Tourism Sector in India | SASCI Scheme

Syllabus
GS Paper III – Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context
The Centre has recently sanctioned interest-free loans amounting to ₹3,295 crore to 23 States. These funds are earmarked for 40 new projects aimed at developing tourism sites and infrastructure under the ‘Special Assistance to States for Capital Investment (SASCI)’.

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Tourism Sector in India | SASCI Scheme

Introduction

The Centre has recently approved a significant scheme aimed at boosting tourism infrastructure across India. Under the ‘Special Assistance to States for Capital Investment (SASCI)’ initiative, interest-free loans worth ₹3,295 crores have been sanctioned for the development of 40 new tourism projects in 23 states. This move is expected to promote sustainable tourism, ease congestion at popular destinations, and stimulate local economies by developing lesser-known tourist spots into iconic attractions.

Revamping Tourism Destinations Under SASCI

• Implementation:
  • Loans will be granted to states with a 50-year tenure and at zero interest.
  • State governments must provide the necessary land, oversee project execution, and manage operations post-completion.
  • Projects must be finished within a two-year period.
  • State governments hold sole responsibility for operations and maintenance, with potential adoption of Public-Private Partnership (PPP) models.
• Fund Allocation:
  • 66% of the funds will be released as the first instalment by the Department of Expenditure directly to the states.
  • Nodal Ministry: The Ministry of Tourism.
  • States can propose multiple projects, with each project eligible for a maximum funding of ₹100 crores.
• Project Identification:
  • These initiatives target lesser-known tourist spots, such as Bateshwar in Uttar Pradesh, Ponda in Goa, Gandikota in Andhra Pradesh, and Porbandar in Gujarat.

SASCI Scheme (Special Assistance to States for Capital Investment)

• Introduction:
  • Launched in 2020-21 in response to the COVID-19 pandemic, this scheme aimed at addressing economic challenges.
  • Objective: To offer 50-year interest-free loans to states, enabling critical capital investments.
  • Continued under the same name in subsequent years.
• Key Features:
  • Guiding Principle:
    • Based on the Multiplier Effect, where every ₹1 spent as capital expenditure is expected to generate an impact worth ₹3.
  • Capital Investment Sectors:
    • Projects in health, education, irrigation, water supply, power, roads, bridges, and railways are approved.
  • Focus Areas:
    • Vehicle Scrappage Policy:
      • Incentivizes the removal of old, polluting vehicles.
    • Urban Planning Reforms:
      • Enhances governance and infrastructure in cities.
    • Housing for Police Personnel:
      • Ensures better living conditions for security forces.
    • Unity Mall Projects:
      • Promotes national integration through the development of cultural hubs.
    • Libraries:
      • Establishes digital libraries at the Panchayat and Ward levels to improve educational accessibility.
• Support for National Projects:
  • The scheme aids the acceleration of significant infrastructure initiatives like:
    • Jal Jeevan Mission (water supply).
    • Pradhan Mantri Gram Sadak Yojana (rural road connectivity).

India’s Tourism Sector

• Economic Contribution:
  • GDP Impact: The tourism sector contributed 5% to India’s GDP during 2022-23.
  • The World Travel and Tourism Council (WTTC) predicts that India’s travel and tourism sector will contribute nearly INR 21.15 trillion to the economy in 2024.
• Global Ranking:
  • India ranked 39th out of 119 countries in the Travel and Tourism Development Index (TTDI) 2024 report by the World Economic Forum (WEF).
• Foreign Tourist Arrivals (FTAs):
  • India saw 9.24 million FTAs in 2023, representing a 43.5% increase from 6.44 million in 2022.
  • This surge significantly boosted foreign exchange earnings (FEEs).
• Domestic Tourist Visits (DTVs):
  • Domestic tourism experienced remarkable growth, with 2509.63 million DTVs in 2023 (provisional), up from 1731.01 million DTVs in 2022.

Tourism in India: Economic, Cultural, Social, and Environmental Impacts

• Economic Contributions:
  • Job Creation: Generated 76.17 million jobs directly and indirectly in the same period.
  • Foreign Exchange Earnings: Reached ₹2.3 lakh crore in 2023, highlighting its economic significance.
  • Infrastructure Investment: Over recent years, ₹7,000 crore ($1 billion) has been invested to enhance tourism infrastructure.
  • Promotion Initiatives: The Government is promoting India’s tourism assets both domestically and internationally to position India as a premier travel destination.
• Cultural Impact:
  • Heritage Preservation: Tourism fosters cultural exchange and conservation. For example, the Taj Mahal in Agra attracts millions of visitors, generating funds for its upkeep.
• Social Impact:
  • Community Empowerment: Tourism bolsters local communities by creating jobs and offering skill development opportunities.
  • Rural Tourism: Initiatives like those in Raghurajpur, Odisha, support artisans and preserve traditional crafts like Pattachitra painting, benefiting over 2,000 families.
• Environmental Impact:
  • Environmental Challenges: Despite its economic benefits, tourism can lead to issues like waste and pollution.
    • Example: The arrival of over 1.2 million tourists in Leh-Ladakh in 2023 resulted in significant plastic waste, with over 200 tons collected monthly during peak seasons.
  • Eco-friendly Practices: Tourism has promoted sustainable practices and conservation efforts.
    • Example: Kaziranga National Park in Assam has seen increased funding for wildlife conservation due to eco-tourism.

The Vast Potential of India’s Tourism Sector

• Diverse Attractions:
  • India’s varied geography and cultural heritage offer an array of destinations, from the natural wonders of the Himalayas and Kerala’s backwaters to historical landmarks like the Taj Mahal and Hampi.
  • With 40 UNESCO World Heritage Sites, India stands out globally for its rich cultural and natural heritage.
  • For instance, the tourism circuit in Varanasi, integrated with Buddhist sites such as Sarnath, attracts both domestic and international tourists.
• Growing Domestic Tourism:
  • Government schemes like Dekho Apna Desh and Swadesh Darshan 2.0 have significantly boosted domestic travel.
  • In 2023, domestic tourist visits surged to 2509.63 million, demonstrating the success of these initiatives.
• Foreign Tourist Arrivals (FTAs):
  • The increase in FTAs, with 9.24 million visitors in 2023 (up from 6.44 million in 2022), showcases India’s growing appeal as a tourist hotspot.
  • This growth has been aided by the availability of e-visas and a multilingual tourist helpline.
• Niche Tourism:
  • There is notable growth in niche tourism segments such as adventure tourism, eco-tourism, medical, and wellness tourism.
  • Kerala’s Ayurveda and yoga retreats are particularly popular, as is Himalayan trekking.

Government Initiatives to Promote Tourism in India

• National Heritage City Development and Augmentation Yojana (HRIDAY):
  • Launched in 2015 as a central sector scheme to preserve and rejuvenate India’s rich cultural heritage.
• Swadesh Darshan Scheme (2014):
  • Aims to develop theme-based tourist circuits across India, leveraging cultural, historical, and natural heritage.
  • Focuses on creating world-class tourism infrastructure and experiences.
• PRASAD Scheme (2014):
  • The Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASAD) focuses on developing and beautifying pilgrimage sites in India.
  • Enhances the overall pilgrimage experience for both domestic and international tourists.
• Paryatan Parv (2015):
  • A nationwide campaign to encourage domestic tourism by organizing cultural events, festivals, and activities across the country.
  • Promotes India’s diverse cultural heritage and attracts domestic tourists to explore different regions.
• Dekho Apna Desh Initiative (2015):
  • Encourages domestic tourism by promoting the exploration of India’s diverse landscapes and cultural heritage.
  • Aims to create awareness about lesser-known destinations and promote domestic travel.
• Ek Bharat Shreshtha Bharat (2015):
  • Promotes cultural exchange and integration between different states of India.
  • Encourages state pairings to organize cultural exchange programs, festivals, and activities, fostering a sense of unity and promoting domestic tourism.
• E-Visa (2014):
  • Implementation of an e-Visa system by the Indian government, making it easier for foreign tourists to obtain visas and travel to India.
  • Streamlined the visa process and made it more convenient for international tourists.
• Dharamshala Declaration (2022):
  • Outlines India’s plan to revitalize tourism post-pandemic, aiming for a $150 billion GDP contribution, $30 billion in foreign exchange earnings, and 15 million foreign tourist arrivals by 2024.
  • Targets for 2030 include a $250 billion GDP contribution, 137 million jobs, 56 million foreign tourists, and $56 billion in earnings, establishing India as a global tourism hub.

Challenges in India’s Tourism Sector

• Infrastructure and Connectivity:
  • Numerous tourist locations, particularly in remote areas like the Northeast, lack fundamental infrastructure.
  • For instance, the picturesque landscapes of Arunachal Pradesh remain under-visited due to insufficient road and air connectivity.
• Safety and Hygiene:
  • Concerns regarding safety, especially for women, and issues related to sanitation adversely affect tourism.
  • Despite being a renowned spiritual destination, Varanasi struggles with waste management, discouraging many visitors.
• Underutilized Heritage:
  • While popular sites like Jaipur and Agra are frequently visited, other significant sites like Khajuraho and Hampi suffer from neglect and inadequate promotion, missing out on global recognition.
• Seasonal Tourism:
  • Popular destinations such as Shimla and Manali face overcrowding during peak seasons but lack effective strategies to attract tourists during off-seasons, leading to uneven economic benefits.
• Skilled Workforce:
  • There is a notable shortage of skilled professionals in the hospitality and tourism sectors, affecting service quality.
  • This includes a deficit of trained guides and managers in numerous tourist hotspots.

Way forward

• Infrastructure Improvement:
  • Enhancing connectivity in remote regions by establishing new airports in the Northeast and improving rail networks can unlock tourism potential.
  • For example, better roads and transportation to Ladakh have significantly increased visitor numbers.
• Sustainable Tourism:
  • Kerala’s Responsible Tourism initiative, which integrates community development with eco-tourism, serves as a successful model for other states.
• Targeted Marketing Campaigns:
  • Revamping the Incredible India campaign with themes such as spiritual tourism and Ayurveda can attract specific traveler groups.
  • Similar focused marketing efforts in Rajasthan, emphasizing its desert culture, have shown success.
• Safety and Security Enhancements:
  • Deploying tourist police in key hotspots, improving signage, and enhancing digital safety for travelers, especially women, can bolster India’s global image.
• Promotion of Off-Season Tourism:
  • Hosting events like the Ladakh Winter Festival or offering discounted travel packages during lean periods can help distribute tourism activity throughout the year.

Conclusion

Looking ahead, India’s tourism and hospitality industry is anticipated to generate over $59 billion in revenue by 2028. The sector holds significant potential for driving economic growth, job creation, and enhancing global cultural engagement. By tackling issues such as infrastructure deficiencies, seasonal tourism dependence, and safety concerns, while capitalizing on its rich heritage and natural attractions, India is well-positioned to emerge as a global tourism powerhouse, making substantial contributions to its developmental aspirations.

Reference: The Hindu

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Related PYQ

“Investment in infrastructure is essential for more rapid and inclusive economic growth.” Discuss in the light of India’s experience. [UPSC CSE – 2021 Mains]

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Practice Question

Discuss the potential of India’s tourism sector in driving economic growth and the role of the Special Assistance to States for Capital Investment (SASCI) Scheme in this context. Highlight the key challenges faced by the sector and suggest measures to overcome them. [250 words]

Guidelines to Answer

1. Introduction:
   • Briefly introduce India’s tourism sector and its significance to the economy.
2. Potential of Tourism Sector:
   • Discuss the diverse attractions (natural, cultural, and historical).
   • Mention statistics related to GDP contribution, employment generation, and foreign exchange earnings.
   • Highlight the growth in both domestic and foreign tourist arrivals.
3. Role of SASCI Scheme:
   • Explain the objectives and key features of the SASCI Scheme.
   • Discuss how the scheme aims to boost tourism infrastructure and connectivity.
4. Challenges:
   • Identify key challenges such as inadequate infrastructure, safety and hygiene issues, seasonal dependency, and shortage of skilled workforce.
5. Measures to Overcome Challenges:
   • Suggest infrastructure improvements and better connectivity.
   • Emphasize the need for sustainable tourism practices.
   • Recommend focused marketing campaigns and enhanced safety measures.
   • Propose initiatives to promote off-season tourism and training programs for the workforce.
6. Conclusion:
   • Summarize the potential of the tourism sector and the importance of addressing challenges.
   • Reinforce the role of the SASCI Scheme in realizing this potential and contributing to India’s economic growth.

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