Rajasthan Paves the Way: Travel and Hospitality Attain Industry Status

In a groundbreaking move that sets a new precedent for the country, Rajasthan has elevated the travel and hospitality sectors to the esteemed status of industries. This progressive step aims to create a more favorable environment for the growth of tourism and attract private investments to the state.

With this transformative decision, the Rajasthan tourism department gains the authority to issue entitlement certificates to tourism units, granting them the coveted benefits of industrial status. These certified units will enjoy the privilege of procuring power at industrial prices, which are a remarkable 30% lower than commercial rates. Furthermore, they will benefit from the reduced UD tax levied at industrial rates, a staggering 80% lower than commercial rates.

Since December 2018, the state tourism department has sanctioned a total of 802 tourism units, contributing a substantial investment of INR 10,463.47 crore to the state. These approved units are projected to generate employment opportunities for an impressive 40,785 individuals, stimulating economic growth and fostering prosperity.

The illustrious Dholera City project is set to provide a significant boost to tourism, unleashing the potential for the creation of 200,000 jobs. Gujarat's Secretary of Tourism, Devasthanam & Civil Aviation, Hareet Shukla, expressed his enthusiasm for the project during a detailed interview with ET Travelworld. Alongside plans to develop exceptional tourism facilities in the city, Shukla highlighted Gujarat's emergence as a compelling MICE (Meetings, Incentives, Conferences, and Exhibitions) destination, acknowledging a staggering 207% rise in tourist footfalls between 2017 and 2022.

Rajasthan Paves the Way

The Rajasthan Tourism Department has received a remarkable 1,262 applications for entitlement certificates, with 859 already issued, showcasing the strong interest in availing the benefits of the newly conferred industrial status. Additionally, under the Rural Tourism Scheme 2022, 41 applications have been received, leading to the issuance of 35 certificates. The department has successfully registered 25 guest houses throughout the state, complementing the existing 850 home stays (paying guests) that operate under a combination of old and new policies.

Dr. Rashmi Sharma, Director of the Rajasthan Tourism Department, elaborated on the state's tourism plan, emphasizing the focus on identifying and developing lesser-known tourist destinations within Rajasthan. This comprehensive strategy aims to attract investors by providing a streamlined process through a single window, eliminating the need for them to navigate multiple bureaucratic channels.

Sharma further revealed that in 2022, the Rajasthan Inquiry Committee was established to oversee 379 pilgrimages in the tourism industry. To date, 55 projects have been completed, while 149 are currently progressing through various phases. This initiative is expected to infuse an impressive INR 14,679.63 crore into the state's economy, creating employment opportunities for 60,687 individuals.

The eligible tourism units covered under the certification scheme include a diverse range of offerings, such as hotels, motels, heritage hotels, budget hotels, restaurants, resorts, amusement parks, museums, and even caravan and cruise tourism. With this newfound industry status, Rajasthan is paving the way for a vibrant and flourishing tourism landscape, captivating visitors with its cultural richness, scenic splendor, and warm hospitality.