1                  TOurism

 

1.1                                    Tourism in India- An Overview

Tourism in India has registered significant growth in recent years. The upward trend is expected to remain firm in coming years. Tourism is the third largest net earner of foreign exchange for the country recording earnings of USD 5731 million in 2005, a growth of 20% over 2004. It is also one of the sectors, which employs largest number of manpower. The first ever Tourism Satellite Account for India compiled by NCAER for year 2002-03 showed that tourism employed 38.8 million persons directly or indirectly, which was 8.3% of total employment in the country, and it contributed 5.8% of the GDP. The World Travel and Tourism Council has identified India as one of the foremost growth center in the world in the coming decade.

 

1.2                                    Tourism in Himachal Pradesh - An Overview

Himachal Pradesh is endowed with resources like mountains, forests, undulating landscape, lakes, rivers, sacred shrines, and historic monuments for thriving tourism. Himachal Pradesh has one of the greatest adventure tourism assets in the world in form Himalayas and its mighty rivers. Tourism has always been a growth industry in Himachal Pradesh.

Tourism contributes nearly 8% of the State Domestic Product. In 2005-06, the investment in Tourism sector in Himachal Pradesh was about 102.32 Cr of which about 16.54 Cr was in Shimla.

Though tourism is the economic driver for the State, it is predominantly the domestic tourism and its performance in comparison with other states in attracting foreign tourist is abysmal.

 

 

Tourist Circuits in Himachal Pradesh

 

Sutlej Voyage: 

Rohru-Rampur-Narkanda, Naldhera-Tattapani-Shimla-Kiarighat-Delhi

 

Beas Circuit:

Shimla-Mandi-Rewalsari-Kullu-Manali-Rohtang-Naggar-Manikaran-Delhi

 

Dhauladhar Circuit:

 Chintpurni-Jwalamukhi-Kangra-Dalhousie-Khajjar-Chamba-Dharamshala-Chamunda-Palampur-Jogindernaagr-Delhi

 

Tribal Circuit:

Delhi-Shimla-Narkanda-Sarahan-Sangla-Kalpa-Pooh-Nako-Dhankar-Kaza-Losar-Kinzum-Koksar-Sisu-Keylong-Udaipur-Trilokpur-Rohtang-Manali-Delhi

 

Buddhist Circuit:
 Dharamshala-Tabo Monastry

 

1.3                                    Situation Analysis

The places of tourist attraction in Shimla include The Ridge, The Mall, Jakhoo Temple, Sankat Mochan Temple and Kufri Ski Slopes. About 1822059 tourists traveled to Shimla in Year 2005, of which about 3.4% constituted foreign tourists. The strategic location and natural setting of Shimla attracts huge domestic tourists. The average stay of tourist in Shimla is about 1.35 days.


 

 

The trend of tourist inflow to Shimla is presented in Figure 13.3

Table  STYLEREF 1 \s 1. SEQ Table \* ARABIC \s 1 1  Growth of Tourist Inflow to Shimla 

Year

No. of Tourists

% Growth

Domestic

Foreign

Domestic

Foreign

1998

898993

13515

 

 

1999

943503

19188

5%

42%

2000

1038975

24225

10%

26%

2001

1136063

31022

9%

28%

2002

1227710

37860

8%

22%

2003

1309635

44400

7%

17%

2004

1597246

55382

22%

25%

 

 

April- July is the peak tourist season with about 55 % of total tourists visiting the city. From December onwards tourist inflow again accelerates due to coming up of snow and related winter adventure sports. 

 

Table  STYLEREF 1 \s 1. SEQ Table \* ARABIC \s 1 2  Snapshot of Tourism Industry in Shimla 

Description

Quantity

No. of Hotels and Guest Houses

350*

No. of Restaurants

68

No. of Rooms

3699

Bed Capacity

7599

Travel Agencies

208

Tourist Guides

270

*The 90% of the hotels and guest houses are located in Central Shimla

 

 

1.4                                    Policy, Legal and Institutional Framework

Realizing the potential that tourism offers, the State government has striven to develop this sector as a major source of employment generation without disturbing ecology and environment. The State government seeks to transform the State into a "destination for all seasons and all reasons" and increase the share of Tourism in the State Domestic Product to 15% by 2020.

GoHP has formulated “Tourism Policy of Himachal Pradesh 2000” which has been revised in 2005 and “Policy on Development of Ecotourism, 2001” to promote economically, culturally and ecologically sustainable tourism in Himachal Pradesh and generation of employment opportunities. The policy also endorses private sector participation in tourism to generate employment and providing new infrastructure. The objectives of the policy are:

Ø      To establish HP as a leading tourist destination in the country and abroad;

Ø      To make tourism a prime engine for economic development;

Ø      To encourage sustainable private sector participation in creation of tourism infrastructure;

Ø      To promote environmentally sustainable tourism;

Ø      To attract quality tourist and increase their stay;

Ø      To safeguard natural and manmade heritage; and

Ø      To position HP as a one stop destination for adventure tourism

 

GoHP has enacted Himachal Pradesh Tourism Development and Registration Act 2002 to promote tourism and regulate tourism activity. Under the Act, every tourism unit including hotels, resorts, motels, restaurants and bars, amusement parks, golf courses etc, travel agent or a guide, adventure sports operator are required to have registration with Tourism Department.

GoHP has established Himachal Pradesh Tourism Development Board under Himachal Pradesh Tourism Development and Registration Act, 2002. The Board is chaired by Chief Minister of Himachal Pradesh. The functions of the Board include:

(i)                 Formulate policies and guidelines for development and promotion of tourism industries in the state;

(ii)              Development of new tourist destinations and undertake improvement in the tourist areas;

(iii)            Promote private sector participation; and

(iv)            Mobilize investments for development of infrastructure and destination

 

GoHP has constituted Tourism Development Council for Shimla and Manali under Himachal Pradesh Tourism Development and Registration Act, 2002. The functions of Tourism Development Council are

 

(i)                 Provide and maintain tourism related services;

(ii)              Assist the local body in maintaining infrastructural facilities at tourist spots;

(iii)            Build and maintain tourism and recreational facilities which may enhance the tourism value of the area;

(iv)            Prepare tourism master plan for area; and

(v)               Maintain and operate a tourism destination fund

The Council can also raise the resources for development of infrastructure and facilities by way of fees, cess etc. However, Tourism Destination Fund has yet not been established for Shimla

Himachal Pradesh Tourism Development Corporation (HPTDC) established in 1972 has been mandated to develop tourism infrastructure and extending tourists facilities in state of Himachal Pradesh. It provides tourism services including accommodation with on line booking facility, catering, transport etc. In Shimla, HPTDC is responsible for

(i)                  Development of Tourism Infrastructure;

(ii)              Operation and Maintenance of Lift; and

(iii)            Information Kiosk

 

 

1.5                                    Issues and Concerns

Ø         Shimla has become more of a weekend tourism destination with bag packers adding stress to existing strained infrastructure without contributing much to the economy.  The origin survey conducted by Tourist Economic Survey Report 2002 indicates that more than 38% tourist origin from neighboring Punjab, Haryana and Delhi

Ø         Due to lack of adequate air connectivity, international quality tourism infrastructure and tourism activities, Shimla lacks high-end tourism with higher revenue potential. The foreign tourist constitutes only 3.4% of the total tourist flow to Shimla

Ø         Presently, the duration of stay is very low limited to 1.35 days. This is due to lack of enough tourism activities/options for various category of tourists

Ø         Except for road connectivity, Shimla lacks adequate rail and air connectivity for promotion of tourism

Ø         About 80% of the tourists coming to Shimla are using own vehicles demanding parking facilities. The survey conducted with tourists indicated that the locating parking facility for vehicles is the major hassle in the town. The inadequate parking and water supply are major constraints faced by the tourism service providers in attracting tourists

Ø         Lack of basic infrastructure especially water supply is the constraint in giving permissions for development of new tourism infrastructure like theme parks, resorts etc

Ø         Limited vertical accessibility to Mall area due to restricted roads for old and disabled tourist

Ø         Lack of trained tourist guides who can promote history, culture and heritage of Shimla

Ø         Tourism economy in Himachal Pradesh shows fluctuation and depends on the law and order situation in neighboring Jammu and Kashmir. Also, competing facilities in neighboring Uttranchal is threat to tourism in HP

 

1.6                                    Vision and Goals

Text Box: “Engine of Sustainable Economic Growth for Shimla”

 

 

 

 

 


 

Indicator

2006

2011

2016

2021

Description

2006

2011

2016

2021

High End Tourism (in Lakhs)

0.6

2.64

8.0

24.6

Duration of Stay (in Days)

1.35

2.5

3.5

3.5

 


 

1.7                                    Strategy

 

In order to sustain tourism economy in Shimla, it is essential to focus at attracting high-end tourist and increasing duration of tourist stay. The strategy should aim at:

(1)               Improving basic infrastructure of the city like provision of adequate water supply, parking facility, transportation, decongestion etc will improve service delivery and shall provide impetus to the tourism

(2)               Improvement in transportation linkages especially with respect to air connectivity is essential to attract high-end tourism. Promoting tourism by improving accessibility and connectivity with various parts of Himachal Pradesh is essential. Promotion of railway between Kalka and Shimla commissioned in 1904, as Heritage Railway Line packaged with tourism products will provide an alternate transportation. The limited air connectivity of Himachal Pradesh may be addressed by taking up Air Taxi and Heli Taxi Services in the State with Private Sector Participation. This would also necessitate upgradation of airport at Jubbarhatti and rehabilitation and upgradation of helipads

(3)               In order to attract high-end tourism and also ensure protection of ecology, it is essential to promote ecotourism projects. There is a need for replicating the success of Potter’s Hill ecotourism project conceptualized and developed by GoHP. For promoting ecotourism, it is proposed to upgrade existing forest rest houses and inspection huts of Forest Department and develop eco-trails. These projects are amenable for private sector participation and may be taken on PPP format

(4)               In order to enhance duration of stay and sustain tourism economy, there is need to add activity based tourism like international golf course, theme parks, nature park/botanical garden etc which can cater to different category of tourists like foreign tourists, senior citizens, children etc. Some of the interventions identified are as follows

Ø      Upgradation of Naldhera Golf Course to international standards

Ø      Development of Nature Park at Craignano

Ø      Development of Theme Parks

Ø      Upgradation of existing parks

Ø      Upgradation of Ice Skating Rink

Ø      Redevelopment of horticulture museum at Navbahar

Ø      Heritage Train ride for sight seeing From Shimla to Kanoh with activity based tourism at Kanoh

Ø      Beautification of Mall area

 

(5)               The concept of Shimla by evening/night may be introduced to explore the cultural and heritage aspects of the city at night with light and sound shows at suitable location

(6)               The elevators, lifts, ropeways, ecofriendly golf carts at appropriate locations may be some of the options for improving vertical accessibility. A Comprehensive Transportation Study is suggested to assess locations, routes, mode, and feasibility. The proposed strategy and options for vertical transport is presented in “Traffic and Transportation” Chapter

(7)               Upgradation of Tourists Information Centre providing online as well as 24X7 offline services 

(8)               Developing and promoting mountain based soft and hard adventure activities creating “Himalayas” as the brand and icon of Indian adventure tourism

(9)               Establishment of Tourism Destination Fund for Shimla for channelising the investments and funds for development, operation and maintenance of tourism infrastructure as well as basic infrastructure at tourism spots. It is recommended that a green fee concept implemented in Manali should be replicated in Shimla


 

 

1.8                                    Sectoral Investment Plan

(Rs. Lakhs)

S.N

Projects

Project

Cost[1]

 

Investment Schedule

2007

2008

2009

2010

2011

2012

1

Upgradation of Naldhera Golf Course

500

-

500

-

-

-

-

2

Development of Nature Park at Craignano

1500

-

1000

500

-

-

-

3

Development of Theme Park

500

-

500

-

-

-

-

4

Upgradation of Skating Rink

1000

-

1000

-

-

-

-

5

Beautification of Shimla

1000

-

200

200

200

200

200

6

Ecotourism Projects

1000

-

200

200

200

200

200

7

Upgradation of Tourists Information Centre

500

100

200

200

-

-

-

8

Promotion

200

50

50

50

50

-

-

9

Studies and Project Development

400

200

200

-

-

-

-

 

Total

6600

350

3850

1150

450

400

400

 

 


 

1.9                                    Project Information Sheets

 

Project Title: Development of Nature Park at Craignano

 

Project Description: GoHP has proposed the Nature Park at Craignano. The 40 bigha land available with GoHP has been transferred to Forest Department for the proposed project.  The project shall include

-         Arboretum

-         Nursery

-         Vermi-composting Demonstration Plant

-         Open air amphitheatre

-         Greenhouses

-         Garden Café

-         Picnic pavilion

-         Administration and education building

 

Project Benefits:

-         Ex-situ conservation of endangered and rare species of Himalayan flora

-         Awareness generation, education, research

-         Recreation and tourism

 

Approx. Project Cost : Rs. 1500 Lakhs

 

Revenue Sources : Entrance Fee, Souvenir Sale, Nursery

 

Implementation Structure : The project shall be implemented by Forest Department

 

Financing Mechanism : Capital cost to be financed by Forest Department using funds to raised through grant under JNNURM and loan; O&M Cost to be recovered from revenue stream of Nature Park 

 

Time Frame:  Project Development : 2007-2008; Implementation 2008-2009

 

Institutional Responsibility: GoHP 

 

Preparatory Activity for Implementation:

Preparation of DPR

 

Related Programme, Plan and Policies:

 

Additional Studies:

 

 


 

 

Project Title: Upgradation  of Naldhera Golf Course to International Standard

 

Project Description: Naldhera Golf Course established by Lord Curzon 1905 is a heritage property managed by HPTDC. The golf course is located at an altitude of 2200 m. is unique Himalayan golf course with huge natural glade surrounded by a thick cedar forest. The golf course characterized by undulating fairways, elevated tees, greens nestled between massive trees has potential to become major international golfing destination. In order to attract high end tourist, GoHP intends to upgrade the golf course to international standards The upgradation of golf course shall include

-         Extension to 18 holes

-         Development of additional greens and fairways

 

Project Benefits:

-         Attraction for high end tourism

-         Improvement of economy of the city

 

Approx. Project Cost : Rs. 500 Lakhs

 

Revenue Sources : Green Fees/Membership Fees

 

Implementation Structure : The project shall be implemented by Tourism Department and HPTDC

 

Financing Mechanism : Capital cost to be financed by  HPTDC using funds to raised through grant under JNNURM and loan; O&M Cost to be recovered from revenue stream of Golf Club

 

Time Frame:  Project Development : 2007; Implementation : 2008

 

Institutional Responsibility: GoHP and HPTDC

 

Preparatory Activity for Implementation: Preparation of layout plan by Golf Designer/Architect and Preparation of Detailed Project Report (DPR)

 

Related Programme, Plan and Policies:

-          Promotion and marketing of the Golf Course in international market

 

Additional Studies:

 

 

 


 

 

Project Title: Development of Theme Park

 

Project Description:  The theme park which will promote Himachali culture is envisaged on line of Choki Dhani in Rajasthan

 

Project Benefits:

-         Promotion of Himachali culture and art

-         Helps in sustenance of tourism economy

 

Approx. Project Cost : Rs. 500 Lakhs

 

Revenue Sources : Entrance Fee, Souvenir Sale, Food and Beverage

 

Implementation Structure : The project shall be implemented by Tourism Department through Private Sector Participation

 

Financing Mechanism : Capital cost to be financed by  Private Sector while GoHP may provide the land on lease; O&M Cost to be recovered from revenue stream of Theme Park 

 

Time Frame:  Project Development : 2007; Implementation : 2008

 

Institutional Responsibility: GoHP and Private Sector

 

Preparatory Activity for Implementation:

Project Development for inviting private sector

 

Related Programme, Plan and Policies:

 

Additional Studies:

-         Identification of land for project and detailed feasibility study

 

 


 

 

Project Title: Upgradation of Ice Skating Rink

 

Project Description: Shimla has the only natural ice-skating rink in India, which was established by British in 1920. The ice-skating rink is one of the major tourist attractions in Shimla. An Ice-skating Carnival arranged every year in January by Ice-skating Club is famous for fancy dress competition and ice hockey. GoHP has proposed to upgrade the Ice Skating Rink

 

Project Benefits:

-         Recreation and tourism

-         International quality skating rink facility for promotion of winter sports

 

Approx. Project Cost : Rs. 1000 Lakhs

 

Revenue Sources : Entrance Fee, Skate Rentals, Coaching Fee

 

Implementation Structure : The project shall be implemented by HPTDC

 

Financing Mechanism : Capital cost to be financed by the GoHP and HPTDC using funds to raised through grant under JNNURM and loan; O&M Cost to be recovered from revenue stream

 

Time Frame:  Project Development : 2007; Implementation :2008

 

Institutional Responsibility: GoHP and HPTDC

 

Preparatory Activity for Implementation:

Preparation of DPR

 

Related Programme, Plan and Policies:

 

Additional Studies:

 

 

 


 

 

Project Title: Upgradation of Information Centre

 

Project Description: Presently HPTDC is operating two tourists information centers on Cart Road and Mall Road and also provides online system for information and accommodation booking. It is proposed to upgrade the Tourist Information Centre which shall include

-         Upgradation of information system

-         Provision of helpline

-         Upgradation of Tourist Information Centre on Cart Road to 24X7

-         Establishment of Tourist Information Centre at new ISBT

 

Project Benefits:

-          

Approx. Project Cost : Rs. 500 Lakhs

 

Revenue Sources: advertisement rights

 

Implementation Structure : The project shall be implemented by HPTDC

 

Financing Mechanism : Capital cost to be financed by the GoHP and HPTDC using funds to raised through grant and loan; O&M Cost to be recovered advertisement rights

Time Frame:  2009

 

Institutional Responsibility: GoHP and HPTDC

 

Preparatory Activity for Implementation: Preparation of DPR

 

Related Programme, Plan and Policies:

 

Additional Studies:

 

 


 

 

Project Title: Beautification of Shimla

Project Description:  The proposed beautification of Shimla shall include

-         Lighting of heritage buildings

-         Establishment of water fountains, seating benches etc

 

Project Benefits:

-         Improvement in aesthetics of the city

-         Impetus to tourism

 

Approx. Project Cost : Rs. 1000 Lakhs

 

Revenue Sources: advertisement rights

 

Implementation Structure : The project shall be implemented by HPTDC

 

Financing Mechanism : Capital cost to be financed by GoHP and HPTDC using funds to raised through grant under JNNURM and loan; O&M Cost to be recovered advertisement rights

 

Time Frame:  2012

 

Institutional Responsibility: GoHP and HPTDC

 

Preparatory Activity for Implementation:

Preparation of DPR

 

Related Programme, Plan and Policies:

 

Additional Studies:

-         Preparation of Master Plan for beautification