ANNUAL REPORT

MINISTRY OF TOURISM

2008-09
ANNUAL REPORT
2008-09

MINISTRY OF TOURISM
Government of India
 Chapter No. Title Page No.
1. Tourism - An Overview 8
2. Ministry of Tourism and its Functions 14
3. Development of Tourism Infrastructure 20
4. New Tourism Products 24
5. Accessible Tourism 32
6. Development and Regulation of Tourism Industry 36
7. Human Resource Development 42
8. Publicity and Marketing 48
9. Statistics, Surveys and Studies 58
10. International Co-operation 62
11. India Tourism Development Corporation Limited 68
12. Welfare Measures and Vigilance 78
13. Progressive Use of Hindi 82
14. Gender Equality – The Prime Concern 86
15. CAT Cases 90
16. Implementation of Right to Information Act, 2005 94
17. Departmental Accounting Organisation 98
18. Commonwealth Games, Delhi - 2010 106
19. An Overview of North Eastern Region 112
20. Important Audit Observations 116

ANNEXURES

I Organisational Chart 120

CONTENTS
II Projects Sanctioned to the 121
States/Union Territories
III List of Surveys/Studies 122
IV Domestic Indiatourism Offices 124
V Overseas Indiatourism Offices 125
 TOURISM – AN OVERVIEW
TOURISM –
AN OVERVIEW 1
 in international travel fairs and exhibitions,
extending the benefit of MDA to the active
members of India Convention Promotion
Bureau (ICPB), organizing Travel Mart and
the Great India Travel Bazaar in Jaipur in
association with the State government and all
stakeholders. Marketing net was extended to
include emerging source markets in keeping
with the imperative of not losing sight of the
banner “Atithi Devo Bhavah” to sensitize
the masses and youths to social issues like
good behaviour with tourists and protection
of monuments against garbage and graffiti.
Effort to widen the market outreach was also
made through promotion of the emerging
segments in diversified tourism products
like cruise, adventure and medical tourism.
The range of initiatives included policy

For the Indian Tourism Sector, the year
2008-09 has been a year of challenge
and response. International tourist arrivals
continued to deteriorate due to the impact
of global economic crisis with the growth
of overseas tourists visiting India slowing
down to 5.6 per cent in 2008 as against
14.3 per cent in 2007. Tourist footfalls had
further declined in the aftermath of the
co-ordinated terror-strike at Taj, the premier
hotel in Mumbai, and several other places in
the city. Nevertheless, Indian tourism sector
outperformed the global growth of 2 per cent
in international tourist arrivals in 2008.
The sector responded with substantial
efforts to reinforce promotions, innovative
policy directions to diversify products and
markets that could hedge future risks, and
strengthened industry-solidarity to provide
attractive concessions and packages to
stimulate demand. The meeting of the
National Tourism Advisory Council held on the
15th December, 2008 with the Hon’ble Minister
of Tourism and Culture in chair discussed the
problems faced by the tourism industry as a
fallout of the Mumbai terror attacks and the
global financial meltdown. Several measures
have been taken after this meeting. The “Visit
India Year 2009” scheme was launched in
January 2009 with attractive incentives by
way of value additions for foreign tourists
visiting the country during the period April
to December 2009. Complimentary value
additions were shared between airlines,
hotels, tour operators and State governments.
The scheme is being widely publicized by
the Ministry of Tourism through its website,
international road shows, travel fairs and
exhibitions and through advertisements in
leading overseas mainstream and trade
publications. The value additions include:
(i) Complimentary international air passage
for the travelling companion;
(ii) One night complimentary stay in the
hotel booked by the tourists;
(iii) One complimentary local sightseeing
tour in any one city of visit; and
(iv) One complimentary Rural Eco-holiday in
the country.
Strengthened marketing and contact
promotion supported by subsidies and
incentives were key elements in the strategy
to boost consumer and business confidence
to revive tourism market. Steps taken include
enhanced Market Development Assistance
(MDA), familiarization tours for overseas
media and travel trade representatives,
incentives to repeat visitors, subsidy to the
trade and State government for participation
TOURISM – AN OVERVIEW
long-term prospects of diversification and
development, consultation and dialogue with
better management of market-risks.
other related ministries and stakeholders,
The effort in 2008-09 was all for a wider outreach financial support to augment infrastructure
and participation with equity consideration and procurement of capital equipment, market
built into the programmes and policies. making, organizing events, tourist facilitation
The Ministry of Tourism revised the Market and institution of awards to encourage
Development Assistance (MDA) scheme to enterprise. Indian tourism sector seized the
motivate travel agents and tour operators growing opportunities for medical tourism to
to promote lesser known destinations in market a unique branding of Indian traditional
India. The inclusive and social dimensions healing system like Ayurveda, Yoga, Siddha,
of the policy deepened with strengthened Naturopathy etc. with the modern system of
initiative towards capacity building for rural medicine in a package that projects India as
tourism and sustainable livelihoods through a centre of wellness destination – yet another
community participation and empowerment, instance of leveraging the sector to preserve
training and skill development based on a and promote India’s centuries of wisdom as
model that harnesses rural and eco-tourism an ancient civilization.
for preservation and also as products having
The agenda to reach out to people is also
a market presence. The Ministry is promoting
manifest in the Ministry’s programme on
rural craft persons and their art-wares through
human resource development. The National
demonstration and display in tourism marts,
Council for Hotel Management and Catering
exhibitions and events prominently both within
and outside the country. 15 rural tourism sites
have been selected as rural eco-holiday sites
for the “Visit India Year 2009”.
With a view to creating social awareness for
tourist safety and security among masses and
tourism stakeholders, the Ministry of Tourism
launched its generic social awareness
campaign 2008-09, in the domestic market
through a TV commercial featuring Amir Khan,
a noted film actor and brand Ambassador.
Another campaign was launched under the

8 9
 Technology (NCHMCT), in collaboration with creation of additional hotel rooms through
the National Informatics Centre (NIC) is going fiscal and regulatory incentives, construction
to start web-based decentralized counselling of new flats by the Delhi Development
for entry of students in Institutes of Hotel Authority (DDA) to be upgraded and
Management from the coming academic furnished by the India Tourism Development
session. The other scheme of human resource Corporation (ITDC), making rooms of
development, which is inclusive and involves identified guest houses of certain standards
service providers even in the lowest strata of and “Incredible India Bed and Breakfast/
the market including in the informal economy Homestay” units available to meet the

TOURISM – AN OVERVIEW
segment, is the Capacity Building for the demand for accommodation.
Service Providers (CBSP) scheme. It covers,
To cope with the increase in the demand for
inter alia, a wide category of functionaries
additional hospitality trained manpower, the
such as coolies, servers, waiters, helpers,
Ministry has introduced short-term training
front office staff, reception counter staff, food
programmes of 21 days under “Earn While
kiosks, dhaba staff etc.
You Learn” and CBSP schemes for youth
As the country developed stimulus measures to work as student volunteers. Training and
through fiscal and monetary packages to capacity building programmes are also
mitigate the effects of global meltdown, the being undertaken through CBSP for the
tourism sector contributed to strengthen owners, managers and the workers of the
the effects of the overall macro-economic guest houses to upgrade their standards and
policy stance by utilizing 100 per cent of soft-skills.
the financial allocation for augmentation of
To counter the negative impact of terror
tourist infrastructure in the country under
attack on tourism, the Ministry reviews the
the scheme of “Product/Infrastructure
status of Travel Advisories issued by major
Development for Destinations and Circuits”.
tourist generating countries and take suitable
In order to promote investment in hotel sector,
corrective steps by way of putting up the
External Commercial Borrowing (ECB) has
security updates for foreign tourists in its
been made liberal for the potential investors
website, liaising with Indian Missions, travel
in this segment of the tourism industry.
industry and overseas media. Confidence
The Ministry of Tourism has been proactive building measures are also undertaken by
in unleashing a series of initiatives to seize way of organizing fam tours and road shows
the opportunities being thrown open by the to ward off unnecessary fear from a distance.
forthcoming Commonwealth Games to be
The Ministry is encouraging promotion
held in Delhi next year. The prospect is also
of tourist police as a specialized cadre
bringing challenges calling for innovative
with a blend of skills of hospitality and
solutions in coping with mounting pressure
security services. To this end, the Ministry
in areas where significant shortages already
is supporting training of ex-servicemen with
exist, namely, accommodation and trained
a view to preparing them to serve as tourist
personnel. The preparatory steps taken
police.
include encouraging growth of new hotels,

10 11
 MINISTRY OF TOURISM
AND ITS FUNCTIONS
MINISTRY OF
TOURISM
AND ITS FUNCTIONS 2
 2.1 The Organisation
Ministry of Tourism is the nodal agency to
formulate national policies and programmes
for the development and promotion of
tourism. In the process, the Ministry consults
and collaborates with other stakeholders
in the sector including various Central
Ministries/agencies, the State Governments/
Union Territories and the representatives of
the private sector.
The Ministry is led by Kumari Selja, the Union
Minister of Housing and Urban Poverty
Alleviation; Tourism, Government of India and
Shri Sultan Ahmed, the Minister of State for
Tourism.
The Secretary (Tourism), who is also the
ex-officio Director General (DG) of Tourism,
provides the executive directions to the
Ministry. The Directorate General of Tourism,
which is an attached office of the Ministry,
has 20 field offices within the country,
14 overseas offices and one subordinate
office/project, i.e., Indian Institute of Skiing
and Mountaineering (IISM)/ Gulmarg Winter
Sports Project (GWSP). IISM conducts
various ski and other courses in the Jammu &
Kashmir Valley. The overseas offices promote
the market for Indian tourism abroad. The
domestic field offices are sources of tourist
information. They are also responsible for
monitoring the progress of implementation of
field projects in their respective jurisdictions.
The latest organisational chart of the Ministry
of Tourism is at Annex.
India Tourism Development Corporation
(ITDC) is the only public sector undertaking
under the charge of the Ministry of Tourism.
The Ministry is also in charge of the following
autonomous institutions :
14
(i) Indian Institute of Tourism and Travel
Management (IITTM). National Institute
of Water Sports (NIWS) has merged with
the IITTM.
(ii) National Council for Hotel Management
and Catering Technology (NCHMCT);
and the Institutes of Hotel Management.
2.2 Role and Functions of the Ministry of
Tourism
As a part of its policies and programmes, the
Ministry handles the following main functions:
(i) All policy matters including:
a. Development Policies
b. Incentives
c. External Assistance
d. Manpower Development
e. Promotion & Marketing
f. Investment Facilitation
g. Growth Strategies
(ii) Planning
(iii) Co-ordination with other Ministries,
Departments, State/ Union Territory
Governments
(iv) Regulation:
a. Standards
b. Guidelines
(v) Infrastructure & Product Development:
a. Central Assistance
b. Distribution of Tourism Products
(vi) Research, Analysis, Monitoring and
Evaluation
(vii) International Co-operation and External
Assistance:
a. International Bodies
b. Bilateral Agreements
c. External Assistance
d. Foreign Technical Collaboration
(viii) Legislation and Parliamentary Work
(ix) Establishment matters
(x) Overall Review of the Functioning of
the Field Offices
(xi) Vigilance matters
(xii) Official Language: Implementation of
Official Language Policy
(xiii) VIP References
(xiv) Budget Co-ordination and related
matters
(xv) Plan Co-ordination and Monitoring
(xvi) Integrated Finance matters
(xvii) Overseas Marketing (OM) Work
(xviii) Welfare, Grievances and Protocol
The Directorate General of Tourism is
responsible for the following functions:
(i) Assistance in the formulation of
policies by providing feedback from
the field offices
(ii) Monitoring of plan projects and
assisting in the plan formulation
(iii) Co-ordinating the activities of the
field offices and their supervision
(iv) Regulation:
a. Approval and classification of hotels,
restaurants, Incredible India Bed &
Breakfast (IIB&B) units
b. Approval of Travel Agents, Tour
Operators and Tourist Transport
Operators, etc.
(v) Inspection & Quality Control:
a. Guide service
MINISTRY OF TOURISM
AND ITS FUNCTIONS
b. Complaints and redressal
(vi) Infrastructure Development:
a. Release of incentives
b. Tourist facilitation and information
c. Field publicity, promotion &
marketing
d. Hospitality programmes
e. Conventions & conferences
(vii) Human Resource Development:
a. Institutions
b. Setting standards and guidelines
(viii) Publicity and Marketing:
a. Policy
b. Strategies
15
 c. Co-ordination The composition of the Council is as follows: (iv) Minister/ Secretary, Tourism of various 2.4 National Tourism Awards
d. Supervision States/ UTs could be invited as Special
Chairperson: Union Minister of Housing, The Ministry of Tourism presents National
(ix) Assistance for Parliamentary Work Invitees, as and when necessary.
Urban Poverty Alleviation; Tourism Tourism Awards every year to encourage and

(x) Establishment Matters of the Directorate Members: Member-Secretary : Additional Director recognise the pursuit of excellence in tourism

General of Tourism excluding those of General (Tourism), Ministry of Tourism, related activities.
(i) Representatives of the Ministries/
Group ‘A’ Officers and those requiring Government of India.
Departments of Government of India:
the approval of Secretary/ Minister.
a. Secretary, Tourism
2.3 Advisory and Co-ordination Mechanism
b. Finance Secretary

MINISTRY OF TOURISM
The National Tourism Advisory Council c. Principal Adviser (Tourism),

AND ITS FUNCTIONS

(NTAC) serves as a think-tank of the Ministry Planning Commission
of Tourism for the development of tourism d. Secretary, Culture
in the country. The first meeting of the e. Secretary, Urban Development
reconstituted NTAC was held on 12 March,th
f. Foreign Secretary
2008. Important issues discussed in the g. Secretary, Ministry of Civil Aviation
meeting were the promotion of rural tourism h. Secretary, Road Transport &
through organization of marketing fares at Highways
different locations, issues of Visa on Arrival, i. Chairman, Railway Board
reducing the time taken for obtaining approval
(ii) Twelve experts in the field of Travel and
for charter flights, promotion of eco-tourism,
Tourism Management
safety and security of tourists, generation of
reliable tourism statistics, etc. (iii) The President of each of the following
Associations:
The next meeting of the NTAC was held on
15th December, 2008 in the backdrop of a. Federation of Indian Chambers of
terrorist attacks in Mumbai and the global Commerce and Industry (FICCI)
financial crisis. Some of the important steps b. PHD Chamber of Commerce and
decided in the meeting were pursuing the Industry (PHDCCI)
proposal of delinking hotels from real-estate c. Associated Chambers of
sector, setting up of Tourist Police by the State Commerce and Industry of India
Governments/Union Territory Administrations, (ASSOCHAM)
ensuring smoother, hassle-free ticketing and d. Confederation of Indian Industry
entry of foreigners to the world heritage (CII)
monuments, seamless travel across states, e. Travel Agents Association of India
rationalization of luxury tax, passenger tax, (TAAI)
road tax and other state taxes, financial f. Indian Association of Tour
incentives such as exemption in service tax, Operators (IATO)
revival of Section 80 HHD of the Income Tax g. Federation of Hotel and Restaurant
Act, declaring Tourism as “ Infrastructure Associations of India (FHRAI)
Industry”, etc. The Ministry of Tourism has h. Hotel Association of India (HAI)
already taken follow-up action on most of the i. Experience India Society
suggestions offered in the meeting. j. World Travel & Tourism Council
India Initiative (WTTCII)

16 17
 TOURISM INFRASTRUCTURE
DEVELOPMENT OF
DEVELOPMENT OF
TOURISM INFRASTRUCTURE 3
 3.1 Augmentation of quality
infrastructure is the key for development of
tourism sector. More than fifty per cent of the
Ministry’s expenditure on Plan schemes is
incurred for development of quality tourism
infrastructure at various tourist destinations
and circuits spread throughout the country.
3.2 Product/Infrastructure Development
for Destinations and Circuits
Under the Centrally Sponsored Scheme
of Product/Infrastructure Development for
Destinations and Circuits, the Ministry of
Tourism extends Central Financial Assistance
to the State Governments/Union Territory
Administrations for tourism projects identified
in consultation with them for the improvement
of existing tourism products and also
for developing new ones. 100% Central
Assistance is given under the scheme
for development of destinations/circuits
including mega projects to world standard
and also for rural tourism infrastructure
development. The Ministry of
provides financial assistance up to Rs. 5
crore for the development of Destinations
and Rs. 8 crore for Circuits. The upper limit
of financial assistance has been increased to
Rs. 25 crore and Rs. 50 crore for development
of identified mega destinations and circuits
respectively.
For Rural Tourism Infrastructure Development,
the thrust is for development of tourism
infrastructure at the identified rural tourism
sites so that socio-economic
percolate down to the rural community.
A maximum of Rs. 50 lakh is sanctioned
for each project under this scheme for
development of tourism related infrastructure.
20
tourism 3.3 Development of Mega Destinations and
Circuits
The Ministry of Tourism has taken a policy
initiative to develop the tourist destinations/
circuits of national importance in a holistic
and integrated manner. The objective is to
ensure that the infrastructure of these mega
destinations/circuits is developed to the
extent that it can cater to the future tourist
inflows so that visitors get a satisfying and
memorable experience. To date, 28 mega
projects have been identified by the Ministry.
Twenty mega projects have been sanctioned
out of which 14 new mega projects were
sanctioned in the year 2008-09.
3.4 Inter-ministerial Co-ordination
The Ministry of Tourism is also working
with other Central Government Ministries
and concerned State Governments to
achieve convergence and synergy with
other government programmes so that the
impact of investment on these destinations
Tourism
is maximized. For identified destinations/
circuits covered by the Jawaharlal Nehru
National Urban Renewal Mission (JNNURM),
convergence of resources is being ensured
so that the tourism related infrastructure and
urban civic infrastructure complement each
other. The Ministry is also taking up the issue
of rail, road and air connectivity with the
concerned ministries for these projects.
3.5 Assistance to Central Agencies for
Tourism Infrastructure Development
benefits
The Ministry of Tourism has introduced
this scheme with a view to ensure tourism
infrastructure development through financial
assistance of the Ministry, like illumination/
preservation of monuments, development
of cruise terminals etc. Financial assistance
is extended to the Central Agencies like
Archaeological Survey of India, Port Trust sanctioned Rs. 14.50 crore for upgradation of
of India, and ITDC etc. who own/manage tourism infrastructure of Willingdon Island at
the assets. The Ministry of Tourism has Cochin Port, to promote cruise tourism.
The State/Union Territory-wise identified mega projects are given below :
Sl. No. State/UT Mega Projects (Destinations/Circuits)
1. Andhra Pradesh Tirupati Heritage Circuit
TOURISM INFRASTRUCTURE
Kadapa Heritage Circuit
Charminar area
DEVELOPMENT OF
2. Bihar Bodhgaya-Rajgir-Nalanda
3. Chhattisgarh Jagdalpur-Tirathgarh-Chitrakote-Barsur-Dantewada
4. Delhi Illumination of Monuments
5. Goa Churches of Goa (Integrated Development of
Infrastructure for Heritage and Hinterland Tourism)
6. Gujarat Dwarka -Nageshwar-Bet Dwarka
7. Haryana Panipat-Kurukshetra-Pinjore
8. Himachal Pradesh Eco and Adventure Circuit (Kullu-Katrain-Manali)
9. Jammu & Kashmir Spiritual Destination of Leh-Ladakh
10. Karnataka Hampi
11. Kerala Muziris Heritage and Culture Circuit
(Trissur and Ernakulam Districts)
12. Madhya Pradesh Spiritual and Wellness Destination of Chitrakoot
13. Maharashtra Vidarbha Heritage Circuit
Aurangabad
14. Orissa Bhubaneswar-Puri-Chilka
15. Puducherry Puducherry
16. Punjab Amritsar
17. Rajasthan Ajmer
Desert Circuit (Jodhpur-Bikaner-Jaisalmer)
18. Sikkim Gangtok
19. Tamil Nadu Mahabalipuram
Pilgrimage Circuit (Madurai-
Rameswaram-Kanyakumari)
20. Uttarakhand Haridwar-Rishikesh
21. Uttar Pradesh Agra - Revitalization of Taj
Varanasi
22. West Bengal Ganga Heritage River Cruise Circuit
21
 NEW TOURISM
PRODUCTS
NEW
TOURISM PRODUCTS 4
 4.1 Rural Tourism
The Ministry has partnered with the UNDP
for Endogenous Rural Tourism Projects as
pilot projects for capacity building (called
software). The hardware components
(Infrastructure development) of the projects
are funded by the Ministry of Tourism and
funds for capacity building were provided by
the United Nations Development Programme
(UNDP) for 36 rural tourism sites. The Ministry
also extended the Capacity Building for
Service Providers (CBSP) scheme of the
Ministry to other rural tourism sites beyond
those covered under partnership with the
UNDP.
So far, 139 rural tourism projects in 27 States
have been sanctioned by the Ministry of
Tourism including 36 rural sites where UNDP
has supported for capacity building.
Several initiatives have been taken in
furtherance of these objectives.
a. Capacity Building of NGOs/Implementing
Partners
The Ministry of Tourism successfully
organized one-week Capacity Building
Workshop on Institution Building for Rural
Tourism and Sustainable Livelihoods at the
Institute of Rural Management, Anand (IRMA),
Gujarat, from 18 to 23 August, 2008, for all
th rd
NGOs/Implementing Partners who have been
24
selected to implement the CBSP part of Rural
Tourism projects.
b. Organisation of Thematic Workshops
The Ministry of Tourism held four regional
thematic conferences across India
association with the UNDP, host state tourism
departments, leading international
national experts, the global tourism industry
and principal stakeholders.
(i) The first thematic conference titled
Responsible Tourism – The Industry
Perspective was held at Kerala
Travel Mart, Kochi on 23rd September,
2008, jointly with the Kerala Tourism.
This provided a platform for direct
interaction between the demand and
supply sides of Responsible Tourism. It
enabled a clear understanding of visitor
requirements by service providers,
while keeping requisite safeguards
in place, such that tourism outcomes
could be optimized for mutual benefit.
(ii) The second thematic conference titled
Local Governance and Convergence
for Responsible Tourism was held in
Bhopal on 29th September, 2008, co-
hosted with Madhya Pradesh Tourism
Development Corporation and Madhya
Pradesh Tourism. This conference
focused on development models where
tourism is responsible for safeguarding (ii) Community participation in Rural
culture, with inclusive growth and Tourism has been strengthened through
market linkages. Equally, it stressed our site artisans’ structured involvement
on economic sustainability beyond the in Dilli Haat, Mega Craft Mela in cities
project hand-holding period, such as such as Bhubaneswar, Aurangabad
in
Self Help Groups thrust and also the etc., India@60 Roadshow in Singapore
need to avoid duplication of funding and Volvo Ocean Race in Kochi. Wide
and
efforts for local-felt needs. media and trade focus were also given
at the World Tourism Mart (WTM) and
(iii) The third thematic conference titled
International Tourism Bourse (ITB), the
Community Participation and
world’s principal tourism forums.
Empowerment was held in Shillong
NEW TOURISM
PRODUCTS
on 14th October, 2008, and dwelt on (iii) At the India@60 event in Singapore,
community participation, empowerment as a unique first-time highlight,
and gender equity which are at the core eight skilled artisans from four of
of the innovative rural tourism initiative, the Ministry’s UNDP-partnered Rural
together with collective representation Tourism locations showcased their site
and self-sustaining growth without attraction through impressive on-site
continued external support. art & craft demonstration and display.
The eight participating artisans,
(iv) The fourth thematic conference
most of whom travelled overseas
titled Capacity Building, Waste
for the first time, gained first-hand
Management, Training and Skill
Development was held in Chennai
on 21st October, 2008 and provided
the critical link with Responsible
Tourism as an effective response to
climate change. It thereby highlighted
the need and process for sanitation
and waste management which could
impact repeat visits and the image
of the destination. Training and skill
development are crucial links in
the UNDP-partnered Rural Tourism
Project for rural livelihoods support via
responsible tourism route.
c. Marketing Initiatives
(i) Globally recognised Incredible India
brand, now supported by the Ministry’s
new Explore Rural India sub-brand,
will strengthen visitors’ attraction to
India as a multiple-interest, all-season
destination targeting higher visitor
yields.
25
 exposure to international competitive,
merchandising and promotional
practices. This enabled their extensive
direct interface with the tourism trade,
consumers, craft stores, corporate
organizations, and the media.
(iv) The artisans from 5 Rural Tourism sites
participated in the Pacific Asia Travel
Association (PATA) Travel Mart held in
September 2008 to showcase their arts
and crafts.
(v) The Project website
exploreruralindia.org was upgraded,
showcasing the first 29 sites of the
Project’s 36 sites which are now ready
for marketing.
d. Recognition and Awards
a. CNBC Awaaz Travel Award in 2008
was awarded to the following two rural
tourism sites:
(i) Village Hodka, Distt. Kachchh,
Gujarat for “Best Tourism Income
Generating Community”.
(ii) Village Naggar, Distt.
Himachal Pradesh for Tourism
site for “Best Demonstrating
Women Empowerment”.
b. World Travel Award for
Responsible Tourism Destination was
awarded at WTM-2008, London.
c. The Ministry of Tourism (Incredible
India) won the Global SASI (Shop
America Salutes Innovation) Award
presented by National Geography
Society for innovation in creating long
lasting sustainable authentic shopping
opportunities for travellers
residents of India also.
26
e. Rural Eco-holidays collaboration with the FICCI on 4th September, 4.4 Adventure Tourism
2008 to discuss various aspects of the policy
15 rural tourism sites have been selected As part of the policy for diversification of
and its implementation.
as rural eco-holidays sites for “Visit India tourism products of India, special attention
Year 2009”. Under the marketing campaign The Ministry of Tourism has sanctioned is being given for the development of
of “Visit India Year 2009”, foreign tourists Rs. 1450 lakh in 2008-09 to Cochin Port adventure tourism in the country. A meeting
are offered one night stay with breakfast on Trust for infrastructure development at Cochin on adventure tourism was held in July
complimentary basis in any one of the chosen Port to augment Cruise Tourism. Mega river 2008 in which the adventure tour operators
rural eco-holiday sites. The booking can be cruise projects were sanctioned for Goa highlighted the issues that need to be
done through Tour Operators approved by (Mandovi and Zuari) and Ganga Heritage addressed for the promotion of adventure
the Ministry of Tourism. Cruise. tourism. An inter-ministerial meeting was held
on 19th December 2008 to discuss various
NEW TOURISM
4.2. Eco-tourism
PRODUCTS
www.
The Ministry of Tourism is focusing on the
preservation and enrichment of natural and
cultural resources to ensure positive impact
on environmental protection and community
development. In order to create awareness,
the Ministry of Tourism has involved all
stakeholders for achieving sustainable tourism
development in the country. The scheme
for Product/Infrastructure Development of
Destination and Circuit provides central
assistance for tourism infrastructure
development including assistance for eco-
tourism projects. Promotion and marketing of
Kullu, eco-tourism products have been carried out
in domestic and overseas markets.
4.3 Cruise Tourism
The Cruise Shipping Policy of the Ministry of
most Shipping, Road Transport and Highways was
approved by the Government of India on 26th
June, 2008.
The objectives of the policy is to make India
as an attractive cruise tourism destination
with the state-of-the-art infrastructural and
other facilities at various parts in the country
and to attract the right segment of the foreign
tourists to cruise shipping in India as well
and as to popularize cruise shipping with Indian
tourists. A meeting with the stakeholders
and other beneficiaries was organized in
27
 issues related to adventure tourism under the
chairmanship of Secretary (Tourism).
For experiencing different types of adventure
tourism like rock climbing, river rafting,
paragliding, mountaineering and underwater
diving, the Ministry has been sanctioning
projects to different States.
The following activities have been undertaken
in this area:
(i) The new building of Indian Institute of
Skiing and Mountaineering, Gulmarg
has already been completed and is
made functional.
(ii) Himachal Pradesh was provided
financial assistance for organizing
Mountain Biking expedition.
(iii) The building of Himalayan Institute
of Adventure Tourism in Chemchey,
Sikkim has been completed by the State
Government and is made functional.
4.5 Medical Tourism
Medical Tourism is gaining momentum and
the following initiatives have been taken to
promote this segment:
(i) As part of marketing initiative for
Medical Tourism, Ministry of Tourism
has extended the Market Development
Assistance (MDA) scheme to include
Medical Tourism in its purview. It has
been decided that the MDA scheme
administered by the Ministry
Tourism, Government of India, would
provide financial assistance to Medical
Tourism Service Providers (MTSP), i.e.
representatives of hospitals accredited
by the Joint Commission International
(JCI) or National Accreditation Board
of Hospitals (NABH) and Medical
Tourism facilitators (Travel Agents, Tour
28
Operators approved by the Ministry
of Tourism, Government of India and
engaged in Medical Tourism).
The extension of MDA schemes to
Medical Tourism will strengthen our
marketing efforts for promotion of
Medical Tourism.
(ii) The Ministry of Tourism produced a
brochure on medical tourism regarding
Market Development Assistance (MDA)
scheme extended to Medical Tourism
NEW TOURISM
PRODUCTS
Service Providers (MTSP).
(iii) The Ministry of Tourism has requested
all the State tourism departments to
promote medical tourism through
suitable packaging of identified best
hospitals and price banding for various
specific treatments.
(iv) A new category of ‘Medical Visa’ was
introduced by the Ministry of Home
Affairs for patients and their attendants
coming to India for medical treatment.
India is a known wellness destination;
centuries of wisdom as an ancient civilization
is positioning India as a centre of Ayurveda,
Yoga, Siddha, Naturopathy, etc. together with
the spiritual philosophy that is intrinsic to
Indian way of life. The Ministry is promoting
wellness tourism in a big way through
publicity and promotional activities.
of
29
 ACCESSIBLE TOURISM
ACCESSIBLE
TOURISM 5
 5.1 People with different abilities and older 5.2 The Ministry has also instituted a new 5.3 The condition of making the hotels
persons are now becoming a growing group of category of Award of Excellence for Most accessible for people with different abilities
consumers of travel, sports and other leisure- Barrier-Free Monument/Tourist Attraction in has been included in the guidelines for
oriented products and services. The Ministry the country to encourage other agencies approval and classification of 4 and 5 star
of Tourism wants to tap the potential of this responsible for maintaining monuments/ category hotels.
group for promotion of tourist destinations tourist attractions to create barrier-free
in the country. The Ministry has therefore, environment for the promotion of accessible
taken an initiative to make tourist destinations tourism.
barrier-free. Detailed instructions have been
issued for making the tourist-facilities which

ACCESSIBLE TOURISM
are being created with central financial
assistance, barrier-free.

32 33
 DEVELOPMENT AND REGULATION
OF TOURISM INDUSTRY
DEVELOPMENT
AND REGULATION
OF TOURISM INDUSTRY 6
 6.1 Efforts to overcome Shortage of
Accommodation
The upsurge in tourist arrivals intensified
the Ministry’s efforts towards augmentation
of tourist accommodation. The Ministry
of Tourism has been advising all State/
UT Governments and other land-owning
agencies to create land banks for hotels and
to allow such hotel sites on Public-Private
Partnerships or Revenue sharing basis. They
have also been advised to allow additional
FAR/FSI, more commercial utilization and
to create Single Window Clearance system
for promoting investment into hotel sector.
The Ministry brought out Guidelines for
the Classification of ‘Apartment Hotels’,
‘Timeshare Resorts’, ‘Guest Houses’ and
‘Tented Accommodation’. One hundred and
twelve new hotels projects with 16,431 rooms
were approved at the project stage and
1,783 hotels with 92,005 rooms were on the
list of approved and classified hotels under
various categories, besides proposals for
Foreign Technical Collaboration along with
the new cases of Foreign Direct Investments.
The Ministry of Urban Development has now
liberalized the operation of Guest Houses
in National Capital Territory of Delhi as per
its Master Plan 2021. On the request of the
Ministry of Tourism, the Ministry of Urban
Development has rationalized the conversion
charges that are levied on the Guest Houses.
To encourage expansion of hotel
accommodation in the country, the Ministry
of Tourism provides incentives for the
construction of hotels in the budget category
and Heritage basic category by way of
subsidy. A Budget Estimate of Rs. 20 crore
was provided to the Hotels & Restaurants
(H&R) division under the revised scheme of
“Incentive to Accommodation Infrastructure”
36
during the year 2007-08 and a further Revised
Estimate of Rs. 24 crore was allocated under
the scheme during the said financial year,
which was fully utilized. During the entire
financial year, 21 cases of Capital Subsidy
amounting to Rs. 17.45 crore was released.
The excessive demand led to planning for an
inventory of budget category rooms, bringing
into its gamut spare rooms that are available
with various house-owners, which were
classified as ‘Incredible India Bed & Breakfast
Establishments’ under the ‘Gold’ or ‘Silver’
categories. To motivate house owners to
apply for this scheme, an integrated publicity
campaign was launched. Such registered
houses are being promoted through the
e-commerce platform of the ‘Incredible India’
website. On the request of the Ministry of
Tourism, the Government of NCT of Delhi
has exempted such establishments from
various taxes by treating them residential.
Some other States have also extended similar
concessions.
The Ministry of Tourism has recently reviewed,
revised and simplified the “Guidelines for the
Incredible India Bed & Breakfast/Homestay
Scheme” for more effective implementation
and also to smoothen the approval procedure.
In order to have similarity & uniform guidelines
/ criteria of this scheme all over the country, the
Ministry of Tourism has circulated the revised
Guidelines to all the State/UT Governments
with a request to adopt the scheme as per
the suggested parameters based on their
local requirements. The scheme is being
publicized through the Ministry’s official
website.
Earlier, entities in the service sector like
Hotels, Hospitals and Software companies
were allowed to avail of External Commercial
Borrowing (ECB) up to US$ 100 million per
financial year for import of capital goods
under the automatic route. Later on, the ECB
facilities for the hotels were discontinued.
In order to solve the liquidity crunch being
faced by the hotel industry for setting up
new hotel projects, the Finance Ministry has
now allowed hotels to avail of ECB up to US$
100 million per financial year both for foreign
currency and /or rupee capital expenditure
for permissible end-uses, other than for land
acquisition, under the automatic route.
6.2 Income Tax exemption to hotels
On the request of the Ministry of Tourism,
the Finance Minister has announced in his
budget proposal 2007-08, Tax Holiday for
5 years under Section 80-ID of the Income Tax
Act for new hotels of budget category coming
up between 1 April, 2007 and 31 March,
st st
2010 in the National Capital Territory of Delhi
and the Districts of Faridabad, Gurgaon,
Gautam Budh Nagar and Ghaziabad.
Further, in the budget proposal for 2008-09,
a five-year holiday from Income Tax to two,
three or four star hotels that are established
in specified districts which have UNESCO-
declared “World Heritage Sites”
had been announced. The hotel should be
constructed and start functioning during the
period 1st April, 2008 to 31st March, 2013.
This incentive is not applicable to the revenue
districts of Mumbai and Delhi.
6.3 Classification of Tented Accommodation
There is an overall shortage
accommodation at tourist destinations,
especially in remote areas. Therefore, to meet
the increasing demand of tourists, camping
facilities and tented accommodation, the
Ministry of Tourism, Government of India, has
introduced a voluntary scheme for project
approval and classification of operational
Tented Accommodation in two categories viz.
Standard and Deluxe.
6.4 Approval of Travel Trade
The Ministry of Tourism has a scheme of
approving Travel Agents, Inbound Tour
Operators, Adventure Tour Operators,
Domestic Tour Operators and Tourist
DEVELOPMENT AND REGULATION
Transport Operators. The aims and objectives
of this scheme are to encourage quality,
OF TOURISM INDUSTRY
standard and service in these categories
so as to promote tourism in India. This is
a voluntary scheme open to all bona fide
agencies. The Ministry of Tourism has revised
the guidelines for grant of approval/extension
as Travel Agents, Inbound Tour Operators,
Tourist Transport Operators, Adventure Tour
Operators and Domestic Tour Operators,
with effect from 27th August, 2007. The
total number of approvals issued to service
providers of Travel Trade etc., is given below:-
Category Till 31st March, 2009
Travel Agents 360
Inbound Tour 494
Operators
status
Tourist Transport 181
Operators
Adventure Tour 25
Operators
Domestic Tour 33
Operators
of
6.5 Tourist Charters
The Government has approved the guidelines
for operation of Tourist Charter Flights to and
from India with effect from 17th August, 2006.
The guidelines have been further liberalized
for operating these flights subject to the
condition that Tourist Charter Flights will be
37
 permitted only for “Inclusive Tour Package (iii) On the request of Ministry of Tourism,
(ITP)”. Some of the modifications introduced the States of Andhra Pradesh,
in the Charter Guidelines in respect of ITP Karnataka, Goa, Kerala, Maharashtra,
Charter Flights to India (Inbound Tourist Himachal Pradesh, Rajasthan, Jammu
Charters) are as follows : & Kashmir, Uttar Pradesh, Delhi,
Punjab, Madhya Pradesh and Orissa
(i) Application for operating inclusive have deployed Tourist Police Force in
Tourist Charter Flights to India can one form or the other.

DEVELOPMENT AND REGULATION

be filed by an Indian Tour Operator
(iv) The guidelines for formation of Tourist
recognized by the Ministry of Tourism,

OF TOURISM INDUSTRY
Security Organization(s) comprising
Government of India or flight clearing
Ex-Servicemen, in the States have
agencies, cleared by the security
been forwarded to State Governments/
agencies for obtaining flight clearances
Union Territory Administrations. The
from the Directorate General of Civil
Government of India, Ministry of Tourism
Aviation (DGCA).
is in touch with the State Governments/
(ii) The stipulation of minimum duration of Union Territories to monitor and follow-
stay of charter tourists in India has now up action.
been removed.
(v) The Ministry has also revised the
6.6 Achievements guidelines for training of Regional
(i) An important issue connected with Level Guides to ensure that training
tourism growth is the issue relating to and selection of these guides become
Visa on arrival. This issue was taken more competitive and effective.
up with the Ministry of External Affairs
and the Ministry of Home Affairs. As a
sequel thereto, the Advance Passenger
Information System to facilitate
security clearances has already been
introduced on pilot basis on all Air India
Flights coming from various locations
to Delhi. Depending on its success,
the Ministry of Home Affairs would
be considering its expansion in due
course.

(ii) The Ministry of Home Affairs has

decided to grant Long Term Tourist
Visa of 5-year duration with multi-entry
facilities carrying a stipulation of 90
days on each visit, to the nationals of
18 select countries.

38 39
 HUMAN RESOURCE
DEVELOPMENT
HUMAN RESOURCE
DEVELOPMENT 7
 7.1 In order to meet the manpower needs
of the tourism industry in the country, the
Ministry of Tourism had initially set up four
Institutes of Hotel Management, Catering
Technology and Applied Nutrition (IHMs) at
New Delhi, Mumbai, Chennai and Kolkata.
Subsequently, 12 Food Craft Institutes (FCIs)
were also set up at different places in the
country to promote the hospitality related craft
disciplines. This year, 2 new State Institutes
of Hotel Management, Catering Technology
& Applied Nutrition at Rohtak in Haryana and
Tirupati in Andhra Pradesh were sanctioned.
For expanding facilities for skill level training,
the Ministry sanctioned setting up of 5 new
Food Craft Institutes at Muzaffarpur in Bihar,
Kangra in Himachal Pradesh, Hoshiarpur
in Punjab, Leh in Jammu & Kashmir and
Durgapur in West Bengal.
7.2 The Ministry has also decided to
mainstream hospitality education through
Government vocational schools, Industrial
Traning Institutes (ITIs), polytechnic institutes,
Government colleges, Universities and Public
Sector Undertakings. The Central assistance
will be available to all. The assistance will be
utilized for creation of infrastructure necessary
for the conduct of courses / trainings.
7.3 National Council for Hotel Management
and Catering Technology
The National Council for Hotel Management
and Catering Technology (NCHMCT) was
set up in 1982 to coordinate the growth and
general advancement in the development
of hospitality management education
through its affiliated Institutes. The Council
undertakes recruitment; its jurisdiction
extends over a wide range of administrative
matters including admission, fees, bye-laws,
syllabus for studies, courses, research and
42
examinations, results; regulating building
plans and equipment, training, publishing
periodicals, magazines, etc; as also carrying
out of such government approved activities
as prescribed from time to time. The NCHMCT
also affiliates Institutes of Hotel Management
for admissions and regulation of examinations.
At present, 35 Institutes of Hotel Management
comprising 21 Central Institutes, 7 State
Institutes and 7 private Institutes are affiliated
to the NCHMCT. They conduct Degree, Post
Graduate Degree/Diploma courses in various
disciplines relevant for hospitality industry.
The NCHMCT also affiliates State Food Craft
Institutes (FCIs) both at the Centre and States
for diploma courses. These FCIs are located
at Aligarh, Balangir, Darjeeling, Ajmer,
Faridabad and Udaipur.
The NCHMCT also conducts Joint Entrance
Examination (JEE) on all India basis for
admission to the 1st year of the 3-year
B.Sc. programme in Hospitality and Hotel
Administration for its affiliated Institutes.
Admission to M.Sc. in Hospitality
Administration is centrally carried out by the
Council. In the case of other courses, i.e.
P.G. Diploma in Accommodation Operation;
P.G. Diploma in Dietetics and Hospital Food
Service; Diploma in Food Production; Diploma
in Food and Beverage Service; Diploma in
House Keeping Operation; Diploma in Front
Office Operation; Diploma in Bakery and
Confectionery; Craftsmanship Course in
Food Production; Craftsmanship Course in
Food and Beverage Service and Certificate
Course in Hotel and Catering Management,
admission is directly carried out by the
respective Institutes as per eligibility criteria
prescribed by the National Council for each
of the courses.
7.4 Central Financial Assistance for
Creation of Institutional Infrastructure
The Ministry extends Central Financial
Assistance (CFA) for setting up State
Institutes of Hotel Management. The National
Institute of Tourism & Hospitality Management
(NITHM) at Hyderabad, IHMs at Dehradun
and Kurukshetra were set up with CFA and
they are already functional. The other projects
that are at various stages of construction are
located at Silvassa, Jamshedpur, Raipur,
Rohtak, Hamirpur, Bhatinda, Fursatganj,
Bodhgaya, Ailawng (Mizoram), Dimapur,
Yupia (Arunachal Pradesh), Kozhikode,
Sholapur and Tirupati. The CFA for such
projects is subject to certain guidelines
including allocation of at least 5 acres of
land by the state government concerned
and affiliation of the Institute to the NCHMCT.
Normal grant is up to Rs. 10 crore, of which,
Rs. 8 crore is for construction and the balance
for the purchase of equipment required by the
Institute. An additional Rs. 2 crore can also
be paid for the construction of hostels. The
expenditure over and above the Central Grant
is met by the respective state governments.
CFA has also been extended for the setting
up of Food Craft Institutes at Leh, Hoshiarpur,
Kangra, Jammu, Garhmukteshwar (Uttar
Pradesh), Muzaffarpur, Durgapur, Naogaon
and Hassan. For a Food Craft Institute, the
Central assistance is limited to Rs. 4.75 crore.
Financial assistance is also extended for
upgradation of institutional infrastructure such
as construction of hostels and modernization
of laboratories.
7.5 Indian Institute of Tourism and Travel
Management (IITTM) – Gwalior
Indian Institute of Tourism and Travel
Management (IITTM), set up in 1983, is a
pioneer in the field of travel and tourism
education and training for providing
specialized training and education for tourism
and travel industry both in the private and
public sector. The Institute had organized
a Syllabus Review Workshop from 16th to
18th October, 2006 at Delhi, and based on
the recommendations of the Workshop, the
Institute decided to offer the following All
India Council for Technical Education (AICTE)
HUMAN RESOURCE
approved programmes with an intake of
DEVELOPMENT
60 students each at Gwalior, Bhubaneswar
and Delhi centres:
(i) Two-year Post Graduate Diploma in
Management (Tourism and Travel) -
from Gwalior and Bhubaneswar
(ii) Two-year Post Graduate Diploma in
Management (International Business) -
from Gwalior and Bhubaneswar
(iii) Two-year Post Graduate Diploma in
Management (Service Sector) - from
Gwalior
(iv) Two-year Post Graduate Diploma in
Management (Tourism and Leisure) -
from Delhi
7.6 National Institute of Water Sports – Goa
In order to tap the potential that India’s
coastline offers for water-based adventure
sports, the Ministry of Tourism established
the National Institute of Water Sports
(NIWS) in Goa on the beach of Panjim. The
administrative control of NIWS was entrusted
to IITTM. The NIWS conducted several short-
term programmes and about 400 participants
have attended these programmes related to
Powerboat Handling, Lifesaving Techniques,
Wind Surfing and Lifesaving for water sports,
etc.
43
 7.7 Capacity Building
For upgrading the skills and capacity
building of service providers of the Industry,
the Ministry commenced the scheme of
Capacity Building for Service Providers,
under which, trainings are undertaken to
cover a wide range of services like health &
personal hygiene, cleanliness, basic service
techniques, cooking techniques, garbage
disposal, etiquette and basic manners, basic
nutrition values, energy saving and nutrition
saving techniques, guide training, etc. It,
inter-alia, covers service providers such as
coolies/ servers/ waiters/ helpers/ front office
staff/ reception counter staff/ food kiosk and
dhaba staff/ personnel engaged in handling
tourists, airport security staff, immigration
officials and custom officers.
The implementing agencies are, amongst
others, Indiatourism Offices, Institutes of Hotel
Management, Food Craft Institutes, Indian
Institute of Tourism and Travel Management,
NCHMCT, tourism departments of States/UT
Governments, State Tourism Development
Corporations, India Tourism Development
Corporation, State/Central training/
academic institutions. Under the scheme,
the participants of 1 to 3-day programmes
are compensated for the loss of wages. The
fee and other costs of training for all the
programmes are covered.
For the promotion of rural tourism, the Ministry
of Tourism extends assistance for capacity
building in selected villages.
7.8 Significant initiatives during the
year except in the category of “Best All
a. NCHMCT decided to decentralize
online counselling for the Joint
44
Entrance Examination for admission
to B.Sc. Course in all the Institutes of
Hotel Management (IHM) affiliated to it
from the academic year 2009-10.
b. In pursuance of the decision of the
Government to broad-base hospitality
education through one-time Central
Financial Assistance not exceeding
Rs. 2 crore to government institutes
such as ITI/polytechnic institute/
university/college owned by
government or a university/a public
sector undertaking which offers
course(s) specific to hospitality crafts
(including management courses)
or travel/tourism, the Ministry
Tourism sanctioned assistance to 10
institutions for facilitating development
of institutional infrastructure.
c. The Ministry of Tourism instituted
a system of annual institutional
excellence awards for “Best
Round Performance” by an IHM and
“Best All Round Performance” by a
Food Craft Institute (FCI) along with
four awards to IHMs separately for
(a) Best Academic Performance; (b)
Best Placement Performance;
Best Administrative Performance; and
(d) Best Implementation of Central
Schemes. The achievements of the
IHMs & FCIs were individually judged
by a Committee on the strength of
transparent performance parameters/
evaluation criterion and the inter-se
rankings decided. A Special Award
was given to the runners-up also,
Round Performance”. The awards were
distributed on 25th March, 2009.
d. The existing 3-year B.Sc. programme
being conducted in all the Institutes
of Hotel Management on annual
examination basis has been converted
to a six-semester programme from the
academic session 2009-10. Further,
the IHMs at Delhi, Kolkata, Mumbai,
Chennai, Bangalore, Hyderabad and
Goa would also offer specialization
for which the broad framework for
HUMAN RESOURCE
a the revised curriculum has been
DEVELOPMENT
developed.
e. During the year, setting up of one more
Institute of Hotel Management at Tirupati
and five more Food Craft Institutes at
of Tura, Durgapur, Muzaffarpur, Kangra
and Hoshiarpur were sanctioned. This
took the number of State Institutes of
Hotel Management under construction
to 14 and Food Craft Institutes to 10.
f. In order to test and certify the skills
All of the existing service providers, the
Ministry sanctioned the institution of
testing and certification mechanism at
the IHMs at Mumbai, Chennai, Kolkata,
Delhi (Pusa), Goa, Hyderabad and
Bengaluru.
(c)
g. The Ministry of Tourism sanctioned
funds to Indian Institute of Tourism
and Travel Management (IITTM) for
the training of 3000 students under the
“Earn While You Learn” programme. The
students may also be oriented to serve
as Volunteers for the Commonwealth
Games.
45
 PUBLICITY AND MARKETING
PUBLICITY
AND MARKETING 8
 8.1 Domestic Campaigns
In the year 2007-08, the Ministry of Tourism,
as part of celebration of the 60th Anniversary
of India’s Independence had launched a
campaign titled, “Sare Jahan Se Achcha”.
The campaign was undertaken in major TV
channels and popular cinema halls across
the country. The campaign was rolled out till
May 2008.
In the year 2007-08, the Ministry of Tourism
continued its effort in educating/ sensitizing
the stakeholders and general public about
the importance of preserving monuments
and places of tourist interest. To reinforce the
“Atithi Devo Bhavah” message, encouraging
the objective of responsible tourism, the
Ministry of Tourism had launched the “4th
Phase of Atithi Devo Bhavah – Awareness
Campaign”, which was undertaken in leading
TV channels, print publications, FM Radio
and popular cinema halls across India.
48
Towards the end of the financial year
2007-08, the Ministry of Tourism launched
4 thematic domestic campaigns for the
promotion of North-East, Jammu & Kashmir,
Rural Tourism and Adventure & Wildlife
Tourism. The campaigns spilled into the first
half of the financial year 2008-09. Major part
of the activity was undertaken in select TV
channels, magazines and newspapers in the
first half of the financial year 2008-09.
8.2 International Campaigns
The Ministry of Tourism, in the year 2008-
09, has launched 7 international campaigns
for the promotion of Indian tourism in the
international markets. These 7 international
campaigns are Print campaign – Europe; Print
Campaign – APAC region; Print Campaign
– Global; Print Campaign – Americas;
TV Campaign – Europe; TV Campaign –
Americas and TV Campaign – APAC region.
The activities, started in September/October
2008, will cover release of advertisements in
various print publications including in-flight
magazines and TV channels.
8.3 Other Promotions
The Ministry of Tourism has relaunched the
Incredible India magazine which is a bi-
monthly issue. The magazine is produced
along with the Ministry of Tourism’s newsletter.
In the year 2008-09, production of 5 Regional
Maps and 3 City Maps are being undertaken.
The Ministry of Tourism has also produced a
set of 12 colourful posters to promote various
aspects of Indian tourism.
8.4 Online Initiatives
Recognizing the reach and cost-effectiveness
of the Internet medium, the Ministry had
undertaken an online campaign in India
and the established and emerging markets
overseas.
The objective of the campaign has been to
build awareness about the richness of India
and position India as a preferred tourist
destination for foreign tourists.
Internet media forms an important component
of the media mix for the Incredible India
campaign, given that the media is exploding
in India and developed markets.
PUBLICITY AND MARKETING
Online advertising includes Display
advertising, Search advertising, Search
engine optimization, tapping audiences of
popular video sharing sites.
The theme of the Incredible India campaign
has been based on the richness of India and
varied tourist attractions of the country have
been portrayed through the vibrant colours
symbolic of India.
It has been established that traffic to
the Ministry of Tourism’s website www.
incredibleindia.org has increased
49
 significantly with important feedback from
countries like China, Germany, Japan etc.
8.5 Events
The Ministry of Tourism has organized/
participated in the following tourism related
events in India :
(i) Toshali Crafts Mela, Bhubaneswar –
February 2008.
(ii) National Tourism Award function was
organized by the Ministry – February
2008.
(iii) South Asia Travel and Tourism
Exchange (SATTE) – April 2008.
(iv) 12th National Expo in Kolkata – 5th -10th
September, 2008.
(v) Travel and Tourism Fair (TTF) at
Hyderabad, Kolkata, Ahmedabad and
Surat during 2008.
(vi) Shilpotsav 2008 – Shopping Festival
inter-connected with Rural Tourism and
Handicrafts at Aurangabad – 21st -30th
November, 2008.
(vii) Travel Show organized by the Anand
Bazar Patrika Group – 27th-29th June,
2008.
(viii) Punjab International Trade Expo 2008
at Amritsar – 3 -7 December, 2008.
rd th
50
(ix) Discover India – Enchanting Tourism
Fair – 27 -28 September, 2008.
th th
8.6 Marketing Objectives of Overseas
Offices
The Ministry of Tourism, Government of India,
through its 14 offices overseas promotes
India in the tourism generating markets as
an attractive tourist destination and projects
various Indian tourism products vis-à-vis
other competing destinations to enhance
India’s share in the global tourism market.
Integrated marketing and promotional
strategy and a synergised campaign in
association with the Travel Trade, State
Governments and Indian Missions
launched for market promotion. The overseas
promotional efforts include advertising in the
print & electronic media, participation in fairs
& exhibitions, organising
workshops, road shows & India evenings,
printing of brochures and collaterals,
brochure support/joint advertising with travel
agents/tour operators, inviting the media
and travel trade to visit the country under
the hospitality programme, etc.
8.7 Assistance to Service Providers under
the MDA Scheme
Market Development Assistance scheme of
the Ministry of Tourism, Government of India
provides for financial support to approved
tourism service providers, i.e. hoteliers,
travel agents, tour operators, tourist transport
operators, etc. for undertaking the following
tourism promotional activities abroad :
(i) Sales-cum-Study Tours
(ii) Participation in Fairs / Exhibitions
(iii) Publicity through printed material
8.8 Familiarization Tours under the outdoor advertising was undertaken to
Hospitality Programme coincide with the event.
Under the Hospitality Programme, the Ministry (ii) The Indiatourism office in Beijing
of Tourism invites editorial teams of travel was inaugurated in April 2008. To
publications, journalists, photographers, TV mark the occasion, Incredible India
teams, travel agents, tour operators, etc. from Cultural Evenings were organized
overseas, through the overseas Indiatourism in Beijing and Shanghai, which
offices to effectively project India as a multi-
showcased India’s classical dance,
PUBLICITY AND MARKETING
dimensional tourist destination offering a vast music and cuisine. Indian Food
range of attractions. These invited guests are Festivals were also organized in Beijing
able to get first-hand information/knowledge and Shanghai.
of the Indian tourism products during their
(iii) India hosted the PATA Travel Mart
familiarization tours.
2008 in Hyderabad from September
During the year, travel agents, tour operators 16 to 19, 2008. International delegates
are and media representatives from important comprising 374 global buyers and 715
tourist generating markets overseas were Asia Pacific seller delegates from 301
invited, not only to visit the varied tourist organisations participated in the Travel
attractions of the country but also to Mart.
participate in and cover events including
seminars, (iv) Indiatourism offices overseas have
SATTE, the Great Indian Travel Bazaar, PATA
participated in the major international
Travel Mart, Kerala Travel Mart, Himalayan
Travel Fairs and Exhibitions in
Run & Trek Event, etc.
important tourist generating markets
In addition, special Fam Tours for Trade and the world over as well as in the
Media Representatives from overseas have emerging and potential markets to
also been organized as part of the confidence showcase and promote the tourism
building measures undertaken following the products of the country. These include
terrorist attacks in Mumbai. Arabian Travel Market (ATM) in Dubai,
PATA Travel Mart in Hyderabad, China
8.9 Major activities undertaken for
International Travel Mart in Shanghai,
overseas promotion
ITB-Asia in Singapore, World Travel
(i) The Ministry of Tourism in collaboration Market (WTM) in London, IMEX in
with the Ministry of Culture and CII Frankfurt, FITUR in Madrid and ITB
organized an “Incredible India@60” in Berlin.
event in Singapore in April 2008. The
(v) Road Shows, India Evenings and
activities and programmes organized
India Presentations have been
during the event included cultural
organized in Beijing, Shanghai,
performances, display of Indian
Hong Kong, Tehran, Riyadh, Istanbul,
handicrafts by artisans from rural
Ankara, Damascus, Dubai, Paris,
tourism sites, photographic exhibition
Strasbourg, Zurich, Bern, Catania,
on India and an India Evening.
Genova, Atlanta, New York, Boston,
Extensive promotion through print and
51
 Denver, San Francisco, Phoenix, Tokyo, Singapore, Kuala Lumpur, Paris, (ii) Participation in three trade fairs / d. Fam Tours for Overseas Media and
Seoul, Taipei, Toronto, Vancouver, Zurich, Madrid, Rome, Milan, Frankfurt, exhibitions per year would be permitted Travel Trade Representatives
Ottawa, Montreal, Singapore, Kuala Hamburg, Berlin, Amsterdam, instead of two as per the existing
As part of the confidence building measures,
Lumpur, Manila, Munich, Moscow, Stockholm, Moscow, St. Petersburg, guidelines.
familiarisation tours for trade and media
among other cities. London, Edinburgh, Belfast, Dublin,
(iii) The eligible upper limit under the representatives to Mumbai and other
Manchester, Dubai, Los Angeles,
(vi) For the promotion of Indian Cuisine, scheme, in respect of foreign exchange regions of the country have been specially
Houston, San Francisco and Buenos
which is an integral component earnings, has been increased from organized by the overseas Indiatourism
Aires.
of the Indian tourism products, Rs. 10 crore to Rs. 20 crore. offices, to project the ground realities relating

PUBLICITY AND MARKETING

support has been extended to (ix) Tourist publications have been to safety/security conditions in the country.
b. Enhanced subsidy in participation fee at
Indian Food Festivals organized in printed in foreign languages by Trade/Media representatives from USA, UK,
International Travel Fairs & Exhibitions
Damascus (Syria), Istanbul (Turkey), the overseas offices, to meet the Ireland, France, Spain, Germany, Austria,
Muscat (Oman), Tehran (Iran), Colombia requirements of the markets under their Enhanced subsidy of 25% in participation fee Netherlands, Argentina, Mexico, Japan,
& Ecuador, Budapest (Hungary), jurisdiction. These include Mandarin, is being offered by the Ministry of Tourism and Malaysia and Singapore have visited India
Cairo (Egypt) and Buenos Aires Cantonese, Arabic, Persian, Turkish, the Indiatourism offices overseas in the India during the months of December 2008 and
(Argentina). Italian, French, Spanish, Portuguese, Pavilions set up at the major International January 2009 as a result of this initiative.
German, Russian, Hungarian, Travel Fairs and Exhibitions till the end of the
(vii) The Ministry of Tourism, through its e. Road Shows
Japanese, Korean, Thai and Bhasa financial year 2009-10.
overseas offices, has supported
Indonesia. A series of Road Shows are being organized
and participated in the Amsterdam c. Financial Assistance under MDA Scheme in important tourist generating countries,
India Festival - Blended Cultures, 8.10 Special Initiatives to promote MICE Tourism in collaboration with the Indian Association
a three-week long cultural festival of
The Ministry of Tourism, Government of India With a view to promoting MICE Tourism, of Tour Operators and with participation of
India in Amsterdam and a Festival
has undertaken several confidence building the scope of the MDA scheme has been different segments of the tourism industry.
of India organized in Buenos Aires,
measures with a view to giving a boost to the enhanced, so as to include active members The focus of these Road Shows is on
Argentina.
tourism industry in the aftermath of the global of the India Convention Promotion Bureau one-to-one business meetings between
(viii) For greater visibility of “Incredible economic slow down and the terrorist attacks (ICPB). Financial support under the scheme the seller delegates from India and buyer
India”, outdoor advertising campaigns in Mumbai. would be provided to ‘Active Members’ of delegates overseas, with a view to promoting
including advertising on taxis/buses/ ICPB who, in turn, would release the same inbound tourism to India. Road Shows were
The following incentives have been offered
trams have been undertaken in Beijing, to India Associations/Societies after bidding successfully organized in Australia, Malaysis,
by the Ministry to the tourism industry:
Shanghai, Tokyo, Seoul, Sydney, for International Conventions/Conferences, Singapore, UK and Ireland during the months
provided they win the bid or stand at second of February and March 2009.
a. Enhanced benefits under the Market Development Assistance (MDA) scheme or third positions among the bidders.

(i) The financial support under the MDA scheme has been increased, as detailed below :

Sl. No. Promotional Existing upper limit of Revised upper limit of

activities financial support financial support

1. Sales-cum-Study Tours Rs.75,000.00 Rs.1,50,000.00

2. Trade Fairs and Rs.1,10,000.00 Rs. 2,00,000.00
Exhibitions
3. Production of Rs. 15,000.00 Rs. 30,000.00
Publicity Material

52 53
54
55

PUBLICITY AND MARKETING

 STATISTICS, SURVEYS
AND STUDIES
STATISTICS, SURVEYS
AND STUDIES 9
 9.1 Information and Research Activities
The Market Research Division of the Ministry
of Tourism is responsible for compilation,
tabulation and dissemination of information
on various aspects of tourism in India. The
statistics collected by the Division include
data on foreign tourist arrivals, domestic and
foreign tourist visits, occupancy statistics
of approved hotels, etc. Periodical surveys
are also undertaken to assess the profile
of international and domestic tourists,
expenditure patterns, tourist preferences and
satisfaction levels, availability and adequacy
of infrastructural facilities at tourist centres,
etc. This Division also undertakes studies
and preparation of master plans/perspective
plans/detailed project reports (DPRs) for
development of tourism in the country.
9.2 Foreign Tourist Arrivals
The foreign tourist arrivals (FTAs) in India
during the year 2008 were 5.37 million
(Provisional) as compared to 5.08 in 2007,
registering a growth of 5.6%. FTAs during the
period January-March 2009 were 14.61 lakh
with a growth rate of (-) 13.8% as compared
to the FTAs of 16.94 lakh and growth rate of
12.2% during January-March 2008.
58
9.3 Foreign Exchange Earnings from
Tourism
Tourism is an important sector of Indian
economy and contributes substantially in the
country’s foreign exchange earnings. The
foreign exchange earnings (FEE) from tourism
during 2008 in US$ terms are estimated at
11.75 billion as compared to 10.73 billion
during 2007, registering a growth of 9.5%.
FEE from tourism in US$ terms during the
period January-March 2009 were US$ 2731
million with a growth rate of (-) 30.6% as
compared to the FEE of US$ 3935 million with
a growth rate of 31.3% during January-March
2008.
In rupee terms, the FEE from tourism during
2008 are estimated at Rs. 50730 crore as
compared to Rs. 44360 crore during 2007,
showing a growth of 14.4%. FEE from tourism
in rupee terms, during January-March 2009
were Rs 13582 crore with a growth rate
of (-)13.2%, as compared to the FEE of
Rs. 15655 crore with a growth rate of 18.2%
during January-March 2008.
A statement giving FTAs in India and FEE
from tourism for the last ten years i.e. 1999
to 2008 and during January-March 2009 are
given below:
Foreign tourist arrivals and estimated Foreign Exchange Earnings during the years
1999-2008 and January-March 2009
Year Foreign Percentage Estimated Percentage Estimated Percentage
Tourist Change Over Foreign Change Foreign Change
Arrivals Previous Year Exchange Over Exchange Over
(in nos.) Earnings Previous (in Million Year
(Rs. in Year US$)
Crore)
1999 2481928 - 12951 - 3009 -
STATISTICS, SURVEYS
2000 2649378 6.7 15626 20.6 3460 15.0
2001 2537282 -4.2 15083 -3.5 3198 -7.6
AND STUDIES
2002 2384364 -6.0 15064 -0.1 3103 -3.0
2003 2726214 14.3 20729 37.6 4463 43.8
2004 3457477 26.8 27944 34.8 6170 38.2
2005 3918610 13.3 33123 18.5 7493 21.4
2006 4447167 13.5 39025* 17.8 8634 15.2
2007 5081504 14.3 44360* 13.7 10729 24.3
2008@ 5366966 5.6 50730# 14.4 11747# 9.5
2009@ 1460774 -13.8 ** 13582# -13.2** 2731# -30.6**
(Jan-Mar)
# Advance Estimates * Revised Estimates @ Provisional
** Percentage change of January-March 2009 over January-March 2008
9.4 Domestic Tourism 9.5 Surveys and Studies
The potential of domestics tourism has grown As a guide to the formulation of policies,
substantially during the last few years due to funding projects and evaluating effectiveness
increase in income levels and emergence of a of schemes being implemented by the
dynamic urban middle class. However, there Ministry of Tourism, the Ministry sponsors
are no precise estimates of total domestic studies and surveys. These include evaluation
tourist traffic in the country. All the State/ studies, feasibility studies, preparation of
Union Territory Governments were, therefore, Detailed Project Reports (DPRs), etc. 29
persuaded to set up Statistical Cell for the Surveys/Studies/DPRs/Feasibility Studies
collection of domestic tourism statistics were completed during the year 2007-08.
through accommodation establishments and 19 Surveys/Studies have been commissioned/
furnish them to the Ministry of Tourism on a taken up during 2008-09 and 9 Surveys/
monthly basis. As per the figures reported Studies/DPRs/ Feasibility Studies have been
by the State/UT Governments, the domestic completed during the year 2008-09. Details of
tourists during the year 2007 are estimated to Surveys, Studies, DPRs, Feasibility Studies,
be 527 million, showing a growth of 13.9 % as etc. completed/commissioned during
compared to the year 2006. 2007-08 and 2008-09 are given at Annex.
59
 INTERNATIONAL CO-OPERATION
INTERNATIONAL
CO-OPERATION 10
 10.1 Co-operation with International
Organizations
International Co-operation Division
responsible for organizing/participating
in dialogues, meetings, consultations and
negotiations of the Ministry of Tourism with
international organizations which include the
United Nations World Tourism Organization
(UNWTO); United Nations Economic and
Social Commission for Asia and the Pacific
(UNESCAP); Bay of Bengal Initiative for
Multi-Sectoral Technical and Economic
Co-operation (BIMSTEC); Mekong-Ganga
Co-operation (MGC); Association of South
East Asian Nations (ASEAN), South Asian
Association for Regional Co-operation
(SAARC) and South Asia Sub-regional
Economic Cooperation (SASEC).
Division also negotiates with other countries
for signing of bilateral agreements and
attends Joint Commission Meetings in co-
ordination with the Ministries of Commerce,
Culture, External Affairs, Finance etc. for
promotion of tourism.
10.2 Tourism Co-operation under IBSA
A Tripartite Agreement among India, Brazil
and South Africa (IBSA) was signed on
15th October, 2008 during the IBSA Summit
in New Delhi for cooperation in the field
of tourism under the IBSA Development
Initiative. The Agreement was finalized in
the Joint Working Group (JWG) Meeting
on Tourism which was held in Kochi on
21 September, 2008 and was attended by
st
the representatives from the IBSA countries.
The JWG meeting was followed by IBSA Tour
Operators Workshop which was attended by
tour operators from India, Brazil and South
Africa. The workshop provided an opportunity
to the private stakeholders of tourism sector
in IBSA countries to interact and establish
62
contacts for increasing the tourism flow
between the member-countries of the group.
is 10.3 Bilateral Tourism Co-operation
(i) A Joint Working Group Meeting on
Tourism was held with Philippines on
4th July, 2008 in Manila, Philippines.
Both the countries agreed to further
strengthen and promote bilateral
tourism cooperation by undertaking a
series of activities during the period
2009-11.
(ii) A meeting between India and South
Africa Tourism Officials was held on
the sidelines of the 7th Session of the
India-South Africa Joint Ministerial
Commission which was held in
February 2008 in Pretoria, South Africa.
This
(iii) A Joint Action Programme for the
period 2009-10 for the implementation
of the Agreement between India and
Russian Federation on cooperation in
the field of tourism was signed during
the visit of the Russian President to
India in December 2008.
10.4 Tourism Co-operation between India
and the ASEAN
The First Meeting of the India-ASEAN Tourism
Ministers was held in Thailand in January
2008. In this meeting, Terms of Reference
for the formation of India-ASEAN Tourism
Working Group was adopted. The ASEAN-
India website was inaugurated for promoting
tourism destinations in India and the ASEAN
region. An invitation was extended to the
travel media in the ASEAN countries to
participate in the Great Indian Travel Bazaar
which was held in Jaipur from 21st-23rd April,
2008. Several participants from the ASEAN
region were hosted by the Ministry of Tourism
under its hospitality scheme for participating
in the event. At this meeting, India offered to 10.6 Participation in the UNWTO
organize the first ASEAN-India Travel Trade
As a specialized agency of the United
Exchange to discuss and develop joint
Nations, the United Nations World Tourism
package on tourism products. In pursuance,
Organization (UNWTO) is the multi-lateral
Indiatourism office in Singapore organized
international body in the field of tourism, acting
a workshop titled ‘Beyond Boundaries’ in
as a global forum for tourism policy issues
April 2008. The ASEAN member-countries,
and a source of tourism know-how. While
Indian Travel Trade organizations and Airlines
primarily an inter-governmental organization
INTERNATIONAL CO-OPERATION
participated in the workshop for developing/
with over 150 member-countries, it also
structuring joint packages on tourism
welcomes the private sector, educational
products to increase tourism flow between
institutions, tourism associations and local
India and the ASEAN. Incredible India @60
tourism authorities to participate as Affiliate
event was organized at Singapore in April
Members. India was unanimously elected as
2008 to showcase different facets of India’s
the Chairman of the Executive Council of the
growth, tourism products, art and culture.
UNWTO in the 82nd meeting of the Executive
As part of the event, various activities and
Council held at Cartagena de Indias,
programmes were organized. These included
Columbia in November 2007 for a period of
cultural performances from different regions
one year. As the Chairman, India chaired the
of India, demonstration and display of Indian
sessions of the Executive Council which were
handicrafts especially by artisans from rural
held in Jeju, South Korea in June 2008 and
tourism sites, photographic exhibition and
Madrid, Spain in October 2008.
an India Evening. The 4th India-ASEAN NTOs
(National Tourism Organizations) Meeting India articulated its stand on the issue of
was held at Hanoi, Vietnam in January 2009 ‘Climate Change and Tourism’ at UNWTO
during the ASEAN Tourism Forum. At this by stating that matters relating to climate
change should be addressed within the
meeting, matters related to co-operation
in tourism between India and the ASEAN framework of the UN Framework Convention
were discussed and both sides agreed to on Climate Change (UNFCCC). The UNWTO
strengthen and enhance co-operation to was also asked not to make climate change
increase intra-regional tourism. an instrument to encourage the use of
environmental conditionalities as barriers
10.5 Tourism Co-operation under BIMSTEC
to international tourism, particularly in
The Terms of Reference for the formation developing countries.
of Tourism Working Group was finalized in
Another issue on which India took the lead
the meeting of senior officials of BIMSTEC
pertained to co-operation between the Centre
which was held at New Delhi in August 2008.
of Excellence for Destinations (CED) and
As agreed during the 2nd BIMSTEC Tourism
the UNWTO. The CED currently operates in
Ministers’ Roundtable and Workshop held in
Montreal, Canada and was set up to provide
August 2006 in Nepal, the Ministry of Tourism
guidance to tourism destinations as per the
set up the BIMSTEC Information Centre at
MoU entered between the agency and the
New Delhi.
UNWTO. India expressed its concerns about
the CED assuming the role of a certification
63
 agency which would lead to standardizing
cultures, heritage and biodiversity of nations
and could seriously undermine the concept
of diversity that drives tourism across the
world. The Executive Council Meeting
agreed to India’s proposal of not allowing
certification, grading or ranking of tourist
destinations by the CED. The CED would now
extend technical assistance to destinations in
developing countries to achieve excellence
and attract more tourists. In addition,
developing countries could ask the UNWTO’s
support for securing financial and technical
assistance.
The Ministry of Tourism had signed a MoU
with the UNWTO to formalize the arrangement
of hiring services of its consultants to prepare
master plan for the Development of Coastal
64
Tourism in the States of West Bengal and
Orissa and Sustainable Tourism in the State
of Uttarakhand. The project, which was
funded by the UNDP, was completed with the
adoption of Master Plans.
Secretary (Tourism) represented India in
the 6th Meeting of the Board of Directors of
ST-EP Foundation and the 1st Meeting of the
INTERNATIONAL CO-OPERATION
Tourism Resilience Committee of the UNWTO
held from 27th-29th January, 2009 in Madrid.
He also attended the 24th Meeting of the
Task Force for the Protection of Children in
Tourism and the 2nd Meeting of the UNTWO
Tourism Resilience Committee. Both meetings
were held from 10th-13th March, 2009 in
Berlin, Germany.
65
 INDIA TOURISM DEVELOPMENT
CORPORATION LIMITED
INDIA TOURISM
DEVELOPMENT CORPORATION LIMITED 11
 11.1 Introduction
India Tourism Development Corporation
(ITDC) is the only Public Sector Undertaking
of the Ministry of Tourism. Incorporated on
1st October, 1966, the ITDC played a key role
in the development of tourism infrastructure
in the country. Apart from developing the
largest hotel chain in India, the ITDC offered
tourism related facilities like transport, duty
free shopping, entertainment, production of
tourist publicity literature, consultancy etc.
The ITDC has played a committed and pivotal
social role in the development of tourism
infrastructure in backward areas, thereby
trying to promote regional balance.
After the disinvestment of 18 hotels, ITDC
consolidated its remaining activities and
restructured itself to take up diversified
service-oriented business activities like
consultancy and execution of tourism and
engineering projects, training consultancy
in hospitality sector, event management and
mounting of Son-et-Lumeire (SEL) Shows etc.
11.2 Organisational Set-up
The present organisational set-up at the
Corporate level comprises Chairman &
Managing Director (C&MD), Functional
Directors and heads of business groups viz.
Ashok Group of Hotels, Ashok International
Trade, Ashok Travels & Tours, Ashok
Reservation & Marketing Services, Ashok
Creatives, Ashok Institute of Hospitality &
Tourism Management and Engineering
Services Division etc. supported by Human
Resource Management, Finance & Accounts,
Public Relations, Secretarial and Vigilance &
Security Divisions.
68
11.3 Network of ITDC Services
The present network of ITDC consists of
8 Ashok Group of Hotels, 7 Joint Venture
Hotels including one yet to be completed
hotel, 3 Restaurants (including one Airport
Restaurant), 11 Transport Units, 1 Tourist
Service Station, Duty Free Shops at Goa
Airport, 1 Tax Free Outlet, 1 Sound & Light
Show and 4 Catering Outlets. Besides, ITDC
is also managing a Hotel at Bharatpur, a
Tourist Complex at Kosi and a Son-et-Lumeire
(SEL) Show at Sabarmati, Ahmedabad owned
by the Ministry of Tourism.
11.4 Subsidiary Companies
Details below indicate ITDC’s investment of
Rs. 8.47 crore in seven subsidiary companies
as on 31st March, 2009 (provisional) :
(Rs. in crore)
Subsidiary ITDC’s
Investment
MP Ashok Hotel 0.82
Corporation Ltd.
Utkal Ashok Hotel. 4.69
Corporation Ltd
Ranchi Ashok Bihar 0.36
Hotel Corporation Ltd.
Assam Ashok Hotel 0.51
Corporation Ltd.
Pondicherry Ashok Hotel 0.31
Corporation Ltd.
Donyi Polo Ashok Hotel 0.51
Corporation Ltd.
Punjab Ashok Hotel 1.27
Company Ltd.
Total 8.47
11.5 Capital Structure
The Capital Structure as on 31st March, 2009 is as under :-
(Rs. in crore)
2006-07 2007-08 2008-09
(Provisional)
Authorised Capital 75.00 150.00** 150.00*
INDIA TOURISM DEVELOPMENT
Paid-up Capital 67.52 67.52 67.52
CORPORATION LIMITED
Reserves & Surplus 143.96 172.24 *
Net Worth 208.52 310.17 *
Capital Employed 188.13 285.41 321.89
*These figures will be worked out after finalisation of annual accounts.
** The Government has contributed Rs. 73 crore towards additional equity in December 2007,
against which process for issue of equity shares is in progress.
11.6 Pattern of Shareholding 11.7 Financial Performance
The authorised and paid-up capital of The key figures relating to financial
the Corporation as on 31st March, 2009, performance of the Corporation for the
stood at Rs. 150 crore and Rs. 67.52 crore last four years and for the year 2008-09
respectively. The pattern of shareholding is (Provisional) are tabulated below :
indicated below:-
Government 89.975%
Indian Hotels Ltd. 9.998%
General Public & Employees 0.027%
(Rs. in crore)
2004-05 2005-06 2006-07 2007-08 2008-09
(Prov.)
Turnover 363.49 373.64 564.11 470.27 410.14
Operating Profit 37.94 54.53 74.33 77.45 41.37
(Before Interest &
Depreciation)
Profit Before Tax 31.16 51.57 68.77 69.41 36.48
Profit After Tax 28.77 45.79 45.56 44.08 *
Direct Foreign 156.59 146.94 149.10 57.23 6.86
Exchange Earnings
69
 The decrease in turnover and profitability
during 2008-09 is mainly attributed to general
recession in the tourism sector because of
global financial crisis and terrorist attacks
on Mumbai on 26 th
November, 2008. The
profitability of the Corporation was also
affected due to pay revision.
* This will be worked out after finalisation of
annual accounts.
11.8 Memorandum of Understanding (MoU)
The MoU for the year 2008-09 was signed
between the Ministry of Tourism and ITDC
envisaging targets for Financial, Dynamic,
Sector-specific and Enterprise-specific
parameters. The various criteria of MoU
include targets for gross sales and gross
margin, customer delight, HRD (Employees’
training), execution of projects assigned
by outside agencies, setting up a Food
Standardization Cell for innovation in food
production, renovation of ITDC hotels, setting
up a Marketing R&D Cell, IT linkage of 8 ITDC
hotels, multiple of ARR & occupancy of ITDC
hotels and joint venture hotels etc.
11.9 Ashok Group of Hotels
The Ashok Group of Hotels continued to
play host to several prestigious international
and national level conventions and events
including UNIDO Conference, Conference of
Association for Simulating Know How (ASK),
Seminar of NRI Welfare Society, International
Summit on Bipolar Disease, 23 Biomedical
rd
Lab Science World Congress, Asia Pacific
Digestive Week Conference, Indo-Africa
Summit, Urology Conference, 9th Asia
Oceania Conference of Nuclear Medicine
& Biology, Travel & Tourism Fair, National
Tourism Awards Function, International
Congress for Women.
70
Ashok Hotel also hosted H.H. Dalai Lama and
organized a session of His teachings. The
Ashok Group also hosted the delegations from
Russia, Bangladesh, Sri Lanka, Indonesia,
Mauritius, China, South Korea, Italy, Hungary,
America, Ghana, Bulgaria, Venezuela etc.
During the year, the renovation/upgradation
drive in ITDC hotels was continued to provide
them competitive edge. This includes
renovation of 73 rooms in Janpath Hotel, 53
rooms in Hotel Jaipur Ashok and 24 rooms in
Hotel Jammu Ashok. As security measures,
CCTV, Door Frame Metal Detactor and
baggage scanners have been installed in all
the three Delhi-based hotels.
Retaining its popularity and market share,
the relaunched food and beverage outlets
in The Ashok – Frontier, Ssteel F-Bar &
Lounge, Orange Room Capitol – are the talk
of the town. Mismo – the Mexican cuisine
restaurant – opened at Hotel Janpath is also
being appreciated by the connoisseurs.
CIBO – an Italian Restaurant – has also been
opened in Hotel Janpath in March 2009.
Durbar Restaurant at The Ashok has been
relaunched as “The Oudh” serving Awadhi
cuisines. The Menu Book in “Oudh” has been
created in Hindi, English, French, Spanish,
Russian, Chinese, Dutch and Japanese.
The Coffee Shop at The Ashok has been
relaunched as ‘Samavar’.
The Ashok Group also globally popularized
the Indian cuisine by participating in the food
festivals abroad. Dogri Featival, Oudh Food
Festival and Frontier Food Festival were
organised by Hotel Jammu Ashok, Utkal
Divas and Oddissi Thali Festival organized
by Hotel Kalinga Ashok, Bhubaneswar and
Pakhtoon Food Festival organised by Lalitha
Mahal Palace Hotel, Mysore.
11.10 Ashok Reservation & Marketing
Services
The Division manages Events, Conferences
and Exhibitions and has established itself as
the leader in the field of Event Management.
Some of the major events handled are:
National Conference on Civil Aviation,
Opening of Indiatourism office at China, Civil
Service Day, Technology Day, Review Meeting
of Implementation of Central Educational
Institution Act, Meeting on Save the Girl
Child, International Meeting on Kimberley
Process Certification, Foundation Day of
Ministry of Earth Sciences, 5 th
Computer
Literacy Awards, Award Function of Ministry
of Micro, Small and Medium Enterprises,
PATA Travel Mart, National Steel Consumer
Council Meeting, South Asian Conference on
Sanitation, Petrotech-2009, National Tourism
Awards Function of Ministry of Tourism, Sub-
Regional Conference of South, South-West
and Central Asia on Higher Education.
Through its event management activity, the
Division also acts as a definite catalyst in the
generation of business for Ashok Group of
Hotels and other divisions of ITDC namely
Ashok Creatives and Ashok Travels & Tours
(ATT).
11.11. Ashok International Trade
The Division continued its efforts towards
consolidation of its existing duty
operations at Goa to face the stiff competition
from the private operator and also intensified
its efforts to expand its operations to new
locations and in related commercial activities.
In Goa, the Division was able to stave off the
competition from private operator through
some innovative steps in merchandising and
pricing. The ethnic Indian merchandising
was given a big push and pricing made very
aggressive and dynamic. Despite massive
drop in traffic, the division was able to improve
the per pax transaction value.
The Division won the tender for running
Coimbatore Duty Free Shop against a
strong competition and proposes to further
intensify its efforts towards expansion as
a large number of airports across India are
INDIA TOURISM DEVELOPMENT
being given international status. The division
CORPORATION LIMITED
also stepped up efforts to venture into sea
port and land border shops as part of its
expansion plans.
11.12 Ashok Travels & Tours
Ashok Travels & Tours (ATT) is an in-house
approved Travel Agency of the ITDC to
provide all travel related services namely air
tickets, transport, tour packages etc. for the
Government as also for the general public.
During this year, ATT registered impressive
growth and achieved all time high turnover.
It made special efforts towards promoting
tourists to North-East India. This pioneering
effort was successful. ATT also maintains this
growth profile in other areas of business and
continues its growth even during a period of
declining tourist arrivals.
11.13 Ashok Creatives
The Ashok Creatives continued to play a key
role in tourism promotion and developmental
projects of the Ministry of Tourism as also for
free various clients.
The Division continued with the release of
the International and Domestic Campaigns
of the Ministry of Tourism of about Rs. 50
crore. These included the “Incredible India”
International campaigns in Americas and the
Asia-Pacific (APAC). Among the Domestic
Campaigns were “Saare Jahan Se Achcha”,
“Athithi Devo Bhava” and four individual
campaigns aimed to promote tourism to
71
 North-East of India, Jammu & Kashmir, Rural
Tourism and Adventure & Wildlife.
The Division undertook the “Social
Awareness Campaign” for the Ministry of
Tourism. In addition, the Division released
a half-page advertisement coinciding with
the Independence Day highlighting Ministry
of Tourism’s Achievements/Milestones in
select National Dailies and vernaculars.
The Ministry of Culture also awarded the
designing and publishing of their full-page
advertisement themed “Presenting and
Preserving the Cultural Heritage of India” in
English/Hindi Newspapers. On the occasion
of World Tourism Day 2008, the Division
released a full-page advertisement focusing
on the theme “Responsible Tourism” and
the initiatives undertaken by the Ministry
of Tourism during the year. Advertisement
assignments were also taken up for the
Ministry of Human Resource Development,
Archaeological Survey of India and Central
Pollution Control Board.
On the print-production front, the Division
designed and produced several jobs for
the Ministry of Tourism (MOT), Ministry of
Communications and Information Technology,
Election Commission of India (ECI), Second
Administrative Reforms Commission (ARC),
Archaeological Survey of India (ASI), Central
Pollution Control Board (CPCB) etc. The
notable assignments included designing of
posters for PATA on behalf of MOT, designing
and production of a hard-bound twin-volume
publication running into over 1800 pages
themed “Changing Electoral Face of India”
for the Delimitation Commission set up by
ECI, a number of books, list of elected MPs,
etc. pertaining to General Election, 2009
for the ECI, a Coffee Table Book captioned
“Monuments of India”, on turnkey basis and
72
a Guidebook on “Monuments & Sites in
Haryana” for the ASI, designing and printing
of the nine Reports (8 to 16 ) of the ARC
th th
under Division’s professional expertise and
two Reports on behalf of the CPCB. Also a
brochure for Security Printing and Minting
Corporation of India was conceptualized/
designed and produced. A Tourism Promotion
Film for West Bengal is in the pipeline.
The Ashok Creatives is a pioneer in
mounting of Sound & Light Shows (SEL)
at different locations of the country. The
shows at Sabarmati Ashram (Gujarat),
Madurai, Kanyakumari (Tamil Nadu), Talatal
Ghar (Assam), Udaigiri (Orissa), Deoghar
(Jharkhand), Kumbhalgarh (Rajasthan),
Hampi (Karnataka) and Chandigarh are
at various stages of development. Of late,
jobs for mounting SEL Shows at Ujjain and
Ludhiana have been awarded to the Division
by the respective Ministries.
With a view to enlarging its area of activities
and strengthening its commercial base, Ashok
Creatives is putting in aggressive efforts for
empanelment as an advertising agency as
also to secure print production assignments
in various Government organizations on the
basis of public-private partnership initiated in
the recent past.
11.14 Ashok Consultancy & Engineering
Services
The Ashok Consultancy & Engineering
Services was engaged for preparation of
Detailed Project Reports for major tourism
circuits/destination by the Ministry of Tourism.
During the year ITDC prepared/contributed
the reports for the development of major
tourist destinations/circuits in areas below :
• Haridwar-Rishikesh
• Churches of Goa
• Gangtok, Sikkim
• Ajmer-Pushkar
• Varanasi-Sarnath-Ramnagar
Besides, the project reports for development
of tourism infrastructure in the States of
Tripura, J&K (Leh), Punjab, Manipur were
prepared and submitted to the Ministry for
their consideration for sanction of Central
Financial Assistance.
As regards the execution of the tourist
infrastructure projects in various States, the
following works have been completed:
(i) Illumination of four monuments in
Delhi namely Subz-Burj, Purana Quila,
Safdarjung Tomb and Sher Shah Suri
Gate.
(ii) Some sites in Circuit Development at
Mizoram.
(iii) Revitalisation of Jallianwala
Amritsar.
(iv) Indian Institute of Skiing
Mountaineering at Gulmarg.
(v) Illumination of Mahabodhi Temple,
Bodhgaya including CCTV System.
Further, the construction work of Puducherry
Institute of Hotel Management & Catering
Technology, Pondicherry, and
destination development work in Arunachal
Pradesh, Imphal, Mizoram are in progress.
The illumination work on the balance nine
monuments in Delhi and a museum on the
theme of freedom struggle at Red Fort is in
process.
Some projects where the Engineering
Division has been facing difficulty and the
State Governments are interested in carrying
out the work themselves, have been/are
being transferred to the State Governments
for execution.
During the year, a thrust has been given
to upgrade ITDC and Joint Venture Hotels
keeping in view the ensuing Commonwealth
Games. Emphasis is also being laid to
conserve energy and make the hotel energy
efficient.
CCTV system is also being provided in major
hotels for security reasons.
INDIA TOURISM DEVELOPMENT
In order to bring all the hotels at par with the
CORPORATION LIMITED
international standards, the provisions to make
the building barrier-free for the physically
challenged persons and the upgradation of
kitchens to HACCUP standards have been
planned.
11.15 Plan Schemes
The RBE for 2008-09 envisages a plan outlay
of Rs. 45.56 crore towards capital expenditure,
which includes Rs. 38.56 crore for renovation/
improvement in existing hotels and remaining
Bagh,
fund for other activities of the Corporation.
The plan capital expenditure during 2008-09
& was Rs.11.30 crore (Provisional).
11.16 Ashok Institute of Hospitality &
Tourism Management
The Ashok Institute of Hospitality & Tourism
Management (AIH&TM), an ISO 9001-2000
accredited establishment, provides training
circuit/ facilities for human resource development
in the Hospitality and Tourism sector. The
training programmes are designed and
conducted as per international standards
to update knowledge, skills and self-
development of students to be internationally
competitive.
During the year 2008-09, 8 training
programmes have been conducted for
277 employees of outside agencies and
6 programmes for 336 ITDC employees /
supervisors in 20 batches. In addition, AIH&TM
73
 conducted Diploma in Air Hostess, Travel & 11.18 Industrial Relations
Hospitality Career Training for 150 students
The overall industrial relations situation
sponsored by the Scheduled Caste Welfare
in ITDC continued to be harmonious and
Department of the Government of Gujarat in
cordial. There was no loss of man-days in
Ahmedabad. This training programme has
ITDC headquarters and its own units.
also been conducted in Bangalore for 183
candidates sponsored by the Department of 11.19 Implementation of Official Language

Social Welfare and 110 students sponsored Policy

INDIA TOURISM DEVELOPMENT

by the Department of the Backward Classes, During the year, the company continued
Government of Karnataka. its efforts to promote the use of Hindi in

CORPORATION LIMITED
The Institute is also conducting 4-year official work in line with the official language

Degree Course in “Bachelor in International policy. Incentive Schemes have been

Hospitality Business Management” in made attractive and lucrative to encourage

association with Kurukshetra University since employees to do their work in Hindi. Cash

2004. The 4th year students of the Degree incentives were granted to the employees on

course were sent to London for six-months doing prescribed quantum of work in Hindi.

internship training. Under the in-service training programme,

employees were nominated for training
The Trade Diploma Courses in Hospitality
in Hindi typing/stenography and Hindi
Operational Department are also being
workshops were organised to impart them
conducted by the Institute in affiliation with
training of noting-drafting and other works in
the Board of Technical Education, Delhi
Hindi. Various Hindi competitions were also
Government. One-year Certificate Course in
organised during Hindi Month celebrations for
Cookery with 110 students each year is also
giving impetus to the use of official language
being conducted. After the training, most
in day-to-day work.
of the students get employment in foreign
countries. 42 Management Trainees and 190 11.20 Conservation of Energy

Apprentices in different trades were trained. ITDC is committed to energy conservation

About 220 Industrial trainees are undergoing at every stage of its operations. Efforts in
training. this direction are driven by commercial

A new job-oriented specialized ‘Cruise considerations as well as energy conservation

Hospitality Course’ has been started in policies and practices. During the year, ITDC

Goa for the Hotel Management qualified/ continued to maintain its thrust on energy

experienced personnel. conservation.

11.17 Human Resource Management

The Human Resource Management Division

is of vital importance especially for service
industry. The total manpower of ITDC as on
31st March, 2009 is 2407 in number. Of these,
707 employees belong to Scheduled Castes
(SCs), 51 to Scheduled Tribes (STs) and 100
to Other Backward Classes (OBCs).
74 75
 WELFARE MEASURES
AND VIGILANCE
WELFARE
MEASURES AND VIGILANCE 12
 12.1 Scheduled Castes/ Scheduled Tribes
Cell
The Liaison Officer for the Scheduled Castes/
Scheduled Tribes Cell in the Ministry which
attends to the grievances on service matters
of Scheduled Caste and Scheduled Tribe
employees of the Ministry and its attached/
subordinate offices is a Director level
Officer. The Cell issues directions to all the
administrative authorities for compliance with
the reservation orders issued from time to
time.
12.2 Reservation for SC, ST and OBC
Candidates
All recruitments in the Ministry and the
subordinate offices are being made as
per the orders of reservation issued by the
Government from time to time and reservation
rosters are maintained accordingly. Regular
annual returns on the subject are forwarded to
Ministry of Social Justice and Empowerment.
12.3 Vigilance Activities
The Vigilance Division in this Ministry is headed
by a Chief Vigilance Officer (Joint Secretary),
assisted by a Director, Under Secretary and
a Confidential Assistant. All possible efforts
are made to process complaints received in
the Ministry and to get them investigated on
time. Wherever necessary, the cases are also
referred to the CBI/ CVC.
12.4 Employment Opportunities to
Physically Challenged Persons
There is no specific scheme or budget
allocation for disabled persons in the sphere
of activities of the Ministry. As per Government
orders, efforts are continued by the Ministry
for exploring job opportunities for physically
challenged persons.
78
12.5 Complaints
The Ministry of Tourism has a Complaint
Cell headed by a Deputy Director General.
Regional Complaint Cells exist in the Regional
Indiatourism offices. The State Governments
have also been requested to set up Complaint
Cells at the state level.
12.6 Initiatives towards Mainstreaming of
HIV/AIDS: Strengthening the National
WELFARE MEASURES
Response
AND VIGILANCE
The National AIDS Control Organisation
(NACO) and the UNDP are implementing
a programme of “Support to the National
Response for Mainstreaming HIV/AIDS” since
2007. As part of this programme, the Ministry
is supporting initiatives to build awareness
on HIV/AIDS among its employees in the
headquarters and the field offices. An HIV
Unit was established in the Ministry, with
a Deputy Secretary as the nodal officer
and a Consultant provided by the NACO/
UNDP. Many activities like presentation,
orientation programmes, sensitization
workshops, conferences, awareness training
programmes, publicity and campaigns were
held in 2008. Currently, a Director is the nodal
officer of NACO.
79
 PROGRESSIVE USE
OF HINDI
PROGRESSIVE USE
OF HINDI 13
 13.1 Joint Director, Official Language (OL)
heads the Hindi Unit. The Unit ensures
compliance with the provisions of the Official
Language Act, 1963, Official Language Rules
and various orders/ instructions issued by the
Department of Official Language from time to
13.5 Compulsory Training in Hindi (iv) Hindi Workshop: Hindi Workshops are has been provided to various Divisions and
arranged for the officers/employees to Sections in the Ministry so that they can work
Almost all officers and employees have
encourage them to work in Hindi. Two in Hindi on the computers.
proficiency and working knowledge in Hindi.
workshops were organized.
13.10 Inspection of Committee of
13.6 Translation and Bilingual Printing of
13.8 Hindi Salahakar Samiti Parliament on Official Language
Manuals, Rules, etc.

time on progressive use of Hindi for official
All the manuals, codes, etc. being used in
purposes.
the Ministry are the ones prescribed and
13.2 Apart from monitoring the brought out by the Department of Personnel
implementation of the Official Language & Training. However, all other rules relating
The Meeting of the Hindi Salahakar Samiti
of the Ministry of Tourism was held on
25 November, 2008 under the chairmanship
th
of the Minister of State for Tourism & Culture.
Second Sub-Committee of Committee of
Parliament on Official Language inspected
Ministry of Tourism, New Delhi on 7th October,
2008 for the progress made in the use of
Hindi. It also inspected the Ashok Hotel, New

Policy and Programmes of the Government,
the Unit arranges training of the staff in the use
to tourism, such as Guidelines regarding
Central Financial Assistance, Guidelines for
PROGRESSIVE USE
13.9 Departmental Website
Delhi on 16th January, 2009 and India Tourism
Hindi version of the Ministry’s promotional Development Corporation, New Delhi on

OF HINDI
of Hindi, Hindi Typing and Hindi Stenography, Recruitment of Tourist Guides and National
website has been launched. Hindi software 2nd February, 2009.
preparation of bilingual documents and Tourism Policy were translated into Hindi.

translation from English to Hindi and vice-
versa. The Official Language Implementation
Committee (OLIC), constituted under the
Chairmanship of Additional
(Tourism), holds regular quarterly meetings
for necessary follow-up on the progressive
use of Hindi.
13.3 The Ministry of Tourism
scheme (introduced in 1989) named “Rahul
Sankrityayan Award Scheme” to present
awards for books written originally in Hindi
on subjects related to tourism. Under
this scheme, there are first, second and
third prizes of Rs. 20,000, Rs. 16,000 and
Rs. 10,000 respectively and one consolation
prize of Rs. 6,000.
13.4 Correspondence in Hindi
In pursuance of Section 3(3) of the Official
Language Act, 1963, all
notifications, communiques, press releases,
rules, regulations, administrative
and all official papers meant for laying in
the Parliament were issued bilingually and
efforts were made to achieve the targets of
correspondence in Hindi with offices and
persons located in “A”, “B” & “C” Regions.
13.7 Special Measures for Promoting the
Use of Hindi
(i) Notifying Office under Rules 10(4):
Secretary
The Ministry of Tourism has already
been notified under Rules10(4) of the
Official Language Rules, 1976.
(ii) Incentive Scheme and Cash Awards:
has a
There exists an incentive scheme for
doing original official work in Hindi.
10 officers/employees have been
awarded cash prizes under this
scheme.
(iii) Hindi Diwas and Hindi Fortnight:
Hindi Pakhwada was organised in
the Ministry of Tourism from 1st-14th
September, 2008. Competitions such as
Essay in Hindi, Noting-Drafting in Hindi,
Picture Expression, Hindi Translation
resolutions, and Hindi Quiz, etc. were held during
this period. On 27th October, 2008, a
reports “Puraskar Samaroh (Prize-awarding
function)” was organised in the Ministry
of Tourism, where Secretary (Tourism)
gave away cash awards and certificates
to winners of the competitions.

82 83
 THE PRIME CONCERN
GENDER EQUALITY –
GENDER EQUALITY –
THE PRIME CONCERN 14
 14.1 Tourism is a service industry with
a strong female presence. That is all the
more reason why gender sensitisation and
ensuring equal rights to the women and men
are important concerns of the Ministry. The
Ministry of Tourism is committed to the Articles
15, 16 & 39 of the Constitution of India that
prohibit discrimination of any form against
women and to provide for equal opportunity
and equal pay for equal work, irrespective of
14.3 The Ministry is represented at the
highest level by a lady. Hon’ble Minister of
Tourism is a lady. The Joint Secretary of the
Ministry is also a lady.
14.4 Women Officers in the Ministry are
posted at the Headquarters, in Regional
Offices and also in the Overseas Offices.
The women employees of this Ministry play a
pivotal role in the organization of conferences,
seminars, exhibitions & road shows of national

THE PRIME CONCERN

GENDER EQUALITY –
sex.
and international importance.
14.2 The Conduct Rules of the Government
14.5 The Ministry has a Grievances Cell for
have a provision to prevent gender bias
women to address problems and grievances
in order to safeguard the right and legal
faced by them.
entitlements of women. The National
Commission for Women was set up by the
Government in 1992.

86 87
 CAT CASES
CAT
CASES 15
 15.1 In three cases pertaining to 15.2 In another case, also pertaining to
Information Assistant related to Assured ACP of a Ski-Instructor, CAT opined that
Career Progression (ACP), CAT, New Delhi the applicant must be granted two financial
had ordered the Ministry to grant financial upgradations under the ACP Scheme.
upgradation. However, the Ministry, in Accordingly, the Ministry has granted two
consultation with the Department of Personnel financial upgradations to the applicant.
& Training (DOP&T) and Ministry of Law filed
a Writ Petition in the Delhi High Court. All
these cases are still pending with them.

CAT CASES
90 91
 RIGHT TO INFORMATION ACT, 2005
IMPLEMENTATION OF
IMPLEMENTATION OF
RIGHT TO INFORMATION ACT, 2005 16
 16.1 The Right to Information Act (RTI Act),
2005 of the Government of India seeks to
promote transparency and accountability
in the working of every public authority and
to empower citizens to secure access to
information available with them. To this end, in
accordance with the provision of Section 4 (I)
(b) of this Act, the Ministry of Tourism brought
16.2 Information on the activities of the
Ministry is provided in its Annual Reports.
These Reports are available to the general
public on the website and in the library.
16.3 The Ministry designated fifteen of its
officers as the Central Public Information
Officers (CPIOs) with each CPIO responsible

RIGHT TO INFORMATION ACT, 2005

for a distinct functional domain. The Additional
out a handbook for information and guidance
Director General (Tourism) of the Ministry is
of the stakeholders and general public and
designated as the Appellate Authority.

IMPLEMENTATION OF
posted it on the Ministry’s official website
www.tourism.gov.in under a distinct section 16.4 Information that is not available in the
namely RTI Act. The handbook provides handbook and the official website can be
information on various schemes, projects obtained after paying the requisite fee.
and programmes being implemented by
the Ministry along with its organizational
set-up, functions and duties of its officers
and employees, records and documents
available, etc. It is appropriately hyperlinked
to other sections of the website.

94 95
 ACCOUNTING ORGANISATION
DEPARTMENTAL
DEPARTMENTAL
ACCOUNTING ORGANISATION 17
 17.1 Secretary (Tourism) is the Chief
Accounting Authority of the Ministry of
Tourism. He discharges this responsibility
with the assistance of the Joint Secretary &
Financial Adviser (JS&FA) of the department
and the Financial Controller. The Financial
Controller heads the accounting organization
and reports to the Secretary through the Joint
Secretary & Financial Adviser. The accounting
organization comprises the Principal
Accounts Office, Internal Audit Wing and one
Pay & Accounts Office at Delhi. The Financial
Controller is Head of the Department for the
accounting organization and is responsible
for:
(i) Consolidation of the accounts of the
Ministry of Tourism in the manner
prescribed by the Controller General of
Accounts.
(ii) Preparation of Annual Accounts of
Demands for Grants for the Ministry of
Tourism, submission of Statement of
Central Transactions and the materials
for the Finance Accounts of the Union
Government (Civil) to the Controller
General of Accounts.
(iii) Payment of loans and grants to the
State Governments through the
Reserve Bank of India.
(iv) Preparation of manuals keeping in
view the objective of management
accounting system, if any, for rendition
of technical advice to Pay & Accounts
Offices, maintaining necessary liaison
with the Controller General of Accounts
Office and to effect overall coordination
and control in accounting matters.
(v) Maintaining Appropriation Audit
Registers for the Ministry of Tourism
as a whole and to watch the progress
98
of expenditure under various Grants
operated by the Ministry of Tourism.
(vi) Arranging internal inspection
payments and the accounting records
maintained by various subordinate
formations and Pay & Accounts Offices
of the Ministry and inspection of
records pertaining to the transactions
of the Ministry of Tourism, maintained in
Public Sector Banks.
Pay & Accounts Office carries out pre-check
of bills submitted by the DDOs (Drawing &
Disbursing Officers) for payment. In some
cases, Pay & Accounts Officers authorize
Cheque Drawing & Disbursing Officers to
operate funds up to a certain level through
issue of “Letter of Credit”. All payments
made by Drawing & Disbursing Officers are
subject to post-check. Any discrepancies/
shortcomings found in the working of the
Drawing & Disbursing Officers (both cheque
& non-cheque drawing) are pointed out in the
Internal Audit reports of those offices.
17.2 The Pay & Accounts Office
The Pay & Accounts Office compiles the
monthly accounts on the basis of the receipts
collected and the payments authorized by
them after reconciling and incorporating the
accounts of cheque Drawing & Disbursing
Officers (DDOs) and submit these accounts
to the Principal Accounts Office. The other
important functions of the Pay & Accounts
Office include authorization of Loans/Grants-
in-aid to statutory bodies/other institutions,
maintenance of General Provident Fund
accounts and settlement of retirement
benefits of Government employees, including
authorization of pension etc.
The Ministry of Tourism operates Grant No.
93 for which the Budget Provision during
2008-09 is as under:
of
(Rs. in crore)
Revenue Section
Plan 439.00
Non-Plan 47.00
Capital Section
Plan 561.00
Non-Plan 00.00
Total 1047.00
(i) Computerization
The office of the Financial Controller has
taken a number of measures to implement
Computerization and introduce IT for overall
improvement and transparency in the
accounting function of the Ministry.
COMPACT
An important initiative in Computerization of
Accounting System, taken at the instance
of the office of the Financial Controller is the
implementation of the COMPACT package
which touches upon the functioning of most
of the areas in the Pay & Accounts Office.
The overall objective towards development
of COMPACT has been to achieve accuracy
and speed in various functions of the Pay &
Accounts Offices, in addition to removing
routine drudgery of manually entering the
same data again and again. Computer
support is being used through this package
to ensure that once the accounts data are
entered, the same can be used at various
places without the need of re-entering for
other purposes like compilation of monthly
accounts, or generating Reports etc.
The system, not only enriches the accounting
and provides better management information,
but also helps in improving the analysis
of the accounting information. There are
various functions, especially those relating to
reconciliation, which involve a lot of manual
work. This package helps in taking care of
such functions apart from improving the
overall accuracy and exchequer control
ACCOUNTING ORGANISATION
through the system. The package also
provides for internal controls and audit
DEPARTMENTAL
through computerized validation and is thus
of great help in improving the quality of
accounts. Improvement in office ambience is
also a by-product of Computerization.
Several other steps are being taken in the
office of the Financial Controller to increase
the Computerization process for which the
officials are regularly being sent for training
at the Institute of Government Accounts &
Finance (INGAF).
The Pay and Accounts Office is regularly
uploading the data in e-lekha on daily
basis at website www.cga.nic.in/elekha/
elekhahome.asp
(ii) Computerization in Principal Accounts
Office
The account is consolidated in the Principal
Accounts Office through another software
called “CONTACT”. The compilation is
done by the Pay and Accounts Officers in
the COMPACT and the floppy generated is
forwarded to the Principal Accounts Office.
The Principal Accounts Office consolidates
the accounts in CONTACT software. The
consolidated account of the Ministry is sent to
the Ministry of Finance, Controller General of
Accounts for further consolidation of accounts
of the Union of India. Several reports are also
generated through “CONTACT” software
package.
99
 With the aid of these accounting packages
and other accounting records, the Principal
Accounts Office prepares the monthly
expenditure report (even weekly/fortnightly
when required) for the benefit of the Ministry
in planning, monitoring etc.
The Fiscal Responsibility and Budget
Management (FRBM) Act, 2003 mandates
minimum quantifiable targets for reducing
the growth of debt, deficit and guarantees
in a time-bound manner and also suggests
a series of improvements in the area of
fiscal transparency and medium-term fiscal
planning to improve Budget Management.
With the implementation of the FRBM, the
Principal Accounts Office prepares a monthly
expenditure/receipt analysis of the Ministry,
showing – (a) Consolidated Major Head-
wise Receipts (b) Major Scheme-wise Plan
Expenditure and (c) Month-wise trend of
expenditure (both Plan and Non Plan) along
with graphic depictions and transmits it to the
office of the Controller General of Accounts for
consolidation and further transmitting it to the
Ministry of Finance. Also, the data of Receipt
and Expenditure relating to the Ministry are
hosted every month on the website of the
Ministry.
In addition, the office of the Financial Controller
prepares an ‘Annual Accounts at a Glance’
giving detailed analysis of the accounts and
the financial performance of the Ministry. This
is also available on the Ministry’s website.
(iii) Internal Audit
Internal Audit Wing in the Ministry of Tourism
is headed by the Financial Controller who is
assisted by the Assistant Financial Controller,
one Senior Accounts Officer and four
Assistant Accounts Officers.
100
Internal Audit functions as an important tool
for reviewing of accounting, financial and
administrative functions. It highlights the
important areas of deficiencies. The Internal
Audit provides a basis for taking remedial
and corrective measures to avoid audit
objections.
The Internal Audit Section at the headquarters
maintains a Control Register of Internal Audit
for each financial year to serve as a basic
and permanent record of the inspection of
various units carried out by the Internal Audit
Inspection Wing. The Internal Audit Section at
the headquarters draws an Internal Audit plan
based on the classification of the units to be
audited annually, bi-annually depending on
the budget allocation and staff strength of the
units. Every year in the first week of March,
particulars of all units due for inspection
during the ensuing financial year are
recorded in the Control Register of the next
financial year. Based on such information,
Internal Audit programmes are prepared on
quarterly basis.
Intimation of the proposed visits of the
Inspection parties is sent to the concerned
Heads of the Offices / Pay and Accounts
Offices at least one month in advance so that
all the accounts books and other relevant
records are kept ready to facilitate smooth
working of the inspection. Simultaneously, an
intimation regarding inspection of the office
of the DDO is sent to the Pay and Accounts
Office.
The Senior Accounts Officer/ Accounts
Officer supervises the inspection party. The
percentage of supervision is determined with
due regard to the nature of the unit inspected
and the volume of work involved. Where
necessary, the Financial Controller/Assistant
Financial Controller may himself supervise
the working of any Inspection party.
In order to speed up the progress and to
achieve the targets of auditing of the units
of the Ministry of Tourism, additional Internal
Audit parties were constituted consisting of
officers from the Regional Pay and Accounts
Offices situated in Mumbai, Kolkata and
Chennai.
In the financial year 2008-09, 20 units were
audited till December 2008 against overall
40 units completed during the financial year
2007-08.
Scope of Internal Audit
(i) To study the Accounting Procedure
prescribed by the Department with a
view to ensuring that they are correct,
adequate and free from any defects or
lacunae.
(ii) Watch implementation of the prescribed
procedures and other issues from time
to time.
(iii) Scrutiny and check of payments and
accounting work of the accounting
units.
(iv) Investigation of important areas on
accounting and other connected
records.
(v) Co-ordination with other Ministries and
the office of the Controller General of
Accounts regarding audit procedures.
(vi) Periodical review of all accounts
records.
(vii) Pursuance/settlement of objections
taken in rest audit notes issued by the
statutory audit offices and other matters
relating to statutory audit.
(viii) To examine and report on points or
irregularities brought to its notice by the
Principal Accounts Office and the Pay
and Accounts Offices in the Ministry/
Department.
(ix) Preparation and submission of Annual
Review on performance of Internal
Audit Wing to the Internal Audit Wing of
the Controller General of Accounts.
Nature of Audit
ACCOUNTING ORGANISATION
The nature of checks by the Internal Audit
Wing are as follows:
DEPARTMENTAL
(i) Detailed scrutiny of accounts and
records required to be maintained in
the Pay and Accounts Offices and in
the Drawing and Disbursing Offices.
(ii) Verification of payments and
accounting procedure in the
Departmentalized System of Accounts
including procedure to be followed by
the Cheque Drawing DDOs.
(iii) Verification of the extent and frequency
of control and checks exercised by the
Heads of the Offices in order to locate
any lacunae in the procedure whereby
frauds or defalcations may be possible
either by individual or in collusion.
Wherever necessary, steps to remove
such lacunas are suggested.
(iv) Scrutiny of sanctioning and purchase
procedure in the offices inspected.
(v) Checking procedure in regard to
disposal of assets to ensure that there
exists adequate scrapping.
(vi) Scrutiny of General Office Management
procedure adopted by the Heads of
the Offices locally where they have
financial and accounting implications,
so as to suggest tightening up
administrative and financial control,
savings in expenditure or streamlining
of accounting.
101
 Internal Audit performance during 2008-09

The number of units due for audit in the financial years 2007-08 and 2008-09 and audited in
2007-08 and in 2008-09 (up to December) are as under:-

No. of units No. of units No. of units No. of units

due for audit audited due for audit audited in
2008-09
(up to

ACCOUNTING ORGANISATION
December)

2007-08 2007-08 2008-09

DEPARTMENTAL
Outside Delhi 35 35 35 18

Delhi 5 5 5 2

Overseas 13 Nil 13 Nil

Total 53 40 53 20

(iv) Follow-up and remedial action

The Internal Audit Section at the headquarters books etc. where Department/Office has
maintains a Control Register of Internal Audit accepted the Internal Audit point of view and
to keep a watch on the receipts and issue of has intimated that the necessary compliance
the Internal Audit Report. can be verified during the course of checking
of all such records at the time of next
The Head of Office is expected to furnish
inspection, may be treated as finally settled.
para-wise replies to the Inspection Report
through the Controlling Officer/Head of the Specific objections pointing out over-
Department within six weeks from the date of payments, short and non-realization of
issue of the final report. The progress of the Government dues, irregular payments
settlement of objections is watched though of grants, non-utilization of costly stores,
the Control Register of outstanding reports/ equipment and machinery, irregular
paras. First reminder for para-wise replies to purchases and other serious irregularities
the inspection report is issued after six weeks where the Department/office has furnished
from the date of its issue. satisfactory replies are treated as settled
subject to the verification at the time of next
An objection book is maintained at the
audit. The outstanding audit reports/ audit
headquarters entering therein objections
paras are reviewed periodically.
having money value. The progress of recovery
or sanction to write off the loss is watched An annual review on performance of
though this book. Internal Audit is sent to the Department of
Expenditure, Controller General of Accounts
Objections of routine nature relating to initial
and the Secretary (Tourism).
records i.e., cash book, log book, overtime
allowance register, stock register and service

102 103
 COMMONWEALTH GAMES,
DELHI – 2010
COMMONWEALTH
GAMES, DELHI – 2010 18

18.1 The XIX Commonwealth Games (CWG-
2010) are scheduled to be held in
New Delhi, India in October 2010. This
would be a large multi-sport event in
Delhi, after the Asian Games in 1951
and 1982. The opening ceremony
is scheduled to take place at the
Jawaharlal Nehru Stadium, New Delhi.
18.2 The Commonwealth Games during
2006 in Melbourne had attracted
90,000 visitors and it is expected that
more than a lakh visitors would come
to Commonwealth Games 2010. At
present, there are only about 11,000
rooms in the star category hotels
in the NCR. The Ministry of Tourism
(MOT) estimates that 30,000 additional
hotel rooms would be required in the
National Capital Region (NCR) for
Commonwealth Games 2010.
18.3 In order to meet the shortfall of
accommodation the Ministry of Tourism
has been in regular touch with the
‘Land Owning Agencies’ in the National
Capital Region of Delhi for creation of
the additional hotel rooms. In order to
106
encourage the growth of new hotels, on
the request of the Ministry of Tourism,
the Ministry of Finance has given a
five-year tax holiday under Section 80-
ID to 2, 3 and 4-star category hotels
and convention centers which will be
functional between 1 April, 2007 and
st
31 st
March, 2010 in National Capital
Territory Region of Delhi and the districts
of Faridabad, Gurgaon, Gautam Budh
Nagar (NOIDA) and Ghaziabad.
18.4 The Delhi Development Authority
(DDA)/Ministry of Urban Development
has announced the increase in Floor
Area Ratio (FAR) from 150 to 225 for
hotels in Delhi excluding the hotels
falling in the Lutyens Bungalow Zone
etc. to provide additional rooms in
existing and new hotels. Further, the
Ministry of Tourism has advised all
existing hotels to upgrade and be
ready for the Games.
18.5 A Task Force has been constituted
in the Ministry of Tourism, under the
Chairmanship of Secretary, Tourism,
for monitoring the progress of the
various agencies for creation
additional hotel accommodation in
NCT of Delhi. These agencies include
the State Governments of Uttar
Pradesh & Haryana, the Ministries of
Railways & Civil Aviation, the Delhi
Development Authority (DDA), Delhi
Metro Rail Corporation (DMRC), Delhi
Airport International Limited (DIAL) etc.
Regular meetings are held to review
the progress. In addition, meetings to
review and monitor the arrangements
for the CWG-2010 are also being
conducted regularly by the Committee
of Secretaries (CoS), Group of Ministers
(GoM), the Lt. Governor, Delhi, the
Chief Minister of Delhi and the Minister units are estimated to be ready and
of State (Sports). available for the Games. This scheme
would provide the guests a unique
18.6 For the purpose of augmentation
and authentic Indian homestay
of budget accommodation during
experience. With a view to encourage
the Games, a proposal is under
the growth of such establishments and
consideration to use housing flats
also to smoothen the procedure of
of the Delhi Development Authority
approvals, the Ministry of Tourism has
(DDA). The DDA would construct these
recently reviewed the scheme and has
flats with richer specifications under
COMMONWEALTH GAMES,
simplified the guidelines by amending
various categories which are located
certain norms. This scheme is also
at Vasant Kunj and Jasola. The India
given publicity through our website.
DELHI – 2010
Tourism Development Corporation
(ITDC) would upgrade & furnish these 18.9 The Organizing Committee,
flats and operate such units during the Commonwealth Games, have indicated
Games. a requirement of 6,000 rooms in the
three, four & five star category hotels for
18.7 A substantial number of rooms of
the Games family, technical delegates,
the guest houses under the budget
officials, media, observers, sponsors
category would also be available in
and CWG-2010 representatives etc.
the National Capital Territory of Delhi
The Organizing Committee, CWG-2010
for the Games. The Ministry of Tourism
would be setting up a “Games Travel
has got a survey done of the licenced
Office” for its travel requirements. It
guest houses along with Municipal
would also be designating a “Games
Corporation of Delhi and Delhi Police
Family Hotel”, which would be the
(Licensing) through the Institute of
venue for main official functions related
Hotel Management, Pusa, New Delhi in
to the Games and also the place where
order to compile a data base of these
dignitaries would be staying. The
of units and to ascertain their standards
Ministry of Tourism is co-ordinating with
of services and facilities. In order to be
hotel industry associations like Hotel
ready for the Games, the Ministry of
Association of India (HAI), Federation
Tourism has initiated the training of the
of Hotel & Restaurant Associations of
owners/management & staff of these
India (FHRAI) for the room requirements
identified guest houses to upgrade
and with the travel & transport
their standards and soft skills under
industry associations in respect of the
the scheme of Capacity Building for
requirements of vehicles of Organizing
Service Providers (CBSP) through the
Committee, CWG-2010 etc. As regards
IHM, Pusa, and New Delhi.
the requirements of the sports teams,
18.8 The Ministry of Tourism has launched officials etc, the same would be housed
the “Incredible India Bed and in the Commonwealth Games Village.
Breakfast/ Homestay” scheme all over
18.10 The Ministry of Tourism has introduced
the country. Around 3,000 “Incredible
“Earn While You Learn”, a short training
India Bed and Breakfast/Homestay”
scheme, with the objective to sensitize
107
 youth to tourism service in order to
evince interest in becoming a service
provider in the field of tourism. Youth
trained under this scheme will also
be utilized for the CWG-2010. The
programme is a short-term training
programme of 21 days to encourage
youth to work as student-volunteers
18.11 The Ministry of Tourism proposes to
in tourism industry. The CWG-
under the ongoing scheme of the
Ministry of Capacity Building for Service
Providers. The Ministry of Tourism also
proposes to utilize the students of the
Institute of Hotel Management, Pusa to
augment the manpower requirements
during the Games.
promote the CWG-2010 overseas

COMMONWEALTH GAMES,
2010 would require an estimated
for which Branding and Publicity
15,000 – 20,000 pool of trained and
Campaigns would be held in
experienced volunteers. The Volunteer

DELHI – 2010
Commonwealth markets like UK,
Programme is being managed by the
Canada, Australia, New Zealand,
Organizing Committee, CWG-2010
South Africa, Singapore and Malaysia
along with different agencies. The
in the form of Fam Tours for media and
Ministry of Tourism has proposed to the
important players from trade etc.
Organizing Committee that training of
some volunteers may be conducted

108 109
 NORTH EASTERN REGION
AN OVERVIEW OF
AN OVERVIEW OF
NORTH EASTERN REGION 19
 19.1 Government of India attaches great
importance to the development of tourist
infrastructure in the North Eastern region in
view of its immense tourism potential. North
Eastern Region comprises eight States
namely; Arunachal Pradesh, Assam, Manipur,
Meghalaya, Mizoram, Nagaland, Tripura
and Sikkim. The location of the region is
strategically important as it has international
borders with Bangladesh, Bhutan, China and
Myanmar.
The rich natural beauty, serenity and exotic
flora and fauna of the area are invaluable
resources for the development of eco-
tourism. The region is endowed with diverse
tourist attractions and each State has its
own distinct features. The attractions are
scattered over the entire region and are
largely located in remote areas within highly
fragile environment. These attractions and
the people of the region constitute the tourism
resources at large. Despite abundance of
natural beauty, snow-peaked mountains
112
and white water rivers and cultural diversity,
number of tourist arrivals has been marginal
due to lack of adequate infrastructure and
other tourist amenities at various tourist
attractions in the region.
Towards achievement of this objective,
10 % of the Plan allocation of the Ministry
has been earmarked for the development
and promotion of North Eastern Region.
The financial assistance being given to
North Eastern States includes assistance
for development of tourist infrastructure,
promotion of fairs/festivals and tourism
related events in the region, Information
Technology (IT) related projects, publicity
campaigns, market development assistance,
human resource development, promotion
and marketing etc. An amount of Rs. 100
crore was allocated in the year 2008-09 for
the region.
In order to develop and promote tourism in
the region, Ministry of Tourism has taken the
following steps.
19.2 Infrastructure and other projects
A mega project – Development of Gangtok
as a major destination has also been
sanctioned for the State of Sikkim. Under
Adventure tourism, three projects have been
sanctioned: Development of Aero-sports at
Aizwal, Mizoram; High Altitude Trekking in
Sikkim; and Purchasing of Adventure Sports
Equipment, Manipur.
19.3 Rural Tourism
The Rural Tourism scheme is the 10th plan
initiative of the Ministry of Tourism. It aims at
improving the rural economy by promoting
traditional rural art, craft textile, culture etc.
and livelihood through tourism process. The
Ministry gives CFA for creating infrastructure
and for human resource development in rural
areas for developing sustainable tourism in
the form of rural tourism projects. In 2008-09,
three sites in Sikkim and two sites in Nagaland
have been given CFA under rural tourism.
19.4 Participation in International Travel
Fairs and Exhibitions
Free space is provided to North Eastern
States in the India Pavilion at SATTE and
at important international travel fairs and
exhibitions such as ITB Berlin, WTM London
etc. This is given on complimentary basis so
that the states can showcase and promote
their tourism products in the international
markets.
19.5 Market Development Scheme
Under the scheme, the Tour Operators of the
North Eastern Region, which are approved by
the State Governments, will also be eligible
for assistance for trips overseas for promotion
through participation in international travel
trade fairs or for sales promotion.
19.6 Hospitality to Foreign Media/Travel
Trade Personnel
The Ministry of Tourism extends hospitality to
Journalists, Travel Trade and Travel Writers
etc. from different countries of the world so
as to promote India including North Eastern
Region as a tourist destination. The Ministry
of Tourism, Government of India organized
two familiarization tours of prominent tour
NORTH EASTERN REGION
operators and media personalities who
AN OVERVIEW OF
visited various destinations/locations in the
States of North Eastern Region.
19.7 Publicity
In order to give wide publicity to the tourist
attractions of the North East Region, the
Ministry has produced a series of collaterals
including State-wise brochures and thirteen
posters on each individual state and
five themes related to the region such as
music & dance and arts & crafts.
A compendium on North East as a whole
and also a set of six display scrolls on
each of the individual state of North East
have been produced. A website devoted to
North East (www.northeastofindia.com)
has been launched. A logo and brand-line
for the North East titled “India’s North East
– Paradise Unexplored” has been devised
for the North Eastern Region. A CD of the
brochure and a high resolution image CD
on the Region have been produced. Films
and commercials on North East and a
film on Eastern Himalayas have also been
produced. In 2007-08, Rs. 7 crore and in
2008-09 Rs. 11 crore have been spent for
promotion of North Eastern Region.
113
 IMPORTANT AUDIT
OBSERVATIONS
IMPORTANT
AUDIT OBSERVATIONS 20
 20.1 Undue benefit to a private publisher in
printing of the magazine “Incredible India”
Ministry of Tourism failed to consider
the potential for revenue generation to
Government, while awarding the work of
publication of the “Incredible India” magazine
to a private publisher and subsequently
renewing the agreement with the same
publisher. This resulted in significant loss of
revenue to the Government. In addition, there
were significant deficiencies, affecting the
transparency of the contracting process.
20.2 Wasteful expenditure on hiring of
excess space at World Travel Market
Due to improper assessment, Government
of India Tourist Office in London hired space
in excess of requirement of World Travel
Market during the years 2003, 2004 and 2005
leading to significant underutilization of space
and wasteful expenditure of Pound 255,069
(Rs. 2.06 crore).
20.3 Recovery at the instance of Audit
At the instance of Audit, the Ministry recovered
an amount of Rs.19.20 lakh disbursed as
Central Financial Assistance for a project in
Karnataka, which had not been executed.
20.4 Performance Audit of “Product/
Infrastructure Development for Destination
and Tourist Circuits”
• Ministry of Tourism (MoT) released
Rs. 1500 crore during 2002-03 to
2006-07 to State Governments for
implementation of various projects
relating to Destination Development
and Tourist Circuits, but did not
monitor utilization of these funds in
an effective manner to ensure timely
implementation of the projects by the
State Governments.
116
• Internal controls in the MoT were found the detailed proposal/project plan. In • The monitoring committee for
lacking as excess central financial the absence of a forecast on tourist overseeing the implementation of
assistance (CFA) of Rs. 2.96 crore inflow, normal annual growth rate and Destination and Circuit projects
was released in nine projects without additional growth rate envisaged as had not been constituted and the
restricting the assistance to 90 per cent a result of the projected investment, convergence committee for overseeing
of the project cost. Similarly, MoT also there were no benchmarks to verify the implementation of rural tourism projects
released excess CFA of Rs. 2.90 crore actual achievement of objectives. had not been set up in four States.
in eight projects by sanctioning funds
to cover the cost of the project that was
to be borne by the State Governments.
Three projects costing Rs. 6.97 crore
IMPORTANT AUDIT
OBSERVATIONS
were also sanctioned without the
approval of the competent authority.
• Funds amounting to Rs. 86.27 crore
released for tourism projects were lying
unutilized with the State Governments/
executing agencies in Kerala, Tamil
Nadu, Uttarakhand, Madhya Pradesh
and Chhattisgarh.
• Utilisation Certificates (UCs) were
not submitted regularly by the State
Governments. Some of the UCs
furnished were found inaccurate and
incomplete in test check.
• Nearly 50 per cent of the projects
selected for detailed audit scrutiny in
six states were found delayed due to
delay in acquisition of land and issue
of work orders, change of site, slow
progress of work and short release of
funds by the State Governments.
• In Chhattisgarh and Uttarakhand, no
authenticated data was maintained for
identification of most visited sites. In
Kerala and Tamil Nadu, four projects
costing Rs. 19.93 crore were selected
without adhering to the scheme
guidelines.
• In some states, no forecast for
increased tourist inflow was made in
117
 ANNEXURES
ANNEXURES
 ANNEXURE I ANNEXURE II
ORGANISATIONAL CHART
PROJECTS SANCTIONED TO THE STATES/UNION TERRITORIES

Sl. No. States Number of Amount sanctioned Amount released

Sujit Banerjee
Projects (Rs. in lakh) (Rs. in lakh)
Secretary to the Government of India and Director General (Tourism)
1 Andhra Pradesh 7 9980.58 5480.88
2 Arunachal Pradesh 13 3147.74 2517.81
3 Assam 4 2107.61 1686.09

Additional Secretary 4 Bihar 9 1798.45 1438.76

Sanjay Kothari
5 Chandigarh 5 799.11 590.73

ANNEXURES
6 Chhattisgarh 1 1133.82 566.91
7 Dadra & Nagar Haveli 3 24.88 19.90
8 Daman & Diu 1 12.50 10.00
ADG (T)
Devesh Chaturvedi
Joint Secretary
Leena Nandan
Addl. Director General (MR)
Dr. R.N. Pandey
Advisor (T) Joint Secretary &
Dr. Manas Bhattacharya Financial Advisor
9 Delhi 1 15.00 12.00
(Economic Advisor) E.K. Bharatbhushan
10 Goa 2 4314.91 105.00
11 Gujarat 7 2133.66 1462.75
12 Haryana 7 2495.49 740.22
13 Himachal Pradesh 9 2977.66 2382.12
Director
(Admn.)
DDG
(TT)
Dy. Secy
(HRD,
Jt. Director
(OL)
DDG
(H&R)
Jt. DG (MR)
Ajay Kumar Gupta
Asstt. DG
Sethuraman Sathish
Deputy Secretary (Fin.)
K. Ravindran 14 Jammu & Kashmir 25 3827.57 1866.99
Umesh Kumar JP Shaw RTI & DO) Devki Vikas Rustagi
Kalra Vijay Kumar 15 Kerala 12 4269.52 2977.45
16 Karnataka 4 4273.21 2433.11
17 Maharashtra 3 4110.05 2166.58
18 Manipur 9 2943.84 2355.07
19 Meghalaya 6 1238.54 995.83
Director Director DDG (Publicity, Asstt. DG (OM)
Prabhakar Umesh Kumar M.Mehta
Dubey Kalra*
Event & IT)
Madhu Dubey
20 Mizoram 4 318.38 254.71
21 Madhya Pradesh 11 3141.11 2335.37
22 Nagaland 11 2544.66 2035.70
MR – Market Research DDG – Deputy Director General 23 Orissa 6 4085.38 2385.47
T – Tourism Dy. Secy- Deputy Secretary
24 Puducherry 4 252.80 202.24
TT – Travel Trade
H&R – Hotels & Restaurants 25 Punjab 3 1968.10 848.35
HRD – Human Resource Development 26 Rajasthan 8 4189.56 2965.73
RTI – Right to Information
DO – Domestic Offices 27 Sikkim 23 7076.38 4938.34
OL – Official Language 28 Tamil Nadu 15 3595.72 2871.07
OM – Overseas Marketing
IT – Information Technology
29 Tripura 6 360.94 289.71
Fin – Finance 30 Uttar Pradesh 6 3839.64 2631.81
DG – Director General
31 Uttarakhand 3 4468.72 1474.94
*Umesh Kumar Kalra holds dual charge 32 West Bengal 8 3282.27 2006.04
Total 236 90727.80 55047.68

120 121
 ANNEXURE III ANNEXURE III
LIST OF SURVEYS/STUDIES LIST OF SURVEYS/STUDIES

A. Surveys/Studies/DPRs/Feasibility Studies 5. Tourism Survey for the State of 2. Study to assess the requirement 5. Detailed Project Report for
completed during the year 2008-09: Maharashtra. of Hotel Rooms/Accommodation Jagannath Puri, Bhubaneswar &
Surveys/Studies: 6. Tourism Survey for the State of in Metro Cities and 50 Major Tourist Chilka as Mega Tourism Circuits in
Punjab. Centres in India. Orissa.
1. Evaluation study of the plan
7. Tourism Survey for the State of 3. Action Plan to raise the number 6. Detailed Project Report (DPRs) for
scheme “Assistance to IHMs/FCIs/
Delhi. of foreign tourists visiting India Freedom Struggle Circuit &
IITTM/NIWS”.
8. Continuous Tourist Survey in from 3 million to 15 million in 5 Religious Circuit in Punjab.
2. Evaluation study of the plan
Kerala. years’ time, 20 million in 8 years’ 7. Detailed Project Report (DPRs) for
scheme “Computerization &
9. Study on Problems and prospects time and 25 million in 10 years’ time. destination development for
Information Technology”.
of Accessible Tourism in India. 4. Evaluation of the scheme “Incentive Amritsar, Patiala & Wagah Border
3. Evaluation study of the plan
10. Study to analyze the factors to Accommodation Infrastructure”. in Punjab.

ANNEXURES
scheme of “Assistance for Large
responsible for slow-down in 5. Evaluation study of the scheme of 8. Detailed Project Report (DPR) for
Revenue Generation Projects”.
tourism sector in India. Rural Tourism the Mega Tourism Project of Varanasi-
4. Evaluation study of the plan scheme
11. Tourism development plans for 6. Evaluation study for the plan Sarnath in Uttar Pradesh.
“Market Research - Professional
the States of Meghalaya & Arunachal scheme of Domestic Promotion & 9. Detailed Project Report (DPR) for
Services”.
Pradesh. Publicity Hospitality. development of Aero Sports at
Detailed Project Reports: 7. Evaluation of the scheme of Aizawl in Mizoram.
Master Plans/ Detailed Project Reports:
1. Detailed Project Report for financial assistance to States for 10. Detailed Project Report (DPR)
1. Detailed Project Report for circuits/
Infrastructure development of Culturally development of circuits/destination for Tourism Circuit Development
destinations at Dhalai – North
Significant Circuits of Haridwar– as also a sample of projects at Itanagar Zero-Daporijo-Basar in
District Circuit in Tripura.
Rishikesh-Muni Ki Reti-Swargashram in sanctioned to the State Arunachal Pradesh.
2. Detailed Project Report for circuits/
Uttarakhand under Mega Circuit/ Governments. 11. Detailed Project Report (DPR) for
destinations at West – South
Destination. 8. Evaluation study for the plan Tourism Destination at Mechuka
District Circuit in Tripura.
2. Detailed Project Report for scheme of Capacity Building for (West Siang Distt.) in Arunachal
3. Detailed Project Report for
Infrastructure development of the Service Providers (CBSP). Pradesh.
destination development at
Culturally Significant Destination in 9. Survey on collection of domestic 12. Detailed Project Report for Tourism
Amarpur in Tripura.
Gangtok, Sikkim under Mega tourism statistics for the State of Destination at Jai Rampur War
4. Detailed Project Report for
Circuit/Destination. Uttar Pradesh. Memorial (Changlang District) in
destination development at Khowai
3. Detailed Project Report for 10. Survey on collection of Domestic Arunachal Pradesh.
in Tripura.
Infrastructure development of Tourism Statistics for the State of 13. Detailed Project Report for
5. Detailed Project Report for rural
Culturally Significant Destinations Goa. destination development of
development at Bagbari
for development of Churches of 11. Survey on collection of Domestic Dumbur Lake in Tripura.
(Mohanpur) in Tripura.
Goa under Mega Circuit/ Tourism Statistics for the State of 14. Detailed Project Report for
6. Detailed Project Report for rural
Destination. Orissa. destination development of Belonia
development at Baramura Eco
4. Detailed Project Report for Detailed Project Reports: in Tripura.
Park (Teliamura) Rural Village in
development of “Ishingthinabi 15. Detailed Project Report for
Tripura. 1. Detailed Project Report for
Lake” Thoubal in Manipur. destination development of
7. Detailed Project Report for rural Southern Tourist Circuits – Phase-
5. Detailed Project Report for Agartala in Tripura.
development at Sarasima (Belonia) II, two destinations at Kanhmum &
development of Khongjom War 16. Detailed Project Report for
Rural Village in Tripura. Sakawrdai; two Rural Tourism
Memorial Complex, Thoubal in destination development of
8. Detailed Project Report for rural Circuits at Sesawng Village
Manipur. Udaipur in Tripura.
development at Kalapania & Thenzawl village in the State of
B. Surveys/Studies commissioned/taken up 17. Detailed Project Report for Rural
(Sonamura) Rural Village in Mizoram.
during 2008-09: Tourism Project at Banabithi in
Tripura. 2. Detailed Project Report for
Tripura.
Surveys/Studies: C. Surveys/Studies/DPRs/Feasibility destination development at Aizuto
18. Detailed Project Report for Rural
1. International Passenger Survey. Studies completed during the year and Tuophema in Nagaland.
Tourism Project at Hurijala in
2. Domestic Tourism Survey by 2007-08: 3. Detailed Project Report for
Tripura.
National Sample Survey development of Circuit at Tueasang-
Surveys/Studies:
Organisation. Zunheboto-Kiphire in Nagaland.
1. Study to quantify the size, scope 4. Detailed Project Report for Circuit
3. Tourism Survey for the State of
and economic impact etc. of the development at Wokha-Nuiland
Andhra Pradesh.
India’s Convention Industry. Dimapur-Peren in Nagaland.
4. Tourism Survey for the State of
Jharkhand.
122 123
 ANNEXURE IV ANNEXURE V
DOMESTIC INDIATOURISM OFFICES OVERSEAS INDIATOURISM OFFICES

Regional Offices
Sl. No. Operation/Station Countries Covered
1. New Delhi

2. Mumbai America
1. New York All States on the East Coast of USA, South America
3. Kolkata
up to Columbia/Venezuela
4. Chennai 2. Los Angeles All States on the West Coast of USA up to Panama

5. Guwahati 3. Toronto Canada and Greenland

ANNEXURES
Other Offices UK

1. Patna 4. London UK, Ireland and Iceland

2. Jaipur Europe

3. Bangalore 5. Frankfurt Germany, Poland, Czech Republic, Slovakia, Austria,

Romania, Bulgaria, CIS countries, Israel
4. Varanasi
6. Paris France, Switzerland, Spain, Portugal
5. Agra
7. Amsterdam Netherlands, Luxembourg, Belgium,
6. Bhubaneswar Scandinavian countries
8. Milan Italy, Greece, Malta
7. Port Blair

8. Imphal West Asia

9. Dubai KSA, UAE, Iran, Syria, Kuwait, Qatar, Bahrain,
9. Shillong
Jordan, Yemen, Lebanon, Iraq, Egypt, Turkey
10. Hyderabad 10. Johannesburg South Africa, Kenya, Mozambique, Tanzania,

11. Kochi Zimbabwe, Mauritius, Madagascar

12. Goa Australasia

13. Aurangabad 11. Sydney Australia, New Zealand, Fiji and The Pacific
12. Singapore Singapore, Malaysia, Thailand, Brunei, Indonesia,
14. Khajuraho
Vietnam
15. Naharlagun (Itanagar)
East Asia
13. Tokyo Japan, South & North Korea, The Philippines

14. Beijing Mainland China, Taiwan, Hong Kong, Laos,

Mongolia and Macau

124 125
Designed and produced for the Ministry of Tourism, Government of India, by Ashok Creatives,
India Tourism Development Corporation and printed at Mehta Offset Pvt. Ltd., New Delhi 110 028