Tourism Sector Plan

TOURISM CORPORATION OF GUJARAT LIMITED (TCGL)
(A GOVERNMENT OF GUJARAT UNDERTAKING)

Block No. 16, 4th Floor, Udyog Bhavan, Sector 11, Gandhinagar, Gujarat - 382011
Phone: +91-79-2322002, 23977200, 23222523 Fax: 91-79-23977201
Website: http://www.gujarattourism.com/tenders
PROJECT INFORMATION MEMORANDUM (PIM)

RFP:
DEVELOPMENT OF GREENFIELD PROPERTY AT
VOLUME II
CHORWAD, GUJARAT
DECEMBER, 2015
A Project Development Company Jointly Promoted by

IL&FS - IDC and Government of Gujarat
605-606, Haveli Arcade, Sector – 11, Gandhinagar
Gujarat - 382 011
Ph: (079) 66720021, Website: www.gujtop.com
Hotel / Resort at Chorwad Feasibility Study
Table of Contents
CHAPTER 1.0 INTRODUCTION .............................................................................................. 3

1.1 Introduction ........................................................................................................................... 3
1.2 Need for the Study ............................................................................................................... 4
1.3 Objectives of the Study ....................................................................................................... 4
1.4 Constraints and Limitations ................................................................................................ 4
1.5 Approach and Methodology ............................................................................................... 5
CHAPTER 2.0 SECTOR PROFILE .......................................................................................... 6
2.1 An Overview of the State Gujarat ...................................................................................... 6
2.1.1 General Overview ......................................................................................................................... 6
2.1.2 Economic Overview ...................................................................................................................... 9
2.1.3 Tourism Overview ....................................................................................................................... 10
2.1.4 Growth of Tourism in Gujarat .................................................................................................... 11
2.2 Tourism Scenario in the State.......................................................................................... 11
2.2.1 Key Tourist Circuits of Gujarat .................................................................................................. 12
2.2.2 Gujarat – The Tourist Hub ......................................................................................................... 14
2.2.3 Trend in Tourist Arrival ............................................................................................................... 15
2.2.4 SWOT Analysis of Gujarat as Tourist Destination ................................................................. 15
2.3 Initiatives by the Department of Tourism ........................................................................ 16
2.4 An Overview of Chorwad .................................................................................................. 18
2.4.1 Introduction .................................................................................................................................. 18
2.4.2 Connectivity.................................................................................................................................. 19
2.4.3 Demography ................................................................................................................................ 19
2.4.4 Economy ....................................................................................................................................... 20
2.4.4.1 District Level ................................................................................................................................ 20
2.4.4.2 Tourist Inflow in Junagadh and Gir-Somanath District .......................................................... 21
2.4.4.3 City Level ...................................................................................................................................... 21
2.4.5 Tourism Resources ..................................................................................................................... 21
2.5 SWOT Analysis of Chorwad as Tourist Destination ..................................................... 23
CHAPTER 3.0 HOTEL INDUSTRY – AN OVERVIEW & MARKET ANALYSIS .................. 24
3.1 Hotel & Hotel Industry – An Introduction ........................................................................ 24
3.2 Classification of Hotels ...................................................................................................... 24
3.2.1 On the basis of Standard ........................................................................................................... 24
3.2.2 On the basis of Nature ............................................................................................................... 25
3.2.3 World Record Setting Classifications ....................................................................................... 26
3.3 Different Departments in Hotel......................................................................................... 26
3.3.1 Core Funcitoning Department ................................................................................................... 26
3.3.2 Support Department (Cost Centres) ........................................................................................ 26
3.4 Hotel Industry in India........................................................................................................ 27
Tourism Corporation of Gujarat Limited Page | 1

3.4.1 Background .................................................................................................................................. 27

3.4.2 Present Scenario of Hotel Industry in India ............................................................................. 28
3.5 Hotel Industry in Gujarat ................................................................................................... 28
3.5.1 Hotels in Gujarat.......................................................................................................................... 29
3.5.2 Challenges faced by Hotel Industry in Gujarat ....................................................................... 30
3.6 Hotel Industry Market Analysis in Chorwad ................................................................... 30
3.6.1 Hospitality Demand Drivers ....................................................................................................... 30
3.7 Existing Supply ................................................................................................................... 31
CHAPTER 4.0 SITE ANALYSIS ............................................................................................ 33
4.1 Site Location and Description .......................................................................................... 33
4.2 Site Topography and Vegetation ..................................................................................... 35
4.3 Site Access and Connectivity ........................................................................................... 35
4.4 Proximity to Key Areas ...................................................................................................... 36
4.5 Existing Infrastructure........................................................................................................ 37
4.6 SWOT Analysis .................................................................................................................. 37
CHAPTER 5.0 FINANCIAL ANALYSIS ................................................................................. 39
5.1 Introduction ......................................................................................................................... 39
5.2 Project Design and Product Mix ...................................................................................... 39
5.2.1 Area Allocation for Resort .......................................................................................................... 40
5.3 Assumptions for Financial Analysis................................................................................. 41
5.3.1 Construction Period .................................................................................................................... 41
5.3.2 Concession / Lease Period ........................................................................................................ 41
5.3.3 Capital Cost Assumptions .......................................................................................................... 41
5.3.4 Financing & Taxation Assumptions .......................................................................................... 41
5.4 Project Cost ........................................................................................................................ 42
5.5 Sources of Finance ............................................................................................................ 42
5.6 Project Revenue ................................................................................................................. 42
5.7 Combined Cash Flows, DSCR and IRR Working ......................................................... 43
5.8 Cash Flows/IRR/DSCR ..................................................................................................... 43
5.9 Conclusion and Summary ................................................................................................ 44
5.10 Recommendations ............................................................................................................. 44
5.11 Points to be considered .................................................................................................... 45

CHAPTER 1.0
INTRODUCTION
1.1 Introduction
Gujarat is the 6th largest State in India, located in the western part of India with a
coastline of 1600 km (longest in India). It is one of the most popular tourist regions in
the country, and was visited by 28.78 million domestic and international tourists in
2013-14.
Gujarat offers scenic beauty from Great Rann of Kutch to the hills of Saputara.
Gujarat is one and the only place to view pure Asiatic lions in the world. Gujarat is
also the birthplace of Mahatma Gandhi and Sardar Vallabhbhai Patel, iconic figures
of India’s Independence movement. Amitabh Bachchan is the brand ambassador of
Gujarat Tourism since 2010. The “Khushboo Gujarat Ki” campaign by celebrity
Amitabh Bachchan has increased tourism in Gujarat tremendously.1
Tourism in Gujarat has a wide scope for tourists, as it includes wide range of forts
and museums, wild life sanctuaries, temples and mosques and other places of
interest. It offers a traveler’s paradise by offering a wide spectrum of tourism sectors
such as spiritual tourism, business tourism, nature tourism, heritage tourism, medical,
health, cultural, adventure, and event, urban or rural and recreational tourism.
The State Government’s “Khushboo Gujarat ki” campaign has helped to increase the
business. Thus an increased occupancy is estimated by the hotel industry. In this
context, TCGL (Tourism Corporation of Gujarat Ltd) has identified a site of 48,102.5
sq.mt commonly known as Chorwad Holiday Home consisting of few hutments and
Chorwad Palace.
TCGL – Tourism Corporation of Gujarat Ltd., was formed in 1978 and provides
comprehensive travel assistance and services to the tourists coming to visit Gujarat.
Some of the services of TCGL include accommodation, conducted tours and ground
transport with a wide range of choice to meet diverse needs. The Corporation has a
network of Wayside Amenities and Cafeterias under the brand name Toran.
The effective development in infrastructure undertaken by the Corporation has

helped the State to increase the number of tourists to Gujarat. The efforts in
promoting infrastructure in keeping with the spirit of the state, its people and its
natural environment have won the Corporation such prestigious awards as the
National Tourism Awards – 2005-06 for best kept Tourism Monument – Champaner
and Excellence in Publication (Collateral).
To add on to these services TCGL has earmarked a land parcel measuring

48,102.5 sq.m. commonly known as Chorwad Holiday Home consisting of few
hutments and Chorwad Palace. It is proposed that the land parcel, which has
hutments and frontage on the beach, shall be considered for current development.
The area of this parcel is about 20,000 sq.m. and ideally suited for a resort kind of
development. Hence, for this feasibility study about 20,000 sq.m. land area is taken
into account.
1http://www.thehindubusinessline.com/economy/taai-award-for-gujarat-
tourism/article2735467.ece

1.2 Need for the Study
Chorwad a coastal city located in the western part of India consists of one of the
popular beaches on the Gujarat border. The presence of Daria Mahal Palace (the
only Palace beach resort in the country) allows Chorwad beach to get listed with
exquisite beaches of the country. The beaches with unpoilt beauty and isolation offer
an advantage to the people visiting the place. Roping in Amitabh Bachchan as the
tourism ambassador and the launch of Vibrant Gujarat investor summit has also led
to a growth in people visiting the state. The political momentum of the Ex- Chief
Minister of Gujarat, Sh. Narendra Modi becoming the Prime Minister of India, has
also added to an already positive business environment in the state.
Moreover, Gujarat followed by Maharashtra and Karnataka are the leading states
attracting significant investments in India’s hotels and tourism industry together
accounting for about 61% share as noted by ASSOCHAM (The Associated
Chambers of Commerce & Industry of India) study. Driven by the growing middle
class with rising disposable incomes and ever evolving lifestyles, the tourism in the
state offers tremendous growth potential for growth and development of India’s
overall tourism industry.
Chorwad beach is the major demand driver for hospitality in Chorwad followed by the
famous Palace and the fact that it lies on the way from Somnath to Dwarka. All this
has added to the demand for rooms in Gandhinagar. The present supply of few
lodges and budget hotels with none in luxury hotel category makes Chorwad feasible
for a Four Star Plus Hotel. Moreover, the Royal Chorwad Palace has a great
potential for becoming a luxurious and a grand extravagant hotel.
1.3 Objectives of the Study

The Key Objectives of this Feasibility Study are:
 To understand the nature and attributes of tourist inflow to the region along with
the various demand drivers to forecast the growth.
 To summarise the need/business case for a four star plus Hotel in Chorwad
 Research the potential market demand for the Hotel of the size proposed.
 Estimate the capital cost of the facility (exclusive of land).
 Provide indicative five year operating projections and net operational cash flow
projections for the venue.
 Assess the risks of the project.
 Summarise other requirements that have to happen if the Hotel is to be a
success.
1.4 Constraints and Limitations
The findings contained in the report reflect analysis of primary and secondary
sources of information. Sources quoted or referred to in this report are deemed
reliable.
Conclusions reached by the consulting team regarding the proposed facility are
based on trends and assumptions; there may be differences between the projected
and actual results. Bidders / Developers are free to conduct their independent
evaluation of the project site, requirements, commercial viability, potential of project

and project facilities.
Findings contained in this report are also based on evaluation of the present
economy for the region and do not make provision for political instability or any sharp
rise or decline in the economic conditions, not presently foreseeable.
It must be emphasized that in some instances the consultants were unable to

procure necessary data or/and were unable to get up-to-date data. They were
informed that certain data was confidential or not officially collected at all. In such
instances, qualitative assessments, where appropriate have been made.
1.5 Approach and Methodology

A stage wise approach for the study adopted is:
 Research supported with quantitative and qualitative analysis

 Collection of data from authentic sources
 Cross checking of data before using for analysis
 Inputs on the attractiveness of the proposed PPP structure etc.
The above mentioned approach and the following methodology will be adopted to
undertake the study. Feasibility forms the first part of the methodology of the entire
project. The methodology is as follows:
Figure 1 Approach and Methodology

CHAPTER 2.0
SECTOR PROFILE
2.1 An Overview of the State Gujarat
2.1.1 General Overview
Gujarat is a state in western part of India known locally as Jewel of the Western part
of India. It has an area of 196,204 sq.km. with a coastline of 1600 km most of which
lies on the Kathiawar peninsula, and a population in excess of 60 million. The state is
bordered by Rajasthan to the north, Maharashtra to the south, Madhya Pradesh to
the east and the Arabian Sea as well as the Pakistani province of Sindh to the west.
Its capital city is Gandhinagar while its largest city is Ahmedabad. Gujarat is home to
the Gujarati speaking people of India.
Figure 2 Gujarat State
The Indian State of Gujarat has 33 districts. Of this Kutch is the largest district and
Dang is the smallest district of Gujarat. Following is the list of 33 districts of Gujarat in
which 7 districts were created on 15th August 2013.
Table 1 List of Districts

Sr. Name of District Name of Area in Population Formation
No. Headquarter sq.km 2011 Census date
1 Ahmedabad Ahmedabad 7,170 70,45,313 1960
2 Amreli Amreli 6,760 15,13,614 1960
3 Anand Anand 4,690 20,90,276 1997
4 Aravalli Modasa 3,217 10,39,918 2013
5 Banaskantha Palanpur 12,703 31,16,045 1960

6 Bharuch Bharuch 6,524 15,50,822 1960
7 Bhavnagar Bhavnagar 8,334 23,93,272 1960
8 Botad Botad 2,564 6,56,005 2013
9 Chhota Udaipur Chhota Udaipur 3,237 10,71,831 2013
10 Dahod Dahod 3,642 21,26,558 1997
11 Dang Ahwa 1,764 2,26,769 1960
12 Devbhoomi Khambhalia 5,684 7,52,484 2013

Dwarka
13 Gandhinagar Gandhinagar 2,163 13,87,478 1964
14 Gir Somnath Veraval 3,754 12,17,477 2013
15 Jamnagar Jamnagar 8,441 14,07,635 1960
16 Junagadh Junagadh 5,092 15,25,605 1960
17 Kutch Bhuj 45,652 20,90,313 1960
18 Kheda Nadiad 3,667 20,53,769 1960
19 Mahisagar Lunavada 2,500 9,94,624 2013
20 Mehsana Mehsana 4,386 20,27,727 1960
21 Morbi Morbi 4,871 9,60,329 2013
22 Narmada Rapipla 2,749 5,90,379 1997
23 Navsari Navsari 2,211 13,30,711 1997
24 Panchmahal Godhra 3,272 16,42,268 1960
25 Patan Patan 5,738 13,42,746 2000
26 Porbandar Porbandar 2,294 5,86,062 1997
27 Rajkot Rajkot 7,550 30,15,229 1960
28 Sabarkantha Himmatnagar 4,173 13,88,671 1960
29 Surat Surat 4,418 60,79,231 1960
30 Surendranagar Surendranagar 9,271 15,85,268 1960
31 Tapi Vyara 3,249 8,06,489 2007
32 Vadodara Vadodara 4,312 30,93,795 1960
33 Valsad Valsad 3,034 17,03,068 1966

Gujarat is well connected by a wide network of air, rail and road with important
destinations of the country as well as of the globe. Gujarat also has an inter city
surface transport system both in terms of railways and bus network. Ahmedabad
being the biggest city of the state is well connected by air, rail and road. Gandhinagar
and Ahmedabad are twin cities well connected to each other.
By Air: Ahmedabad, the premier Airport

of Gujarat is connected to major Indian
cities like Delhi, Mumbai, Kolkata,
Chennai etc, by daily services. Gujarat
has its own International Airport “Sardar
Vallabhbhai Patel International Airport”
which connects to countries worldwide.
The state’s other functional airports are
Vadodara, Rajkot, Surat, Jamnagar,
Porbandar, Bhavnagar, Diu and Bhuj.
By Rail: Gujarat comes under the

western zone of the Indian Railways.
Vadodara Railway Station is the busiest
railway station in Gujarat and the fourth
busiest railway station in India. Other
important railway stations are Surat,
Ahmedabad and Rajkot Railway Station.
Delhi Mumbai dedicated rail freight route
passing through the state is being
planned.
By Sea: Gujarat State has the longest

sea coast of 1600 km in India. Kandla
Port is one of the largest ports serving
Western India. Other important ports in
Gujarat are the Port of Navlakhi, Port of
Magdalla, Port Pipavav, Port of
Porbandar, Port of Veraval and the
privately owned Mundra Port.
By Road: Gujarat State Road Transport

Corporation (GSRTC) is the primary
body responsible for providing the bus
services within the state of Gujarat and
also with the neighbouring states. It is a
public transport corporation providing
bus services and public transit within
Gujarat and to the other states in India.

2.1.2 Economic Overview
Gujarat has seen rapid economic growth over the past decade. Driven by massive
investment and rapid industrialization, the state’s economy expanded by an average
of about 10% a year between 2003-04 and 2012-13 above the Indian average of
about 7.9% and established itself as a strong growth engine for the country.
Accounting for about 5% of the country’s population and 6% of land area, the state
has metamorphosed into one of the fast growing state economies, overcoming its
limitations in resource base and its climatic constraints.
In the year 2012-13, state contributes more than 7% to India’s GDP, 12.8% of
manufactured and 6.4% of primary sector output of the country. As per the
“Economic Freedom of the States of India (EFSI) 2013” Report, Gujarat has been
ranked at 1st position on Economic Freedom with a score of 0.65. The report
reaffirms the fact that the Gujarat model of development is based on global best
practices and is robust, sustainable and all inclusive.
The economy of Gujarat has significant agricultural as well as industrial production.

Gujarat controls some of the largest businesses in India. Major agricultural produce
of the state includes cotton, groundnut, dates, sugarcane, milk & milk products.
Gujarat is the main producer of cotton, tobacco and groundnuts in India. Other major
crops produced are rice, wheat, jowar, bajra, maize, tur and gram.
One of India’s most industrialized states, Gujarat maintains a variety of industries, the
principal ones being general and electrical engineering, and the manufacture of
textiles, vegetable oil, chemicals, soda ash, cement and petrol. New industries
include the production of fertilizers and petrochemicals. Gujarat produces 91% of
India’s requirement of soda ash, 66% of national requirement of salt, 45% of the
country’s total exports that were made from SEZs in the year 2013-14.
Following are some key snapshots of the economic indicators for the State:
Gross State Domestic Product (GSDP)
At constant prices, in 2013-14 Gujarat’s GSDP is estimated at Rs 4,52,625 crore as

against Rs 4,16,163 crore in 2012-13, registering a growth of 8.8% during the year.
GSDP at current prices in 2013-14 has been estimated at Rs 7,65,638 crore against
Rs 6,58,540 crore in 2012-13, registering a growth of 16.3% during the year.

Net State Domestic Product (NSDP)
NSDP at constant prices in 2013-14, is

estimated at Rs 3,85,472 crore as against Rs
3,56,477 crore in 2012-13, showing a growth of
8.1% during the year.
NSDP at current prices in 2013-14, is estimated

at Rs 6,51,916 crore as against Rs 5,60,687
crore in 2012-13, showing a growth of 16.3%
during the year.
Per Capita NSDP
The Per Capita Income at constant prices in 2013-14 has been estimated at Rs
63168 as against Rs 59157 in 2012-13 registering a growth of 6.8% during the year.
The Per Capita Income at current prices in 2013-14 has been estimated at Rs 106831
as against Rs 93046 in 2012-13 registering an increase of 14.8% during the year.
2.1.3 Tourism Overview

Gujarat offers a wide range of the most spectacular attractions which includes
breathtaking locations and scenic landscapes. Gujarat is also a melting pot of several
civilizations resulting in a vibrant culture and a rich heritage. Gujarat is home to the
unique with its exceptional archeological sites, several architectural marvels and
witnesses of its glorious history and pilgrim centres for many faiths. Finally, it is also
the land of several mythological and historical figures like the legendary Krishna and
Mahatma Gandhi, the apostle of non violence.
Gujarat has immense potential to become a major tourist destination. Its historical
monuments represents the great religions of Asia – Hindu, Buddhist, Jain, Islamic,
Parsee and Sikh.
For ecotourists the state offers opportunities to see a wide range of wildlife including
the Asiatic Lion and Indian Wild Ass, endangered antilopes, a variety of deer etc. It
has India’s first marine national park. It is also one of India’s most important areas for
birdwatchers.
There are more than 400 archeological sites in the state including some of the most
substantial excavations of Indus Valley Civilization period at Lothal (near
Ahmedabad), Surakotada and Dholovira (in Kutch).

The archeological zone of Champaner–Pavagadh have been acclaimed by UNESCO

as the “World Heritage Site” because of its great mosques, temples, stepwells and
forts. The Wild Ass Sanctuary, Dholavira Harappan City and Rani ki Vav are in the
process of getting status of the World Heritage Site.
Gujarat has many enchanting tourist places, memorable historic monuments and
sacred pilgrimages, depicting the glorious cultural heritage, which can attract both
Indian and International travelers.
The State has important pilgrimage places like Dwarka, Somnath, Dakor, Ambaji etc.
for Hindus, Udwada, Navsari and Surat for Parsees, Palitana, Girnar etc. for Jains.
2.1.4 Growth of Tourism in Gujarat

A separate tourism department was established in 1973 to identify and develop the
tourism potential in the State. This was followed by the creation of Tourism
Corporation of Gujarat Limited in 1978 which was entrusted with the task of
undertaking and developing tourism related commercial activities. The Corporation is
presently engaged in a variety of activities such as creation of lodging and boarding
facilities for the tourists and other aspects of tourist facilitation such as transportation,
packaged tours, wayside catering along the National and State Highways, arranging
cultural festivals, organizing exhibitions and producing and distributing maps, posters,
brochures and pamphlets.
In 1991 the State declared the tourism policy. The main rationale for formulating the
tourism policy is rooted, on one hand, in the convergence of socio economic spread
benefits, environment friendliness and employment potential of tourism industry and
on the other hand, in the growing demand for the tourism products in the State,
brought by the rapid industrial growth in the State during the recent years that has led
to tremendous increase in number of business travelers.
2.2 Tourism Scenario in the State

Tourism is a major phenomenon of the modern society, which has emerged as an
economic activity of immense global importance. Tourism is one of the world’s largest
and fastest growing industries.
Gujarat is one of the most flourishing tourist destinations in India. The gross flow of
tourist during the year 2014-15 is 32.6 million which is 13.5% higher than the flow of
28.7 million in the year 2013-14. Gujarat has the longest coastline in India, the only
White Dessert in the world, multi-cultural heritage and monuments.
The efforts of Gujarat tourism department seem to be paying off as the number of
spiritual tourists and leisure travelers sharing “Khusboo Gujarat Ki” has risen in the
one last year. According to a report of Gujarat Industrial and Technical Consultancy
Organization Limited (GITCO), leisure travelers grew by 17.7% to 2.4 million while
spiritual tourist account for nearly 31% of the tourist inflow at 10.2 million growing by
16%.

2.2.1 Key Tourist Circuits of Gujarat

Gujarat consists of five major circuits viz. the Kutch circuit, the Saurashtra circuit, the
South Gujarat circuit, the North Gujarat circuit and the Central Gujarat circuit. The
areas covered by the circuit are:
a) The Kutch Circuit – Little Rann Sanctuary, Dasada, Narayan Sarovar,

Koteshwar, Mata no Madh, Bhadreshwar, Kera, Bhuj, Mandvi, Gandhidham,
Wankaner, Konthkot, Village Circuit of Kutch.
b) The Saurashtra Circuit - Bhavnagar, Palitana, Velavadar, Ahmedpur Mandvi,

Veraval, Somnath, Rajkot, Gondal, Porbandar, Dwarka, Wankaner, Jamnagar.

c) The North Gujarat Circuit - Dasada, Mehsana, Modhera, Patan, Siddhpur,

Balaram, Ambaji, Kumbharia, Poshina, Danta, Taranga, Vadnagar.
d) The Central Gujarat Circuit - Ahmedabad, Gandhinagar, Lothal, Nal Sarovar,

Dakor, Anand, Vadodara, Champaner, Pavagadh, Jambughoda, Ratan Mahal
e) The South Gujarat Circuit - Bharuch, Surat, Tithal, Udwada, Vapi, Navsari,
Saputara.

2.2.2 Gujarat – The Tourist Hub

Gujarat is a proactive government and aggressive marketing, untapped tourism
opportunity, strategic location unique blend of pilgrims, adventure hill station,
beaches, heritage, desert available in the state. Gujarat offers a wide spectrum of
tourist sectors which sing in the glory of State’s rich culture and heritage such as:
a) Business Tourism
Gujarat is one of the most industrialized states of the country. There are many
Indian and global companies located in Gujarat and the area has seen double
digit GDP growth in the past decade. It is also known as “Growth Engine of
India”.
b) Archeological and Heritage Tourism
Within the State of Gujarat there are a wide variety of historic forts, palaces,
mosques, temples and places of historical importance.
c) Cultural Tourism
Gujarat is well known for its rich culture. The folk art of Gujarat forms a major part
of the culture of the state. The handicrafts such as bandhani, patolas, kutchi
work, pottery, khadi etc. and unique fairs and festivals like navratri,
makarsankranti, sharadpurnima, mahashivratri and tarnetar festival make Gujarat
culturally very rich.
d) Religious Tourism
Gujarat is home to multitude devotional centres and temples like Dwarka, Dakor,
Ambaji, Palitana, Somnath, Shamlaji, Bahucharaji, Pavagadh, Akshardham,
Swaminarayan temples, Jain temples and recently made Mahatma Mandir in
Gandhinagar.
e) Medical Tourism
Ahmedabad the leading city of the state is the most preferred place for medical
tour or treatments in India. With world class health facilities and affordable cost,
the city is becoming one of the most sought after medical tourism centre in the
country.
f) Wild Life Tourism
Gujarat is habitat for the world’s rarest as well as large number of flora and
fauna. Fauna includes Asiatic lions, wild ass, black bucks, bears, monkeys etc.
including migratory birds like flamingos, pelican etc. Flora includes species of
khair, sadad, timru, babul, ber, bordi etc. The state also has national
park/sanctuaries at Gir National Park, Vansada National Park, Nalsarovar bird
sanctuary etc.

2.2.3 Trend in Tourist Arrival
Table 2-2: Domestic and Foreign tourist arrivals in Gujarat
Changes in % with
Number of Tourist
Sr. No Year comparison to last year
Domestic Foreign Total Domestic Foreign Total
1 2003-04 7915487 65107 7980594 - - -
2 2004-05 7552026 59987 7612013 -4.59 -7.86 -4.62
3 2005-06 10505755 173122 10678877 39.11 188.60 40.29
4 2006-07 12136599 206729 12343328 15.52 19.41 15.59
5 2007-08 13894055 228976 14123031 14.48 10.76 14.42
6 2008-09 15512794 294739 15807533 11.65 28.72 11.93
7 2009-10 16701545 309702 17011247 7.66 5.08 7.61
8 2010-11 19416869 395067 19811936 16.26 27.56 16.46
9 2011-12 21903453 460499 22363952 12.8 16.56 12.88
10 2012-13 24944110 465051 25409161 13.88 .98 13.6
11 2013-14 28222271 565696 28787967 13.1 21.6 13.3
12 2014-15 32057299 633395 32690694 13.58 11.96 13.55
2.2.4 SWOT Analysis of Gujarat as Tourist Destination
Strength
 Gujarat has historical monuments that represent the great religions like Hindu,
Buddhist, Jain Islamic, Parsee and Sikh.
 A wide range of wildlife including the Asiatic lion, Indian wild ass, endangered
antelopes etc. and India’s first marine national park.
 Immense variety of tourist interests: Long coastal lines with beaches, Forests and
Wildlife, Heritage and Culture, Pilgrimage, Rural/Tribal Culture, Handicrafts,
Cuisine, Sophisticated Amusement Parks, Multiplexes.
 Reasonably good core infrastructure (i.e Power, Road & Communications)
 Large number of Non Resident Gujaratis visiting Gujarat every year.
 High Standard of Living in the State of Gujarat.
 Gujarati’s love to travel and thus forms a major chunk of domestic tourists.
 The Brand Ambassador for Gujarat tourism is Mr. Amitabh Bachchan.

Weakness
While other states ( i.e AP, Kerala, Goa etc) made successful efforts at developing
tourism within their states, the relative inability of the Gujarat State to harness and
develop its full tourist potential may be attributed to a combination of factors such as:
 Quality of Destinations not comparable with the best in the country (e.g. beach
resorts of Goa, Heritage properties of Rajasthan).
 Delay and declaration of new Tourism Policy (2015-2020)
 Inadequate tourism infrastructure (Lack of Star Category facilities at many tourist
destinations of importance)
 Ineffective Marketing (Low awareness due to lack of brand image)
 Lack of appropriate facilities for the tourists (Lack of adequate tourist information
centre/kiosks).
 Long Distances among tourist destinations i.e. difficult for tourists to cover at one
go in comparision to tourist destination like Rajasthan.
 The state has been effected by earth quakes, natural calamities and communal
disturbances.
 Unfavourable brand image as a tourist friendly destination.
Opportunity
 Tremendous scope for development
 Potential for attracting large number of outbound tourists and Non Resident
Gujaratis.
 Possibilities of joint efforts with neighbouring states (i.e with Rajasthan for
heritage tours, and with Madhya Pradesh for Forests/ Wildlife/ Eco Tourism)
 Private Sector Interests in the Sector
 Medical Tourism has high growth potential because of the availability of high
quality, low cost surgeries.
 Gujarat upcoming as Spiritual “Wellbeing” tourism.
Threat
 Competition from other States focusing aggressively on tourism
 The emergence of the neighbouring South East Asian countries as popular tourist
destinations can hamper domestic tourism.
2.3 Initiatives by the Department of Tourism
To promote and help the hospitality sector to flourish in the state, Gujarat
Governemnt has taken following initiatives:
1. Special Incentives
 Medical Tourism Policy announced
 Eco-tourism policy announced
 Hotel investment incentive scheme introduced

 Heritage tourism policy declared
2. Promotion
 Tourism Corporation of Gujarat Ltd. (TCGL) has selected 37 destinations for

integrated tourism development
 In the last two years more than 600 projects in 300 tourist destinations have
been taken up with a cost of more than US $ 24 million.
 35 Pravasi Path of international standards has been taken up in Gujarat,

involving an investment of US$ 19 million.
 Annual tourism budget has been increased from US$7 million to US$24
million. This provision has been enacted in the new five year plan.
 The increase in budget has been provided for tourism infrastructure projects.
3. Human Resource Development
 To meet the requirement of the trained manpower in the emerging tourism

sector, Gujarat has established institutes for hospitality and hotel
management.
 The institutes organizes various activities viz., food festivals, chef

competitions, education tours and fairs etc., every year to inculcate
professionalism in students and staff.
 In its PPP initiative the government has set up a centre for tourism and
hospitality management for speeding up training of service providers, guides
and tourism personnel with special emphasis on target groups who are mainly
from the weaker sections of the society.
 TCGL – AMA centre for tourism and hospitality management started at

Ahmedabad.
 There are other private hotel management institutes in the state to provide
trained manpower like:
o Vivekananda Institute of Hotel and Tourism Management, Rajkot.
o Gujarat Institute of Hotel Management, Vadodara
o Institute of Hotel Management, Catering technology and Applied

Nutrition, Gandhinagar.
4. Rationalization of Taxes and Duties
 Entertainment tax has been reduced from 50% to 25%.
 No luxury tax upto tariff of RS. 500, from Rs. 501 to Rs. 2000 per room 4%
tax will be charged and above RS. 2000 per room 6% tax will be charged.
 Electricity duty reduced from 35% to 25%. VAT on food reduced to 4% as

against 12.5% in other states.

2.4 An Overview of Chorwad

2.4.1 Introduction
Chorwad is a city and a municipality in Junagadh district in the state of Gujarat, India.
Chorwad is an ancient town, its first written evidence is seen in history 796 AD. In the
earlier times, the town was situated on sea shore. However, due to natural mishap, it
moved to a location that is 4 km away from the earlier one. The actual period is
unknown but it is assumed that it would have happened a thousand year ago.
In ancient time, Chorwad was a trading harbor. Initially, the population of the
business class locally called “banias” was the dominant. Most population in Chorwad
is of KOLI caste, which is the part of ancient tribes of India.
Chorwad is famous as an idyllic beach destination in Gujarat. The beach of Chorwad

used to be a famous summer retreat of the Nawabs of Junagadh. The beach at
Chorwad has a beach palace resort. Initially, Chorwad was a fishing village. Chorwad
shot to fame when Nawab Saheb Mohabbat Khan, the Regional Governor of
Junagadh, built a palace on the Chorwad beach facing the sea. The Nawab used to
retreat to this place on hot summer days.
The Chorwad Palace or the Daria Mahal Palace was constructed in the 1930s and it
exhibits a unique blend of colonial, Muslim and Italian Architectural styles. The
Nawab conducted royal banquets, processions etc at this summer palace. In the year
1974, the Tourism Corporation of the state of Gujarat took over the summer palace
on the Chorwad beach and transformed it to a holiday resort.
Chorwad beach is one of the most visited beaches of India. The proximity of
Chorwad to places like Somnath, Porbandar etc makes it a popular relaxing spot for
both weekend getaways and family picnics. Visitors can go trekking along the rocky
shores or boat riding. The fishermen who live in the adjacent villages also offer
catamaran rides and fishing trips.
Famous and legendry industrialist Shri Dhirubhai Ambani hails from this place. He
spent his childhood and little part of adolescent before moving abroad in pursuit of
his dreams. This town is now being recognized by the name of business legend’s
home town.

Figure 2-2: Location Map of Chorwad
Chorwad city
Chorwad Beach
2.4.2 Connectivity
Chorwad is well connected as it lies between Somnath and Porbandar.
Road – Chorwad is well connected through NH-8 by Junagadh (70 km away) and
Porbandar (100 km away) town and to the important tourist spot of the State such as
Dwarka, Veraval (25 km away), GIR National Park (35 km away), Girnar Mount and
Somnath (37 km away) by roads. Nearest bus station is at Keshod & Veraval.
Rail – Chorwad is connected to Junagadh, Porbandar, Veraval by Rail also and the
nearest railway station is at Chorwad Road which is 5 Kms away. However in order
to connect to other cities of Gujarat, the nearest railway station is Veraval (20 kms)
away.
Air – The nearest airport to Chorwad is Keshod Airport which is 35 kms away but it is
not in operation for transportation. The next nearest airport of Chorwad is Porbandar
airport which is 100 kms away.
2.4.3 Demography
According to the 2011 census Junagadh district has a population of 2,742,291,

roughly equal to the nation of Jamaica or the US state of Utah. This gives it a ranking
of 142nd in India (out of a total of 640). The district has a population density of 310
inhabitants per square km. Its population growth rate over the decade 2001- 2011

was 12.01%. Junagadh has a sex ratio of 952 females for every 1000 males. It had a
literacy rate of 67.7% in 2001 which increased to a literacy rate of 76.88% in 2011.
Chorwad city has population of 22,720 as per 2011 census of India with decadal
growth rate of 6.96%. Chorwad is spread in an area of 21.54 sq.km and has a
density of 1054 inhabitants per sq.km.
2.4.4 Economy
2.4.4.1 District Level
Agriculture is the backbone of the district economy.

70% of the population is engaged in primary sector,
22% in secondary sector and 8% in tertiary sector.
Fish processing industry is a major sector in
Junagadh. Processed fishes from Junagadh are
exported to Singapore, China, Hongkong, Japan,
Dubai and other parts of the world. The industrial
giant Hindustan Lever Ltd has a frozen fish packing
unit in Maliya taluka of the district.
Presence of huge reserves of Limestone, makes the cement industry a thriving

industry sector in the district. The major business of the Junagadh district includes,
mineral based industries such as, cement and soda ash, agriculture based industries
like edible oil, groundnut units, solvent plants and oil cakes and Marine based
industries like fish processing units and frozen fish.
Major crops produced in the district are wheat, oilseeds, cotton, mango, banana,
onion and brinjal. Junagadh is the largest producer of Groundnut and Garlic in the
state contributing 26% and 34% to total production respectively. Mango and Onions
are produced in large quantities in the district.
There are over 40 medium and large scale industries present in Junagadh district,
involved in sectors such as, cement plants, edible oil, refinery plants and fish
processing units. Most of the medium and large scale industries are concentrated in
Junagadh and Manavadar talukas of the district.
There are over 7000 small scale industries operating in Junagadh district in sectors
which includes food products, chemicals, electrical equipments, textiles and repairing
and servicing. Maximum number of SSI units (3018 units) related to repairing and
servicing are located in Junagadh followed by food product industry with over 503
units.
Economy Drivers
The economy of Junagadh is mainly based on Agriculture. With the new government
policy of biotechnology, Junagadh has been identified as one of the agriculture
biotechnology zone. This will boost setting up of agro-biotech industries in the district.
Cement has been a key industry of the district and will experience further growth with
upcoming cement units thereby leading to economic development of the district.
Junagadh boasts of some of the best tourist destinations in the State and hence
experiences a huge influx of tourist every year.

2.4.4.2 Tourist Inflow in Junagadh and Gir-Somanath District

The inflow of tourist in Junagadh and Gir-Somanath Districts in the last few years is
as given below:
Number of Tourist - Somnath Number of Tourist - Sasan

Sr. No Year
Domestic Foreign Total Domestic Foreign Total
1 2010-11 396740 3737 400477 145417 4765 150182
2 2011-12 496334 4228 500562 167220 5311 172531
3 2012-13 586161 4565 590726 386372 11631 398003
4 2013-14 609452 4269 613721 476672 12437 489109
5 2014-15 646416 2966 649382 505805 11446 517251
Thus it can be seen from the above table that the tourist inflow (both domestic and
Foreign) has increased in the last financial compared to the previous year by 6%.
This marks the rising demand of the place and its growing popularity.
2.4.4.3 City Level
Chorwad town is characterized by low level of economic and industrial activities.

There are many industries planned but only few could be operational and almost all
of them are closed today such as Delaware Syndicate, Kathiawad Industries,
Ceramic pottery, vegetable Ghee and tanneries and match box industries. Only
fisheries related industries are survived like Hindustan Liver Ltd, Krupa Sagar Marine
Food and Krupa Sagar Cold Storage.
The work participation ratio of the city is very low as compared to other towns of the
State. The employability options are limited to agriculture sector which is bound to be
seasonal in nature. Other employment avenues are in a position to provide year long
employment to the workers due to seasonality factor in the farming.
2.4.5 Tourism Resources
Chorwad is a small fishing town which gained importance when Nawab Sahib
Mohabbat Khan of Junagadh built a palace by the sea for retreat. It was well known
for rocky beaches and the unique flora and fauna. At some point of time it was known
as “Kashmir of Gujarat” but now the situation has changed a bit.
Tourism Corporation of Gujarat has attempted for taking special care of the beaches
and especially the Holiday Camp Resort. There isn’t adequate physical and socall
infrastructure and now it has become imperative to provide proper infrastructure
facility in the the town to maintain its status in the world of tourism.
Following are the attractions in and around Chorwad
1. Chorwad Beach
Chorwad Beach is an ideal picnic spot for

tourists coming to this beach village in the
state of Gujarat. There is a famous
Chorwad Palace situated near this beach,
which was constructed during 1930s.

This palace has been transformed into a luxury beach resort which provides
comfortable accommodation to tourists.
The Chorwad Palace is also known as the Daria Mahal Palace and faces the
Chorwad Beach. The Chorwad beach is suitable for leisure beach walks,
boating, swimming, fishing and many other water activities.
2. Chorwad Palace
Chorwad palace was in early era a

resting place for the Nawabs of
Junagadh. Built in the 1930s, the
spacious Chorwad Palace with its
impressive façade, elegant interiors,
projecting porticos and balconies and
large arched windows reflects an
interesting blend of Italian,
Muslim and colonial influences.
3. Somnath Temple
The temple is located in Prabhas

Patan near Veraval in Saurashtra on
the western coast of Gujarat, India,
around 37 km from Chorwad. It is the
first among the twelve
Jyotirlinga shrines of Shiva. It is an
important pilgrimage and tourist spot
for pilgrims and tourists.
The temple is considered sacred due to the various legends connected to it.
Somnath means "Lord of the Soma", an epithet of Shiva. Somnath Temple is
known as "the Shrine Eternal".
4. Kirti Mandir
kirti Mandir is a memorial temple built in the

memory of Mohandas Karamchand Gandhi in
the city of Porbandar, Gujarat, which was also
his birthplace. The foundation stone of the
striking Kirti Mandir was laid in 1947 but the
building was completed in 1950, by which
time Gandhiji was no more. Kirti Mandir is the
main tourist attraction of the town of
Porbandar. The place where Gandhiji was
born is marked with a Swastika for
identification. The site of Gandhi’s birth has
been converted into small meseum about
him. This is located around 100km from
Chorwad.

Attractions with respect to distance
2.5 SWOT Analysis of Chorwad as Tourist Destination
Strength
 The governments, both the state and local are known to be proactive, relatively
transparent and effective implementers.
 Connectivity through Rail and road to other major urban centres of the state.
 The city has good accessibility to sea water face.
 Chorwad is ecologically rich region.
 It is an important tourist spot for domestic tourism, as it lies in between the road
connecting two major religious destinations Somnath and Dwarka.
Weakness
 Lack of diversity in economic base.
 Poor infrastructure of the city.
 Inadequate Growth and land management.
Opportunity
 Development of industrial sector is a reality – establishing agro processing export
unit, fish export unit, coir industry etc.
 The tourism policy of State has identified Chorwad to be developed as one of the
main tourist destination.
 It is also going to be developed as port.
Threat
 Large out migration for education and employment opportunities is leading to
severe threat.

CHAPTER 3.0
HOTEL INDUSTRY – AN OVERVIEW & MARKET
ANALYSIS
3.1 Hotel & Hotel Industry – An Introduction
The common law says that the hotel is a place where all who conduct themselves
properly and who are able and ready to pay for their entertainment, accommodation
and other services including the boarding like a temporary home. It is home away
from home where all the modern amenities and facilities are available on a payment
basis.
It is also considered to be a place where tourist stops, cease to be travelers and

become customers. The definition presented by the hotel operators to the authorities
of the National Recovery administration in Washington is found to be a more
comprehensive definition presented by Stuart McNamara. The definition states that
“Primarily and fundamentally, a hotel is an establishment which supplies boarding
and lodging not engaged in Inter-State commerce or in any Intra-state commerce,
competitive with or affecting inter-state commerce (or so related that the regulation of
one involves the control of other)”.
One of the fastest growing sectors of the economy of our time is the hotel industry.
The hotel industry alone is a multi billion dollar and growing enterprise. It is exciting,
never boring and offer unlimited opportunities. The hotel industry is diverse enough
for people to work in different areas of interest and still be employed within the hotel
industry. This trend is not just in India, but also globally.
Modern hotels provide refined services to their guests. The concept of total quality
management is found getting an important place in the marketing management of
hotels. The emerging positive trend in the tourism industry indicates that the hotel
industry is like a reservoir from where the foreign exchange flows.
3.2 Classification of Hotels

3.2.1 On the basis of Standard
Like most of the countries in the world, India also has hotels divided in different
categories depending on their location, facilities, infrastructure and amenities
provided. All the star hotels in India are government approved with continuous control
on the quality of service offered.
1. Five Star Hotels – The most luxurious and conveniently located hotels in India
are grouped under Five Star Deluxe Hotel categories. Five Star Deluxe in India
are globally competitive in the quality of service provided, facilities offered and
accommodation option. These are top of the line hotels located mostly in big
cities. These hotels provide all the modern facilities for accommodation and
recreation matching international standards in hospitality.
2. Four Star Hotels – A rung below Five Star Hotels are Four Star Hotels, these
hotels provide all the modern amenities to the travelers with a limited budget.
Quality of service is almost as high as the five stars and above categories
3. Three Star Hotels – These are mainly economy class hotels located in the
bigger and smaller cities and catering to the need of budget travelers. Lesser in
amenities and facilties, these hotels are value for money and gives good
accommodation and related services on the reduced price. Services would be

stripped down version of the higher categories of hotel but sufficient to fulfill
customer’s basic needs.
4. Two Star Hotels – These hotels are most available in the small cities and in
particular areas of larger cities. Catering to the backpacker tourist traffic, these
hotels provide all the basic facilities needed for general accommodation and
offers lowest prices.
5. One Star Hotels- These hotels with most basic facilities, small number of rooms’,
location in the far flung areas are grouped under One Star Hotels. These hotels
are best when customer is looking for cheapest available accommodation option.
3.2.2 On the basis of Nature

1. Heritage Hotels – Heritage Hotels in India are best if one is looking for sheer
elegance, luxury and loyal treatment. They are not just another accommodation
options but tourist attractions in themselves. Exquisitely designed and decorated,
meticulously preserved, high standards of service and ethnic cultural motifs help
the tourist get the complete experience of an India.
A new classification of heritage hotels has been introduced to cover functioning

hotels in a palace, haveli, castle, fort and residence built prior to 1950. As the
traditional structures reflect the ambience and lifestyle of the bygone era and are
immersely popular among the tourists, the scheme is aimed to bring such
properties not to be lost due to decay or unused.
2. Beach Resort Hotel – Peninsular India bounded by Arabian Sea, Bay of Bengal,
Indian Ocean and the two emerald archipelagos of Lakshadweep and Andaman
& Nicobar have a long coast line of around 7500 km, offering an amazing array of
beaches, some popular, some not so well known. Thus location of resort is the
basic point of attraction for tourists.
3. Wild Resorts Hotels – A wildlife tour is incomplete if one does not actually, live
in a forest for a few days. It means living in a rest house or a tent in the midst of
the dense wilderness and waking up to the twittering of birds.
4. Government Approved Hotels – These are the hotels which might not have
applied for star categorization or small enough to find them in the list. Many of the
wild life resorts, lodges and hostels are government approved providing a
minimum level of accommodation facilities at far off places.
5. Residential Hotels – The residential hotel work as apartment house. Often we

call them apartment hotels. The hotels charge rent on monthly, half yearly or
yearly basis. They are generally located in big cities and towns where no meals
are served to the customers. Initially, the Resident hotels were developed in
USA. The services offered here are comparable to an average well managed
home.
6. Commercial Hotels – The commercial hotels are meant for the people who visit
a place of trade and commerce or business purposes and therefore these hotels
are found located at the commercial or industrial centres. They focus their
attention on individual travelers and are generally run by owners.
7. Floating Hotels – The floating hotels are located on the water surface. The
places are sea, river and lake. These hotels provide with all the facilities and
services made available in a good hotel. In the leading tourist generating

countries of the world, we find the practice of using old luxury ships as floating
hotels.
3.2.3 World Record Setting Classifications

1. Largest – In 2006, Guiness World Records listed the First World Hotel in Genting
Highlands, Malaysia as the world’s largest hotel with a total of 6118 rooms.
2. Oldest – According the the Guiness Book of World Records, the oldest hotel still
in operation is the Hokshi Ryoken, in the Awazuonsen area of Komastu, Japan
which opened in 718.
3. Tallest – Burj Al Arab in United Arab Emirates is the tallest building used
exclusively as a hotel. However, the Rose Tower, also in Dubai, which has
already topped Burj Al Arab height at 333 m (1093 ft) will take away this title upon
its opening.
3.3 Different Departments in Hotel

The departments are classified on account of its function. They are as follows:
3.3.1 Core Funcitoning Department

1. Food and Beverage Department (F&B) – F & B deals mainly with food and
beverage service allied activities. Different divisions are there in F & B like
Restaurants, Speciality restaurants, Coffee shop (24 hrs), Bar, Banquet, Room
Service etc. Apart from that they have utility services (cleaning).
2. Front Office Department – The front office is the command post for processing
reservations, registering guests, settling guest accounts (cashiering), and
checking out guest. They also handle the distribution of guestroom keys and mail,
messages or other information for the guests.
3. Housekeeping Department – The housekeeping department is another

important department in hospitality world. Housekeeping is responsible for
cleaning the hotels guestroom and public areas. This department has the largest
staff, consisting of an assistant housekeeper, room inspectors, room attendant, a
house person crew, linen room attendants, and personnel in charge of employee
uniforms.
4. Food Production Department – Food Production deals with the preparation of

food items. It is basically engaged in preparing those dish, which are ordered by
the guest and afterwards is catered by the F & B department.
3.3.2 Support Department (Cost Centres)

1. Marketing & Selling Department – Sales and marketing has become one of the
most vital functions of the hotel business and an integral part of modern hotel
management. It includes packaging for selling, sales promotion, advertising and
public relations. The markeging department is charged with the responsibility of
keeping the rooms in the hotel occupied at the right price and with the right mix of
guests.
2. Engineering & Maintenance Department – The energy crisis throughout the

world has given a great importance to the engineering department of the hotel.
This department provides on the day to day basis the utility services, electricity,
hot water, steams, air conditioning, and other services and is responsible for
repair and maintenance of the equipment, furniture and fixtures in the hotel.

3. Finance Accounting & Control Department – A hotel’s accounting department

is responsible for keeping track of the many business transactions that occur in
the hotel. The accounting department does more than simply keep the books –
financial management is perhaps a more appropriate description of what the
accounting department does. Whereas the control department is concerned with
cost control guidelines by way of reducing in investment, reduction in operating
cost, control of food service costs, control of beverage costs, labour cost control
etc.
4. Safety & Security Department – The security of guests, employees, personal

property and the hotel itself is an overriding concern for today’s hoteliers. In past,
most security precautions concentrated on theft, however now crimes such as
rape, murder etc. also needs to be concentrated upon.
5. Administrative Department – Top Organizational members usually supervise

the administration department in a hotel. This department is responsible for all
the work connected with administration, personnel, manpower, employee’s
welfare, medical, health and security.
6. Human Resource Development – This department has newly taken step in

hotel industry and within a short span of time it has become a very important part
of the organization. It plays role of a facilitator between the bargain able cadre
and non-bargin able cadre.
3.4 Hotel Industry in India

3.4.1 Background
Prior to the 1980’s the Indian Hotel Industry was a nascent and slow growing industry
primarily consisting of relatively static, single hotel companies. However, Asian
games in 1982, and the subsequent partial liberalization of the Indian economy
generated tourism interest in India with significant benefits accruing to the hotel and
tourism sector in terms of improved demand patterns.
Fortunes of the hotel industry are tied to the fortunes of the tourism and the general
business climate in the country, which is why the economic liberalization initiatives
implemented since 1991, led to a soaring demand and supply gap in the hotel
industry.
The hotel sector forms one of the most important segments of the tourism industry
with high potential for employment generation and foreign exchange earnings. To
give impetus to this sector, the government provides tax benefits and other
incentives. The industrial policy has now placed hotels and tourism related activities
as a priority industry. The Ministry of tourism classifies functioning hotels under the
star system into various categories from one to five stars deluxe and a newly
introduced category of heritage hotels. The Ministry also reclassifies these hotels
after every three years to ensure that they maintain the requisite standard.
Hotel industry in India has witnessed tremendous boom in recent years. The thriving
economy and the increased business opportunities in India have acted as a boom for
Indian hotel industry. The arrival of the low cost airlines and the associated price
wars has given domestic tourists a lot of options. The “Incredible India” destination
campaign and the recently launced “Atithi Devo Bhava” campaign have also helped
in the growth of domestic and international tourism and consequently the hotel
industry.

3.4.2 Present Scenario of Hotel Industry in India

The Hotel Industry has contributed between 1.2% and 1.5% of the GDP over the last
seven to eight years. The Ministry of Tourism estimates that there are more than
8700 hotels at 54 key locations across the country with a total room supply of about
174,000 including hotel in the classified, approved but not classified and licensed by
the state government but not approved categories.
In 2013-14, branded hotel supply surpassed the 1,00,000 rooms milestone.

Nationwide existing supply recorded 103855 rooms as of 31st March 2014, an
increase of around 10.2% (9600 branded rooms) over the previous year.
Major Players in the Hotel Industry
In the large/ luxury hotels segment there are about 11 long standing players such as
ITC Hotels, Asian Hotels, the Oberoi Group of Hotels, Hotel Leela Ventures, ITDC,
the Indian Hotels Company, The Park Hotels, and international players like Hilton
Hotels, Marriott International, Le Meridien Hotels & Resorts. There are about 16
listed hotel groups in the mid segment including Bharat Hotels, Oriental Hotels,
Nehru Place Hotels, Jaypee Hotels, Piem Hotels and Taj GVK Hotels.
Following figure presents the total operating inventory for the 20 largest hotel brands
in the country as of September 2014.
3.5 Hotel Industry in Gujarat

The increase in tourism in Gujarat has led to increase in interest by international
hotel players that is fuelled not only by leisure tourism but also the soaring demand in
business travel. The entrepreneurial spirit of the state, coupled with well developed
infrastructure, increasing air connectivity, and the progressive policies of the
government have encouraged foreign investments especially from countries such as
Japan, USA and Canada.
The city of Ahmedabad has witnessed an aggressive growth of 25% in its room
inventory. While large scale events such as Vibrant Gujarat and DERMACON have
given a boost to MICE travel, the large NRI base continues to drive occupancies
during the wedding season.
Courtyard Marriott Ahmedabad was one of the first international brands to set shop in
the city of Ahmedabad in 2010. The four star hotel features 164 rooms including 12
suites, 7500 sq.ft of event space including a pillar free ballroom, boardrooms and

outdoor lawns, and three food and beverage options. Within three years of operation
the hotel has witnessed a remarkable growth in market share from 29%in 2010 to
35% in 2012-13.
As per the State Ranking Survey 2013 taken up by HVS of Hospitality Industry,
Gujarat stands 4th of the total states in India and is the second biggest mover from
2009 to 2013 and the biggest mover from 2011 to 2013, jumping from 7 th position to
4th in two years. Increased supply of branded hotel rooms, a higher per capita income
and a better ranking of its state tourism website have all contributed to this
achievement.
Following can show the reason of potential of hospitality industry in Gujarat
3.5.1 Hotels in Gujarat

The large number of hotels in Gujarat offers a wide range of accommodation option
to the tourists. The hotels in Gujarat welcome tourist with warm hospitality and
admirable service. Tourists can be at ease in choosing from the wide range of hotels
in Gujarat, which ranges from a luxurious five star hotel to a cheap budget hotel
accommodation. These hotels are designated to suit the budget. The hotels in
Gujarat are equipped with modern comforts and are beautifully decorated. The hotels
of Gujarat also provide facilities for dining, business and recreation for the guests
coming in.
The rooms and suites of the hotels in Gujarat are tastefully furnished to make the
tourists feel at home when they are away on a leisure tour or on a business tour.
Although the amenities provided at the Gujarat hotels differ with the star category of
the hotels, but the basic facilities that are required by a tourist while touring are
provided to the guests in all the hotels of Gujarat.
Hotels in Gujarat also venture out to provide excellent business facilities to the
corporate travelers. The conference halls and the board rooms of the hotels facilitate
the guests organize business meetings, corporate events and formal banquets.

3.5.2 Challenges faced by Hotel Industry in Gujarat

Luxury hotels in Gujarat are facing an acute shortage of manpower. With a number of
new hotel projects checking into the state the number of rooms have doubled in the
past 18 months – existing players are finding it tough to retain employees. There are
around 4000 rooms in premium category hotels in Gujarat – Ahmedabad has over
1300. There are over 1500 additional rooms likely to be added over the next two
years. International brands like Aloft, Radisson, Park Plaza, Crowne Plaza, Hyatt
among others are set to start operations in the state.
Existing players have little supply of manpower, although the salaries of all category
employees are 15-20% higher than hotels in neighbouring states. Cut throat
competition and poaching activities have resulted into unreasonable salaries at all
levels.
3.6 Hotel Industry Market Analysis in Chorwad

The Chorwad beach was once home to the royal palace of the Nawab of Junagadh.
Today it remains in a ruined state. The beach is unsafe for swimming, but it is
relatively clean and ideal for relaxing and enjoying the ocean breeze. It currently
does not offer any accommodation facilities but serves as an ideal excursion from
Somnath.
It is the best place to view rocky shores, boat rides and the colourful fishing villages.
There is a resort which was previously a palace built by Nawab Saheb Mohabbat
Khan as a vacation spot for the hot summer days where he held wedding of his dogs,
royal banquets and processions amidst cool breezes from the sea. This resort
however, is not functional anymore due to lack of infrastructural facilities. Moreover,
the government has handed over the work of preparing the estimation of restoration
cost of Chorwad Palace to the IIT, Roorkee.
Chorwad beach is an interesting and alluring amalgamation of rocky crags and

bowlderish seafront along with jaunty boat rides across the Chorwad seafront and to
cap it all with opportunities to visit Porbandar and Somnath and other nearby beach
destinations and other travel destinations worth their salt in terms of beauty and
ambience.
Chorwad beach is a beautiful beach with vast expanse of white, sandy beaches. It is
a beautiful example of nature at its best. It is exhilarating to enjoy a stroll across the
beach and enjoy the divine sight of vast and pristine seashore. This beach and the
palace if marketed well can figure high in the itinerary of the domestic and
international tourists.
The lack of infrastructure, good hotel/resort in such potential tourist place makes
developing a three star plus resort a lucrative offer.
3.6.1 Hospitality Demand Drivers

Leisure travel is the major demand driver for hospitality in the city. The second major
demand driver for hospitality in Chorwad is the fact that Late Shri Dhirubhai Ambani
has his roots from this city and recently inaugurated Dhirubhai museum will attract
more tourists.
Though Chorwad is a beautiful beach, there is lack of infrastructure. Many people

also visit Chorwad on their way to Dwarka from Somnath or vice versa. Mostly tourist
visit Chorwad through either Somnath or Porbandar. Veraval and Porbandar has
better connectivity with the major destination in Gujarat and India as compared to
Chorwad.

Tourists not only have demand for rooms but a proper resort, adventure sports etc in
the city. They require room for:
 Guests and clients visiting the city
 Guests travelling from Somnath to Porbandar & Dwarka and halting in between.
 Guests & relatives of Ambani family visiting the city.
3.7 Existing Supply

The Chorwad Palace that was taken up by The Tourism Corporation of Gujarat was
converted into a resort, however, due to poor infrastructure, is currently not in a
functioning mode. There are accommodation options available in nearby places like
Somnath, Gir, Porbandar and Junagadh, the details of which are as given below:
There are some budget hotels nearby Chorwad Road Railway Station and near
Somnath Mandir and in Gir Forest. However there is no hotel in Chorwad city, apart
from Chorwad Palace that is currently non-functional.

These hotels in map are as shown below:

CHAPTER 4.0
SITE ANALYSIS
4.1 Site Location and Description
The Proposed project site is located on the Chorwad Beach around 3.6 km from the
Chorwad city towards the south west side. The site incorporates the already built
Chorwad Palace and few hutments and is located just on the Chorwad Beach. The
site is surrounded by Arabian Sea towards south and west, by the coastline towards
northwest and southeast, some settlement on the north and east side. The site is
about 21.8 km from the Chorwad Road Railway station, 29.3 km from Veraval
Railway Station and about 41 km from the Keshod Airport and around 106 km from
Porbandar Airport. The main attraction of the site is that it is located right on the
beach and also incorporates the ancient Chorwad Palace once built by Mahabbat
Khan.
The Site Specifications are:
 Extent of Land/ Site Area: 48,102.5 sqm.

 Coordinates: Latitude 21°0'2.43"N
 Longitude 70°13'40.11"E
 Ownership of Site: Tourism Corporation of Gujarat Limited (TCGL)

 Present Site Condition: There is the Chorwad Palace facing the beach towards
the west side of the site. There are many hutments built towards the north and
northwest side of the site and the entry to the site is through east direction. There
are some buildings towards the north and south of the building also. There is a
green patch of trees and grass on the site from the centre towards east and the
rest of the land is kutcha.

 Linkages and Connectivity: The project site is located on the beach and is
connected to Chorwad city through Chorwad Holiday Camp Road 7.5 m wide.
This is the only road connecting the site to Chorwad city and then through
Chorwad city to other destinations. The National Highway 8E passes through
the Chorwad city connecting it to Veraval and Porbandar.
4.2 Site Topography and Vegetation
The site is on the beach and has a little

slope down towards the Arabian Sea. The
Chorwad Palace is also on a high level
compared to the beach level. The Chorwad
Palace and the entry to the site are on the
same level. The site has a green patch in
between from the centre towards east side
of the site. Moreover, there are quite a
number of trees on the eastern boundary,
northern and southern boundary and some
patches in between.
4.3 Site Access and Connectivity
The Proposed site is currently approached by, one Chorwad Holiday Camp Road
from the east side, and surrounded by narrow roads on the three sides, north east
and south. The approach road to the site from Chorwad enters into the site and ends

there. The site is located 3.6 km away from the Chorwad city and about 21 km from
Chorwad Road Railway Station and 29 km from Veraval Railway Station. The
Chorwad city is well connected to Veraval and Porbandar through NH 8E.
4.4 Proximity to Key Areas
The proposed site is dramatically located on a beach with an ancient palace within it.
There is Arabian Sea to the west and southwest of the site. However the site is
surrounded by few inhabitants towards east and northeast side of the site and
coastal line on north and south. It also has few temples in its vicinity.

4.5 Existing Infrastructure
Site Access
The Site has good accessibility. The site is situated on the Chorwad beach and is
accessible from the Chorwad Holiday Camp road connecting it to the Chorwad city.
The site is surrounded by road on three sides i.e north, east and south with minor
roads.
Power & Water
This site incorporates a palace that was used before, and there is little settlement
behind the site. Previously TCGL was also running this propeorty as Chorwad
Holiday Camp and hence power doesn’t seem to be an issue. However, currently as
the site is not in use, there is no power on the site. Chorwad city gets water from
Narmada pipeline which is not extended till the site. However, as the water table is
not low in this area water can be found at 60- 80 feet, however potable water can be
found at 200-300 feet.
Sewerage
There is no connection from the site to the main sewer line although the cottages
planned by TCGL have toilets with them with soakpits type disposal. The same would
be required to be made functional
Telecommunication
Currently there is no infrastructure of telecommunication on the site.
Parking Area
At present ample surface parking area is available at the site and moreover, due to
sufficient land availability there should be no problem in parking.
4.6 SWOT Analysis
Strength
 Ideally located on a beach with a distance less than 4 km from the Chorwad city.
Moreover lies on the way from Somnath to Porbandar and Dwarka, which gives it
an added advantage.
 Good land availability for the proposed Resort.

 Good accessibility and connectivity to the site.

 A PPP format limiting risk.
Weakness
 Distance from the Railway Station and Airport.

 The Site is poorly maintained and the existing Chorwad Palace is also in a ruined
state.
Opportunity
 The Government has recognized this place to be developed as Tourist

destination.
 On the way forward, the Government has already given the work of preparing the
estimation of the restoration cost of the Palace to IIT Roorkee.
 The ancient Palace if restored properly can attract a number of tourists both
domestic and international.
Threat
 Violent Sea at Chorwad at specific times (full moon and no moon days) makes
the beach risky for tourists.
 Poor infrastructure along the coast is a major constraint in developing beach
tourism.

CHAPTER 5.0
FINANCIAL
ANALYSIS
5.1 Introduction
The broad activity-mix for the project has been worked out based on the analysis of
the advantages associated with the project location and potential opportunities vis-a-
vis prevailing demand in the market.
The products/activities for the envisaged development are derived based on following
factors:
 Demand pattern for various product components/ activity types.
 Product mix of other similar facilities which are successfully running.
 Standards, guidelines and current industry practice for various activities
5.2 Project Design and Product Mix
Leisure Beach Holiday Resort - Chorwad Palace is conceived as a combined development
with following main elements:
Mandatory Components and Minimum Sizes– (Minimum Development
Obligations or “MDOs”)
 A Leisure Beach Holiday Resort - Chorwad Palace
 Minimum 24 keys (Luxury Rooms/Cottage)
 Restaurants
 Provision of car parking to be made as TCGL/ Local Building Bye-Laws
 Other common and support facilities such as internal roads, street lights, water
harvesting system, solid waste disposal, storm water drainage system, main
sewer line, water supply including storage tank(s), transformer, electrical sub-
station, green patches etc.
Total land area of the site is is about 48,102.539 sqm, however, the land area
earmarked for the Project is about 20,000 sqm.
To estimate the project cost and operating projections following assumptions have
been made:
 The construction areas specified in this report have been assumed to be the
minimum which may exceed while implementing the project.
 Project cost estimates have been arrived at assuming efficient construction and
prevalent market norms & standards.
 The entire facility will be constructed, managed & operated in a highly
professional manner.
A broad activity mix for the envisaged development has been derived based on
combination of above mentioned factors and is presented below:

Total Area /
Sr No. Facilities/Components Nos. Capacity Unit
Capacity unit
1.00 LEISURE BEACH HOLIDAY RESORT

1.10 Cottages/Rooms 39 39
A Luxury Rooms/Cottage 24 1 24 sqm 32.00
B Tents 15 1 15 sqm 45.00
1.20 Restaurants
A Multi Cuisine 1 50 50 sqm 2.30
B Speciality Resturant 1 50 50 sqm 2.30
D Coffee Shop 1 50 50 sqm 1.70
1.30 Recreational Area
A Health Club 1 20 20 sqm 6.00
B Swimming Pool 1 20 20 sqm 8.00
5.2.1 Area Allocation for Resort

The project will offer a mix of up-market accommodation facilities with a superior level of
finish and modern guestroom amenities, and will include:
 A Leisure Beach Holiday Resort - Chorwad Palace with approx. 24 keys (Luxury
Rooms/Cottage)
A summary of area-allocation for a Leisure Beach Holiday Resort component is given
below:
Area / Use Capacity Total Construction Area

Sqm sqft
Cottages/Rooms 39 2,344 25,218

Back Support 1,216 13,082
Public Areas 236 2,537
Total Area 3,795 40,837
Parking Area
Open 4,384 47,172
Stilt - -
Basement - -
8,179 88,009
With the components mentioned above a Leisure Beach Holiday Resort will cover an
area of 8,179 sqm. Total land area for the project is about 20,000 sqm.

5.3 Assumptions for Financial Analysis

5.3.1 Construction Period
Construction period for the components under MDOs has been assumed as 24
months.
5.3.2 Concession / Lease Period
Concession/Lease Period including constrction period has been assumed as 35
years for the component.
5.3.3 Capital Cost Assumptions
While calculating the project cost certain assumptions have been made based on
market feedback and experiences in the past.
The project cost consists of following components:
 Buildings
o Land Development
o Landscaping
o Civil Works – Basic Skeleton
o Civil Finishes – Exterior
o Civil Finishes – Interior
o Parking Area
 Plant & Machinery
o Mechanical HVAC
o Plumbing and Fire Fighting
o Electrical, Telephone
 Furniture & Fixtures
o Interior- Four Star- Rooms
o Interior- Four Star- Common Area- Hotel
 Pre Operative Expenses
o Design and Project Management (as % of services cost)
o Loan Processing and Syndication (% of Debt)
5.3.4 Financing & Taxation Assumptions
 Debt Equity Ratio: Debt Equity Ratio has been assumed as 60:40 for the entire
project component.
 Interest Rate: The rate of interest has been assumed as 12% per annum for
term loan.
 Debt Repayment Period: 7 years debt repayment period after a moratorium
period of 3 years, a total tenure of 10 years has been considered for loan
repayment for the component.
 Taxation: The tax rates have been considered as 33.06% i.e. Income Tax Rate
for Corporate Sector.
 Depreciation: Depreciation on the buildings, plant, equipment and fitting

components has been considered as per the Company’s Act and the Income Tax
Act through Written Down Value (WDV) method.
5.4 Project Cost
Estimated project cost of Leisure Beach Holiday Resort is Rs. 10.83 cr.; details of
which are given below:
5.5 Sources of Finance

Capital structure assumed for the project is as given below
1 Debt : Equity Ratio 60: 40 for the project
2 Cost of Debt 12%
3 Loan Tenure 10 years
4 Loan Repayment 7 years for the project after a moratorium
Tenure period of 3 years
5.6 Project Revenue

The Project Revenue has been taken into consideration from following activities:
 Rooms tariffs
 Multi Cuisine Restaurant
 Speciality Restaurant
 Coffee Shop

5.7 Combined Cash Flows, DSCR and IRR Working

Cash flows have been worked out for 35-year along with the above mentioned
assumptions. The pricing for various components has been assumed as per current
market practices and norms observed in the case of other similar projects. The
project components have broadly been assumed as per the TCGL sugestions with
modifications/additions ascertained through market studies.
5.8 Cash Flows/IRR/DSCR

The Cash-flow statement has been prepared assuming ‘standard’ loan format with 7
years repayment-period after a moratorium period of 3 years and total repayment
tenure of 10 years. Interest rate for the term loan is assumed at 12% p.a.
With these assumptions the equity IRR has been worked out as 23.2% and Project
IRR (post tax) as 12.0% which is higher than the cost of debt and hence can be
considered reasonable for a project of this nature. The project DSCR comes to 1.57.

5.9 Conclusion and Summary

Based on the site conditions, market analysis and envisaged project components, it
is suggested that TCGL may go ahead with the project. The current project
configuration seems acceptable in the market under following assumptions:
1. Land Cost: Land costs calculations have not been done as the primary aim of
TCGL is to create the facilities and then to expect some recurring revenue out of
the project. The only stream assumed to yield recurring revenue to TCGL is the
Annual Premium throughout the concession period and yet retain rights of
ownership of all the project assets at the expiry of the concession period.
2. Other Assumptions: All the prices/rates have been considered as per current
market practices and norms adopted in other similar projects. The assumptions
include the following.
a. Lease Period: Feasibility has been worked out for a lease period of 35 years
for the entire project component.
b. Project Development Fee: Success Fee @2.0% of Project Cost plus
applicable taxes payable by the developer has also been included in the
analysis.
5.10 Recommendations
 Concession/Lease Period : It is suggested that TCGL may opt for leasing out
the Project Site on following basis:
o Lease period of 35 years including construction period for the component.
o Annual Land Lease Rental: The Annual Land Lease Rental for the Project
Site shall be Re. 1.00 per sq.m. plus taxes, as applicable.
 Total land area earmarked for the Project is about 20,000 sqm.
 The land areas specified under MDO component shall not be utilized or
converted for commercial, residential and any other purposes at any point of time
during the entire concession/lease period.
 Total Annual Premium is Reserve Annual Premium + Additional Annual
Premium.
o Reserve Annual Premium: Reserve Annual Premium has been fixed at Rs.
25.00 Lacs per annum plus taxes, as applicable.
o Additional Annual Premium shall be offered by the bidder over and above
the Reserve Annual Premium plus taxes, as applicable.
 Total Annual Premium shall be payable on annual basis throughout the
concession/lease period and shall be escalated by 15% every three years on
compounding basis.
 Suggested Bidding Parameter: total of the following amount to be offered by
the bidder:
o Total Annual Premium (Reserve Annual Premium + Additional Annual
Premium) with escalation by 15% every three years on compounding basis
 Upon Expiry of Concession Period: The entire project facilities including the
project site, will revert to TCGLat end of the concession period of 35 years at
terminal value of Re. 1.00 (Rupee One Only).
The proposed project structure has many advantages/merits from TCGL/State
viewpoint some of which are listed below:

 Developers generally make huge investments on PPP projects only when the
concession period is of sufficiently longer duration. Hence, 35-year concession
period should instill confidence amongst potential bidders.
 Chorwad is a city whose headquarters are at its eponymous Junagadh city.
Chorwad Beach offers scenic beauty to its tourists along the seafront. It draws in
both domestic as well as international travelers. It provides opportunity to enjoy
thrilling boat rides and views of rocky hills. Junagadh has mountain range called
Girnar which is a place of pilgrimage for Hinduism and Jainism. The important
pilgrimage and tourist spot situated nearby is Somnath Temple situated close to
Chorwad which is first Jyotirlinga among the twelve Jyotirlinga shrines of Shiva.
Gir national Park & Wildlife Sanctuary is other tourist destination which is sole
home of the Asiatic lions and is considered to be one of the important protected
areas in Asia due to its protected species.The Sanctuary reflects the movement
of tourist in naturally rich areas like national parks, safaris, remote destinations,
etc. which are untouched and free from any adulteration of tourist development.
 Determining the above factors, Chorwad has been popular tourist hub in Gujarat
state. There are hotels available at Chorwad; however, the existing facilities are
not on the same scale as envisaged in this Project. Although it may take
sometime to take-off, it is likely that the proposed project would successfully meet
out the growing MICE demand with decent returns in future.
5.11 Points to be considered
 TCGL has earmarked a land parcel measuring 48,102.5 sq.mt commonly known
as Chorwad Holiday Home consisting of few hutments and Chorwad Palace. The
site may divided in three broad pockets.
1. The area with Hutments, where TCGL used to do operations.
2. The area having building of ‘Chorwad Palace’.
3. The area behind ‘Chorwad Palace’.
3
2

It is proposed that the land parcel, which has hutments and frontage on the
beach, shall be considered for current development. The area of this parcel is
about 20,000 sqm and ideally suited for a resort kind of development. Hence, for
this feasibility study about 20,000sqm land area is taken into account.
 TCGL has appointed IIT roorkee for conducting study for ‘Restoration of existing
heritage structure known as Chorwad Palace’. Exact Cost of restoration will be
known once the study is complete. It is assumed that cost of the restoration may
be borne by Government/TCGL. Operation mechanism for the restored structure
needs to be decided by Government/TCGL. Government/TCGL may give the
structure to existing bidder or may look forward for new operator.
 Site is in proximity to sea. Therefore, it may require clearance for any additional
construction (addition in built up area/ construction of structures of permanent
nature) under CRZ guidelines. Still it is suggested that application may be filed to
secure clearance under CRZ guidelines. This will also help TCGL for harvesting
the remaining land in future. GUJTOP can assist TCGL in securing clearance
under CRZ guidelines at an additional cost to be derived mutually between TCGL
and GUJTOP.

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TOURISM CORPORATION OF GUJARAT LIMITED (TCGL)

(A GOVERNMENT OF GUJARAT UNDERTAKING)

PROJECT INFORMATION MEMORANDUM (PIM)

A Project Development Company Jointly Promoted by

CHAPTER 1.0 INTRODUCTION .............................................................................................. 3

Tourism Corporation of Gujarat Limited Page | 1

3.4.1 Background .................................................................................................................................. 27

Tourism Corporation of Gujarat Limited Page | 2

The effective development in infrastructure undertaken by the Corporation has

To add on to these services TCGL has earmarked a land parcel measuring

Tourism Corporation of Gujarat Limited Page | 3

1.2 Need for the Study

1.3 Objectives of the Study

Tourism Corporation of Gujarat Limited Page | 4

and project facilities.

It must be emphasized that in some instances the consultants were unable to

1.5 Approach and Methodology

 Research supported with quantitative and qualitative analysis

Figure 1 Approach and Methodology

Tourism Corporation of Gujarat Limited Page | 5

Figure 2 Gujarat State

Table 1 List of Districts

1 Ahmedabad Ahmedabad 7,170 70,45,313 1960

2 Amreli Amreli 6,760 15,13,614 1960

3 Anand Anand 4,690 20,90,276 1997

4 Aravalli Modasa 3,217 10,39,918 2013

5 Banaskantha Palanpur 12,703 31,16,045 1960

Tourism Corporation of Gujarat Limited Page | 6

6 Bharuch Bharuch 6,524 15,50,822 1960

7 Bhavnagar Bhavnagar 8,334 23,93,272 1960

8 Botad Botad 2,564 6,56,005 2013

9 Chhota Udaipur Chhota Udaipur 3,237 10,71,831 2013

10 Dahod Dahod 3,642 21,26,558 1997

11 Dang Ahwa 1,764 2,26,769 1960

12 Devbhoomi Khambhalia 5,684 7,52,484 2013

13 Gandhinagar Gandhinagar 2,163 13,87,478 1964

14 Gir Somnath Veraval 3,754 12,17,477 2013

15 Jamnagar Jamnagar 8,441 14,07,635 1960

16 Junagadh Junagadh 5,092 15,25,605 1960

17 Kutch Bhuj 45,652 20,90,313 1960

18 Kheda Nadiad 3,667 20,53,769 1960

19 Mahisagar Lunavada 2,500 9,94,624 2013

20 Mehsana Mehsana 4,386 20,27,727 1960

21 Morbi Morbi 4,871 9,60,329 2013

22 Narmada Rapipla 2,749 5,90,379 1997

23 Navsari Navsari 2,211 13,30,711 1997

24 Panchmahal Godhra 3,272 16,42,268 1960

25 Patan Patan 5,738 13,42,746 2000

26 Porbandar Porbandar 2,294 5,86,062 1997

27 Rajkot Rajkot 7,550 30,15,229 1960

28 Sabarkantha Himmatnagar 4,173 13,88,671 1960

29 Surat Surat 4,418 60,79,231 1960

30 Surendranagar Surendranagar 9,271 15,85,268 1960

31 Tapi Vyara 3,249 8,06,489 2007

32 Vadodara Vadodara 4,312 30,93,795 1960

33 Valsad Valsad 3,034 17,03,068 1966

Tourism Corporation of Gujarat Limited Page | 7

By Air: Ahmedabad, the premier Airport

By Rail: Gujarat comes under the

By Sea: Gujarat State has the longest

By Road: Gujarat State Road Transport

Tourism Corporation of Gujarat Limited Page | 8

2.1.2 Economic Overview