM
PRESENTATION BY
Ms.ARCHANA CAPOOR
CHAIRMAN & MANAGING DIRECTOR
TOURISM FINANCE CORPORATION OF INDIA LTD.
avantika dhar:avantika dhar:avantika dhar:avantika dhar:
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
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
avav
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 scenarioTravel& Tourism Contributes 10% of the
Global GDPGlobal Travel & Tourism activity expected
to increase by 5% in the next ten yearsIndiaForeign Tourists arrivals to India increased
by 12% to 4.98million in 2007Foreign Exchange earnings from Tourism
amounted to US $11620 million in 2007
HELPING TOURISM GROW
Key issues and Potential in Indian Tourism Key Potential 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
IssuesHELPING TOURISM GROW
INFRASTRUCTURE FOR TOURISM-WHAT DOES IT INFRASTRUCTURE FOR TOURISM-WHAT DOES IT INDIICATEINDIICATE
Infrastructure still remains the most important impediment in realising the high potential that the tourism industry holds for India. Inadequate AccommodationRoad infrastructureAir connectivityLack of basic amenities at tourist centresLack of developed tourism circuits Adventure Tourism Tourist trains
HELPING TOURISM GROW
INFRASTRUCTURE- Public Sector-Influenced Investments 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
10 HELPING TOURISM GROW
INFRASTRUCTURE -Private Sector-Influenced Investments
Hotels Conference Centers Restaurants Destination Shopping Theme/Amusement
Parks Sports Facilities Golf Courses Nightlife Gaming
11 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 driverEfficiency gains in the systems must for sustenance of
projectIntegrated Contracts
Design, Construct and operateRisk Management
Incentive & Penalty Contractual structures to ensure Appropriate service levelsWell defined performance parametersContinued 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 RajasthanThenmala 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 eco-tourism 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 resultsTOURIST ARRIVALS TO THENMALA
0
20000
40000
60000
80000
100000
120000
140000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
YEAR
NU
MB
ER
OF
TO
UR
IST
S
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
Revenue Generated
4.5
11.4
21.5
40.4
35.639.3
49.5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
year
Ru
pp
ee
s in
lak
h
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
Visit us at : www.tfciltd.com
HELPING TOURISM GROW