Government keen to woo $100 billion FDI in tourism

The government wants to attract $100 billion foreign direct investment in tourism sector and generate up to 100 million jobs over the next five years.

“Tourism industry has a multiplier effect on the economy…We have held discussions with CEOs of leading tourism companies to address all issues facing the sector,” tourism minister K Alphons said on Monday after the Tourism CEO Conclave. The conclave is a part of the ‘Paryatan Parv’ initiative from October 5-25.

The tourism ministry will also take up the demand of hotel industry for rationalisation of the GST rate to 4-5% for five star hotels.

Besides, the government is also looking into demand of the industry to have a national tourism authority which will act as a regulatory body and prescribe standards for home stays, bed and breakfast accommodations, among others.

The authority will also create guidelines as well as best practices for 15-20 identified sub-sectors of niche tourism.

The government wants to reach 40 million foreign tourist arrivals in next five years from the current level of 14 million.

The tourism ministry has also formed a working group with representatives from the Department of Industrial Policy and Promotion, Invest India, tourism ministry and industry to discuss the issues facing the sector and make recommendations.