India can leverage the PPP model in tourism, promote wellness industry and prepare policies to create investment opportunities, which would support the sector's growth potential, a report has said.
The 'Tourism Investment Potential in India, 2021' report, prepared by Nangia Andersen along with industry chamber FICCI, also suggested investing in 'Caravan Tourism', a concept which has gained immense popularity across the globe owing to the flexibility it provides while holidaying vis-a-vis itineraries and accommodation.
"Considering the immense land area and the multitude of landscapes in India, Caravans and Caravan Parks are sure to add an exciting new facet to tourism in Incredible India. The initial demand in this niche segment is expected to come from domestic tourists and then from the inbound tourists," the report said.
Nangia Andersen LLP, Head- Government & Public Sector Advisory, Suraj Nangia said tourism is a global force for economic growth and development. After a tough year, the travel & tourism industry is back on the revival path.
"Technology is transforming the process of communicating with tourists, marketing tourism services, opening new and creative ways to deliver tourism services and enhance the visitor experience.
"This opens new investments flows from traditional hard investments like accommodation infrastructure to soft infrastructure like digital solutions and support services around experiences and sustainability," Nangia said.
The report also called for leveraging public-private partnerships (PPP) by encouraging participation. It suggested making an assessment of the various state-owned tourism units and identify those which can be operated on suitable PPP models, thereby promoting the various target opportunities.
"In the right circumstances, PPPs can allow governments to lead the development of tourism assets in accordance with government priorities and high environmental and social standards, while harnessing the efficiency and creativity of the private sector," it said.
The report also suggested that in order to promote investment in tourism and hospitality sector, 'Infrastructure' status for hotel projects provided as per current cost-based criteria of Rs 200 crore be amended to Rs 20-25 crore to enable inclusion of 2-3 star category of hotels.
This would reduce the cost of borrowing for potential investors and encourage creation of required tourism infrastructure.
The report observed that the Indian wellness industry has flourished by banking on the demand for alternative healing practices like ayurveda, yoga, naturopathy, etc., and then slowly expanded to include nutrition, fitness, preventive healthcare, and health tourism.
"Consumers and their needs will continue to evolve, driving the transition from remedial care to a more holistic view on preventive care. This augurs well for the wellness industry in India," it said.
Nangia Andersen LLP Partner, Government and Public Sector Advisory, Poonam Kaura said "this report empowers the business houses to contribute and create income to invest and generate revenue for both themselves and the local societies".