Government planning to set up Special Tourism Zones

With a view to making a more focussed effort at developing the tourism industry, the Centre is considering a proposal to set up Special Tourism Zones (STZs) on the lines of Special Economic Zones (SEZs). The idea to create STZs was approved at a recent meeting of the National Tourism Advisory Council (NTAC) chaired by Minister for Tourism and Culture Ambika Soni. The STZs are proposed to be located in the major tourist destinations, cities as well as along the coastline. Each STZ should be able to provide 2,000-3,000 hotel rooms, about 100 odd restaurants, facilities for shopping, entertainment etc, according to the recommendations of the sub-committee of the council on 'public-private partnership'. While the state government would be required to create such STZs, the private sector would provide all the facilities and services inside the zones.

"All the concessions available to the Special Economic Zones could be fine tuned to the STZ," the sub-committee said in its report. "The government would need to provide single window clearance and incentives that go along similar special zones," it said. Among the recommendations are that there should be 100 per cent tax exemption for a period of 10 years, exemption from import duty on capital goods and raw material, withdrawal of luxury tax and lower VAT. As per the sub-group, the STZs are needed as in view of the tremendous growth potential of the tourism industry, the requirement of infrastructure will be of a high magnitude. The proposal will now be placed before the Planning Commission for its approval.

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