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Funds Flow For Odisha Tourism: FDI In Tourism & Medical Tourism In Country To Generate More Revenue


10 May 2012

Ananta Prasad, Bhubaneswar: The Union Ministry of Tourism has sanctioned Rs.121.17 crore (upto 31.12.2011) during the last five years to the Government of Odisha, for various tourism related projects.  This was said by the Sultan Ahmed Minister of State for Tourism in a written reply to MP Rama Chandra Khuntia in Rajya Sabha today.

The sole Promotion and development of tourism projects including those pertaining to Forest, Wild life, Hills, coastal area are primarily the responsibility of the State Governments/Union Territory Administrations; Ministry of Tourism, Government of India provides Central Financial Assistance (CFA) for tourism projects based on proposals received that are complete in all respects as per the scheme guidelines, inter-se-priority and subject to availability of funds.
Further Mr. Ahmed has added that Foreign Direct Investment  (FDI) is allowed for the development of tourism projects in the country.  Hotel and Tourism sector is declared as high priority sector and FDI up to 100%, under the  automatic route is permitted in ‘Hotels & Tourism Sector’, subject to applicable laws/regulations, security and other conditionalties.
As per a report received from the Department of Industrial Policy & Promotion in 2008-09 a total of 2,098 .23 crore rupees equity had been flown for 489 projects. Similarly in 2009-10 a total of 3,566.32 crore rupees have come to India for 582 projects. In 2010-11 it was 403 mazor projects that received FDI of 1,405.15 crore rupees which was 4,041.28 crore for 427 projects in 2011-12 till January 2012. The total was 11,110.98 crore rupees in last 5 years.
The FDI has been allowed with an objective to encourage investments in the hotel sector in India and to create job opportunities in hospitality sector.
Apart from this Mr Ahmed has also emphasized on Medical Tourism in the country. He has said that it is one of the growing segments of travel into India. The percentage of Foreign Tourist Arrivals visiting India for Medical Treatment increased from 2.2% in 2009 to 2.7% in 2010. No study has been commissioned to assess the impact of super-bug report on this sector.
There are no specific inputs which suggest that immigration rules are discouraging foreign patients from coming to India for medical treatment.

Mr. Ahmed has given this information in a written reply to Shri Baishnab Parida in Rajya Sabha today.