Tourism in Himachal Pradesh and the way ahead

table of contents
Tourism in India 01 Growth in the number of tourists Growth in the contribution of tourism to GDP 02 02

Factors driving growth of Tourism 03 Himachal Pradesh and its distinct features 05

Major tourist destinations 06 Assessment of Himachal Pradesh as a tourist destination Growth in total number of tourists visiting Himachal Pradesh Tourist prole in Himachal Pradesh Seasonality of tourist inow in Himachal Pradesh Tourist inow at major destinations in Himachal Pradesh Key states with respect to tourism in India Key states in terms of market share Evolution of the ranking of states during 2007-2010 07 08 08 09 10 11 12 12

Foreign tourists by nationality 08

Case Study: Madhya Pradesh 15 Case Study: Uttarakhand 17 Assessment of Himachal Pradesh tourism infrastructure 19

Key Initiatives taken and planned by Himachal Pradesh government 21 The way forward 25 For the state government to increase tourist inow For harnessing private sector participation 26 28

2012 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

tourism in india

The vast geography and cultural diversity of India provides it with a bounty of attractions to draw both domestic and international tourists. There has been substantial growth in domestic and international tourists in India over the last few years. There are different factors aiding increase in number of tourists in the country. Per capita income has more than doubled over the last one decade in the country. Accessibility to tourist locations has improved due to substantial increase in the number of ights, trains as well as road connectivity to more tourist locations in the country. The Aircraft Trafc Movement (ATM) in India has increased by 62 percent from 6.3 lakhs in 2006 to 10.3 lakhs in 20101. In India, travel and tourism contributed INR 5,651 billion or 6.4 percent to the countrys GDP in 2011. Travel and Tourism accounted for 7 .8 percent of total employment in India in 20112.

Growth in the number of tourists

During 2006-2010, the total number of tourists visiting different states/ UTs in India has increased from 4,740 lakhs to 7 ,580 lakhs, growing at a CAGR of 12.5 percent.
Total tourists in India 2006-2010 Contribution of travel and tourism to GDP

Source: Travel & Tourism Economic Impact 2012 India -WTTC report (www.wttc.org)

Source: India Tourism Statistics 2010, 2009, 2008 and 2007 (www.tourism.gov.in)

Domestic tourist visits to states/ UTs grew at the rate of 12.5 percent CAGR during 2006 - 2010 period to reach 7 ,402 lakhs in 2010. Foreign Tourist arrival grew at 11 percent CAGR during the same period and reached 179 lakhs in 20103. To attract more foreign tourists to India, Government launched a Scheme of Visa on Arrival (VoA) from January 2010 for citizens of ve countries, which has now been extended for six more countries from January 20113.

This not only considers the direct impact of tourism on GDP but also takes into account its wider impacts i.e. the indirect and induced impacts. The graph also shows that indirect contribution of tourism to GDP is signicantly higher than the direct contribution. 1. Direct Contribution of tourism to GDP: The direct contribution of Travel & Tourism to GDP comprises total spending within a particular country on travel and tourism by domestic and foreign tourists as well as spending by government on related services directly linked to visitors, such as cultural (e.g. museums) or recreational (e.g. national parks). According to World Travel and Tourism Council, the direct contribution of tourism in India is forecasted to grow at a CAGR of 8 percent over the next decade. 2. Indirect and Induced contribution of tourism to GDP: This comprises investment spending (like construction of new hotels), government collective spending, purchases done by sectors dealing directly with the tourists and jobs supported by the spending of people employed in tourism industry. The indirect and induced contribution is forecasted to grow at CAGR of 9 percent over the next decade. From the graph above, for every rupee of direct contribution of tourism to GDP , more than two rupees of contribution is generated by indirect and induced effects of tourism in the GDP . Thus, due to the multiplier impact of direct contribution, focus on tourism sector may promote signicant investment, earning and jobs in the economy.

Growth in the contribution of tourism to GDP

The total contribution of tourism to GDP in India has grown at a CAGR of 4.6 percent during 2006-2010 period, reaching INR 6,000 bn in 2012. According to World Travel & Tourism Council, the tourism sector in India is expected to grow at even faster rate of 8 percent over the next decade, contributing approximately INR 13,000 bn to the GDP by 2022.

1 DGCA 2 WTTC, Travel & Tourism Economic Impact 2012, India 3 www.tourism.gov.in

Factors driving growth of tourism

There are multiple factors which have aided in the growth of tourism in India and are expected to further drive tourism growth in the country.

Source: PHD-KPMG in India report, Tourism in Himachal Pradesh and the way ahead, June 2012

Drivers These are the factors which have direct impact on the growth of tourism in the country.
Rise of middle class and increasing income levels: The

Government Initiatives: The Government of India (GOI)

middle class in India has grown from 15 million households in 2005 to 31.4 million households in 20114. The enhanced purchasing power of middle class segment inuenced the growth in domestic travel during 2006-2010.
Increasing business travel: Over the last decade, the Indian

economy has grown consistently at an average rate of 6-7 percent per annum5. This has led to an increase in business travel to India. The rise of multinationals, especially in the IT and ITeS sector has also helped in increasing the business travel.
Improved infrastructure: The tourism ministry and different

has taken several initiatives to promote India as a tourist destination. These include campaigns like Atithi Devo Bhavah and Incredible India6 to highlight India as a signicant tourist destination on the world map. Along with this, GoIs Open Sky policy, which gives permission to domestic airlines to commence international ights, start-up of various lowcost carriers, and eet expansion by domestic players have created multiple options for domestic travelers to explore far-off destinations within and outside India. The government has also allowed 100 percent FDI through automatic route in tourism and hospitality industry7 which has led to improvement in tourism infrastructure in the country.
Convenience of travel arrangement using internet: Riding

state governments are improving the facilities at various tourist destinations. Development of new airports and improvement in quality of roads has increased connectivity to different tourist locations. This has helped in drawing more tourists. Facilitators These are the factors that complement the driving factors in the tourism growth

on the digital economy rise, travel portals offering travel packages, hotel stays, etc, have eased the trip booking process. This has ensured that there are competitive tourist friendly offerings available in the market.
Increase in awareness of travel options: The use of internet

has also assisted in spreading information about various tourist destinations in India. Every state has a tourism website showcasing the places to visit in that state and providing information on how to reach those places. They also provide various package tours targeted at different tourists in different economic status.

4 http://economictimes.indiatimes.com/opinion/view-point/rapid-gdp-growth-growing middle-class-will-lead-to-india-powering-the-world/articleshow/7300851.cms and http:// articles.economictimes.indiatimes.com/2011-02-06/news/28424975_1_middle-class households-applied-economic-research

5 http://economictimes.indiatimes.com/opinion/view-point/rapid-gdp-growth-growing-middle- class-will-lead-to-india-powering-the-world/articleshow/7300851.cms 6 www.incredibleindia.org 7 http://www.expresshospitality.com/20120215/market03.shtml

himachal pradesh and its distinct features

Popularly known as the Devbhumi Land of the Gods , Himachal Pradesh is a beautiful hill state in India, nestled in the north-west region of western Himalayas. The state is landlocked with the Tibetan plateau to the east, Jammu and Kashmir to the north, and the Punjab to the west. The state stands apart from its neighbours in terms of its sheer topographic diversity. From vast tracts of high-altitude Trans-Himalayan desert to dense green deodar forests, from apple orchards to cultivated terraces, from snow capped high Himalayan mountain ranges to snow fed lakes and gushing rivers, Himachal Pradesh offers breathtaking pristine beauty.
Major tourist destinations
District Bilaspur Tourist destinations New Bilaspur Town, Swarghat, Salasi village Dalhousie, Khajiar Chamba town, Saho village Hamirpur town, Bela village Pilgrimages Naina Devi Wildlife sanctuaries Other places of interest Bhakra Dam, Gobind Sagar Lake, Deoli Fish Farm Manimahesh Lake, Chamera Lake Sujanpur Tira

Chamba

Laxmi Narayan Temple, Vajreshwari Devi Temple Baba Balak Nath, Deotsidh Temple, Markanda Jwala ji, Chamunda Devi, Bajinath Temple

Hamirpur

Kangra

Dharamshala, Mcleodganj, Palampur, Nerti village

Tibet Museum, Kangra Fort, Kangra Valley, Pong Dam Great Himalayan National Museum of Himachal Culture Park, Majathal Sanctuary & Folk Art, Gu Chu Sum Movement Gallery, Rorrich Art Gallery Pin Valley National Park Kunzam pass, Kye Monastery, Rohtang Pass, Godhla Fort Rewalsar Lake, Prashar Lake

Kullu

Hadimba Temple Kullu, Manali Manikaran, Naggar Vashishth, Shamshar village Spiti, Kaza, Keylong, Udaipur village Sundernagar, Sh Bagi Village Shimla, Kufri, Hattu Peak, Narkanda, Hiun Village Paonta Sahib, Rajgarh, Trilokpur, Nahan, Renuka, Sangdah Village Kasauli, Parwanoo, Barog, Chail, Baniya Devi Village Una Town, Nari Village Trilok Nath Temple

Lahaul & Spiti Mandi

Shikari Devi Temple

Shikari Devi Wildlife Sanctuary Chail Sanctuary

Shimla

Kalibari Temple, Jakhoo Temple, Tara Devi, Paonta Sahib Gurudwara, Renuka ji Temple Jatoli Temple

Shimla state Museum, Prospect Hill, Chadwick Falls Jaitak Fort, Churdhar Peak, Shivalik Fossil Park Gorkha Fort, Karol Tibba and Meteol Tibba, Sadhu Pul Dera Baba Rudru Nand ji Ashram

Sirmour

Renuka Sanctuary, Simbalbara Sanctuary, Churdahar Sanctuary

Solan

Una

Chintpurni Devi, Shiv Bari Temple

Kinnaur

Rekongpeo, Pooh, Chhitkul, Sangla, Brua Village

Kinnar Kailash

Source: Himachal Tourism website (www.himachaltourism.gov.in)

The above table demonstrates the diversity and tourism potential of Himachal Pradesh. Its serene valleys can promote medical/ wellness and spiritual tourism in the state. Its terrain also provides innumerable opportunities to promote adventure tourism. Given the climate and topography of Himachal Pradesh, adventure sport activities like river rafting, para-gliding and trekking are popular in the state. Availability of natural resources makes the state suitable for investments in sectors such as tourism, agricultural produce, hydroelectric power and cement.
1 IBEF Report on Himachal Pradesh, November 2011

states average GSDP growth rate between 2004-05 and 200910 was about 11.4 percent. Given its topography, the state is a leading producer of apples, producing 2.8 lakh metric tonnes of apple in 2009-101. The rural regions and pilgrimages can be used in promoting rural tourism and pilgrimage tourism respectively. Hence, opportunities are plenty for Himachal Pradesh to provide the necessary infrastructure to attract higher tourist inows.

assessment of himachal pradesh as a tourist destination

Growth in total number of tourists visiting Himachal Pradesh

Compared to national average growth rate of 12.5 percent, the number of tourists in Himachal Pradesh has grown at a CAGR of 14 percent during the 2006 2010 period. The total number of tourists (foreign as well as domestic) visiting Himachal Pradesh has consistently increased over the last 5 years increasing from 88 lakhs in 2007 to 151 lakhs in 2011
Total tourists in Himachal Pradesh 2006-2010

Himachal Pradesh is performing better than the other states in India as a whole in terms of attracting both domestic and foreign tourists. The number of domestic tourists in the state has increased from 77 lakhs in 2006 to 129 lakhs in 2010, growing at a CAGR of 14 percent as compared to a CAGR of 12.5 percent at the India level. In terms of foreign tourists, their number has increased from 3 lakhs to 4.5 lakhs in the same period, growing at a CAGR of 13 percent which is also above the CAGR of 11 percent at the India level. The mix of foreign and domestic tourists visiting Himachal Pradesh has stayed almost constant from 2006 to 2011. It highlights the potential of the state to attract domestic and foreign tourists on a sustained basis.

Foreign tourists by nationality

An analysis of the foreign tourist arrival data in Himachal Pradesh in 2011 shows that visitors from UK comprise the largest proportion of foreign tourists with 15 percent share of the total foreign visitors. Tourists from USA and France comprise the next biggest share with 7 percent share each. The data highlights that apart from English speaking countries like UK, USA, Australia and Canada, a fair share of foreign tourists arrive from non English speaking countries like France, Germany, Italy and Japan. Thus, providing tourist related information on the Himachal tourism website and at the tourist information centers in multiple languages may add to the convenience of the foreign tourists. Country UK USA France Germany Australia Canada Italy Japan Malaysia Percentage share 15% 7% 7% 4% 4% 3% 2% 2% 2%

Source: Department of Tourism, Himachal Pradesh

The performance of Himachal Pradesh in attracting tourists has been better than the average growth in number of tourists across India. However, the current rank of 13 in terms of number of tourists visiting the state in 2010 indicates that there is further potential which may be leveraged by showcasing the state as an important tourist destination.

Tourist profile in Himachal Pradesh

The tourist inow in Himachal Pradesh over 2006-2011 period has witnessed increase in both domestic and foreign tourists. However, domestic tourists contribute the signicant proportion of the total number of tourists in the state.
Growth of domestic and foreign tourists in Himachal Pradesh

Source: Department of Tourism, Himachal Pradesh

Source: Department of Tourism, Himachal Pradesh

Average bed nights spent in Himachal Pradesh by foreign tourists

Source: Department of Tourism, Himachal Pradesh

The average bed nights spent in Himachal Pradesh by a foreign tourist in 2011 is just 1.2 highlighting that the avenues of entertainment for these visitors need to be increased as well as communication program around them need to be reinforced to make tourists stay longer. Although foreign tourists comprise less than 3 percent of the total tourists in India, they constitute 17 .8 percent of travel and tourism contribution to Indias GDP1. This higher propensity to spend of foreign tourists highlights the signicance of their longer stay in the tourism growth. To achieve this, the Himachal Pradesh government while marketing the state as a tourist destination overseas may also try to develop

broader tourist circuits on the line of Delhi Agra Jaipur to place the state on the itinerary of international tourists. This may include tie up with state Governments of neighboring states e.g. Delhi, Punjab, and J&K to develop integrated packages and investment in logistic infrastructure to allow smooth transportation.

Seasonality of tourist inflow in Himachal Pradesh

The graph below shows the number of tourists arriving in Himachal Pradesh in a particular month as a percentage of total number of tourists arriving in 2011.

Seasonality in tourist inflow in Himachal Pradesh

Source: Department of Tourism, Himachal Pradesh

The graph highlights that Himachal Pradesh witnesses maximum tourists during the period from March to June with 46 percent of the total tourists visiting the state visit during these 4 months. This is the period during which summer vacations start in schools across the country resulting in peak tourist trafc. During the four winter months from November to February, the tourist inow to Himachal Pradesh is at lowest as accessibility to different tourist locations within the state is a challenge during this harsh winter period.
1 WTTC, Travel & Tourism Economic Impact 2012, India

Thus, there is high seasonality in the tourist inow in Himachal Pradesh and focused initiatives may be taken to attract tourists during off-peak seasons. Attracting corporate tourists for conducting off site trainings and conferences and organizing national and international level events during this off season may help in reducing the tourist trafc seasonality. A more balanced distribution of tourists across the year would also be helpful in attracting more private investors to the state.

10

Tourist inflow at major destinations in Himachal Pradesh

A detailed look at the tourist inow in 2011 at various districts in Himachal Pradesh shows that only three districts (Shimla, Kullu and Kangra) corner over 50 percent of the total tourists coming to the state though the state has 12 districts. Development and promotion of other potential districts as tourist hubs would aid in more equitable tourism growth in the state.

Citywise tourist share and growth rates

Source: www.himachaltourism.gov.in

Also, the graph shows that tourism has grown at a faster pace in districts that were not prominent in the tourist circuits. In the last few years, the number of tourists preferring to visit newer tourist districts like Hamirpur, Kinnaur and Lahaul & Spiti has increased at a rapid rate. It highlights the potential of growing tourism in districts adjacent to popular destinations in the state.

Harmirpur and Una may have benetted from their geographical locations as they lie between two most preferred tourist destinations of Shimla and Kangra. Similarly, Lahaul and Spiti may have beneted due to the adjacency with Kullu and Manali. It highlights that popularity of key tourist hubs has positive inuence on the adjacent districts and Himachal Pradesh government may utilize this adjacency effect to attract the tourists to lesser popular tourist destinations.

11

key states with respect to tourism in india

12

Key states in terms of market share

In terms of market share (market share being dened as the total number of tourists visiting a state as a percentage of total tourists in the country), the top 8 states in the country are: states Andhra Pradesh Uttar Pradesh Tamil Nadu Maharashtra Karnataka Madhya Pradesh Uttarakhand Rajasthan West Bengal Himachal Pradesh Market Share 20.6% 19.3% 15.1% 7 .1% 5.1% 5.1% 4% 3.5% 2.9% 1.8% Rank in 2010 1 2 3 4 5 6 7 8 9 10 CAGR (20062010) 9% 8% 18% 30% 1% 36% 16% 3.5% 7% 14%
The top 6 states combined receive over 70 percent of the

tourists visiting different states/UTs in India.

The market share of Himachal Pradesh in total number of

tourists is still modest as compared to other top performing states

Growing at 36 percent, the rate of growth in the number of

tourists is highest for Madhya Pradesh, closely followed by Maharashtra at 30 percent. The rate of tourism growth in these 2 states is signicantly higher than the other states present in the top 8, with Tamil Nadu having the next best tourism growth CAGR of 18 percent

Source: India Tourism Statistics 2010, 2009, 2008 and 2007 (www.tourism.gov.in)

Evolution of the ranking of states during 2007-2010

Following table gives top 8 most preferred tourist destinations in India in terms of number of visitors during 2007-2010. Rank 1 2 3 4 5 6 7 8 2007 Andhra Pradesh Uttar Pradesh Tamil Nadu Karnataka Rajasthan Maharashtra Uttarakhand West Bengal 2008 Andhra Pradesh Uttar Pradesh Tamil Nadu Rajasthan Maharashtra Madhya Pradesh Uttarakhand West Bengal 2009 Andhra Pradesh Uttar Pradesh Tamil Nadu Maharashtra Karnataka Rajasthan Madhya Pradesh Uttarakhand 2010 Andhra Pradesh Uttar Pradesh Tamil Nadu Maharashtra Karnataka Madhya Pradesh Uttarakhand Rajasthan

Source: India Tourism Statistics 2010, 2009, 2008 and 2007 (www.tourism.gov.in)

13

A comparison of investment in tourism made by these states as a percentage of the total state budget in these states during 20072010 has been shown below:
Investment in tourism as a percentage of total budget

Source: Planning Commission state Plans Outlays 2007-2011

Andhra Pradesh, Uttar Pradesh and Tamil Nadu have

Uttarakhand invests 1.48 percent of its budget in tourism

consistently stayed at the top of the list over 2007-2010 period even though their investment in tourism as a percentage of total outlay is among the least of the top 8 states, 0.09 percent, 0.14 percent and 0.21 percent respectively. The top position of Andhra Pradesh is understood to be due to the presence of Tirupati temple with millions of people visiting it every year1. Similarly, the major tourist attractions in Tamil Nadu are Chennai, Madurai and Rameshwaram. Uttar Pradesh also attracts a lot of tourists due to presence of places like Varanasi and Agra. One common factor among the top 3 states is the presence of holy pilgrimages in these states signifying relevance of pilgrimage tourism especially in terms of domestic tourism growth.
Maharashtra has moved up in the rankings from 6 in 2007 to

which is the highest among these top 8 states. It has yielded results for the state as it has risen from number 8 to 7 in the last 5 years.
Himachal Pradesh government invests 0.28 percent of its

budget in tourism which is below the average investment of the top 8 states. This may be one of the factors that have resulted in Himachal Pradesh slipping from 12 spot in 2007 to 13 spot in 2010. This highlights that some states like Andhra Pradesh and Tamil Nadu have been consistently able to draw maximum number of tourists due to the presence of religious sites, whereas there are other states like Maharashtra and Karnataka that have invested in tourism in the state and have been able to garner the attention of the tourists. The key areas of investment by these states have been4
Promotion of state tourism in national and international forums Transport infrastructure in terms of road and transport

4 in 2010 which is justied by its higher spend on promoting tourism in the state. Its spending on tourism is 0.62 percent of the total budget and is among the highest in the top 8 states. The state invests its tourism budget on maintaining existing tourist sites like Ajanta and Ellora, developing new sites, publicity etc.
Madhya Pradesh entered into the top 8 in 2008 and has

connectivity
Developing new tourist destinations in the state Establishing good quality hotels and restaurants Providing better facilities at tourist sites in terms of wayside

stayed in the list after that, showing that it is possible for other states to enter into the list of top performing state given they take the right measures to promote tourism. Although the average investment of the state in tourism is just 0.22 percent of its budget, it has been able to attract private investment in tourism projects. It is also using PPP models for the development of tourism infrastructure.2 The state may have also benetted by the effectiveness of its marketing campaign where it is ranked higher than most of the top tourist states in India3.

amenities, etc. Himachal Pradesh may channelize investment to showcase its natural beauty, develop newer circuits along with holy pilgrimages to attract tourists to the state. The state realizes the importance of investing in the above mentioned facilities and there has been action in these areas however, these efforts need to be sustained to continuously reap the benets.

1 http://www.nancialexpress.com/news/andhra-pradesh-top-tourist-destination-tourism- 3 HVS Whitepaper on Hotel Room Supply, Capital Investment and Manpower requirement by ministry/819071/0 2021 2 http://www.hospitalitybizindia.com/detailNews.aspx?aid=5473&sid=1 4 state tourism department websites

14

15

case study madhya pradesh

16

Madhya Pradesh is one of the upcoming tourist states in the country. Recently, it bagged four national tourism awards from the Union Ministry - Best Tourism state, Best Tourism Film, Best Publicity Material and Best Civic Management of a tourism destination in India1. Madhya Pradesh has focused on following key areas aiding tourism promotion in the state. Marketing Understanding the importance of marketing and advertising to catch the attention of tourists, Madhya Pradesh government hired a reputed brand and advertising agency to construct a tourism friendly image2. Understanding the fact that majority of tourists in India are domestic tourists, it has used TV commercials to promote its tourism. The move has worked well for them and has helped Madhya Pradesh move up the ranking of states in terms of share of tourists visiting the state. Development of new sites New religious, historic and natural sites are being developed as tourist destinations to attract more and more national and international tourists to the state. Thirtyseven tourist places have been selected for further development. Dividing the state into tourism sectors The tourism potential of Madhya Pradesh is being increased by identifying select tourist sectors in the state. The state is giving special attention to developing Panna, Chitrakoot, Khajuraho and Orchha as tourist destinations3. The government has also set up Tourism Promotion Councils in various districts of the state to promote tourism. Investment in infrastructure Investment is being made at a fast pace in tourism and supporting infrastructure needed to promote it. Investment is also coming from foreign countries. Three companies from Republic of China have invested recently in the state. Some of the positive aspects of investment in Madhya Pradesh are availability of land at relatively attractive price, peaceful industrial atmosphere, immediate action on investment proposals and harmonious social atmosphere.

Inviting national and international investments The state government has been undertaking efforts to rope in national and international investors to develop infrastructure in the state. To promote investor condence in the state, the Madhya Pradesh state Tourism Development Corporation (MPSTDC) organizes tourism conclave in association with reputed industry bodies.6 Fort and palaces to be converted into heritage hotels The government of Madhya Pradesh has created an inventory of forts/palaces to be converted into heritage hotels. These forts/ palaces are planned to be offered to the private investors on a long term lease (90 yrs)/Freehold/PPP basis through a transparent process.4 For the forts/palaces in private hands, the role of the Government is envisaged to be limited to bringing the private players and investors together and facilitating the entire process. The state has created a land bank of 500 hectares and has invited private investors to set up properties at these locations5.

Key learnings from initiatives undertaken by Madhya Pradesh

Following key factors have helped Madhya Pradesh strengthen its positioning and potential in terms of attracting tourists:
Judicious selection of marketing tools in increasing the

awareness of the tourist potential of the state.

Harnessing the tourism potential through identication and

development of potential new tourist destinations.

Establishment of required administrative set-up for

development and promotion of different regions and sites in the state.

Regular meet with various tourism sector stakeholders to

create awareness about government initiatives and avenues for private sector participation for tourism promotion.
Promotion and channelization of private sector investments

through PPP (Public- Private Partnership) models in the development of state tourism infrastructure.

1 Indian Express - http://www.indianexpress.com/news/mp-sikkim-receive-top-tourism- awards/918543/ 2 http://www.ogilvy.com/News/Press-Releases/November-2010-Ogilvy-Mumbai-creates-a- new-TVC-for-MP-Tourism.aspx 3 http://articles.economictimes.indiatimes.com/2008-09-07/news/28465645_1_tourist- destinations-tourism-council-tourist-places

4 http://www.nancialexpress.com/news/mp-takes-cue-from-rajasthan-to-turn-forts-into- hotels/908633/ 5 http://www.constructionupdate.com/CMS/Newsletter/NewsFiles/31556.html 6 http://www.travelbizmonitor.com/mp-tourism-to-organise-tourism-conclave-from-feb-12-to open-representative-ofce-in-varanasi-15439

17

case study uttarakhand

18

Uttarakhand has reasonably similar topography like Himachal Pradesh. A large portion of the tourist trafc in Uttarakhand is driven by the presence of sacred places like Haridwar and Chaar Dhaam, yet Uttarakhand as a state matches the prole of Himachal Pradesh in terms of having scenic valleys, beautiful hill stations and wildlife sanctuaries which provide the scope for promoting new forms of tourism like wellness tourism, eco tourism, adventure tourism, etc. Uttarakhand has performed well in terms of attracting tourists during 2006-2010 period, as the total number of visitors in the state increased from 168 lakhs in 2006 to 303 lakhs in 2010, growing at a very healthy CAGR of 16 percent. Some of the key factors for this healthy growth have been mentioned below.
Total tourists - Uttarakhand

Liasioning with tour operators The state has focused on promoting tourism in lesser known destinations in Uttarakhand. Uttarakhand Tourism Development Board organized familiarisation tours for 50 tour operators from across the country to new destinations in Garhwal and Kumaon regions5. The state is actively working with these private tour operators in not only promoting these destinations but also inviting their feedback to effectively promote tourism in the state. Promoting different forms of tourism The state government is also focusing on creating new tourist circuits. It is promoting a new circuit christened Vivekananda Circuit showcasing the places Swami Vivekananda visited and stayed in the state6. The Government is also aggressively setting up adventure centers across the state for promoting outdoor activities like trekking, mountaineering, river rafting, kayaking, canoeing, rowing, water and snow skiing and has shortlisted 19 locations to establish these centers. A program has been started at Choti Haldwani to provide the rural experience to urban children and it has received good response7. It is also promoting eco tourism to increase the tourist footfalls and has created an Eco tourism wing of the Uttarakhand government for promoting eco tourism activities in the state8.

Key learnings from initiatives undertaken by Uttarakhand

Following key initiatives have helped Uttarakhand in promoting and harnessing its tourism potential:
Source: India Tourism Statistics 2010, 2009, 2008 and 2007 (www.tourism.gov.in)

Focus on development of tourism infrastructure by

channelizing investment from govt. and private investors. Investment in tourism With an average investment in tourism as a percentage of total state budget of 1.5 percent during the 2007-2010 period1, Uttarakhand government is spending signicantly on tourism sector as compared to other key tourist states in India. Focus on tourism investment by Uttarakhand government may be one of the factors aiding faster tourism growth in the state. The density of hotel rooms per 100 square Km of state area in Uttarakhand is 1.8 which is high as compared to other similar terrain states2. Five ropeway projects have also been added to improve connectivity in areas of Nainital, Mussoorie, etc3. The state has been able to attract investments from private players as well as the central government to improve its tourism infrastructure. It highlights the focus of Uttarakhand government and private sector in developing tourism infrastructure in the state. Pilgrimage tourism Domestic tourists form a major portion of the total tourists visiting the state. A key factor for this high domestic tourist inow in the state is the presence of holy pilgrimages like Haridwar and Chaar Dhaam in the state. According to ACNielsen4 report on Uttarakhand for Ministry of Tourism, over 70 percent of the domestic tourists in Uttarakhand visit Haridwar. It highlights the high potential of pilgrimage tourism in drawing domestic tourists in India.
Identication and development of new tourism circuits and

locations and involvement of key stakeholders in promotion of the same.

Leverage the gifted religious pilgrims in the state to attract

domestic tourists year on year basis.

Development of centres of recreational activities across the

state to attract adventure loving tourists.

Make use of different resources of the state to promote

various forms of tourism.

1 Planning Commission state Plans Outlays 2007-2011 2 HVS Whitepaper on Hotel Room Supply, Capital Investment and Manpower requirement by 2021 3 http://www.expresstravelworld.com/201005/market12.shtml 4 http://www.tourism.gov.in/CMSPagePicture/le/marketresearch/statisticalsurveys/07%20 uttaranchal.pdf

5 http://articles.economictimes.indiatimes.com/2008-04-17/news/28384744_1_tourist- destinations-tour-operators-foreign-tourists 6 http://www.expresstravelworld.com/201108/market11.shtml 7 http://in.news.yahoo.com/uttarakhands-chhoti-haldwani-region-promotes-rural-tourism- corbett-121603877 .html 8 http://in.news.yahoo.com/uttarakhand-government-promoting-eco-tourism-145645789.html

19

assessment of himachal pradesh tourism infrastructure

20

Connectivity1
Road Road connectivity is critical for tourists to commute from one city to another and Himachal government has addressed this area at high priority. The total length of motorable roads in Himachal Pradesh increased from 22,200 km in 2002 to over 30,000 km in 2009. As of March 2011, the total length of National Highways in the state is about 1409 km2. Himachal Pradesh government has given a high priority to the transportation sector in the Twelfth Five Year Plan. It has proposed 21 percent of the total outlays in this plan to be spent on improving the transportation and communication sector in the state. An all weather road from Manali to Leh is also under construction and is planned to be completed by 20153. However, the road length per 100 sq Km area for Himachal Pradesh is 38.1 which appear to be modest as compared to many of the key tourist states in the country4. Therefore, efforts on improving road connectivity need to continue. Rail Owing to the hilly terrain of the region, rail connectivity is a constraint. Himachal Pradesh falls under the Northern Railway Network. Two narrow gauge lines connect Kalka with Shimla and Joginder Nagar with Pathankot; with a route length of 96 km and 113 km, respectively. A 33 km broad-gauge line connects the Nangal Dam to Charuru.11 The state is also pushing the central government for Mandi-Manali-Leh rail line12 which will give a major boost to tourism in Himachal Pradesh and J&K. Air Air connectivity to Himachal Pradesh is limited but is helped by nearby airport at Chandigarh and Delhi with excellent road connectivity. Himachal Pradesh, by itself, has 3 airports at Kullu, Kangra and Shimla which have limited number of services currently. In addition to these, there are more than 50 operational helipads while another 12 new helipads are in the pipeline. A new international airport is also proposed at Sunder Nagar district.

and railway pickups, guide services, etc. The total number of travel agencies in the state has increased from about 405 travel agents in 2003 to 1,100 in 20107. Along with this, there are about 500 guides to assist the tourists and providing them with the details of the places they visit.

Branding
The state government promotes Himachal using slogans like Unforgettable Himachal13 and A Destination for All Seasons and All Reasons14 . This has had excellent feedback from the tourism fraternity. The state has nominated movie star Preity Zinta as the brand ambassador of Himachal Pradesh Tourism to promote the state both nationally and internationally. The state recently won national-level Best Tourism Promotion Award for its campaign Unforgettable Himachal and coffee table book Har Ghar Kuchh Kehta Hai8. The effectiveness of the marketing campaign of Himachal Pradesh tourism has also increased over the last 2 years4. Sustained focus on branding both in India and internationally may help increase tourist ow in the state.

Tourist information kiosks

The state government invested INR 22.50 lakhs in setting up IT enabled tourist information kiosks in Himachal Pradesh in 20119. The funding was provided by the Union Ministry of Tourism. Tourist related information such as important tourist destinations; weather, hotel, railway and bus bookings and other related facilities will be provided to the tourists through these kiosks.

Festivals and events

To attract national and international tourists to Himachal Pradesh, the government organizes several events throughout the year. These include - Internationa Shimla festival, Winter Carnival at Manali, Ice Skating festival, Tribal festival and many more10. Himachal Pradesh needs to continue focus on such events to increase tourist footfalls, especially during the off-peak season (November-February).

Accommodation
Himachal Pradesh offers a vast range of accommodation facilities to tourists to choose from depending on his preference and budget. The number of hotels in Himachal Pradesh has increased from 1,500 in 2003 to 2,150 in 2010 with the total number of beds rising from 34,000 to 51,000 in the same period5. Majority of these hotels are located in major tourist hubs of Kullu, Manali and Shimla. The actual total number of beds available may be 3040 percent higher than this due to the presence of small guest houses and unorganized sector accommodation6. However, the accommodation facilities in smaller or lesser visited places may need to be improved.

Urban infrastructure
Urban infrastructure in Himachal Pradesh has been identied as a key focus area under the central government Jawaharlal Nehru Urban Renewal Mission (JNNURM). Shimla is one of the 65 cities that have been identied under JNNURM for local infrastructure development. Under this mission, four projects worth USD 33 million have been sanctioned and are currently under implementation to improve the urban infrastructure in the city2. These include widening of tunnels, solid waste management etc. which shall help improve tourists experience in Shimla. The government policy to ban the usage of plastic bags has also helped in improving the sanitation issues and preventing the environment. Overall these initiatives have had a positive impact on the growth of tourism in the state.

Tour operators and guides

Himachal Pradesh has a good network of tour operators and guides. These private tour operators provide travel related services, such as transport vehicles (tourist coaches and taxis), hotel reservations, local sightseeing, air and rail bookings, airport

1 IBEF report on Himachal Pradesh, November 2011 and http://www.hpplanning.nic.in/ Roads%20and%20Bridges%20in%20Himachal%20Pradesh.pdf 2 IBEF report on Himachal Pradesh, November 2011 3 http://www.igovernment.in/site/all-weather-roads-link-jk-ladakh-soon 4 HVS Whitepaper on Hotel Room Supply, Capital Investment and Manpower requirement by 2021 5 www.himachaltourism.gov.in and 20-year Perspective Plans on Tourism Sector, Himachal Pradesh 6 20-year Perspective Plans for sustainable tourism development in Himachal Pradesh 7 himachaltourism.gov.in and Drshti report on Sustainable Tourism Development in Himachal Pradesh

8 http://www.indianexpress.com/news/patil-to-confer-tourism-award-on-hp-today/917894/ 9 http://www.travelbizmonitor.com/PrintArticle.aspx?aid=13703&sid=36 10 www.himachaltourism.gov.in 11 IBEF report on Himachal Pradesh, November 2011 12 http://articles.economictimes.indiatimes.com/2012-03-14/news/31168836_1_railway-budget rail-budget-new-railway-lines 13 http://www.himachaltourism.gov.in/ 14 http://www.indfy.com/himachal-pradesh/

21

key initiatives taken and planned by himachal pradesh government1

Himachal Tourism (www.himachaltourism.gov.in)

22

Some of the key initiatives at the policy formulation and implementation steps taken by the government are detailed in this chapter.

Har gaon ki kahani

This initiative was started by the Himachal Pradesh government in 2010. One village was selected in each of the twelve districts of the state and fascinating tales, folklore and anecdotes related to these villages are used to lure tourists. This novel scheme aims at developing villages of historic importance as tourism villages by providing basic amenities and provides tourists a peep into rustic life of the hill state. The state government has received accolades for this initiative and won the award for most innovative marketing campaign5. The state government is in process of launching the second phase of this scheme in August 2012 as more villages in the districts are being identied6. To identify villages for this initiative, the tourism department encouraged people from across the state to send fascinating stories and legends, stories of gods and goddesses, prevalent religious beliefs, local customs, rituals followed on the occasion of marriage and festivals etc related to their native place. These were then reviewed and funds were allocated to the villages with interesting stories and historical facts7.

Division into circuits

Himachal Pradesh Tourism Development Corporation has divided the state into four interesting circuits. These circuits pass through different terrains making one feel as if one is trekking through ages at different times. These circuits are a. Dhauldhar Circuit (Dalhousie, Dharamshala, Palampur, etc.), b. Beas Circuit (Mandi, Kullu and Manali), c. Tribal Circuit (Sarahan, Sangla and Nako) and d. Sutlej Circuit (Shimla, Solan and Paonta Sahib). There are multiple tour options available for each of the circuits providing several choices to the tourists.

Tourism policy
The Department of Tourism and Civil Aviation came out with a forward looking tourism policy of Himachal Pradesh in 20052. It showcased the importance of tourism to the state economy and identied several thrust areas to promote tourism in the state.

Tourism promotion
The Himachal Pradesh Tourism Development Corporation (HPTDC) has been using print media to promote tourism in the state. These include advertisements in newspapers and publishing books like Unforgettable Himachal. The department has also used TV channels, primarily news channels to advertise tourism. It participates in various national level tourist festivals across the country and also conducts road shows to draw more tourist attention.

Home stay scheme

This scheme was launched in 2008 by Himachal Pradesh government with an aim to provide clean, comfortable and affordable supplementary accommodation to tourists in rural areas in the vicinity of famous tourist destinations when hotels and guest houses are packed to capacity. This scheme was intended to broaden the stake holders base for tourism in the state by including rural and interior areas of the state in providing tourism accommodation infrastructure and at the same time decongest the urban areas, which cannot support any further tourism trafc. The initiative also aimed at providing employment and generating economic value in the rural areas. The state government has provided several incentives to promote this scheme by exempting the home stay units from luxury and sales tax and charging domestic rates of water and electricity from these units.4 The scheme has proved to be highly successful for the Himachal Pradesh government with Home Stay units evoking overwhelming response in Kullu, Manali, Shimla, Dharmshala, Palampur and Dalhousie regions. A very large percentage of tourists prefer to stay in small affordable accommodations in clean homely environment. A total of 891 rooms in 332 units were registered as Home Stay units by February 20113.

Adventure tourism
The state government highlighted the potential of adventure tourism in Himachal Pradesh Tourism Policy published in 2005. Since then, to promote Himachal Pradesh as an adventure sport destination, adventure tourism activities like trekking, mountain biking and para-gliding, ice skating, skiing, river rafting, heliskiing, car rallies are being organised in different areas of the state for tourists.

2 http://www.himachaltourism.gov.in/le.axd?le=2010%2F4%2FTourism+Policy+2005.pdf 3 http://www.himachal.nic.in/hipa/LabtoLand/RD/RuralTourism.pdf 4 Department of Tourism, Himachal Pradesh 5 http://www.ttfotm.com/ttf/award.html

6 http://www.dailypioneer.com/state-editions/chandigarh/64527-himachal-to-launch-second phase-of-rural-tourism-soon.html 7 http://www.himachalpr.gov.in/features/FEATURE-27E10.htm

23

Policy incentives
To encourage private sector participation in tourism and create employment in the state, the state declared a 10 year tax holiday for entertainment units and deferred payment of luxury tax by hotels and tourism units8. This has provided a major boost for development of tourism infrastructure in the state.

Development Bank (ADB). ADB would be providing a funding of USD 95 mn for the development of various infrastructural facilities in Himachal Pradesh10. Some of the planned facilities include: i. Development of circular road and parking near Naina Devi ii. Information Centres, toilet and parking facilities at Pong Dam iii. Restoration of Shimla Heritage museum iv. Infrastructure improvements, development of jetties, development of trails, landscaping etc. in Ranser and Karu Islands v. Development of camping sites at Dhameta and Nagrota Suriyan11. d. Developing new circuits: The state government is also working closely with the Ministry of Tourism to develop new tourist circuits in the state. A new adventure and eco tourism circuit has been identied in Himachal Pradesh covering Kullu, Katrain and Manali12.

Inauguration of Shimla heritage museum

In 2011, Himachal Pradesh government inaugurated a heritage museum which showcases the heritage of Shimla. It provides visitors a glimpse of heritage building of British Raj and is aimed at attracting more domestic and foreign tourists to the state. The government is also investing in restoring The US Club building which houses the Shimla Heritage Museum.

Initiatives in the pipeline

a. Golf courses: Recognizing the potential to develop golf as a niche tourism product for attracting both international and domestic tourists, especially the high end visitors, state government is planning to set up golf courses at industrial township of Baddi and tourist resort at Manali under Publicprivate-Partnership (PPP) model and has offered land and other facilities to the private sector. b. Connectivity improvements: Ten more helipads are to be set up in Sirmour, Kinnaur and Mandi districts to increase the total strength of helipads in the state to 70. Heli-taxis services in the state is also planned to be started soon. The government is also in the process of increasing the ropeway connectivity in the state by setting up ropeways at Palchan and Bijli Mahadev in Kullu district. Work on several other ropeways is also in progress9. c. Development institution funding: The state has also been able to attract direct foreign assistance from Asian

8 http://www.pppinindia.com/state-policy-himachal-pradesh.php 9 http://www.hospitalitybizindia.com/detailNews.aspx?aid=9393&sid=1

10 http://www.nancialexpress.com/news/adb-to-fund-tourism-infra-projects-in-hp/726166/1

11 Depart of Tourism, Himachal Pradesh 12 Ministry of Tourism, Annual Report, 2010-11

24

25

the way forward

26

For the state government to increase tourist inow

Marketing a. Advertising on television: One of the biggest take-away from the success of other Indian states that have witnessed tourism growth is the impact of marketing and advertising on tourism. Tourism is a highly competitive industry as multitudes of tourism destination options are available to the potential traveler. Thus, marketing is a key function for the state as it helps in promoting a distinct image of the state and catching the travelers attention, thereby inuencing ones decision. Himachal Pradesh government has thus far focused on advertising in print (including in-ight advertising) and its television advertising has largely been on news channels1. However, with domestic tourists comprising over 97 percent of the total tourists in the country5, television commercials on prime channels, internet advertising, along with current channels of advertisement is likely to reinforce efforts to reach huge potential tourist market b. Participation in events: In-ight promotions may be continued to attract more and more international travelers. To attract more foreign tourists, Himachal Pradesh may focus on increased participation in trade fairs and tourism events held in different parts of the world. c. Use of social media: To improve the brand visibility of Himachal Pradesh tourism, a strong presence on internet and in the social networking media is necessary. Tourists can be encouraged to provide reviews of their trip to Himachal Pradesh and latest upcoming events should be posted on these websites. Innovative videos can also help in promoting the tourism. Thus, a joint effort between the Himachal Government, Department of Tourism, hoteliers, tour operators, and travel organization may be needed to promote Himachal Pradesh as a tourist destination on national as well as international stage. Development in infrastructure One of the best ways to promote a tourist destination is through word of mouth. Hence, it is important to provide a pleasant experience to tourists visiting a place and sound infrastructure is needed for that. This includes good roads, availability of prepaid taxi services, good connectivity with different parts of the country, etc. The density of branded hotel rooms in the state is 0.9 rooms per 100 square Km2 and may need to be augmented to be at par with some of the peer states. The government needs sustained efforts to improve on this dimension. All this needs to be taken care of to elevate the image of Himachal Pradesh as a preferred tourist destination3. However, natural beauty for which Himachal Pradesh is known for should be preserved while developing the tourism infrastructure Inviting private investment The state government may focus on encouraging investment from private players for improving infrastructure facilities, accommodation and service quality, developing and maintaining tourist sites. The government may play the role of a facilitator
1 Department of Tourism & Civil Aviation Himachal Pradesh Annual Reports 2 HVS Whitepaper on Hotel Room Supply, Capital Investment and Manpower requirement by 2021 3 Report on Infrastructure Gaps in Tourism Sector in Kullu-Manali, Himachal Pradesh 4 Presentation before the Planning Commission on Annual Plan 2012-13 and Twelfth 5 year plan, Government of Himachal Pradesh

in order to channelize private investment in the state towards development of tourism. The Government has already planned major incentives to encourage private participation. The state declared a 10 year tax holiday for entertainment units and deferred payment of luxury tax by hotels and tourism units6. In addition, the government may also convene periodic events and tourism conclave which will engage stakeholders and boost the investor condence. Heritage sights may be developed and maintained based on PPP model by leasing them out to private players whereas hotels and restaurants can be entirely funded by private players. To increase the attractiveness of Himachal Pradesh to private players, model of private sector participation in the infrastructural areas mentioned above may need to be evolved. Also, it is important to have a streamlined process for investment approval in tourism projects. Pilgrimage tourism Religious tourism is the single largest driver of Tourism in India. For example, Andhra Pradesh witnesses a very large number of people visiting Tirupati Balaji every year7. Similarly, over 70 percent of the total tourists in Uttarakhand visit Haridwar8. This shows the high potential of pilgrimage tourism in India. Himachal Pradesh is also blessed with multiple pilgrimage destinations like Naina Devi, Chamunda Devi, Jwala ji and Paonta Sahib Gurudwara. The tourism potential of these places should be tapped by developing the supporting infrastructure of these sites. Special package tours covering major pilgrimages in Himachal Pradesh may be started to pull more domestic tourists to the state. Organise international events to promote adventure tourism Himachal government currently organizes a few international events like Ice Skating Festival, International Paragliding competitions, etc. Aggressive promotion of adventure tourism sites in the state and holding international events at different locations in the state can give a major boost to tourism. Dharamshala currently hosts some matches of Indian Premier League.9 Hosting larger number of international cricket matches at this stadium will also help in increasing the tourist footfalls. A signicant number of events during the Nov-Feb period may help in attracting more tourists during this off-peak season period. The state may also set up institutes offering courses in adventure sports to differentiate it from other states and establish itself as a pioneer in adventure sport market in India. Training Tourism contributes 10 percent of GSDP of Himachal Pradesh and the government aims to increase it to 15 percent by 20204. To achieve this, apart from all the infrastructural requirements, the state will need a lot of skilled labor to provide services to the visitors. The state would also need local entrepreneurs to establish recreational facilities, hotels etc. Hence, providing quality training to the locals is going to be critical for Himachal Pradesh to achieve its goal. There should be regular trainings conducted for developing guides, entrepreneurs, waiters and front ofce staff.
5 India Tourism Statistics 2010 (www.tourism.gov.in) 6 http://www.pppinindia.com/state-policy-himachal-pradesh.php 7 http://www.nancialexpress.com/news/andhra-pradesh-top-tourist-destination-tourism ministry/819071/0 8 http://www.tourism.gov.in/CMSPagePicture/le/marketresearch/statisticalsurveys/07%20 uttaranchal.pdf 9 http://articles.timesondia.indiatimes.com/2011-05-02/tale-spin/29495956_1_ipl-hotels-hpca

27

Circuit rationalization As mentioned above, the Himachal Pradesh government has divided the state into four circuits to provide different experience to the tourist. However, there are too many destinations across each circuit and with the average duration of a trip of a domestic tourist being 2-4 days only, the number of destinations in each circuit may be rationalised. Establish new circuits Himachal Pradesh has the potential to promote various forms of tourism like wellness tourism, corporate tourism and ecotourism etc. The state needs to develop new circuits to tap the potential of these upcoming forms of tourism. Wellness or Health circuits covering regions like Dharamshala and Mcleodganj may be promoted. Similarly corporate circuits in regions having good connectivity and other amenities may be set up to offset the seasonality in tourist inow.

Localization of content for foreign tourists As stated earlier, Himachal Pradesh receives a fair share of foreign visitors. A signicant number of these foreign visitors belong to non-English speaking countries like Germany, France, Italy, etc. Hence, the service provided to these visitors may be improved by providing information in their local language at the tourist information centers. The website of Himachal tourism may also be translated into different languages. Apart from this, different language trainings to guides may also help in ensuring more pleasant experience to these guests.

28

For harnessing private sector participation

Hotels and restaurants With the growing number of tourists visiting Himachal Pradesh year after year, there is immense potential for hoteliers/investors to build good quality budget and luxury hotels in the state. The Himachal Pradesh government aims to increase the contribution of tourism to GSDP from 10 to 15 percent by 20208 and is promoting tourism in the state, so the number of visitors is likely to grow providing ample opportunities for the investors to benet from it. Seasonality of the trafc is a risk for this segment but it may be mitigated by developing corporate clients and organizing off site trainings and conferences during the off season. Developing tourist sites One of the keys to attract tourists to a state is the maintenance of existing tourist sites and development of new ones. Private sector has a role to play in both these aspects. The state government of Himachal Pradesh is focused on performing the role of a felicitator and is inviting private players via PPP route to develop new destinations or lease existing sites for maintenance. Training institutes As mentioned earlier, Himachal Pradesh needs signicant trained personnel to achieve its targeted growth in tourism. This would require training programs for Entrepreneur Development, Hotel Management, Adventure sports, Front ofce tasks, etc. It is difcult for the government to create so many trained personnel by itself and thus there is great potential for private sector to fulll this gap. The scope of this opportunity is good given that Himachal Pradesh government is promoting tourism courses among the youth of the state. Recreational centers and shopping complexes With the number of tourists visiting the hills of Himachal Pradesh increasing consistently every year, the state offers growing potential to the investors in retail and entertainment space. The potential areas of investment may be shopping malls, multiplexes, amusement parks, etc. Other opportunities Apart from the above mentioned areas, the other likely areas for private investment may be:
Travel and tour operations Adventure activities operations.

The past initiatives undertaken by the Union and Himachal Pradesh government have yielded a strong impact on the tourism market in the state. Some of the initiatives by the government and the private sector outlined in the above section, will further strengthen the position of Himachal Pradesh as a tourist destination and will enable the state to achieve greater economic and social prosperity.

Presentation before the Planning Commission on Annual Plan 2012-13 and Twelfth 5 year plan, Government of Himachal Pradesh

29

about kpmg in india

KPMG in India, a professional services rm, is the Indian member rm of KPMG International and was established in September 1993. Our professionals leverage the global network of rms, providing detailed knowledge of local laws, regulations, markets and competition. KPMG in India provide services to over 4,500 international and national clients, in India. KPMG has ofces across India in Delhi, Chandigarh, Ahmedabad, Mumbai, Pune, Chennai, Bangalore, Kochi, Hyderabad and Kolkata. The Indian rm has access to more than 7 ,000 Indian and expatriate professionals, many of whom are internationally trained. We strive to provide rapid, performance-based, industry-focused and technology-enabled services, which reect a shared knowledge of global and local industries and our experience of the Indian business environment. KPMG is a global network of professional rms providing Audit, Tax and Advisory services. We operate in 152 countries and have 145,000 people working in member rms around the world. Our Audit practice endeavors to provide robust and risk based audit services that address our rms clients strategic priorities and business processes. KPMGs Tax services are designed to reect the unique needs and objectives of each client, whether we are dealing with the tax aspects of a cross-border acquisition or developing and helping to implement a global transfer pricing strategy. In practical terms that means, KPMG rms work with their clients to assist them in achieving effective tax compliance and managing tax risks, while helping to control costs. KPMG Advisory professionals provide advice and assistance to enable companies, intermediaries and public sector bodies to mitigate risk, improve performance, and create value. KPMG rms provide a wide range of Risk Consulting and Management Consulting that can help clients respond to immediate needs as well as put in place the strategies for the longer term.

2012 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

30

about phd chamber of commerce and industry

PHD Chamber of Commerce and Industry, established in 1905, is a proactive and dynamic multi-state apex organisation working at the grass-root level and with strong national and international linkages. The Chamber acts as a catalyst in the promotion of industry, trade and entrepreneurship. PHD Chamber, through its research-based policy advocacy role, positively impacts the economic growth and development of the nation. PHD Chamber is more than an organisation of the business community, as it lives by the chosen motto In Communitys Life & Part of It and contributes signicantly to socio-economic development and capacity building in several elds. Geographic Spread PHD Chambers geographical span covers the 10 states of Chhattisgarh, Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and the Union Territory of Chandigarh. Apart from its headquarters in New Delhi, the Chamber has regional ofces in Jammu, Shimla, Chandigarh, Lucknow, Jaipur and Bhopal. Diversied and Large Membership Base PHD Chamber has a direct membership of over 1,600 corporate entities and serves more than 45,000 indirect members through 150 Association Members and 8 Secretarial Afliates. The membership covers trade and industry. PHD Chamber organises over 200 events every year, ranging from seminars, conferences and workshops to social networking events in the region served by us.

KPMG Contacts
Rajesh Jain Partner and Head, Markets T: +91 22 3090 2370 E: rcjain@kpmg.com Jaideep Ghosh Partner, Management Consulting T: +91 124 307 4152 E: jaideepghosh@kpmg.com Atul Gandhi Partner, Tax T: +91 172 393 5781 E: atulgandhi@kpmg.com

PHD Chamber Contacts

Headquarters PHD Chamber of Commerce and Industry PHD House, 4/2 Siri Institutional Area August Kranti Marg, New Delhi - 110016 T: +91 11 2686 3801-04/4954 5454 F: +91 11 2685 5450/4954 5451 E: phdcci@phdcci.in Punjab, Haryana & Chandigarh PHD Chamber of Commerce and Industry PHD House, Sector -31A, Chandigarh - 160031 T: +91 172 263 8981/8653/8662 F: +91 172 263 8982 E: mail@phdccichd.com Himachal Pradesh PHD Chamber of Commerce and Industry Room No. 205, Udyog Bhawan, Shimla - 117044 T: +91 177 280 7855 E: phdshimla@phdcci.in

kpmg.com/in

phdcci.in

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. 2012 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International. Printed in India.