Eyeing a spot in the top five tourist destination states tag by 2025, the Gujarat government unveiled an ambitious new tourism policy 2015-2020 on Sunday and awarded “industry status” to tourism sector for the first time. On the occasion of World Tourism Day, state Tourism Minister Saurabh Patel on Sunday announced 100 per cent reimbursement on stamp duty and exemptions in luxury tax, entertainment tax and electricity duty, including capital subsidies for new infrastructure and expansion of built up tourism units in the policy. An investment of over Rs 50 crore for tourism units will get a subsidy of 15 per cent with an upper limit of Rs 10 crore was announced. “There is a thrust on the new policy to boost built-up infrastructure and we are expecting around 5,000 – 7,000 new hotel rooms to come up across the state. The electricity duty which is currently around 25 per cent will come down to around 10 to 15 per cent and the state government has shown an intention to make provisions in the Electricity Duty Act in the next Cabinet session to incorporate this policy,” said N Srivastava, IFS, MD of Tourism Corporation of Gujarat Ltd. The official further said: “An additional 5 per cent capital subsidy, also for tourism units which are looking for expansion will be given, however the expansion has to be more than 50 per cent of their existing infrastructure for them to be eligible. Also for tourist units that have women, SC and ST ownership; 5 per cent extra capital subsidy over and above the admissible subsidy will be given. An additional capital subsidy of 5 per cent will be provided to new tourism units coming up within the corporation limits of Gandhinagar, Yatra Dhams like Ambaji, Dwarka, Dakor, Junagadh, Somnath, Palitana and eco-tourism Centres of Gujarat, including Nalsarovar, Polo, Dangs, Jambughoda to boost tourist accomodation. This has been done as Gandhinagar is seeing an increased tourist flow due to many foreign delegations, business groups visiting to engage with the state government in recent years.” As per the Economic Impact, 2015 data of the World Travel & Tourism Council, the total estimated investment that will flow into the state by 2025 will be $4 billion (Rs 26,000 crore), with an employment generation of 3 million people and 5 per cent contribution to the GDP. In terms of domestic tourists, Gujarat is currently at the eighth position with 3 crore tourists visiting the state every year, and in terms of international tourists it is ranked 16th in India with 2.25 lakh international tourists, averred state tourism secretary S J Haider. “It is for the first time that tourism has been given an industry status by the government. Hotels, motels, resorts, amusement parks, heritage hotel, apartment hotel, motels, convention centres, adventure spots, wayside amenities, tented accommodation, water parks, theme parks, night accommodations that come under ‘tourism unit’ tag will have to pay industrial tax rates which is almost 10 to 15 per cent less than commercial tax which is 25per cent. We have also given luxury tax exemptions and entertainment tax exemptions and 100% stamp duty exemption on buying of land by interested parties,” added Srivastava. The policy mentions that popular marketing campaign “Khushboo Gujarat Ki” has also contributed to the tourist flow in to the state, which was 32.7 million during 2014-15, 13.56% higher than the previous year.
