Odisha, known for its rich mineral resources below the earth, is much richer in its tourism potential above the soil. Located on the eastern coast of India, Odisha offers everything for an avid traveller, ranging from awe-inspiring temples and beaches to wildlife reserves.

With a 480-km-long coast line, tranquil beaches, towering temples, serpentine rivers and mighty waterfalls, the state tourism department boasts of having something for everyone.

After positioning itself as a favoured destination for investors in the metal and mining sectors over the past decade, the state’s focus has now shifted to attracting investments in non-mineral-based sectors.

At the recently-held Business Standard Odisha Round Table-2014, Chief Minister Naveen Patnaik made his government’s stand clear on the state’s endeavour to tap the potential of the tourism sector.

“We are trying to diversify Odisha’s investment base by focusing on sectors not dependent on natural resources, such as agribusiness, tourism and information technology,” Patnaik said at the event.

The state’s keenness to diversify its investment base was also stressed by the state tourism minister, Ashok Kumar Panda.

“We must go in for diversification. Now the focus is being shifted from agriculture and industry-related things, and tourism is one such sector,” said Panda.

Having both forward and backward linkages, the hospitality sector has generated more than 92,000 direct jobs and 2.77 lakh indirect jobs, resulting in a direct-indirect job creation ratio of 1:3 in Odisha.

Most tourists to Odisha come from neighbouring West Bengal and Andhra Pradesh. In 2012 they constituted 14.03 per cent and 3.51 per cent respectively of all tourist footfalls from within the country. France, Germany, UK and the United States were the major tourist generating markets from overseas, and nearly 54 per cent foreign tourists came from Western Europe. A total of 66,675 foreign tourists visited the state in 2013.

Odisha’s tourism department has now recognised the importance of tourism promotion for economic growth, and has accordingly undertaken several measures.

The state government has formulated the industry-friendly Tourism Policy 2013 to give a boost to the sector. The upgradation of Biju Patnaik Airport to international status is the icing on the cake for tapping opportunities in the tourism sector.

However, most stakeholders feel that much still needs to be done for development of the sector.

Development of the hotel industry is pivotal to the growth of tourism, but the state has not done enough on this front if the Economic Survey report is an indication.

The growth rate of the ‘trade, hotels and restaurants’ sub-sector slid down to a modest 6.94 per cent in 2013-14, from a robust 21.45 per cent recorded in 2006-07. This sub-sector was the second-largest contributor to the gross state domestic product (GSDP) after the manufacturing sub-sector (14.32 per cent) in 2013-14 among all individual sub-sectors of the state’s economy.

Emphasising the need for more hotel rooms, J K Mohanty, chairman, Hotel & Restaurant Association of Odisha (HRAO), said, “To be competitive with our neighboring states, we need 4,000 rooms of 3-star category with an investment of Rs 30 lakh per room amounting to Rs 1,200 crore, and 1,000 rooms of 5-star category costing Rs 1 crore each, totalling Rs 1,000 crore.”

An additional 5,000 rooms will give direct and indirect employment to 50,000 people and can generate an income of Rs 2,000 crore in the 3-star category and Rs 1,000 crore in the 5-star category, he added.

The association has proposed that at least Rs 30 crore should be spent every year on tourism promotion roadshows abroad and other states within India, with another Rs 30 crore earmarked for advertisements in the electronic and print media every year.

HRAO has demanded that at least 500 acres of land should be identified for the creation of Special Tourism Zones in each district and this developed land should be allotted to hotel chains and entrepreneurs, with priority for local players.

Source: http://www.business-standard.com