Investment in Indian tourism will be easier: Tourism Minister

India will make investment in tourism infrastructure easier, Tourism Minister Ambika Soni has assured. Addressing an investment roundtable organised by the Commonwealth Business Council, she said India country requires considerable investment into infrastructure which could only be met with foreign direct investment. The shortage of rooms in Delhi is adversely affecting the flow of tourists to the capital as well as to other destinations.

"The accommodation constraints in Delhi will have serious implications on the arrangements for the 2010 Commonwealth Games. It is estimated there will be a requirement of about 40,000-50,000 rooms in the budget category for the tourists visiting Delhi and surrounding areas during the Games. "The issue of giving tax benefit, under section 80 IA of Income Tax Act by declaring them as infrastructure projects for three and four star hotels, which are constructed prior to 2010, has been taken up with ministry of finance." "It (tourism industry) is approximately a $200-billion industry and India doesn't even touch eight percent of this. We are looking to get a larger chunk of it. Why should conferences not be held in India?" she asked referring to India's new plans to develop MICE - Meetings International Conferences and Events - tourism to make the country a business tourist centre.

The minister said the government was considering offering tax incentives for attracting attract investment into building convention centres and halls. Pointing out the country was facing severe shortage of hotel accommodation in the wake of its preparation for 2010 Commonwealth games, Soni said the government has outlined plans to facilitate land procurement by hoteliers in order increase number of budget hotels, bed and breakfasts (B&Bs) and self-service apartments. She said the government would identify land that her ministry would procure from the government of India and give to Indian Tourism Development Corporation, which will then lease it to hoteliers. "We are working out the modalities. The railways have identified 100 such places," the minister said. Commonwealth Business Council director general Mohan Kaul also urged the minister to tap India's potential as a business tourism centre.

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