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Tourism : Opportunities
AT present, India has about 49.000 approved > hotel rooms as against the requirement of about 89.000 by '>996 and about 100.000 hotel rooms by the turn of the century. Shortage of hotel accommbdation in the country Is a major bottieneck. Besides hotels, there Is also a hard fell need Tor development of tourism related services like travel and tour operating agencies. transportation and other -services providing leisure, entertainment, convention facilities, etc.
Policy
The hotels and tourism related Industry has been de clared a 'high priority Industry.’ Automatic approvals for foreign equity up to 51% as well as foreign technology agreeinents are available from
• fire RBI. subject to fulfillment ol certain parameters. This in eludes restaurants, beach re
sorts and other tourism complexes providing accommodation and catering'facilities to tourists Also included are:
• Trave) agencies, tour operating agencies and tourist transport operating agencies.
• Units providing facilities for cultural, adventure and wildlife experience.
• Surface, air and water transport facilities.
• Leisure, entertainment, amusement, sports and health uiiits. .
• Convention and seminar _■ organisations.
Incentives
The Tourism Finance Coi poratlou of India has been set up to render financial as sistance to tlie private sector for construction of hotels. Large hotel protects are li named by .ill India financial InMilutions like IDBI. IFf'l and l< ICI
Other assistance by way of Interest and capital subsidies, tax exemptions and special foreign exchange facilities is also available.
Under the the Export Promotion Capital Goods (EPCG) sr lieirie. import of cap ital equipment lincludlng spares up to by hotels and restaurants, travel agents and lour operators, for which payments are made In freely convertible currency is al lowed at a conr essional rate of customs duty of 15%. subject to an export obligation of four times the CIF value of the lin ports The obligation Is io Ire fulfilled within a jx-riod of 5 years
< oncessional customs du ties are levied On severol Hems ol import in this sei lor Equipment for adventure sfxtrts can also be inqxirted al a corKesslonal rate of duly