IATO Convention at Jaipur Sept 7 to 9, 2006
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IATO to build 50 hotels; adopt village in Rajasthan By Deepak Arora
At
its three-day annual convention at Jaipur, the
Indian Association of Tour Operators (IATO) has
called upon the Government to either modify the
service tax to charge it on the 10 per cent earnings
of the travel agents and tour operators or face
the challenge in a court of law. "A cooperative or a company would be floated by IATO for this purpose with its members as shareholders. We are going to create millions of jobs and eradicate poverty from India as these hotels will revolutionise the tourism sector," announced Mr Subhash Goyal, IATO President, while presiding the IATO convention inaugurated by the Rajasthan Governor, Mrs Pratibha Patil. The Rajasthan and Madhya Pradesh governments have already promised to identify suitable lands that they will offer on cheaper cost in order to promote public-private partnership in the tourism industry.
A
cheque for this amount was presented to the Rajasthan
Governor, Mrs Pratibha Patil, who was the chief
guest at the inaugural function. Such humanistic
gestures are not new to IATO which had also been
helping the earthquake and flood affected victims
in different parts of the country. IATO also offered
to adopt one of the affected villages for rehabilitation.
With
India emerging as the fourth preferred destination
of foreign tourists after Italy, New Zealand and
Australia, the Indian tourism industry is on the
verge of taking off. The tour operators, however,
say they have been suffering due to shrinking
commission being given to them by the hotel and
aviation sectors, lack of hotel rooms and inability
of hotels to honour their commitments leading
to cancellations. Increasing
interest among foreign tourists to explore India
has led to a significant surge in the overall
numbers of inbound tourists to the tune of 29.2
per cent over the past two years. The serial blasts
in western metropolis Mumbai and looming terrorist
threats notwithstanding, India managed to attract
630,438 foreign tourists in July and August this
year as compared to 563,124 of the same period
last year. So far 2,785,328 foreign tourists have come to India in the first eight months of the current calendar year as against 2,120,492 in 2004 and 2,454,352 last year. This has resulted into a considerable increase in foreign exchange earnings that have gone up to USD 4,016.50 million up to the end of August this year as against USD 3,566.57 and 2,917.67 millions respectively in the first eight months of 2005 and 2004 respectively. The most preferred season for foreign tourists is between October and March. A total of 1,280,524 foreign tourists arrived in India in the first three months of 2006, spending USD 1,774.77 million. The tourism industry is expecting more bookings when the actual tourism season starts next month. Appropriately, the IATO has given them of 'new opportunities and challenges ahead' to their convention being attended by a record 1,546 delegates. The
Union Tourism Minister, Mrs Ambika Soni, who could
not make it to the inaugural session, however,
promised her ministry's full cooperation in meeting
the growing demands in her message. She emphasised
the need for a greater government-private sector
partnership and taking up the demand of tour operators
of tax parity across the country with the finance
ministry. The
Indian tour operators are demanding visa on arrival
and introduction of e-visas being practiced by
many countries. This will cut down on the time
factor that they say works as a dampener for many
foreign tourists keen on visiting India. Mrs
Pratibha Patil said that the success story of
Rajasthan tourism should be adopted by the other
States. She also emphasized on developing medical
tourism in the country. "We have some of
the best heart surgeons in the world and a heart
surgery here costs much less," she added. The
Governor said Rajasthan was the first state to
have come out with a State Hotel Policy which
she hoped would contribute significantly to tourism
growth in the State. Others who spoke at the inaugural session included Rajasthan Tourism Minister, Mrs Usha Punia, Madhya Pradesh Tourism Minister Yashodhara Raje, Union Tourism Secretary, Mr A K Misra, Rajasthan Tourism Secretary, Mr Vindo Zutshi and Rajasthan Commissioner Tourism, Mr A K Singh. Mrs
Usha Punia, said that there was a 36 per cent
increase in the tourist inflow to her State, Rajasthan,
between January to July this year. She said, road
and air connectivity between different parts of
the state and the country was being expanded and
the construction of new hotels would increase
through selling of land to hotel entrepreneurs
at half the commercial price. In
her passionate key note address, the Madhya Pradesh
Chief Minister, Mrs Yashodhara Raje, dwelt in
length on the beauty and grandeur of the places
of tourist interest like Orchha, Chanderi, Sanchi,
Pachmarhi and Omkareshwar in her State. Describing
her state as "the very heart of India",
Mrs Raje extended a warm welcome to the delegates
to come and see it for themselves. She also outlined
the measures being taken by her government to
boost tourism in her state. The
Chairman of the Convention, Mr Pranob Sarkar,
said as many as 1,546 delegates are attending
the convention. "This is the largest number
of delegates attending a convention in IATO's
history," he said to a loud applause. The Convention Co-Chairman, Mr Rajesh Mudgil, proposed a vote of thanks. The
Governor also released a copy of the IATO Tour
Operators' Manual 2006 and gave away the Hall
of Fame award to Mr Bhim Singh, Managing Director,
Rajasthan Tours Pvt. Ltd, for his life time achievement
and contribution to the Indian tourism industry.
Besides Hall of Fame, other awards presented by IATO were: Vinod Banbah Award for excellence in service to Mr R.K. Yadav, TGS Tours; Badri Nath Bajaj Scholarship Award to Ms Sudha Deval of I.I.T.M., Jaipur; Pradeep Sanghla Award to Mr Satyendra K. Tiwari; L.K. Bakshi award for excellence in Journalism to Mr S. Suresh, UNI; and the Connaught Award for excellence in Journalism to Ms Preeti Mathur. Later the delegates enjoyed a colorful, fun-filled evening at the City Palace. It was sponsored by Intercontinental Hotels group.
New Airport at Ajmer By Sushma Arora JAIPUR, Sept 7: A virtual boom awaits Muslim tourists intending to visit the holy Ajmer Sharif dargah. The Rajasthan government has announced construction of a new airport at Ajmer, which is 131 kms east of the state capital Jaipur. At present foreign tourists intending to visit Ajmer have to travel by road either form Jaipur or from the national capital Delhi. While it may take a while before Ajmer is connected by regular service flights, construction of a new airport would enable them reach the holy town in a chartered flight after reaching India. IATO Convention Day 2 First Business Session: Infrastructure Opportunities and Challenges Ajay
Makhan announces relief for guest houses
By Deepak Arora JAIPUR, Sept 8: The Union Minister of State for Urban Development, Mr Ajay Maken, has said his Government had amended the Master Plan on Thursday night to allow the survival of many of guest houses in Delhi. Elaborating, Mr. Maken said under the amendments such guest houses could now function in A and B colonies. Addressing the first business session on "Infrastructure Opportunities and Challenges, on Day Two of the IATO Convention here, the Minister said the stipulation of maximum limit of 7000 sq. ft. of area and minimum of 15 rooms per guest house had also been waived. Moreover, he said the condition of a minimum of 7 sq. ft. of width in the streets where they are located had also been removed. The IATO President, Mr Goyal, who was the moderator of the session, had expressed his fears that their closure under the current sealing drive would lead to the sapping of the only source of revenue of thousand of senior citizens, widows and ex army men who were in this business.
Further clarifying a point raised by a delegate, Mr Maken said that if a tour operator functioned through internet from one of the rooms of his residence, "there should not be any problem in treating him as a professional." Mr Maken said that though in the amendments tour operators have been left out of the definition of professionals, due consideration would be given when the Master Plan is further amended within two or three months. Mr Maken attributed the shortage of 20,000 hotel rooms in Delhi to the practice of auctioning of land for hotels. He also wanted a flexible policy to be adopted for the conversion of land use on the payment of prime price. The Secretary, Union Ministry of Tourism, Mr. A.K. Misra, admitted that there was a mismatch in demand and supply in respect of infrastructure facilities but the era of scarcity was bound to be followed by the era of excess. Mr Misra said while there was no lack of flow of investments, the construction of tings like airports, cruise terminals and railway stations took a longer gestation period and hence the mismatch. Rajasthan Tourism Secretary, Mr Vinod Zutshi and Principal BD, IDFC, Mr Prem Subramaniam, also addressed the session. Business Session 2: Branding and Marketing a destination By Sushma Arora JAIPUR, Sept 8: Amitabh Kant, Joint Secretary, Union Ministry of Tourism, in his truly vibrant form steered a presentation from its statistics form to active interactive discussion showcasing achievements and the road map ahead for the brand "Incredible India". Reiterating
that branding and positioning is the capacity building
of all service providers' right from the tax drivers/
software up to the infrastructure/ hardware of the
country.
Sunil Kishan, General Manager, Indian, spoke about co-branding with airlines on domestic routes. Leena Nandan, Director, Union Ministry of Tourism, emphasized how response mechanism in brand building is the key to success in this venture. Ashwani Lohani, Managing Director, MP Tourism Development Corporation, began on a humble note admitting to having learnt branding from Incredible India and Kerala toursis. He emphasized on constant innovation of new products. He put forth destination plan for his State. Business Session 3: Emerging Tourism Opportunities: Rural, Health, Heritage, Adventure and Sports By Deepak Arora JAIPUR,
Sept 8: The sessioin on Emerging opportunities for
tourism was chaired by Mr. Bezburua, former Secretary
of Tourism, Government of India. The other participants
included Col. N. Kumar, Managing Director, Mercury
Himalayan Explorations, Dr P K Goel, Managing Director,
Indian Railway Catering and Tourism Corporation,
Dr A R Siddiqui, Deputy Superintendent Archaeologist,
ASI and Mr Sudhir Sahi, UNDP Consultant.
Col
N Kumar also pointed out though India has twice
as much as Himalayas as Nepal, its mountain travel
share of business is not even 1/10th. It is all
due to bureaucratic hassles. Government takes
three months to clear an expedition and if the
one name is changed the expedition is off. Mr.
Sudhir Sahi spoke on UNDP sponsored programme to
build up rural economy through tourism. With the
help of UNDP and Department of Tourism this organisation
is putting up arts and crafts centers at rural places
and also organising villagers to put up some accommodation
for the people who wants to come for the study traditions
and arts of tribal. He has already set up centers
all over India and asked the tour operators to come
forward on this venture. Business Session 4: Poor Facilitation and Over Taxation -- Deterrent to Booming Tourism JAIPUR, Sept 8: Renowned politician from Jammu and Kashmir and senior advocate, Mr Bhim Singh, chaired the session on "Over Taxation -- deterrent to booming tourism". There was unanimity that tour operators were being over taxed. "It is the case of the golden goose being killed for the golden egg," said Mr Bhim Singh. The
speakers asked he Government to impose service tax
only on 10 per cent profit earned by tour operators
and not on 40 per cent as at present.
Day 3: Presentations by States JAIPUR, Sept 9: Presentations on tourism products were made by the tourism departments of Rajasthan, Delhi, Madhya Pradesh, Maharashtra, Orissa, Pondicherry and Uttaranchal. In
his presentation, Rajasthan Secretary (Tourism),
Mr Vinod Zutshi, said "the department of tourism,
which has been at the forefront for marketing Rajasthan
at all national and international forums, had recently
announced a landmark Hotel Policy, which aims to
meet the accommodation needs.
Mr Zutshi said emphasis was being laid on the public-private partnership so that new investments were made in the state and generate gainful employment for the people. He
said Rajasthan is one of the most favoured destinations
of both domestic and international tourists. In
view of the significance of tourism in economic
development the government has taken various policy
measures for establishing tourism as a "people's
industry".
Day 3: Industry Round Table
Day 3: Presentation by Star Cruise and Indian Ocean Cruises JAIPUR, Sept 9: Star Cruises, Indian Ocean Cruises and Mohabbat the Taj also made their presentations on the last day of the Convention.
Valedictory Session and Awards Land banks, E-Visas, rational service tax demanded By Deepak Arora Pix: By Noyanika Arora JAIPUR,
Sept 9: The concluding session of the convention
was presided over by Rajasthan and Orissa Tourism
Ministers, Mrs Usha Punia and Mr D P Mishra respectively.
The
session adopted over a dozen resolutions demanding
among other things strengthening of security at
all the strategic places like airports and railway
stations, introduction of E-visa facility till visa
on arrival is not available, creation of land banks
and allotment of land to IATO and other private
entrepreneurs at concessional rates for building
of hotels, abolition of dual tariffs, greater unity
among different travel organizations and rationalisation
of taxes. The
convention made the following recommendations: 1.
The Government should impose service tax only on
10 per cent profit earned by tour operators and
not on 40 per cent as at present. 2.
Safety and security of the airports, railway stations,
cruise terminals should be strengthened and facilities
enhanced at these strategic points. 3.
Government should facilitate tour operators for
visas from major markets like France, Italy, Spain
and China. Till visa on arrival is finalized, E-Visa
facility should be introduced. 4.
Top priorities should be given to the creation of
land banks by all the states and the allotment of
land to IATO and other hoteliers on concessional
rates for the construction of hotels on private
public partnership basis. 5.
All hotels which have been given DOT approval should
be directed to keep 25 per cent to 30 per cent of
the letable rooms for leisure tourists so that tour
operators can offer leisure packages to the clients.
The government should intervene and regulate the
hotel rates. 6.
Hotels should not whimsically change the hotel tariff
and create their own categories of rooms. They should
have the categories of rooms approved by DOT during
the inspection which should be same for three years.
7.
In fact as an industry the hotel should form 5 year
game plan on short and long term basis to facilitate
both hoteliers and tour operators. 8.
Actual special rates should be printed by the hoteliers
on their brochures and be provided to tour operators
to enable them to pay tax on the actual price only.
9.
Dual tariff should be withdrawn by the hotels and
airlines and the ASI to remove discrimination between
the foreign and the domestic tourists. 10.
While IATO welcomes the impact of the Incredible
India campaign in increasing the inflow of the foreign
arrivals, it wants the offices overseas should also
be strengthened and staffed by competent officials
knowing foreign languages which are spoken in the
countries of operation. 11.
The government should rationalize the different
taxes which are being charged by the state governments
at different points which make the tour packages
cost prohibitive and makes the tourists to avoid
India and visit other competitive countries. 12.
Rajasthan Government should declare Rajasthan as
most tourist friendly state and abolish taxes on
tourist transport vehicles. 13.
IATO and other trade bodies like FHRAI, TAFI, TAAI,
HAI, TGFI should work in unison to achieve maximum
results and become a force to reckon and their voices
heard by the corridors of the power. 14.
Each State should create an environment conclusive
to the new emerging segments of tourism such as
rural, medical, adventure, spiritual, sports, spa,
yoga and MICE.
Indian Tourism Fair (Travel Mart) Pix: By Noyanika Arora
IATO Convention Day 2 in Pictures Pix: By Noyanika Arora
Tea and Lunch on Day 2 Pix: By Noyanika Arora
IATO Convention Day 2 & 3 in Pictures Pix: By Noyanika Arora
Magic of Moustaches Pix: By Noyanika Arora
Rajasthani Culture at its Best Pix: By Noyanika Arora
IATO convention at Jaipur from Sept 7 By
Deepak Arora
IATO, which is the largest body of travel and tour operators in the country, is holding its 12th annual convention from September 7 at the pink city with the "Indian Tourism - New opportunities and challenges ahead". Speaking to this correspondent, the IATO President, Mr Subhash Goyal, said as many as 1,000 delegates attend the convention which would be inaugurated by the Rajasthan Chief Minister, Ms Vasundhra Raje Scindia. Several top leaders of the industry, including Union Tourism Secretary, Mr A K Misra, would be participating in the convention. To sustain the 15 per cent growth of tourism, Mr Subhash Goyal, said "the country needs to create more hotel rooms, modernize airports, highways and wayside amenities and relax visa norms." Mr Goyal said the number of tourists that would visit country by 2012 would cross 10 million. "The need for hotels rooms is to the tune of 50,000 and we need to tale urgent action to build hotel rooms." While calling for urgent action on Home Stay concept, he offered the expertise of IATO in tandem with the government agencies to grade these accommodations. The Home Stay programme can take care of 10,000 rooms immediately, he added. He hoped that the Government would take steps before the Commonwealth Games to solve the accommodation problem in the capital by also giving due recognition to the existing guest houses.
Giving details of the four-day programme, the Co-Chairman of the Convention, Mr Rajesh Mudgill, said the convention would be divided into four business sessions and cover topics such as infrastructure, transport, rural health, and adventure and sports tourism and over taxation.
The Convention Chairman, Mr Pronab Sarkar, pointed out that the cumbersome taxation procedure and the high percentage of taxes levied on the tourism industry were affecting the Indian tourism industry. He gave an example of countries like China, Singapore and Sri Lanka where tourism has flourished because of lower percentage of taxes.
"Like previous years, IATO will organize this year also a Marketing Innovation Competition to encourage the creativity in different categories and exchange ideas to improve the quality of promotional material", said Mr Lally. Stop sealing of guest houses: IATO By Sushma Arora NEW DELHI, Sept 1: The Indian Association of Tour Operators (IATO) has sought the intervention of the Prime Minister, Dr Manmohan Singh, the Congress President, Mrs Sonia Gandhi, and the Chief Minister, Mrs Shiela Dixit, to find a workable solution to the demolition problem which, it says, is going to have a very negative impact on tourism besides inconveniencing tourists. Expressing concern over the sealing of guest houses, holiday Homes and tourist rest houses in Delhi, IATO, in separate letters to them, has pointed out that there is a shortage of about 20,000 rooms in Delhi in different categories. As over a lakh tourists are expected to turn up in the capital for the 2010 Common Wealth Games, there is a critical need to have at least 6,000 rooms in the budget category alone. On the one hand, IATO said, the Central Government is spending millions of dollars on "Incredible India" campaign, and on the other, Delhi Government is continuing with demolitions and sealing of Guest Houses which are needed to provide affordable accommodation facility to tourists who otherwise find Delhi very cost prohibitive. The concerned authorities must take practical view of the situation and put a stop to this operation in the greater national interest, it pointed out. | advertisements below
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JAIPUR,
Sept 7: In a landmark historic decision, IATO,
the largest body of tour operators, has decided
to build 50 hotels across the country to meet
the shortage of hotel rooms which was proving
as a stumbling block in boosting foreign arrivals.
As
a gesture of goodwill to the state of Rajasthan
where at least 300 persons have died and lakhs
have become uprooted from their hearths and homes
due to flash floods in some districts, IATO donated
a sum of Rs. 1.11 lakh for relief and rehabilitation
work. 
The
IATO Vice President, Mr Vijay Thakur, read a very
optimistic message from the President, Dr APJ
Abdul Kalam. 
NEW
DELHI, Sept 4: The four-day annual convention of the
Indian Association of Tour Operators (IATO) is expected
to give a clarion call to the Government to reduce
taxes, expand the product basket and increase the
pace of infrastructure, including hotels, to boost
tourism and meet the challenge posed by countries
like China, Singapore and Sri Lanka.
While
calling for competitive packages to meet challenges
posed by the neighbouring countries like China, Singapore,
Malaysia and Sri Lanka, he called for diversifying
the product basket to include Medical, Spiritual,
Rural, Sports and Eco tourism.
The
IATO Vice President, Mr Vijay Thakur, said the third
day would see presentation by different States like
Rajasthan, Maharashtra, Kerala, Orissa, Madhya Pradesh,
Pondicherry and Uttranchal.
Mr
Sarkar said the service tax that was being charged
on the 40 per cent package cost, whereas the commission/service
charge which Indian tour companies were getting was
only 10 per cent. Therefore, Mr Pronab Sarkar demanded
that the service tax should be charged on 10 per cent
only and not on 40 per cent. "This should be
implemented urgently not only on moral and ethical
grounds but also from the economical point of view,"
he added.
The
IATO Secretary, Mr Lally Mathews, said that the IATO
conventions have been an excellent platform for the
state government to showcase their products during
the Travel Mart and there has been substantial increase
in participation of the industry and the state governments
over the years. 
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