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Investment in Tourism Sector—Overview
The State of Rajasthan is one of the most favored destinations of tourists in India for both domestic and international traffic. Its desert dotted with rugged forts and beautiful palaces, lakes, wildlife and bird sanctuaries, charming cities, fairs and festivals, and colorful culture form the most fascinating and unique basket of attractions for any tourist. Tourism accounts for over 14 per cent of the state's economy in 2010 - 2011.
Popular tourist destinations in the state include historic cities (Jaipur, Udaipur), wildlife sanctuaries (Sariska, Ranthambore) and desert locations (Jodhpur, Jaisalmer). The State runs famous luxury tourist trains—Royal Rajasthan on Wheels and Palace on Wheels—that connect some of the important tourist destinations of Rajasthan with Delhi and Agra (in Uttar Pradesh). This year Jantar Mantar, Jaipur has been included in the list of World Heritage Sites of UNESCO.
During the calendar year 2011, up to December, the number of tourist arrivals in the State was 284.89 Lacs (271.37 Lacs domestic and 13.52 Lacs foreign). Rajasthan accounted for 21.49 per cent of total foreign tourists arrival in India in 2011.
Rajasthan ranks 5th in the country in number of domestic tourists arrival (3.9 per cent of total domestic tourists) and 6th in number of foreign tourists arrival (7.8 per cent of total foreign tourists).
Rajasthan has a developed tourism infrastructure, with over 6,000 hotel rooms in more than 150 hotels. Of these, over 1,400 rooms (54 hotels) belong to the heritage category.
Why Locate in Rajasthan
Rajasthan has a large number of heritage properties in various districts. The owners of these heritage properties have indicated their willingness to enter into contract with private parties.
Explore more business opportunities at
rajasthantourism.gov.in
An arrangement wherein private heritage properties (forts, fortresses, palaces and havelis) can be taken up by investors in a joint venture or on management contract. The Government is in the process of identifying government properties of heritage value, which would be given out on lease arrangements.
* Rajasthan Tourism Units Policy 2007 is in place which provides various incentives to various units.
* A package of incentives is also available for new tourism units under the Rajasthan Investment Promotion Scheme 2010.
* Easy establishment of Tourist Units has launched an innovative scheme of Land Bank.
* Rajasthan is easily accessible to other states in India through air and rail. The two major tourist destinations in India, Delhi and Agra are in close proximity to the State.
* Delhi - 265 kms from Jaipur. Jaipur, Jodhpur and Udaipur are connected by daily service of Air, Train and Bus and motorable super highway.
* Agra - Daily train and bus service and a motorable super highway connect 240 kms to Jaipur.
Policies
Rajasthan Tourism Units Policy 2007
The policy, already in place, covers Hotels, as well as all other units such as Heritage Hotels, Camping Sites, Holiday Resorts, Health Spas, etc.
* The minimum and maximum area for land to be auctioned from the land bank has been prescribed. The minimum area in the 2007 policy is the maximum area in the policy of 2006.
* The cost of land has been differentiated with the budget and 4-star hotels base price fixed at less than 50 per cent of the commercial reserve price.
* Rule 8 of the Rajasthan Land Revenue Rules 2007 (conversion of agricultural land for non agricultural purpose in rural areas), a proviso has been added exempting from conversion charges all those desirous of establishing hotels or any other tourism unit on the land held by them.
* Regarding conversion of residential land and heritage properties into hotels and other tourism units, a proviso has been added to the Rajasthan Municipal Corporation Rules 2000 (land utilization conversion), where heritage property owners would not have to pay 40 per cent of residential reserve price for conversion of the property into a heritage hotel, with the rider that the property has been constructed prior to 1950 and should have a minimum of 10 rooms.
* In JDA and other Urban Areas, the existing FAR of 1.75 has been doubled in new developed and new township areas subject to the condition that the overall FAR of the Township shall not exceed 1 (one). Floor Area Ratio (FAR) of existing hotels should be increased from 1.75 to 2, to allow construction of an additional floor. However, the land coverage area shall be similar to previous permissible area. The additional floor would only be used for rooms.
Key Players
Prominent tourism industry players with strong presence in Rajasthan include:
* The Indian Hotels Company (IHC): IHC is the hospitality arm of the Tata Group, India's largest private sector business group. In Rajasthan, IHC operates six hotels and resorts in Jaipur, Udaipur, Jodhpur and Ranthambore National Park, with over 400 rooms. IHC had a consolidated income of over USD 220 million for the year ending 31 March 2004. The Taj Group has been active in converting former royal palaces in India into world class luxury hotels such as the Taj Lake Palace in Udaipur, the Rambagh Palace in Jaipur and Umaid Bhawan Palace in Jodhpur.
PPP Projects Opportunities
The state envisions mega investments in the infrastructure sector for its economic growth. Requirement of funds to meet all the infrastructural needs of the state cannot solely be met by budgetary resources of the government. To attract private investment and to encourage its efficiency, to provide quality infrastructure and services at an optimal cost, an enabling policy and institutional mechanism would be developed.
The focus sectors where PPP may be contemplated include Power Generation, Transmission and Distribution Projects, Roads Bridges and Bypasses, Water Supply Treatment and Distribution, Airports and Heliports, Inland Container Depots and Logistics Hubs, Information Technology, Land Reclamation, Industrial/Knowledge Parks and Townships, urban utility services, Tourism, Education, Healthcare, Convention Centres and Urban Transport Systems.
PDCOR Limited: PDCOR is a dedicated project development company set up in association with IL&FS with a mandate to structure and attracts private sector investment into various infrastructure projects in the State.
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