Creation of

Wellness Tourism
Facilities at Multiple
Locations
Tourism
Government of Gujarat
Contents

Project Concept 3
Market Potential 4
Growth Drivers 5
Gujarat – Competitive Advantage 6
Project Information 7
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 10
Approvals & Incentives 13
Key Department Contacts 15

Page 2
Project Concept

Wellness Tourism
Wellness tourism involves people who travel to a different place to proactively pursue activities that
maintain or enhance their personal health and wellbeing, and who are seeking unique, authentic or
location-based experiences/therapies not available at home

Types of wellness tourism

 Hotels and Hospitality

 Hospitals and Medical Centers
 Resorts and Retreats

Purpose of wellness tourism

Wellness travellers pursue diverse services
 Spiritual needs
 Environmental purpose
 Beauty treatments
 Social purpose
 Healthy diet and weight management
 Health-related education.
 Relaxation and stress relief

Wellness travellers may seek procedures or treatments using conventional, alternative,

complementary, herbal, or homeopathic medicine.

Wellness Tourism and Medical Tourism Market Spectrum

Wellness
Cruises Ashrams
Wellness Yoga/ Spiritual
Gyms Hotel/ Day Tourism
Retreats Eco-
Spas
Resort Spas
Beauty
Spas
Clinics
Thermal
Integrative Baths Location
Generic Medical Health based
experience
Spas experience
Centers
Thalasso-
therapy Spas
Dental Cosmetic Ayurvedic
clinics Surgery clinics Clinics
Medical Traditional
Tourism
Chinese Medicine
Hospitals
Centers

Page 3
Market Potential

India- Market Potential

Indian wellness AYUSH
Foreign tourists Share of AYUSH sector registered
arrival in India in market (2014) wellness turnover (2014) practitioners
2015 services(2014) (2014)

8.03 m INR490 bn* 40% INR120 bn 736,538

India’s wellness tourism market is expected to surpass US$18 billion by 2019, clocking
over 20% gains annually through 2017

AYUSH – Department of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy
* includes both products and services

Gujarat- Market Potential

Tourist flow 2014-15 (in millions) 51 16 34,833
Ayurveda Homeopathy AYUSH registered
Leisure 2.4 hospitals hospitals practitioners

Spiritual 10.2 Naturopathy centres:

 Navjivan Nature Cure Centre, Kutch
Business 19.2  NIMBA Nature Cure Village, Mehsana
The gross tourist flow in Gujarat during 11 16
the year 2014-15 was ~32.6 million out of
Ayurvedic college Homeopathy college
which ~8% travelled for leisure purpose

Drivers of Wellness Tourism in Gujarat

Policy support
 The government of Gujarat has decided to
give industry status to tourism sector
implying it would get the same benefits
given to only industries, such as loan
interest subsidies, concessions in taxes
as well as in electricity duty
 Health resorts offering Ayurvedic
Treatments like the Panchkarma Therapy
and other treatments would be developed
and suitably incentivised through a
separate government resolution.
Availability of Ayurvedic products
 Gujarat is a pharmaceutical
manufacturing hub with ~20% Ayurvedic
manufacturing units spread over four
clusters – Ahmedabad, Vadodara,
Ankleshwar and Bharuch & Vapi/ Valsad.
 At least 25-30 companies including small
and mid-sized pharmaceutical firms have
either started making such products or are
in the process of developing them.

With a 17.7% growth in leisure tourism y-o-y coupled with government’s push to promote
wellness tourism, Gujarat is best positioned to be the next wellness hub of India

Page 4
Growth Drivers

 Rise in foreign tourist arrivals (FTAs) and tourist movement within the
country has driven growth in the hospitality industry. The number of
FTAs reached 7.4 million in 2014, up 27.6% from 2010
Increase in  India is known as a destination for spiritual tourism and also offers
tourist cruises, adventure, medical, wellness, sports, film, rural and religious
movement tourism. Medical tourists inflow is estimated to be 320 million in 2015,
up from 85 million in 2012
 Travel and tourism is the third largest forex earner for India, which
contributed US$19.7 billion in 2014
 Campaigns such as Khushboo Gujarat Ki, Incredible India, Athithi Devo
Bhava launched to harness the tourism industry’s potential
 FDI under the automatic route in tourism and hospitality is allowed up
to 100%, subject to applicable regulations and laws
Policy support  Capital subsidy programme for budget hotels
 Introduction of ‘Medical Visa’ for tourists coming into the country for
medical treatment
 Exemption of Fringe Benefit Tax on crèches, employee sports and
guest house facilities

 The GoI has made efforts to improve and upgrade infrastructure

facilities at important tourist destinations, thereby, improving
Improved accessibility
infrastructure  FY16 Union Budget allocated INR14.8 billion toward infrastructure
development for destination and circuits, domestic / overseas
promotion and publicity

Trends in Indian hotel industry

 There is a rise in the concept of budget/no frill hotels which offer smart
Emerging budget basic services at an affordable price
hotels  Examples include Ginger, Lemon Tree and Red Fox Hotels

 Online and mobile based booking is picking up in hotel industry with

Apps for web the emergence of companies such as Make My Trip, Yatra, Cleartrip,
and mobile Goibibo and ixigo
based booking  It is estimated that ~8.4 million Indians will book hotels online by 2016,
up from 3.5 million in 2014

 There are sites that compare the results from all these sites to provide
Growing cheapest booking options to the customers
aggregators sites  Examples include Trivago and OYO Rooms

Page 5
Gujarat - Competitive
Advantage
Gujarat has the country’s finest infrastructure and is politically most stable

Health resorts offering As part of its strategy to

Initiatives to Ayurvedic treatments like the
promote Panchkarma Therapy and other
wellness treatments would be developed
tourism and suitably incentivised
through a separate government
resolution.
increase connectivity in the
state and boost tourism to the
state, Gujarat State Aviation
Infrastructure Company Limited
(GUJSAIL) is developing 11
airstrips across the state

There are 33 AYUSH teaching

Learning and The department of Ayurveda,
institutions in the state and
Operational under AYUSH, was started in
34,833 AYUSH registered
Infrastructure Gujarat in 1960
practitioners
There are 33 speciality Ayurveda hospitals in different parts of
Gujarat, with 1345 bed capacity available for patients

Due to the industry status, the

Policy support
The government of Gujarat has
decided to give industry status
to tourism sector
tourism sector would get the
same benefits given to only
industries, such as loan interest
subsidies, concessions in taxes
as well as in electricity duty

The state has longest coastline

Geography
The southern part of Gujarat
runs along the Arabian sea.
It’s northern region houses the
Thar desert.
among all states in India -1,600
kmss. There are numerous
beaches along the coastline
with flora and fauna, temples
and recreational facilities

Medicinal Herbs
Gujarat has 1315 recorded species of medicinal value. These
include 754 herb species, 248 tree species, 165 shrubs and 148
climbers. 1016 plant species are wild where as 299 species are
being under cultivation or plantation

Good The state is one of the least Gujarat leads in project

Governance corrupted in the country with an clearance in coastal areas with
anti-corruption index of 0.69 a success rate of 93%

Page 6
Project Information

Site Location
On the basis of connectivity and the prospects the region offers, few locations have been
identified as prospective wellness tourism sites
Polo forest is an eco-tourist
place located near Abhapur
village of Vijaynagar taluka;
around 150 kms from
Ahmedabad
There are 450 species of
medicinal plants. ~21 plant
species found in Vijaynagar are
Polo primarily used for hair care
forest

This district is famous

Nalsarovar for "Narmada River"
lake and temples at the bank
The Nal region is a low-lying Narmada of the river
area between the plains of district
the Central Gujarat and Ratanmahal Sloth Bear
Eastern Saurashtra Sanctuary,
Shoolpaneshwar Wild
Nal Sarovar Bird Sanctuary, Life Sanctuary etc are
consists of a 120.82-square-
kms (46.65 sq mi) lake and famous wild life
ambient marshes santuaries in the city.
The lake attracts over 210
species of birds Saputara/
Dangs

Saputara is the only hill station in Gujarat,

located at a height of 1000 metres
It has hill resorts, a museum, sunset
point, valley view, a lake
Around 520 out of the 1,100 medicinal
herbs listed in the pharmacopia of
AYUSH are found in Saputara
Among them, majpr herbs are amla,
harde, bherda, satavari, aswagandha,
sarpagandha and tubers and roots which
are crucial for ailments of chronic nature

Page 7
Project Outline

Project components

Shower/
Swimming
Changing
pool
Cottage room

Massage
and Sauna and Fitness
Treatment Steam Bath Room
Rooms

Recreation
Yoga and Room with
Meditation Indoor Restaurant
Hall gaming
facility

Staff Open and

Kitchen Accommoda Landscaped
tion Area

Treatments/ Therapies already provided in Gujarat

Naturopathy Therapy
Ayurvedic Therapy
Yoga & Meditation Centre
Physiotherapy and Cardio Gym
Special Therapies
Massage, Hydro, Mud, Chromo Disorders treated
Therapy and others :- Asthma, Anemia,
Back Pain,
Panchakarma, Abhayanga, Janu Basti,
Depression,
Kati Basti, Sirodhara.
Diarrhea, Hypo
Pranayam, Bandhas, Mudras, Tension, Insomnia,
Meditation, Reiki Jaundice, Obesity,
Vertigo, Anxiety,
Rheumatic
Arthritis etc
Swedish Massage, Hot Stone
Massage, Refloxology, Raaga (Music)
Therapy, Thai Massage.

Page 8
Project Information

Infrastructure availability / connectivity

Logistics & Connectivity
Saputara Polo Forests Nalsarovar Narmada
Bilimora is the Udaipur(120km), The nearest There are 4
nearest railway Gandhinagar(140 railway station is railway stations in
station. Waghai is kms), at Ahmedabad (60 Narmada
52 kms from Ahmedabad(160 kms.)
Rail Saputara kms)

Bus facility is Udaipur (120kms) Ahmedabad is Major state roads

available from and Ahmedabad 60kms from connecting to
Chikhli, Bilimora, (160 kms) and is Nalsaorvar. State Ahmedabad (195
Nasik and Surat accessible by the buses run every kms), Surat (83
Road NH8 hour kms),

Surat Airport is the Udaipur (120 Ahmedabad (60 Nearest airports

nearest, 172 kms kms), Ahmedabad kms) is the are in Surat and
Air away (160 kms), nearest airport Vadodara
Vadodara (260
kms)

Magadalla is Sanand is Dahej and

161kms and connected to three Magadalla port are
Port
Po
P ort
r Hazira port is ports – Kandla, the nearest ports
184kms from Mundra & Pipavav. to the district
Saputara

Utilities
Gujarat has a state-wide “water supply grid” spread across 1,20,769 km that aims to
serve 75% of Gujarat’s population.

Water

Gujarat boasts of 24 hour – 3 - phase uninterrupted power supply

Power

Page 9
Project Information

Estimated Manpower Requirement

Manpower requirement at the site (Employees per 100 rooms)

Roles

Centre level Corporate

Admin / Accounts 10

Sales & Marketing 3

Therapists and Doctors
Support Staff
Spa Therapist
Front Desk 5
Senior Therapist 20
Housekeeping 58
Trainees 34
Maintenance 5
Specialist Consultants 16
Other Service (Security/ Laundry) 5
Manpower numbers have been
taken basis a 5-star hotel
Food and Beverage Kitchen 40

Food and Beverage Service 32

Purchase/Store 2

Leading Players
National Accreditation Board for Hospitals and Healthcare providers (NABH) accredited
wellness centres are:

Complimentary & Alternative

GRT Bodhi Spa, VLCC Healthcare
Medicine Department,
Radisson Blu Hotel GRT , Limited,
Saifee Hospital , Mumbai,
Chennai, Tamil Nadu, India Gurgaon, Haryana, India
Maharashtra, India

Source: NABH

Kairali Ayurvedic Soukya Holistic Health

Other Healing Village Center
players Palakkad, Kerala Bangalore, Karnataka

Page 10
Project Financials

An illustration depicting estimated cost of setting up a wellness centre spread over an area of
5,80,000 squarefeet , with cottages spread over 20,00 square feet and 5,00,000 square feet of open
and landscaped area

Proposed Product Mix

Facility Required area Facility Required area

(square feet) (square feet)

Cottages 20,000 Restaurant 1,681

Swimming Pool 4,035 Kitchen 1,614

Changing Rooms and 650 Staff Accommodation 819

Showers

Massage and 1,560 Common Toilet Block 274

Treatment Rooms
Admin Area 500
Sauna and Steam Bath 753
Circulation Area 8,673
Yoga & Meditation Hall 1,000
Parking Area 21,251
Fitness Room 807
Open and Landscaped 5,88,782
Recreation Room with 1,000
Area
Indoor gaming facility

Revenue and Utilisation Assumptions

Revenue per Cottages INR 5,500 per day

Annual Increase in Cottage rent 5%

Revenue from Food and Beverages 15% of the revenue from cottage

Revenue from Spa facilities 20% of the revenue from cottage

Realisation of revenue Operational year

1 2 3 4 5 onwards

Occupancy of Cottages 20% 40% 50% 60% 70%

Page 11
Project Financials

Estimated Project Cost

Total estimated cost

Construction Cost INR 274.4 million

Pre-operative Expenses INR 61.3 million

Total Landed Cost of the Project at Each Location INR 335.8 million

Operating & Maintenance Cost

Cost of construction Assumptions

Site Development INR 200 per Marketing & Brokerage @1. 5% of the
square feet total revenue

Maintenance of Built-up Area, 5% of the Capital

Civil Work INR 1,200 per Machinery and Equipments Cost per Annum
square feet
Maintenance of Landscaped 3% of the Capital
Areas Cost per Annum
Cost of Furnishing INR 2,000 per Raw Material Cost for F&B 60% of the
square feet revenue from F&B

Raw Material Cost for Spa 40% of the

Cost of Machinery INR 5 million Facilities revenue from SPA
and Equipments
Annual Inflation 5%

Pre-Operative Charges and Contingencies

Project Development @1% of Insurance during @0.5% of the landed cost for
Cost Construction cost Construction each of the Construction years

Debt Syndication @0.5% of Debt

Consultancy @5.5% of the Landed Cost

Equity Syndication @0.5% of Equity

Launch marketing @1% of Construction cost
Other pre- @1% of
operational Construction cost Interest during @14% of per Annum
expenses construction

Page 12
Project Financials

Project Structure & Implementation Model

The project is to be completed and funded on Direct private sector investment basis

Government releases an RFP to the empanelled list of

consultants for Project Consultant role

Government authority Project consultant

The consultant undertakes

techno-economic feasibility
study and master plan
Government selects the preparation; assists with bid
private player through process management and
SPV
competitive bidding partner selection process; and
process and enters into an acts as a project management
agreement to form an SPV consultant during the
implementation period until
one year of commercial
operations
Private investor
(project developer)

The developer will create suitable

facilities at the site mentioned
considering site specific
environmental and relevant factors

Page 13
Approvals and
Incentives
Approvals Required

 Registration as commercial establishment with the required state/district authority

 Gujarat Infrastructure Development Board
 ‘No Objection Certificate’ from the Gujarat Pollution Control Board
 Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF)

Incentives from Government of Gujarat

Government of Gujarat has granted Industry status to Tourism sector thereby providing a great
boost to the industry. The incentives under Tourism Policy for the State of Gujarat (2015-2020)
shall be applicable to the eligible tourism units as mentioned in the next sections.

Capital Subsidy to the Eligible Tourism Units

Eligible Capital Investment (excluding land cost) Admissible Maximum limit
subsidy

Investment upto INR500 million 15% INR75 million

Investment above INR500 million 15% INR100 million
Tented accommodation (with minimum investment of
20% INR1.5 million
INR2 million)

Equipment worth INR10 million and above for adventure

10% INR5 million
& water sports

Additional Capital Subsidy of 5% for New Tourism Units

 Within the Corporation limits of Gandhinagar and falling within the radius of 20 kms.

 Owned and managed by women entrepreneurs (with minimum equity participation of 51% in

the entity)
 SC/ST categories to an additional 5% subsidy over and above the ‘Admissible Subsidy’.

Page 14
Approvals and
Incentives
Incentives from Government of Gujarat

Interest subsidy to the eligible tourism units

 @5% of the loan amount with maximum amount of INR2.5 million per annum for a period of
five years in Municipal Corporation areas for eligible tourism units
 @7% of the loan amount with maximum amount of INR3.0 million per annum for a period of
five years in the areas other than mentioned above.

Other Exemptions
 Luxury Tax - 5 years from the date of commencement of commercial operation
 Entertainment Tax - 5 years from the date of commencement of commercial operation
 Electricity Duty - 5 years from the date of commencement of commercial operation for New
Tourism Units only.
 100% reimbursement of stamp duty and registration fee on sale/lease/transfer of land for the
first transaction only.

Support for Sustainable Tourism

 Assistance to eligible tourism units up to 75% of the cost of carrying out Energy Audit by a
recognized institution/consultant, Water Harvesting / Conservation and Environment-friendly
practices like Green Buildings, Solar and other Renewable Energy measures

Special Package for Mega Tourism Units

The State Government shall duly promote and facilitate Mega Tourism Projects that have a large
multiplier effect on the economy, leading to employment generation and inclusive growth in the
State. Any type of Mega Tourism Units like Film City, theme parks, amusement parks, water
parks, etc. meeting the qualifying criteria of Mega Tourism Units will be eligible.
Following incentives would be offered to eligible Mega Tourism Units:
 100% reimbursement of stamp duty and registration fee on sale/lease/transfer of land for the
first transaction only. Reimbursement of stamp duty and registration fee would be done after
the commencement of commercial operations.
 Capital subsidy of 15% of eligible capital investment (excluding the cost of the land) subject to
a ceiling of INR200 million.
 Exemption from luxury and entertainment tax for a period of seven years from the date of
commencement of commercial operations.
 Exemption in electricity duty would be for a period of five years from the date of
commencement of commercial operations.
 Mega tourism units shall not be entitled to any interest subsidy.

Page 15
 Tourism Corporation of Gujarat Limited
http://www.gujarattourism.com/

Department of Tourism, Gujarat

http://www.gujarattourism.com/

Industries and Mines Department, Gujarat

www.imd-gujarat.gov.in/

iNDEXTb - Industrial Extension Bureau

www.indextb.com

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Tourism Corporation of Gujarat Ltd,

H. K. House, Opp: Bata Showroom,
Ashram Road, Ahmedabad,
Tel: +79 26578044/46/26589172
Fax: +79 26582183
E-mail: tibahd@gujarattourism.com