BEST: International Journal of Management, Information Technology and Engineering (BEST: IJMITE) ISSN (P): 2348-0513, ISSN (E): 2454-471X, Vol. 4, Issue 1, Jan 2016, 1-6 BEST Journals PUBLIC PRIVATE-PARTNERSHIP IN TOURISM SECTOR G. VENKATESWARLU 1 & M. JAYALAKSHMI 2 1 Associate Professor, Dept of Management studies, Siddharth Institute of Engineering & Techonology, Puttur, India 2 Associate Professor, Dept of Management studies, Siddharth Institute of Engineering & Techonology, Puttur, India ABSTRACT It is study that public private partnership in India playing a vital source for development of tourism industry. In India tourism sector having there are more number of opportunities to enhance tourism destinations.in this time the government is attracted the private entrepreneurs to start new ventures with the support of government.it is also benefit for increase revenues to government and to attract more number of tourists from abroad.in this article my objective is to identify the different of types models in PPP and also evaluate the responsibilities of PPP projects. In this article also found what are schemes, incentives provided to tourism sector in India. KEYWORDS: Public Private-Partnership, PPP Models, Schemes and Incentives INTRODUCTION OF INDIA TOURISM INDUSTRY Tourism in India is one of the major rapidly growing and economically important industries. Tourism generated 6.4 trillion, which is equivalent to 6.6% of the country s GDP in the year 2012 according to World Travel and Tourism Council. Tourism industry is one of the major sources of employment in the country. Around 39.5 million jobs were created equivalent to 7.7% of the total employment. Tourism is an evergreen growing sector in the country. A prediction states that the annual growth rate of 7.9% is estimated from 2013 to 2023. There are many parts of the world still to be explored by the people. India is rank third in the fastest growing tourism industries in the world. According to a survey, around 6.97 million foreign tourists arrived in India in the year 2013. Increase of 5.9% from 6.58 million in the previous year. In India Tourism is the largest service industry with a contribution of 6.23% to the country's GDP and 8.78% of the total employment of the nation. India witnesses about more than 5 million annual foreign tourist arrivals and 562 million domestic tourism visits. Indian Tourism Industry generated about US$100 billion in 2008 which is expected to increase to US$275.5 billion by 2018 at a 9.4% annual growth rate. The Campaign of "Incredible India" is developed by the Ministry of Tourism as nodal agency for the promotion of tourism in India. The Ministry of Tourism plays a crucial role in formulating national policies and programmes as well as coordinating and supplementing the efforts of the State/Union Territory Governments and private sector in improving the quality of tourism Industry. As regards the domestic market, the Ministry aims to popularize the culture and natural beauty of different regions, pilgrim sites and various new tourism products. The Ministry has a public sector undertaking, namely the 'India Tourism Development Corporation (ITDC)' for carrying out its various functions, along with the following autonomous institutions: Indian Institute of Tourism and Travel Management (IITTM) Impact Factor(JCC): 0.9458- This article can be downloaded from www.bestjournals.in
2 G. Venkateswarlu & M. Jayalakshmi National Institute of Water Sports (NIWS) has merged with IITTM National Council for Hotel Management and Catering Technology (NCHMCT) Institutes of Hotel Management (IHM) Today increased tourism in India has created jobs in many sectors. The numbers say the story: that almost 20 million people are now working in the India's tourism industry. Government of India has also made a significant impact in tourism by requiring each state one administration should be related to tourism. The Indian Tourism Industry is based on certain core nationalistic ideals and standards which are: Swaagat or welcome, Sahyog or cooperation, Soochanaa or information, Sanrachanaa or infrastructure, Suvidha or facilitation, Safaai or cleanliness and Surakshaa or security. Tremendous growth in the Indian economy is the main reason for the growth in tourism in India. Though the infrastructure is still a constraint it sustains the current growth and that the government should invest in infrastructure like transport, accommodation, better roads, health and hygiene, etc. for the growth of the industry has invested in new technology like CRM tools and state of the art security systems. India's tourism industry is experienced a strong period of growth which is derived by the burgeoning Indian middle class and high spending foreign tourists with coordinated government campaigns to promote 'Incredible India'. TOURISM INDUSTRY Objectives To identify the different types of models in Public-private-partnership. To identify the responsibilities of Public-private-partnership in tourism sector. To analyze the schemes and incentives provide to tourism sector. Methodology The present study is depending on secondary data. The secondary data was collected from Bureau of Immigration, Government of India, and Minister of tourism and other journals Public-Private Partnership It means a development of a project with a private people with an agreeable terms and conditions.it broadly refers to an arrangement between the public and private sectors with clear agreement on shared objectives for thedelivery of public infrastructure and public utilities. It is a legal entity in which 51% or more ofequity is with the private partner/s for the creation of infrastructure for public purpose for a specified period of time.on this time the private people to disclose everything to government. In this partnership the public partner is represented by the government at a local, state or a national level. The private partner can be a privately-owned business, public corporation or consortium of businesses with a specific area of expertise. Index Copernicus Value: 3.0 Articles can be sent to editor.bestjournals@gmail.com
Public Private-Partnership in Tourism Sector 3 DIFFERENT MODELS OF PPP Operation & Maintenance Contract In this model the private partner used the publicly owned asset for a specific period of time i.e agreed on contract between to government.after the time they handover the asset to government. Design-Build In this model the private partner build and design infrastructure facilities to government. In this time the private partner assumes all risk. The model is fixed price is fixed by government. Build-Own-Operate In this model the private partner is build, finance the infrastructural facilities to government.the public-sector partner's constraints are stated in the original agreement and through on-going regulatory authority. Buy-Build-Operate of time. This model is publicly-owned asset is legally transferred to a private-sector partner for a designated certainperiod Operation License In this model The private-sector partner is granted a license or other expression of legal permission to operate a public service, usually for a specified period of term. This model is often used in IT projects. Finance Only In this model private-sector partner, usually a financial services company, funds the infrastructure component and charges the public-sector partner interest for use of the funds. Design-Build-Finance-Operate In this model the private-sector partner designs, finances and constructs a new infrastructure component and operates and maintains it under a long-term lease. The private-sector partner transfers the infrastructure component to the public-sector partner when the lease is up. Responsibilities of PPP in Tourism Sector The developer will submit quarterly MIS report with two stages i.e Construction stage and. Operation stage. In every year they should send IT returns to tourism department PM cell The developer pays income tax from their net profit. Impact Factor(JCC): 0.9458- This article can be downloaded from www.bestjournals.in
4 G. Venkateswarlu & M. Jayalakshmi The PPP projects should strictly follow the code of conduct on Safe and Honorable Tourism. In The PPP projects will also follow the guidelines of green building norms and ensure certification from the authorized agencies. The Tourism Department they should provide a nomineedirectorship for special purpose vehicle, without equity, to have a holistic representation in the project. The bench mark is fixed based on business plan and estimation of revenue using accepted industry norms. Time frame based project award system to avoid delays in awarding the project. Incentives and Concessions of Tourism Sector ForMega projects lease period is 33 years and lease rental shall be paid 10% p lease rental shall be paid 10% on market value. And those projects reviewed every 5 years. 100 percent of stamp duty free when purchase of land. In lease of land for the project government is given 25 percent of value-added tax is reimbursement. The luxury tax is exempted for urban entertainment centers,new hotels and theme parks for a period of 5 years. Tourism PPP Benefits Through PPPs to easily develop new tourism destinations Easily preserve the heritage sites in India. With the help of PPP to improve promotion and marketing programs of tourism destinations. It is best source to enter private owners into tourism sectors. The synergy between the public and private sectors has been a major force in stimulating tourism competitiveness in a country. The development of tourism is best possible if created jointly by government. The private sector can also play a greater role in the preservation of heritage sites. CONCLUSIONS It is concluded that public private-partnership is enhance tourism sector in India. It helps to make designs, builds, business plans, and financial assistance from private ownership.in this time private owners plays a vital role to development of tourism industry in India. It has the potential to create substantial new destinations for attracting new tourists from abroad.it is also an opportunity to enter private ownership into a tourism sector. In public private-partnership there more number of incentives provide to private people for improve of tourism industry in India. Through these different types of models we easily preserve our heritage sites. Index Copernicus Value: 3.0 Articles can be sent to editor.bestjournals@gmail.com
Public Private-Partnership in Tourism Sector 5 REFERENCES 1. IevaMeidutē, NarimantasKazimierasPaliulis, Feasibility study of public-private partnership, International Journal of Strategic Property Management, 2011, pp.264-269. 2. www.aptdc.com 3. www.ministery of tourism.com 4. www.tfci.com 5. Capoor, A. (2009) Public Private Partnership for promoting Tourism, a presentation 6. http://www.docstoc.com/docs/3811342/public--private-partnership-for- PROMOTING- TOURISM retrieved 26 Impact Factor(JCC): 0.9458- This article can be downloaded from www.bestjournals.in