India : Infrastructure Development Investment Program for Tourism - Tranche 1

Transport / Urban roads and traffic management

Water and other urban infrastructure and services / Other urban services - Renovation and protection of cultural heritage

As part of the Investment Program, the Project aims to complete subprojects under four or five different components of the Investment Program in the State of Himachal Pradeesh (Part A).

A. Component 1: Urban Infrastructure and Service Improvement

B. Component 2: Connectivity Improvement

C. Component 3: Quality Enhancement of Natural and Cultural Attractions

D. Component 4: Community-based Activities

E. Component 5: Capacity Development, Community Participation and Project Management

The investment program will assist the government in achieving its targets by tapping the tourism sector's potential to contribute to sustainable and inclusive economic growth. It will respond to the urgent need for developing tourism-related infrastructure in the four participating states - Himachal Pradesh, Punjab, and Uttarakhand (the three main states of the North West Himalayan Heritage Circuit), and Tamil Nadu (the anchor state of the South Heritage Circuit) - to promote the economic potential of the tourism sector within a planned framework and address weaknesses in management capacity. These four states voluntarily sought to participate in the implementation of the road map, and the government supported their participation. The government prepared a more specific road map along with a framework for necessary policy and sector reforms for each of the four states under follow-up ADB assistance, and proposed the MFF modality to support the government's medium- and long-term goals.

While infrastructure supporting tourism is being put in place, sector reform must be carried out in parallel to attain the goals of more sustainable and inclusive tourism sector development. Key challenges include existing limitations in (i) public sector financing, (ii) sector policies on , and institutional capacities for, heritage site management; (iii) an effective enabling environment for enhanced private sector participation; (iv) operation and maintenance of tourism infrastructure; and (v) effective mechanisms to engage local communities in the tourism value chain.

The investment program includes a number of policy-driven sector reforms. The participating states are committed to making investments in the tourism sector more attractive for private sector participation. They will also propmote homestay programs and other noncommercial or semicommercial lodging alternatives, such as bed and breakfast facilities. Each state will develop a tourism policy to mainstream (i) balanced distribution of economic opportunities across the state through the promotion of community-based, tourism-related economic and livelihood activities, and ecotourism development; (ii) financial sustainability of tourism destinations and their heritage assets, and connectivity infrastructure, and (iii) policy and regulatory reforms to provide for adaptive reuse of publicly owned heritage buildings so that additional means of cost recovery are established.

The MFF modality is considered suitable for the proposed intervention because developing the capacities of the sector agencies as facilitators and regulators of tourism development will be a gradual process requiring longer-term commitments.

Enhanced contribution of the tourism sector to sustainable and inclusive economic growth

Increased volume of domestic and international tourists to destinations within each participating state

Enhanced quality of natural and cultural attractions

Greater participation by local communities in tourism-related economic activities

Improved basic urban infrastructure and services at tourist destinations and attractions

Improved connectivity

Strengthened capacity of concerned sector agencies and local communities for planning, development, management and marketing of tourist destinations and attractions

Capacity development training program have been completed.

Punjab: 31 training programs undertaken with 1,208 participants (432 women).

Himachal Pradesh: 788 (587 women) participants trained.

Planning work has been completed.

Punjab: completed with O&M plans prepared for part of Gobindgarh fort, Ataari Multilevel car parking and partition museum at Townhall, Amirtsar.

Himachal Pradesh: Ongoing with SLBs defined for ULBs.

Foster Community participation program have been completed in

Punjab and Himachal Pradesh.

Marketing and promotion program have been completed.

Gender-sensitive community needs have been incorporated in all management plan-based investments.

All 15 works have been completed.

Works completed in Himachal Pradesh and improvement in quality of attractions in three tourist clusters would be assessed at the time of preparation of the project completion report.

work completed in Punjab and improvement in quality of attractions in three tourist clusters would be assessed during project completion report preparation.

Administrative framework in place of community-based tourism products etc work completed.

Punjab - 3 contract awarded. 2 contracts completed and 12 in progress.

Himachal Pradesh - 3 consulting contracts completed, 2 are under implementation.

Community based societies has been established and would be assessed during the project completion report preparation.

Completed for Punjab and Himachal and for Himachal Pradesh: 4,965 persons trained with 2,623 women (53%).For Punjab the achievement would be assessed during project completion report.

All works have been completed.

Improved access to tourist attractions by way of 5 km of last-mile connectivity work has been completed in Himachal Pradesh.

Improved access to tourist attractions by way of 5 km of last-mile connectivity work has been completed in Punjab.

Consultation process for women

for the selection of subproject sites has been organised and would be assessed during project completion report preparation.