Manish Kumar
Post News Network
Bhubaneswar, Sept 6: Stakeholders in the tourism and hospitality sector are hopeful that the new draft industrial policy will offer remedies to many of the hurdles faced by investors in the state.
The ambitious policy has provisions for a single window clearance system for new investors, facilitating online platforms for clearances, incentives to new investors besides allotment of lands at concessional rates. The policy also envisages rationalisation of taxes and rebates on value-added taxes and entry taxes.
Experts however said the policy, which aims at dealing with problems faced by both old and new investors, will have to be strictly implemented to ensure that the sector flourishes in the state with the symbiotic association of private and government players.
Hotel Crown director Debasish Patnaik spoke of the hospitality sector in the state struggling in areas outside of the capital city. “When we talk about the hospitality sector of Orissa, I find that most of the quality hotels are confined only to Bhubaneswar and Puri. Very few quality hotels have come up near potential tourist destinations in the state like Chilika or Konark, thus hampering the tourism prospects in the state. The need of the hour is to reach out to such places and offer quality hospitality,” Patnaik said.
Patnaik said many investors are finding the state a good market to invest in, but stressed that more needs to be done by government and private players towards creating more opportunities and resources for tourists. “When we go to Puri, people only have the option of visiting the temple or the beach. To boost tourism, we need to work in tandem and create more opportunities to offer to the tourists to make their visit to the state a memorable one,” Patnaik said.
Industry experts feel strictly adhering to the norms of the policy would reap substantial benefits. Himanshu Das, vice-president of Travel Agents Association of Orissa, said, “Laws prescribed on paper are good for tourism sector. However, proper implementation is very important. Creating awareness is significant so that prospective investors can benefit.”
“The new policy will be a motivating factor for new investors. Earlier, due to the dearth of such norms, many prospective investors were cautious of investing in the state. However, besides the investment-friendly policy, the state needs the urgent attention of the Union ministry of civil aviation with regard to giving licenses to private players to begin international operations from the state, as that would go a long way towards increasing foreign arrivals,” said Benjamine Simon, chairman of Indian Association of Tour Operators (Orissa Chapter).
Red tape is a big stumbling block when it comes to ease of doing business in the tourism sector in the state. Piyush Rout, a city-based urban planner, said, “We have seen in the past the failing of many guidelines due to red tape and leadership problems. Adhering to the norms can potentially help in boosting tourism in the state. Till now, not many investors were interested in putting their money in the state’s tourism sector. Most look at Orissa’s mining and manufacturing sectors. I hope the policy rejig can shift their focus.”
The policy has kept the tourism sector on a priority sector list and is offering incentives to draw new players to the state. Experts believe the maiden annual conference of Federation of Hotels and Restaurants Association of India from September 25 in Orissa is likely to see discussions over the scope for investments by major hoteliers who are likely to be a part of the convention where they are likely to interact with policymakers and government officials.