More concessions for tourism likely

Kochi: Union Minister for Tourism and Culture Jagmohan has stressed the need for a uniform tax pattern in transport, motor vehicles, sales and luxury to ensure an uninterrupted flow of tourists to Indian states.

Addressing the South Indian Tourism Ministers Conference here, he said the different tax rates prevailing in different states are becoming counterproductive for the growth of tourism in the country. "The Centre is ready to provide more concessions to the tourism industry if the state governments evolve a comprehensive coordinated masterplan for developing tourism in their respective regions."

"The recent concessions in the service tax will be a big relief to the tourism and hotel industry, hit since 11 September. The Centre will announce more concessions if the states fall in line," he said. "Special tourist circuits can be organised if the states cooperate and have a uniform policy on taxation and transport."

The Centre is ready to send a delegation headed by a tourism minister from one of the southern states to the Middle East to attract tourists and promote tourist destinations; representatives from the Centre and the trade can also be included in the team, he said.

Pointing out that the country has failed to exploit its assets, especially historical monuments, Jagmohan said the Archeological Survey of India will be reorganised to put them in a high pedestal. "This will give a new lease of life to the monuments."

Kerala Chief Minister A K Antony in his inaugural address said that concerted and coordinated efforts by the states, in cooperation with the Union government, are necessary to exploit the full tourism potential of the country. "Tourism, along with information and biotechnology, has emerged as a core competency sector for the growth of the economy."

Antony said the Centre should address the issues related to better air-connectivity, open-sky policy, simplification of visa procedures, infrastructure, human resource development and professionalisation in the tourism sector.

Presiding over the function, Kerala Tourism Minister K V Thomas said the government has decided to increase the plan outlay in the tourism sector from Rs 195 crore in the Ninth Plan to Rs 1,000 crore in the Tenth Plan. Pointing out that there are 23 taxes being levied on the hotel sector and the lack of a uniform taxation, Thomas said a semblance of uniformity and reasonable rates among the states will benefit the industry.

Tamil Nadu Tourism Minister R Saroja, Pondicherry Tourism Minister Lekshmi Narayan, deputy high commissioner to Sri Lanka Sumit Nakandalla, Union tourism secretary Rathi Vijay Jha, Kerala state chief secretary V Krishnamoorthy, and state tourism secretary T Balakrishnan were among those who attended the meet.