India : Inclusive Tourism Infrastructure Development Project

Industry and trade / Trade and services

The proposed TA is intended to help the Government of India to achieve its targets of enhanced performance of the tourism sector in an environmentally and culturally sustainable and socially inclusive manner as reflected in an increase in the number and length of stay of tourists and in a more widely distributed income and benefits from tourism and enhanced management of natural and cultural heritage sites of tourism importance. The TA will be implemented in two phases.

The expected output of the Phase 1 is (i) an agreed design for a feasible tourism infrastructure project for possible ADB financing. The ensuing project is expected to include in selected states investments in (i) tourism access and connectivity infrastructure, e.g., roads, transport, airports, etc, (ii) destination utility infrastructure and services, e.g., sewerage, water, solidwaste management, (iii) natural and cultural heritage conservation and support infrastructure and services, (iv) other tourism facilities and services (e.g., tourism service centers, tourist information facilities/kiosks) and wayside amenities between major destinations and sites (rest rooms, etc), and (v) community based tourism schemes and approaches to enhance multiplier effects and more widely spread the benefits to local communities from tourism. The ensuing project is also expected to include support for enhanced tourism institutional and regulatory frameworks to (i) ensure coordinated actions between a number of agencies towards common goals, (ii) increase private sector participation in tourism infrastructure development and asset management as well as in developing complementary facilities (accommodation and etc), (iii) ensure environmentally and culturally sustainable tourism, and (iv) capacity building and human resource development for sustainable tourism management.

The second Phase will commence following the first phase and will provide support in enhancing the project management and implementation skills of the executing and implementing agencies and enhancing the preparedness of the first batch subprojects.

An ADB study, conducted in 2006-2007 in response to the Government request to prepare a tourism development road map for India, involved a strategic exercise to assess country?s tourism endowments, tourism market trends, and to identify and rank high potential circuits based on intense desk review, field visits, and consultation with stakeholders including extensive engagement with the private sector. The Study determined the high potential and most marketable state and interstate tourism circuits and the required infrastructure within those circuits that need to be developed on a priority basis over the next ten years. The Study concluded that there is an urgent need to improve the tourism infrastructure in order to: (i) increase the marketability of country?s existing tourism assets; (ii) spread the benefits of tourism more widely for enhanced poverty reduction and enable the participation of communities in tourism; (iii) reduce the highly seasonal pattern of demand; and (iv) encourage private sector investments in tourist facilities (e.g., hotels, shops, etc.) as well as development of public infrastructure. The Study also recommended that in parallel with infrastructure development, efforts need to focus on: (i) improving the current institutional framework to ensure coordinated actions towards common goals of tourism development; (ii) promoting a regulatory framework to ensure environmentally and culturally sustainable tourism; (iii) creating an incentive environment for increased private sector participation in tourism; and (iv) filling the manpower gaps in the sector. Moreover, the Study recommended up-front capacity building programs to enhance the project management and implementation skills of relevant agencies.

The PPTA is required to develop a feasible tourism infrastructure development project by building on the findings of the above ADB Study. The PPTA and the ensuing project will contribute to the accomplishment of the targets set under the Government?s 11th Five Year Plan and the Road Map. The PPTA and the ensuing project will respond to the Government?s request for ADB?s assistance in its efforts to meet the large-scale tourism infrastructure gap that has been identified as a critical constraint to unleashing the tremendous tourism potential of India. The PPTA and the ensuing project will fully support the ADB?s current India CPS whose major thrust is inclusive growth through addressing infrastructure bottlenecks in the priority sectors including tourism, which have greater potential to contribute to broad based growth.

Consultants will be recruited individually in two stages to form two teams.

A total of 66 person months of consulting services will be required including 9 person-months of international and 57 person-months of national consultants. The Phase 1 will include international experts (9 person-months) in tourism planning / infrastructure development/ team leader, community-based tourism, and project economics. It will also include national experts in (27 person-months) in tourism infrastructure engineering (2X3), cultural heritage conservation and management (3) environment and natural heritage management (4), social development - including resettlement (6), tourism institutional and regulatory development (2), private sector participation (2), and economic and financial analysis (4). Phase two will require 30 person-months (only national consultants) consulting inputs including in project management, civil engineering, procurement, and tourism institutional development.