Narmada cruise from Nandurbar to Statue of Unity

In a significant move to boost tourism and hospitality industries, state govt has offered incentives worth INR 1,666 crore this fiscal and similar amount over the next 10 years to attract INR 1 lakh crore investments. The estimate suggests the new tourism policy, announced last week, has the potential of generating direct and indirect employment for 18 lakh people over a decade. The policy has river cruising as central theme, with Nandurbar-Statue of Unity being the leading route, besides creating new ports along Konkan coast. Vashishti river in Konkan and Godavari in Nashik, along with major water bodies across the state, have been opened for cruise tourism.Other than a capital investment incentive of 15-20 per cent or INR 15-20 crore, whichever is lesser, the state has also offered 50 per cent to 100 per cent exemption on SGST, electricity duty, electricity tariff and stamp duty, depending upon the project’s eligibility period ranging from five years to 15 years. “Over and above, 5 per cent interest subvention on loans, viability gap funding, and tax rebates are other attractions for aspiring project developers in the tourism and hospitality sectors. In case of smaller projects like caravan, adventure, beach shacks, agro, or ecotourism, minimum eligibility period to attract concessions has been kept at lowest three years,” the policy says.The hotel industry in the state has welcomed the policy. “This progressive framework, aimed at positioning Maharashtra as premier global tourist destination, is a game-changer for our industry. Additional FSI, relaxed building restrictions to expedite projects, capital subsidies, SGST reimbursement, electricity duty exemptions, and interest subventions on loans are some of the key requirements of the industry and we believe, once implemented, will be a big boon to state’s tourism and hospitality sector,” said Pradeep Shetty, president, HRAWI, which represents star hotels, premium restaurants and resorts in the western region.Previous budgetary and institutional provisions have made Maharashtra the fifth most visited state in India with 15.50 crore annual visitors. The new policy is expected to double the number of visitors to 31 crore. The state planning department has already set a target of 1 trillion US dollars for economic development of the state, and the tourism sector has a critical contribution to play by attracting investments and providing direct and indirect employment opportunities.

As part of the vision, the state has announced the development of 50 sustainable special tourism destinations across the state to help generate jobs for the local population. The major themes that have been identified for tourism under the programme include: (i) Culture and Heritage (ii) Spiritual Tourism (iii) Adventure Tourism (iv) Eco-Tourism (v) Wellness Tourism (vi) MICE Tourism (vii) Rural Tourism (viii) Beach Tourism (ix) Cruises—Ocean & Inland tourism, and (x) Niche Tourism.

Union Budget 2024: What it means for the Indian tourism landscape?

Previously, the Interim Budget allocated INR2,479.62 crores to tourism, a 46.54 per cent increase from the previous year’s revised budget of INR1,692 crores. The central sector schemes’ allocation increased to INR2,080.03 crores from INR1,939.22 crores, reflecting the commitment to enhance tourism infrastructure. Other provisions include developing tourism circuits, eco-tourism, adventure tourism; developing less-explored destinations; and improving connectivity by increasing investments in road, rail, and air connectivity.

“River cruise tourism is an emerging niche within the broader cruise industry, and Maharashtra, with its network of rivers, has the potential to develop this segment further. Maharashtra is home to several rivers, including Narmada, Godavari, Vashisti, Savitri, Krishna and Tapi. Passengers can explore local villages, historical sites, and experience traditional Maharashtrian hospitality, cuisine and arts along the riverbanks. The state’s rivers flow through diverse landscapes, including wildlife sanctuaries. River cruises can offer ecotourism opportunities, like bird watching, nature walks and visits to conservation areas. The riverine regions of Maharashtra are known for agriculture, and river cruises can integrate agritourism. Unlike sea cruises that may be seasonal due to monsoons, river cruises can potentially operate year-round, weather permitting,” the policy stated.

To implement the policy, tourism department has planned a special task force. Its tasks will include identifying top tourist destinations that attract high influx of tourists and deploying Tourism Mitra officers, providing essential information to tourists and visitors on law, customs, culture, and attractions in the vicinity, assisting in ensuring sustainable (eco-friendly) practices, offering security to women, and monitoring adventure activities for safety.

Besides bringing in technical know-how, managerial, and organisational skills through private sector, the policy aims at doubling tourist inflow by developing destinations and tourist infrastructure and encouraging tour operators. MICE (meetings, incentives, conferences and exhibitions) and destination wedding operators are largely being aimed at through the policy. Seeking private participation to offer world-class services by developing residential tourism sector to attract international tourists and thus create a complementary environment for the state’s revenue is the target, suggests the policy that emphasises enhancing innovation, productivity, and the sector’s competitiveness through the use of digital technologies and new tourism products and services.