Is not the growth rate of tourism in India very low and the investment in tourism quite inadequate?
I agree that the growth rate of tourism is woefully inadequate. And even as far as capital investment in tourism is concerned, the basic investment needs to flow in the area of building infrastructure of airports and convention centres. Hyderabad has very good air connections and hotels, but lacks a convention centre with a capacity of 1,500. Similarly, there are several examples of investment not flowing into a particular sector of infrastructure. A basic problem of sufficient investment not flowing to the tourism sector is that hotels and other tourist facilities have long gestation period before investors get their returns. Therefore, in order to encourage investment in this sector, the government must come out with tax benefits and other incentives besides arranging loans at lower interest rate. Unless subsidy on investment is given, investment flow will not pick up. What impact does prohibition have on tourism? Prohibition certainly has an adverse effect on the financial viability
