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Tourism Sector in Uttarakhand: A brief Overview after the State Formation

Dr. Bharti Jaiswal1,

Additional Statistical Officer,

Directorate of Economic and Statistical (DES), Government of Uttarakhand

Dr Madhu Bisht2,

Assistant Professor, Economics, Doon University, Dehradun

Abstract

Tourism sector holds strategic importance in the Indian economy providing several socio
economic benefits. Provision of employment, income and foreign exchange, development or
expansion of other industries such as agriculture, construction, handicrafts etc. are some of the
important economic benefits provided by the tourism sector. In addition, investments in
infrastructural facilities such as transportation, accommodation and other tourism related
services lead to an overall development of infrastructure in the economy.

Uttarakhand is rich in scenic beauty with healthy climate and ample avenues for adventure
sports and eco-tourism. River rafting, trekking, rock climbing, camping etc. are emerging as
serious tourism businesses. As per CSO data, this sector is a leading contributor to the service
sector GDP of the state. This State is also known for sites of cultural and religious significance.
According to Uttarakhand Development Report 2011, there is around 150% increase in income
within a period of 10 years in this sector and is a consistently growing source of income.
Therefore, wise approach in leveraging tourism can lead to a better job opportunity for local
residents close to their home for which they may not have to migrate, and in a way will help in
preserving the local culture and traditions, in turn nurturing and restoring the diversity of our
country along with a major source of income and employment in places which don’t fit the
portfolio of giant enterprises.

Tourism in Uttarakhand is still in a discovering stage. Many sites are still lying untapped. The
main problem in the development of the state is proper infrastructure to support sustainable
tourism. Infrastructure facility currently available is very poor. Even several years after the
creation of the state and despite the potential of all kinds of tourism, the state is not able to attract
tourists because of the poor tourism infrastructure. )n , the total number of tourist’s arrivals

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was 19.45 million. In 2006, Uttarakhand has only 8.4 tourist rent houses per million tourists,
102.5 hotels and guest houses per million tourists and 337 beds available for every million
tourists which are not sufficient.

)n the absence of a planned and coordinated strategy of tourism development, the unlimited
tourism potential of the State has, however, not been fully realized. )nadequate tourism
infrastructure and government plan outlay have been substantially responsible for this as
highlighted by this research paper.

Keywords: Tourism Development, Tourism )nfrastructure, Government Plan Outlay

 Background:

The land of legends, Dev Bhoomi, Abode of Gods – by whatever name you call it, Uttarakhand
lives up to all its sobriquets. It indeed is a state fit to be the home divinity, encompassing as it does
lofty snow peaks overlooking heavenly meadows, gushing streams, holy rivers and lush fields. It
is situated in west Himalayan zone and, has been traditionally known as a gold mine of herbs,
medicinal and aromatic plants in the country. Though Uttarakhand has historically been a
pilgrimage destination, it is fast gaining a reputation as a destination for adventure lovers. Its high
peaks are an irresistible lure for mountaineers and trekkers.

 Objectives of the Study:

1. To examine the growth of tourism in terms of tourist arrivals in Uttarakhand.
2. To evaluate critically the infrastructural facilities required for the promotion of tourism.
3. To examine the Tenth and Eleventh five year plans and also the state government
response in budget towards tourism sector.
4. To give some policy suggestions in this regard.

 Tourism Diversity in the State:

Pilgrimage: Pilgrimage has traditionally been a major segment of tourism in the State. )mportant
Places of pilgrimage of different religions are located in the State. Among these Badrinath,
Kedarnath, Yamunotri, Gangotri, (aridwar, (emkund Lokpal, Nanakmatta, Meetha-Reetha Sahib,
Piran Kaliyar, Punyagiri are some of the best known. Many important religious yatras, of which
Nanda Devi Raj Jat and Kailash Mansarovar Yatra are the most popular, also take Place in the State.
There are several other Places of pilgrimage like Panchbadri, Panchkedar, Panchprayag, Patal
Bhuvaneshwar etc., which need to be developed on a priority basis.

Cultural Tourism: The State has a rich and vibrant cultural heritage. There are innumerable
local fairs and festivals like Jhanda Mela Dehradun , Surkanda Devi Mela Tehri , Magh Mela

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Uttarkashi , Nanda Devi Mela Nainital , Chaiti Mela Udham Singh Nagar , Purnagiri Mela
Champawat , Piran Kaliyar Mela (aridwar , Joljivi Mela Pithoragarh and Uttarayani Mela
Bageshwar ; which are indicative of the immense potential for cultural tourism in the State.

Natural Beauty: The Queen of the (ills, Mussoorie, the Lake District of )ndia - Nainital, Kausani,
Pauri, Lansdowne, Ranikhet, Almora, Pithoragarh, Munsyari and many more attractive tourist
destinations like Binsar are part of the State.

Adventure Tourism: The State is a paradise for adventure sports. The sheer variety ranging from
mountaineering Bhagirathi, Chowkhamba, Nanda Devi, Kamet, Pindari, Sahastrataal, Milam,
Kafni, Khatling, Gaumukh , trekking, skiing Auli, Dayara Bugyal, Munsyari, Mundali , skating,
water sports in all the lakes and rivers in the State to aero sports like hang gliding, para gliding
Pithoragarh, Jolly Grant, Pauri make the State one of the most attractive destinations for
adventure sports not only in )ndia but in the world over.

Wildlife Tourism : Along with the world-famous Corbett National Park, the State has several
other breath taking destinations for Wildlife Tourism. These include the Rajaji National Park,
Govind Pashu Vihar, Asan Barrage, Chilla, and Saptarishi Ashram, the last four being a delight for
bird watchers.

Eco-Tourism : The State has a rare diversity of flora and fauna. This makes it an ideal area for
developing eco-tourism projects and activities like jungle safaris, trekking on mountain and forest
trails, nature walks, catch and release angling for Mahaseer and other fish species. All these
activities have to be conducted in a manner that promotes awareness of environment and helps to
maintain the fragile ecological balance.

Amusement and Leisure Tourism: The clean, fresh and invigorating environment makes the
State a preferred destination to relax and unwind. From the modern facilities at Mussoorie and
Nainital to the untouched, pristine beauty of its snow-clad peaks, rivers and forests, the State
provides all that a tourist could possibly seek for amusement and leisure.

The significance of Tourism, as defined by Ghosh, is one of the major items of

international trade. Tourism industry earns the gross revenue and foreign exchange earnings, play
an important role in economic development. Therefore it is a generator of foreign exchange at the
national level and also a fastest growing industry in the global economy.

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 Growth Performance of Tourism in Uttarakhand:

Fig- Trends in Total )ndian Tourists Arrivals in Uttarakhand

Total Indian Tourist Arrival (in lakhs)

350 309.72 293.74
282.93
300
250 221.54 231.54 225.25
266.66
200 162.8 230.64 200.25
193.58
150 129.3 Total Indian Tourist
100 138.3
Arrival (in lakhs)
50
0

Source: Uttarakhand Tourist Development Board Department of Tourism, Govt of

Uttarakhand, )ndia

Fig- Trends in Foreign Tourists arrival in Uttarakhand

Foreign Tourist Arrival (in lakhs)

1.6 1.45
1.36 1.41
1.4
1.18 1.1
1.2 1.06 1.11
0.93 1.12
1
0.8 0.75 0.96
0.9
0.6 Foreign Tourist Arrival
0.63 (in lakhs)
0.4
0.2
0

Source: Uttarakhand Tourist Development Board Department of Tourism, Govt of

Uttarakhand, )ndia

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The above figures and show the trend of )ndian and foreign tourists arrival in Uttarakhand for
the years to . The trend of tourist arrivals shows that in Uttarakhand, the number of
both foreign and )ndian tourists has gradually increased.

 Critical Evaluation of Infrastructure Facilities in Uttrakhand

)t is observed that the future growth of tourism will largely depend on the growth of suitable hotel
accommodation in the country, coupled with transport and other infrastructure. The Sector
Working Paper or Tourism of the World Bank has recorded that usually to percent of the
total expenditure of tourists’ accounts for food and accommodation and a remarkable expansion
of tourism is possible by increased supplies of moderately priced accommodation in many
countries. Naik,

Through a survey result published in Uttarakhand Socio-Economic Mirror, Quarterly Bulletin of

the DES, GoUK, Vol , No , Sept. , B.K. Joshi, State Planning Commission, Uttarakhand tries to
assess the pull and push factors that can help in strengthening the tourism in Uttarakhand in some
selected tourist places shown in table below. Joshi,

Source: B.K. Joshi, State Planning Commission, Uttarakhand Socio-Economic Mirror ,

Quarterly Bulletin of the DES, GoUK, Vol , No , Sept. , Pg. .

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Number of Available Tourist Facilities Till Year

2014-15
7000
6000
5000
4000
3000
2000
1000 Number of Available Tourist
0 Facilities Till Year 2014-15
Rain Baseras
Tourist Rest House

Beds in Tourist Rest

Developed Tourist Spots

Beds in Rain Baseras

Hotel and Paying Guest

House

House

Source: A.S. Bisht, Tourist Arrival in Uttarakhand, Uttarakhand Socio-Economic

Mirror , Quarterly Bulletin of the DES, GoUK, Vol , No , Sept. , Pg. - .

 Critical Evaluation of Infrastructural Setup in Some Selected Tourist Spots

Source: B.K. Joshi, State Planning Commission, Uttarakhand Socio-Economic Mirror ,

Quarterly Bulletin of the DES, GoUK, Vol , No , Sept. , Pg. .

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There is marginal availability of infrastructural setup in almost all the selected tourist spots of
Uttrakhand as shown in the above table.

 Evaluation of Policy Initiatives:

 Progress Overview During Tenth Five Year Plan

Uttrakhand is popular for its various cultures, geographical structure, environment,

natural resources forest, rivers and aromatic plants and economic activities; among
which tourism attracts attention to policy makers. Tourism is a key industry to generate
employment as well as state revenues. )t also attracts foreign as well as domestic visitors
from different areas. Uttarakhand became the first state to legislate a tourism
development board in )ndia; responsible for performing various functions such as
promotion, regulation, advisor and authority to issue license for tourism industry in
Uttarakhand.

According to the )ndian statistic report , depicts an improvement in ranking position

in terms of domestic tourism arrival from th to th position but in terms
of foreign visitors arrivals shows decline in ranking position from th to th

position . Domestic arrivals are estimated about - % in state because of holy

places and pilgrims like Badrinath, Kedarnath, Gangotri, Yamuntri, Rishikesh and
(aridwar.

The National Committee on Tourism, has stated that the money spent by the
tourist percolates through many levels and generates additional income at each round of
spending and this has a multiplier effect. State government has planned to invest in this
sector as it can generate a multiplier effect on the Uttarakhand state economy through
huge economic benefits in terms of income and employment generation, poverty
alleviation, socio-economic development as well as accelerating economic growth.
Government incorporates tourism industries in its development plans for inclusive
growth of the state. )n order to facilitate investments in various tourism projects the State
Government has prepared following master plans

 Master Plan of worth Rs crore for the development of infrastructure reroute Char
Dham.

 Master Plan of Rs crore for the development of Corbett Country Tourism Destination
Project near Jim Corbett National Park.

 Master Plan of Rs . crore for development of Eco-tourism destination at Sir George

Everest Estate near Mussoorie.

 Master Plan of worth Rs crore for the development of Ski Resort at Dayara Bugyal
Uttarkashi .

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 Master Plan of worth Rs crore for the development of Water Sports Resorts at the Tehri
Dam Tehri Garhwal .

 Master Plan of worth Rs crore for the upgradation of infrastructural facilities on the
major the major trek routes.

 Master Plan of worth Rs crore for the development of areas around Airstrips
Uttarkashi, Chamoli and Dehradun .

 Master Plan of worth Rs . crore for the development of two new tourist circuits Pauri
- Khirsu - Lansdowne and Pithoragarh – Munsiyari.

 About proposals of worth Rs . crore from private sector seeking investment.

State government has planned to develop tourism, incorporated tourism industry in its priory
schedule as it is a foremost source of generating employment and income. Tourism industry is also
assumed to be an inclusive growth indicator to develop the state infrastructure. For the successful
implementation of the plan, few another tourism destinations have been identified in rural
mountain areas by state government like Munshiyari, Pithoragarh and Lansdown. To promote
water activity based tourism, Government constructed Tehri reserviour for Tehri hydroelectric
projects. For encouraging tourism in Tehri area, lake is submerged Tehri town and moved up to
Nerry in Bhagirathi valley. This beautiful flora and fauna surrounded by high mountains enhancing
the beauty of place having high potential of tourism.

State has increased expenditure on tourism development schemes successively year by year.
This tourism fund has been invested in marketing strategy for advertising the policies and tourism
infrastructure over the country and outside the country. The state government has been allotted
Rs. approximately in th five year plan to develop tourism sectors. But the expenditure is
not sufficient to explore the full potential of tourism sectors. As per the state report A total outlay
of Rs. . lakh had been earmarked during the Tenth Five Year Plan period - .
During Tenth Five Year Plan period, locals were benefitted under Vir Chandra Singh
Garhwali Self Employment Scheme.

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 Policy Overview11

Infrastructureal Development
Administrative Measures Marketing Measures
Measures
•Tourism Administration and •Target Group Oriented Tourism •Augmentation of Infrastructure
Management: For chanelizing smooth Development: Uttarakhand is a Facilities : Government planned to
progress of tourism industry we need composition ofdifferent type of improve roads, communication and
systematic coordination between the tourist places that attract diversified power supply to mobilize resources
different agencies involved in tourism group of tourist. State government from one place to another. Along with
development. Toensure this planned to segregate these group into this, focus was given on hotel and
coordination, mordenized techniques various segment to reach each restaurent facilities in order to attract
and innovations in administration and segment of tourist. Government the tourists.Government also
managemenet area have been formulated policies according to the developed internet portal to link with
adopted. requirements of the each segment of tourist for providing information of
•Private Sector Participation: This tourist. infrastructure facilities.
policy ensure the controlling and •Promotion of Tourism Oriented •Development of New Tourist
executing the tourism related Handicrafts Industry and Cuisine: The Destinations: To explore vast
activities to develop tourism sector. main focus was given on the potential of tourism industry,
•Human Resources Development: promotion of the production of government searched out different
Employees are key driver to enhance souvenirs, traditional artfacts and tourism destination and developed
tourism sectors. People working for high quality international, national facilities to access these destination
industry should be committed and and local cuisines in Uttarakhand. like home stay, tracking and cultural
dedicated for their service. Hence, participation.
government has planned to arrange •Winter / Year Round Tourism :
various workshops and training Various destinations are known for
programmes, incorporated innovative snowfall in Uttarakhand and people
skills and knowledge including guide, come to enjoy sunsine and polluted
chef, agents etc. free sky. Government facilitated with
various tools and techniches to enjoy
this winter season like ayurved clinic
and natural therapy.

 Progress Overview during Eleventh Five Year Plan

Realizing the potential of tourism sector in stimulating the state economy through backward as
well as forward linkages with various other sectors like agriculture, industrial and manufacturing ,
transportation, hospitality, health, education and banking etc along with significant contribution
in the generation of state income and employment, the following measures have been adopted by
the government during Eleventh Five Year Plan: -

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Administrative Measures Marketing Measures

•Strengthening •Augmenting Capital Investment in

Institutional •Package Tours / Tour-Travel
Framework : With the objective Tourism: Domestic private sector
Agencies: Development and
of boosting tourism business, investment and foreign
promotion of attarcative Package
focus was given on the investment have been promoted
Tour/ Tour Travel Agencies have
strengthening of the for the infrastructural facilities.
been done in order to boost
institutional framework. Under this, various international
tourist traffic. Some tourist circuits
organizations such as World Bank
•Constitution of A Tourism likeBadrinath, Gangotri, Yamnotri,
and asian Development bank etc.
Development Board: Policy & Kedarnath and Harkidun;
have been approached for
planning for the strengthening Dehradun and Roorkee tourist
financial assistance. Separate
tourism, making strategy for circuit; Uttarkashi, Chakrata and
funds from travel trade
mobilizing financial assistance Mussoorie and Haridwar- Pauri-
representatives, industrialists and
and setting guidelines and Devprayag and Rishikesh Have
other establishments have been
norms/standards for various been developed through these
raised for the development of
tourism activities were the main packages. Along this,
tourism. For this, efforts for
functions of this board. identification of the accredited
privatee capital investment and
•Private Sector Participation: travel agencies and relaxation &
participation have been made.
For this, the facilities provided simplification in the accreditation
rules were the main efforts that •Nature and Eco-Tourism: Some
were listed as under: (a)
have been made to enlarge Botanical Garden cum Heritage
Modification and simplification
tourism business. centers and Theme Parks were set
of the norms and procedures
up that shows the beautiful
for the luxury tax •Publicity and Tourism Marketing:
picture of the state biodiversity.
determination. (b) Rebate and Under the aim of the promotion of
Various Eco-Friendly Tourism
deferred payment facilities for publicity and marketing, posters,
activities like river-rafting ,
five yaears in the luxury tax. (c) pamphlets, guide maps and other
camping, mountain treks, jungle
Exemption in the installation of tourism literature were produced
safaris and tree plantation have
new ropeways and setting up of and circulated among visiters.
been promoted. Along this,
the new amusement parks from Focus was given on the
intensive campaigns were
entertainment tax payments. development of Uttarakhand
launched for the regulation of
(d) Fixation of the rate of Tourism websites. Campaigning
plastice waste in order to protect
entertainment tax under a was done through print and
the environment.
compounding scheme. electronic media in order to
•Human Resources facilitate the tourists.
Development: Availability of Conferences, seminars and trade
skilled human resource is the fairs were organized on a regular
basic requirement for the basis. For the information and
development of tourism. For convenience purpose, tourism
this, various diploma, degree related sign boards were
and training programmes have established at airports and
been started fot the youth as highways.
well as for the local community
in Catering & Hotel
Managemnet institutes. In
addition, tourism awareness
programmes and short-term
training courses were
conducted to ensure
specialization in tourism related
services such as catering,
managing and guide and
porters. In order to provide
training, services from experts
have been arranged.

 Major schemes identified for implementation during the 11th Five Year Plan : Based on
the strengths, weakness, opportunities and threats facing the tourism sector in the State, the
following recommendations have been made for the implementation of district, state and
central level schemes:

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a State Share for Centrally Sponsored Schemes: Along with an outlay of Rs. . lakh
out of the total plan outlay as the central share, Rs. . lakh as state share have been proposed
as state share for centrally sponsored schemes.

b Schemes under Recommendation of X)) Finance Commission: Various construction

works like Bathing Ghats, Parking and Beautification of Tourist Spots have been proposed under
various Master Plans. For this purposes, only Rs. . lakh have been sanctioned against the
approval of Rs. . lakh by Govt. of )ndia.

c Establishment of the State Tourism Development Board UTDB : State Tourism

Development Board UTDB has been set up under an Act of the State Legislature for the purpose
of giving suggestions to the government on all matters related to the development of tourism in
Uttarakhand state.

d Upgradation and establishment of information centres: Upgradation of existing

)nformation centers at (aridwar, Mussoorie, Rishikesh, Srinagar and establishment of new
information centers at Ramnagar, Kashipur, (aldwani, Kotdwar were undertaken .

e Development of Tourist Spots: The need for the upgradation and development of
infrastructural facilities such as roads, transport, electricity, safe drinking water and sanitation,
medical and telecommunication etc. was recognized during the eleventh five year plan and hence
development of tourist spots has been proposed by the state government at the Char Dham as well
as small less known destinations such as Chota Kailash, Purnagiri Adibadri etc.

(f) Publicity /Tourism Marketing/Corporate Tourism: Due to lack of publicity and marketing
facilities, many snow clapped mountains, lush green valleys and numerous pilgrimage sites which
have huge tourism potential of the State has remained untouched. Hence, it was proposed to start
a publicity / marketing campaign under publicity and marketing strategy. For this, a multimedia
approach and a specific action plan have been adopted by the state government.
(g) Cultural / Grants/Fairs & Festivals: To promote cultural tourism in the state, 5-6 major
cultural events were organized. In addition, about 200 fairs and festivals depicting traditional life
styles, customs and cuisines of the State has given financial support and publicity annually by the
state government.

(h) Veer Chandra Singh Garhwali Self Employment Scheme: The scheme was started in
June, in order to generate self employment opportunities for local community and
promote huge community participation in this sector. Under this scheme, about % of the
total project cost i.e. upto a maximum of Rs. . lakh has been given as state assistance.

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(i) Establishment of Land Bank: Land bank has been established in the State for providing
land to the private investors so as to develop accommodation and other infrastructural
facilities for tourists at all routes and destinations.

(j) Special Component Plan: Along with major infrastructure projects, various infrastructure
facilities like drinking water, beautification, sewerage, electricity, road connectivity etc. at
scheduled caste majority areas for the development of the whole state were taken up on the
recommendations of District Planning Committees under state sector.

(k) Tribal Sub Plan: Drinking water, sewerage, beautifications, electricity and road connectivity
etc. facilities as part of infrastructural development were provided under this scheme.

 Financial Progress of 11th and 12th Five Year Plans:

Fig-6 Number of Projects & Amount sanctioned during the 11th (2007-2012) and 12th
(2012-2015) in Crore Rs.

217.23
198.15

28 29

Number of Amount Number of Amount

Projects Sanctioned in Projects Sanctioned in
Crore Rs Crore Rs
11th 5yr Plan 12th 5yr Plan
Number of Projects & Amount sanctioned During the 11th (2007-
2012) and 12th (2012-2015) in Crore Rs.

Source- )ndia Tourism Statistics,

The above figure shows the number of projects and amount sanctioned was and .
crore rupees respectively during th five year plan which has further minor increased i.e.
and . crore rupees respectively during th five year plan. To sum up, very few
projects with very less amount have been approved by the government during both the th

and th five year plans.

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 Status of State Government Expenditure in Tourism:

%Share of Expenditure on Tourism From Total Expenditure

0.7 0.58 0.61
0.6 0.48
0.5 0.39
0.4 0.32 0.32
0.3
%Share of Expenditure on
0.2
Tourism
0.1
0

Source: Budget Documents of Uttarakhand, Finance Department, Uttarakhand,

Different Years.
Note: # shows Revised Expenditure and * shows Budget Expenditure
The above graph shows that state government has increased the percentage share of
expenditure from total expenditure in tourism has increased over the periods with minor
decrease of . in year - . But it is also noticed that this share is very less i.e. less than
in all the periods.

Government Expenditure in Tourism

27000
25500
24000
22500
21000
19500
18000 Revenue Expenditure (in
16500 lakh INR)
15000
13500 Capital Expenditure(in
12000
10500 lakh INR)
9000
7500 Total Expenditure(in lakh
6000
4500 INR)
3000
1500
0
2011-12 2012-13 2013-14 2014-15 2015-16# 2016-17*

Source: Budget Documents of Uttarakhand, Finance Department, Uttarakhand,

Different Years.
Note: # shows Revised Expenditure and * shows Budget Expenditure

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The above graph shows the increasing trends in all revenue, capital and total expenditure
incurred by the government. But it is also noticed that initially in year 2011-12 revenue
expenditure was greater than the capital expenditure but after year 2013-14 it shows the
reverse picture.

SERV)CE BASED )NDUSTR)ES : A Brief Overview through SWOT Analysis

STRENGTHS
 (imalayas with show clad peaks: Nanda, Trishul and many more.
 Diverse adventure sports: Mountaineering, trekking, skiing, river rafting, angling, aero
sports etc.
 Wild life and National Parks, Sanctuaries: Jim Corbett, Rajaji, Nanda Devi Bio-Sphere,
Valley of Flowers.
 Famous (ill Resorts: Nainital, Mussoorie, Ranikhet, Almora, Kausani etc.
 Pilgrim Circuit with famous destinations like: Char DhamYatra – Badrinath, Kedarnath,
Gangotri, Yamunotri, (emkund Sahib, Rishikesh, (aridwar. Fairs and Festivals like
Kumbh Mela, Ardh Kumbh etc.
 Well established network of Budget Tourist accommodation through Kumaun and
Garhwal Vikas Nigam.
 The State Tourism Development Board spearheading in the task.
 Master Plan being prepared for each sector along with shelf of projects on offer.
 Medical tourism, Spiritual Tourism, adventure tourism etc.

WEAKNESSES
 Marketing of tourism.
 Access to information.
 Transport facilities specially Aviation.
 Unaccessed tourist destinations
 Lack of world class tourism facilities.
 Poor private sector participation.
 Airways – Biggest hurdle.
 )nfrastructure.
 Management.
 Not even one Five Star (otel in Dehradun.
 (aridwar sanitation problem.
 Poor brand perception in Uttaranchal Now Uttarakhand .

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OPPORTUNITIES
 )nfrastructure Development: Roads, flyovers, airports, development and
communications etc.
 Development of new tourist destinations: Plethora of breathtaking locations. Promotion
of tourism oriented handy crafts industry and cuisine.
 (ealth Tourism: (otels along with spas, yogic and meditation centers, ayurvedic therapy
etc. Promote eco, adventure, spiritual and leisure tourism, helicopter-taxi services,
luxury tent age camps.
 E-commerce in tourism: on line reservation, accommodation, payment etc.
 New ski resorts.
 Ropeway development.
 Theme Parks.
 Amenities at pilgrim spots.
 Training Courses revolving around )ndia’s heritage – Ayurveda, Cuisine, Yoga can be
imparted in the State with ease and thus can be an big Opportunity.
 Creation of Dollar shopping Centre, Multiple duty free shopping zone.

THREATS

 The weakness if remains uncontrolled and uncured may prove to be major hurdle in this
sector.

 The progress should be in random with the nature else the problem of natural disaster
and environment may be affected.

 Unsatisfactory experience of customers with quality of services from Uttaranchal Now

Uttarakhand and delay and inefficiency due to in adequate legal and regulatory
infrastructure.

 Rise of Tourist activities in near by states, it is giving competition to the state.

 Concluding Remarks:
Tourism no doubt has immense potential but it need to have a sound infrastructure for
further development hence it is kept in between as it can also earn swiftly and some areas
need infrastructure development which will definition require more time. According to
the statistics available, the share of Uttarakhand to the total tourist in India (domestic
tourist) has increased in past few years while in case of foreign tourist, the growth is
almost stagnant. It can also been observed that the tourist inflows in the state, both
domestic and foreign, has shown a significant increase in past years. The majorities are
domestic tourists and the foreign tourist share is very less. This portrays a gloomy picture

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of state tourism development and also shows that there is a lot of potential for developing
this sector. Even several years after the creation of the state and despite the potential of
all kinds of tourism, the state is not able to attract tourists because of the poor tourism
infrastructure. Based on the above, the main issues and an indicative strategy are given
for integrated development of tourism in the state. The government can play a catalytic
role in this, especially during the initial years, both by providing fiscal incentives and
participation through Public-Private-Partnerships. It is noticed that the expenditure by
the government on tourism has increased over the periods but the amount of expenditure
is very less which need to be increased for the development of this sector. Moreover, large
amount is spent as revenue expenditure as compare to capital expenditure which shows
that the government less interest towards generation of capital assets for this sector. So,
the Government should increase budget and a large part of that budget should be spent on
the generation of capital assets. Apart from these, the Government should focus on:
1. Infrastructure Development: Investments in tourism infrastructure may include
development of both tourism as well as civic infrastructure. This may also involve
provision of tourist information bureaus and websites for providing requisite tourist
information. Efforts towards enhancement of overall transport infrastructure in the form
of good quality roads, rail network, airports, availability of tourist vehicles etc. should also
be strengthened in order to improve the overall infrastructure. There is less number of
beds per million people. Steps should be taken to improve accommodation facilities.
Hence in order to attract tourists from all over the world, there is an urgent need to create
efficient, modern and state-of-the-art infrastructure to cater to the specific needs of
tourists of all categories. The State Government may strengthen its efforts for providing
necessary infrastructure, i.e. good hotels and resorts, transport facilities, intra and inter-
city all weather roads, efficient telecommunication system and connectivity through
broad band at places of tourist interest in the State. Action: State Government

2. Winter sports activities like skiing, ice-skating & ice-hockey, water sports and winter
trekking etc. have vast potential in the State and these need to be promoted, publicized
and advertised to attract tourists throughout the year. Though the State Government has
made efforts to publicize the State as "Uttarakhand – A (eaven on Earth", it is suggested
that there still more needs to be done for promoting winter/year round tourism. The State
Government may give advertisements and also take part in the national as well as
international tourism seminars, exhibitions and fests. The State Government may
encourage private participation in construction of quality budget hotels for the younger
groups of foreign tourists, who are interested in mountaineering, skiing, trekking, river
rafting, aero sports, eco-tourism and village tourism. Action: State Government
3. The State has so far been generally known for its "(ill Stations," such as Mussoorie and
Nainital. There are innumerable other destinations with immense potential such as, New

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Tehri, Pithoragarh, Munsiyari, Pauri, Khirsu, Lansdowne and many others in the interiors,
which can be developed into attractive tourist hill destinations and hence they should be
developed fast. The State Government has prepared Master Plans for some areas in the
State. State Government may encourage and create an environment for developing new
potential tourist destinations, with all interrelated infrastructure, with the cooperation of
private entrepreneurs and local people. Action: State Government
4. Rural tourism in the State may be encouraged and tribal villages should be developed as
tourist villages. The tourism clusters may be developed taking into account the
infrastructural requirements, capacity building needs of the service providers and the
credit requirements thereof. The tourism cluster will be a multi activity cluster involving
entrepreneurs providing accommodation, catering, entertainment, educative inputs,
health and fitness related activities, tour operators, travel guides and other service
providers. The commercial banks should extend credit facilities for development of such
tourism cluster for infrastructure requirements on the line of guidelines issued by Reserve
Bank of )ndia. Action: State Government
5.Publicity and marketing of the tourist attractions of the State at the national and
international level have been inadequate. Planned and coordinated efforts with the fullest
utilization of information technology are required to be made in this direction. Above all,
the State Tourism needs to develop its own brand name and image. State Government may
take necessary steps for effective publicity and marketing of tourist attractions of the State.
Action: State Government.
6. Special arrangements and up-gradation of existing institutions and facilities will be
necessary for developing tourism entrepreneurship, management capabilities and
training in specialized services such as guides, porters, chefs, etc. Facilities may be
developed by the State Government at the potential tourist centers to provide
international level amenities to the foreign visitors. Action: State Government.
7. Foreign tourists face difficulties in exchanging their foreign currencies in banks and hotels
in the State. This may be mainly on account of fear/lack of knowledge on the part of
concerned staff to differentiate between the genuine and counterfeit currency. There have
also been problems in making payments through national/international credit/debit
cards by both domestic as well as foreign tourists. )n view of lack of knowledge in handling
the foreign currency by the staff of banks, hotels, shops and emporia, RB) and banks may
organize seminars/workshops in matters relating to foreign exchange at major centres in
the State at regular intervals. Action: RBI / Banks.
8.Broadband connectivity will help the banks to establish ATMs at places of tourist interest -
and accept international debit/credit cards from the foreign tourists. Bank branches
dealing in foreign exchange may be provided with broadband connectivity immediately so

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that the foreign tourists are extended hassle-free conversion facilities without any delay.
Action: State Government.
9. Position as a world class services based economy The services sector provides the
best possible opportunity for the State, because of its good climate, pollution free
environment, availability of educated manpower, and work ethics. The services sector is
also expected to be highest growth area in the )ndian and global economy during the
coming decades, and it has high employment content and lower investment requirements.
The focus on services would obviate locational disadvantages of the region, for
manufacturing. And the ecological impact of services is relatively lower and is easier to
manage. (owever services capability levels would need to be world class, for success in a
globalized economy Action : Entrepreneurs Government and local People.
10. Strategically employ tourism to emerge as a multi-faceted services economy The
State is recognized as a tourist destination and it possesses basic infrastructure and
business skills. )t will be possible to have early and large economic gains, and tourism can
be developed to world class levels in near future. An approach to market and develop
tourism, in an ecologically sensitive and sustainable manner, would be consistent with
global activism towards environment consciousness. The success in tourism can be
expanded to other services sectors, where there is potential but current levels are low or
non-existent. The highest potential area is information technology, with education and
health also ranging high. There are commonalities and strong linkages among the various
areas of services sector, especially in terms of manpower skills and infrastructure
requirements. The State should have independent strategies for each of the services
sectors, and it should also aim for tight integration across individual strategies for the
overall development of services economy. Action : Entrepreneurs, Government and local
People.
11. Human Resource Development
Provision of additional training institutes, enhancing capacity of existing ones along with
introduction of short term courses providing specific skills directed at hospitality and travel trade
sector employees may be required for catering to the increased manpower and skill requirements.
Rural youth may be provided vocational training through special institutes to provide them
employment opportunities.
12. Marketing Programs

 Collaborative marketing efforts may be required for promotions. Focused branding and
promotional campaigns may be designed.

 Involvement of local travel trade partners may be encouraged.

 Trips to involved destinations, informative sessions, financial support and incentives may
be provided.

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A greater number of domestic tourism events and road shows should be organized in order to
offset seasonality of tourist inflow. Events may be based on innovative themes of music, dance,
sports, food, fruits, handicrafts, )ndian culture and traditions, )ndian villages, festivals etc.)ts
high time that the State should boost on its Strengths and combat its weakness and plan out
the economic development with right perspective and of course by maintaining the ecological
strengths.

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8. Report. (1988). National Committee on Tourism.

. Uttaranchal- A state on the move, Dehradun: Department of )nformation and Public Relation, , pg.
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