Transcript pondicherry presentation
avantika dhar: avantika dhar:
PUBLIC -PRIVATE PARTNERSHIP FOR PROMOTING TOURISM
PRESENTATION BY Ms.ARCHANA CAPOOR CHAIRMAN & MANAGING DIRECTOR
TOURISM FINANCE CORPORATION OF INDIA LTD.
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Presentation out line
Brief Introduction about TFCI Tourism overview & Benefits Global and Indian Tourism scenario Tourism in India- Key Potential & Issues Tourism infrastructure –Definition Why Public Private Partnership(PPP) Benefits of PPP in tourism Role of stakeholders in PPP Project Development Strategy The Thenmala Eco-Tourism Story
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TOURISM FINANCE CORPORATION OF INDIA LIMITED (TFCI)
A SPECIALISED FINANCIAL INSTITUTION FOR PROMOTION AND FUNDING OF TOURISM RELATED PROJECTS
CATERS TO THE NEEDS OF INDIAN TOURISM INDUSTRY
PARTNER IN THE GROWTH OF TOURISM
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ABOUT - TFCI
Incorporation-
Based on the recommendations of the National Companies Act.
Committee on Tourism (Yunus Committee) TFCI was incorporated as a Public limited company under the Companies Act. TFCI is a Public Financial Institution under section 4A of
Regd. Office:-
IFCI Tower, New Delhi
Branch Offices:-
Chennai, Mumbai.
.
Sponsors:-
All India Financial Institutions & Banks
Status/Objective:-
All India Financial Institution for funding Tourism related projects.
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av TOURISM - AN OVERVIEW
"
Travel & Tourism provides an economic incentive to conserve a community's natural environment and cultural heritage
Stimulates jobs across the economy, creates people to people contact and boosts cultural and environmental awareness."
Travel & Tourism is an engine for sustainable growth that can benefit all nations - both developed and emerging .
Job creating potential of tourism is tremendous., IT provides jobs to technically qualified but tourism provides jobs to illiterates .
Tourism is a continuing activity touching every human being
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BENEFITS OF TOURISM
Evidence of economic impact of tourism is so overwhelming that it is no wonder that undeveloped countries seek it and industrialised nations wish to protect it.
The economic benefit of tourism is best understood as a “gross increase in the wealth or income measured in monetary terms , of people located in an area over and above the levels that would prevail in the absence of activity under study”.
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Global and Indian Tourism scenario
Travel& Tourism Contributes 10% of the Global GDP Global Travel & Tourism activity expected to increase by 5% in the next ten years India Foreign Tourists arrivals to India increased by 12% to 4.98million in 2007 Foreign Exchange earnings from Tourism amounted to US $11620 million in 2007
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Key issues and Potential in Indian Tourism
Key Potential
Adventure Tourism Pilgrimage Tourism Natural & Wildlife Tourism Recreation & Leisure Tourism Cultural Tourism
Key Issues
Regional Linkages,Access & Connectivity Accommodation Infrastructure – High end as well budget Basic Civic Infrastructure Tourist amenities Financial Infrastructures Service Delivery & Hospitality Institutional and Regulatory Issues
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INFRASTRUCTURE FOR TOURISM-WHAT DOES IT INDIICATE
Infrastructure still remains the most important impediment in realising the high potential that the tourism industry holds for India.
Inadequate Accommodation Road infrastructure Air connectivity Lack of basic amenities at tourist centres Lack of developed tourism circuits Adventure Tourism Tourist trains
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INFRASTRUCTURE Public Sector-Influenced Investments
Air Service Road Network Public Transportation Vibrant Urban Centers Safety / Security Beaches Public Park Systems Historical Sites Museums Cultural Arts Festivals / Events Sports Facilities Convention Centers Zoos / Aquaria
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INFRASTRUCTURE Private Sector-Influenced Investments
Hotels Conference Centers Restaurants Destination Shopping Theme/Amusement Parks Sports Facilities Golf Courses Nightlife Gaming
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WHY Public-Private Partnership
“PPPs enable the public sector to benefit from commercial dynamism, the ability to raise finances in an environment of budgetary restrictions, innovations and efficiencies, harnessed through the introduction of private sector investors who contribute their own capital, skills and experience.
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PUBLIC - PRIVATE PARTNERSHIP WHY ?
Greater integration of policies and practices relating to tourism planning by the public and pvt.
sector is possible.
Tourism infrastructure- most critical component can be financed jointly.
Public private involvement can help development and beautification of tourism projects Guides Private enterprises into areas and programs in which it would be more successful.
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NEED FOR PUBLIC-PRIVATE PARTNERSHIP (PPP)
Need to leverage available State finances Efficiency improvements in operating systems Great need for Infrastructure Capital in search of Investments with Steady Returns
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Need for PPP (contd)
Stand alone commercial viability is neither necessary nor sufficient for success of PPP Make Projects viable Leverage scarce resources Varying degrees of risk transfer User fee based Annuity models Revenue Sharing
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Need for PPP (contd)
Private Capital is not only driver Efficiency gains in the systems must for sustenance of project Integrated Contracts Design, Construct and operate Risk Management Incentive & Penalty Contractual structures to ensure Appropriate service levels Well defined performance parameters Continued improvements through investments
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Strategy & Project implementation under PPP
Choose the projects based on the following: Project parameters Adequate Financial & economic rate of return Minimal & Mitigable environment and social impact Related to Tourism infrastructure Development Parameters : Funding development cost fully tied up Meaningful achievable project implementation time schedule Long term vision for sustainable development In line with the objectives of the State tourism policy, to meet the socio-economic needs and as part of long-term strategy
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Role of State Governments
Umbrella Cover:
Providing policy over-all support to the initiative
Land :
Provisioning of Land for projects to be developed
Financial :
Financing Support where necessary
Clearances :
Provision of statutory and project specific clearances within its control
Fiscal Concessions
to projects : Grant of Fiscal concessions
Project performance
: Monitoring
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Role of private sector
Build and manage the required tourist facilities in places of tourist interests.
To undertake industry training and manpower development to achieve excellence in quality of services.
To participate in the preparation of investment guidelines and marketing strategies and assist in database creation and research.
To ensure preservation and protection of tourist attractions and take lead in green practices.
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ROLE OF PRIVATE SECTOR
Build and operate the required tourist facilities in places of tourist interests.
To undertake industry training and manpower development to achieve excellence in quality of services.
To participate in the preparation of investment guidelines and marketing strategies and assist in database creation and research.
To ensure preservation and protection attractions, heritages of tourist and take lead in green practices.
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Role of Public Sector
Provide public including local arrangements.
infrastructure planning and facilities zoning Provide support facilities services to private enterprises.
and facilitation Introduce regulatory measures social, cultural sustainability.
and to ensure environmental Create nucleus infrastructure in the initial stages of development to demonstrate the potential of the area.
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Role of public sector cont...
Ensure that the local community is fully involved and the benefits of tourism accrue to then.
Ensure that the type and scale of tourism development is compatible with the environment milieu of the area.
and socio-cultural Undertake research, prepare master plans, formulate marketing strategies and organise overseas promotion and marketing jointly with the industry.
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Role of Public sector ( Contd)
Provide public infrastructure facilities including local planning and zoning arrangements.
Provide support facilities and facilitation services to private enterprises.
Introduce regulatory measures to ensure social, cultural and environmental sustainability.
Create nucleus infrastructure in the initial stages of development to demonstrate the potential of the area.
To identify and establish clear objectives as to the range of public and private sector development as considered appropriate.
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ROLE OF PUBLIC SECTOR (
CONT
… )
Ensure that the local community is fully involved and the benefits of tourism accrue to them.
Ensure that the type and scale of tourism development is compatible with the environment and socio-cultural milieu of the area.
Undertake industry.
research, prepare master plans, formulate marketing strategies and organise overseas promotion and marketing jointly with the
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Benefits of PPP in Tourism Sector
Acceleration of Infrastructure provision Faster Implementation Value for money Partnership Building Enhanced Public Management Genuine Risk Transfer Output specification Asset Performance & Reduced costs Performance Related Reward Private investment promotion Improved quality service
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Benefits of PPP
The synergy between the public and private sectors has been a major force in stimulating tourism competitiveness in a number of countries at national , state/ regional and local levels.
The development of tourism is best possible if created jointly by government and private sector with pvt. Sector as dominant partner.
The private sector can also play a greater role in the preservation of monuments .
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PARAMETERS FOR SUCCESSFUL CULMINATION OF PUBLIC-PRIVATE SECTOR PARTNERSHIP Clear planning of respective roles Identification of benefits to each partners Establishing long term commitment of both partners Periodic evaluation of the efficacy of each other role.
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Some of the successful PPP projects
Necklace Road Tourism Development Project Hyderabad, Andhra Pradesh Snow world theme park near Hussain Sagar lake by APTDC JalMahal Project Jaipur Rajasthan Thenmala Eco-Tourism Project Kerala “Nirmala Bangalore” a public sanitation program through PPP mode
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THE THENMALA STORY Thenmala Eco-tourism" has been conceived as a first planned eco tourism destination in India The degraded forest area, in the outskirts maintained of as the a Sanctuary is familiarization zone. Eco-friendly General Tourism is planned in the periphery of the sanctuary. The real eco-tourism is takes place in sanctuary and only eco-tourists are encouraged for that. Others can experience the eco-friendly products such as small nature trails, elevated walkway through canopies, mountain biking etc.
Thenmala story has been catalogued by WTO in its publication of Development of Eco-Tourism- A Compilation of good practices” “Sustainable
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140000 120000 100000 80000 60000 40000 20000 0 60.0
50.0
40.0
30.0
20.0
10.0
0.0
2000-01 4.5
2000-01 TOURIST ARRIVALS TO THENMALA
The results
2001-02 2002-03 2003-04
YEAR
40.4
2004-05
Revenue Generated
35.6
39.3
2005-06 49.5
2006-07 Thenmala Eco-tourism Promotion Society (TEPS) adopted a strategy to co-ordinate with Forest Department, the Irrigation Department and Tourism Department and implement various activities in association with each Department and each department is also represented in the society. The products such as trekking, bird watching trails etc.
implemented through the institution of Eco-development people developed and Committees, thereby ensuring benefits to local 11.4
21.5
The project was opened to the public in 1999 2001-02 2002-03 2003-04
year
2004-05 2005-06 2006-07 The project has achieved growth in terms of arrivals and revenue generation
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Lessons Learnt from Thenmala
A community based PPP project requires more than planning and funding.
The model for development which get people interested. Affirming their abilities in implementing the project.
Importance of involving local people in the local but also as an essential tourism development resources management not only to improve the economic conditions of element for and effective development.utilization and management of natural resources.
Zoning and effective compliance with land use regulation for the different zones are essential Any tourism beyond the acceptable carrying capacity should be strictly prohibited. The carrying capacity can be physical, social and economic TrIbal and local people are being involved as guides and helpers in fostering eco-tourism centres activities.which
resulted in new developmental pattern of rural areas.
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THANK YOU
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