SUNRISE STATES REALIZING THE GROWTH POTENTIAL OF NORTH EAST

Team Highlanders, IIM Kozhikode

MONOJ KUMAR RABHA Goalpara, Assam

BAHNIMAN RYNJAH Guwahati, Assam

TEIDOR LYNGDOH Shillong, Meghalaya

PANII NGAONII Senapati, Manipur

SAUMARJIT KONWAR Guwahati, Assam

The Sunrise States of India

Arunachal Pradesh | Assam | Manipur | Meghalaya | Mizoram | Nagaland | Sikkim | Tripura What makes them so IMPORTANT? North East India, part of Indo-Burma 'hotspot' Out of the 9 important vegetation types of India, 6 are found in the North Eastern region Treasure trove to eco-tourists, bioconservationists, sociologist Holds a strategic point in connecting India with South east Asian countries Huge natural resources: oil, natural gas, coal, uranium etc... Hydro- electric power: potential to generate 70,000 MW Agriculture & Forestry is the bedrock Prospects in Horticulture and food processing Thousands of flora and fauna

INTERESTING facts
Eastern most states in India Area: 2,55,168 sq km Population: 40 million (3.8 % of the total population of the country) 220 ethnic groups and equal number of dialects makes it a hugely diverse region Religion: Hinduism, Islam, Buddhism, Christianity 220 Languages spoken Literacy rate: 68.5%, higher than national average of 64.8 %

Famous for
Kaziranga Wildlife Sanctuary Manas National Park Keibul Lamjao National Park Mawlynnong: Asias cleanest Village Loktak lake: The only floating lake Mawsynram: The wettest place on earth Dziikou valley Tawang: Border town with China Majuli: largest riverine island in the world Rumtek Monastery Nathula pass Ujjayanta Palace Way ahead... Always GOOD The exotic wildlife Gamut of adventure tourism options Beautiful hill stations Cultural melting pot The delicious cuisines The colorful festivals Folk music & dance Tribal tourism World famous tea Religious conglomeration 2. Team Highlanders: IIM Kozhikode

What can be done to realize the potential for tourism growth in the region?

Problems facing north east India

Methodology
A survey was floated to gauge the general awareness of people (naming the 8 states, their capitals, their specialties etc.) about north east India and its tourist destinations

Results
Knowledge of the states of North East

Cluster of tourist places people are aware of

Cluster of tourist places about which awareness is less

Sacred Forests of Mawphlang Hornbill Festival War Cemetery Pobitora National Park Orang National Park Khecheopalri Lake

Responses
A total of 210 responses were recorded Helped identify major factors that impede development of tourism in North East
No 63%

Yes 37%

Kaziranga National Park Cherrapunji-Mawsynram Tawang Gangtok Shillong

The Problem Triangle- Identification of major factors

Misconception: Problems of terrorism wide spread in many places in north east India-not a safe tourist destination Less awareness about tourist hot spots Concerns about law and order issues, the need for permits and limited infrastructure are the main hindrances

Major Attractions

Blind Spots

Perception Hampers tourism Awareness

Infrastructure

Inadequate hard and soft infrastructure

Need to integrate bothCluster Tourism Need to leverage on Media platforms

No of respondents

The region is connected to the rest of India by a narrow stretch called the Chickens neck , needs infrastructure to support and ensure significant investments and development aids

Media Platform v/s Tour Agents

200 150 100 50 0

Yes No
3

3. Team Highlanders: IIM Kozhikode

Visit O/L platform for tour information Inquires about tourist places from agents

Tourism in north east India: an analysis

Why tourism ?
Takes into account various stakeholders Impacts social, cultural, political and economic values Gateway to South East Asian Countries: international borders with Nepal, Bhutan, Bangladesh, United Nation World Tourism Organization (UNWTO) study reveals that tourism: contributes to 9% of Global GDP, which means tourism can generate enough of opportunity in NE which is self sustainable plays a big role in generating employment 1/12th of all jobs can be created directly by tourism encourage exports authentic local products can be exported to the rest of India and even to neighbouring countries

Strengths
Rich in biodiversity Strong heritage and culture

Opportunities
Growth of international tourism due to strategic location Boost for allied handicrafts, etc. sectors-agriculture,

PESTLE Analysis: Tourism in NE India

Political
Stable political climate Existence of grass-root level administration Corruption

Economic
Infrastructure bottlenecks Lack of industries Entrepreneurially backward

Social
High social capital Improved law and order Separatist movements

Plethora of scenic places within small geographic distance

High literacy rate High social capital

Development of medical, educational, spiritual tourism International trade development due SWOT analysis of tourism scenario in north east India to location

Technological
No concrete measures to conserve human capital Need to develop IT infrastructure and eplatforms

Legal
Appropriate legal frameworks Community based rules and regulations

Environmental
Strong awareness Joint forestry management schemes

Weaknesses
Lack of infrastructural facilities

Threats

Negative perception may hinder development of tourism Separatist movements

Lack of business acumen/exposure to best practices Non-availability of skilled manpower development of allied sectors for

Corruption
Uncertainty in development of external trade The region has favourable legal and environmental set-up in place for tourism development. The infrastructural bottlenecks need to be addressed, along with active political and social support to enable technological investment for boosting tourism.

Negative perception of law and order situation

4. Team Highlanders: IIM Kozhikode

Tourism as an answer
Responsible Tourism

An objective of National Tourism Policy of India: sustainability should serve as a guiding star Tourism has two faces: the good and the ugly Essential to develop the concept of responsible tourism, all stakeholders have responsibility to reduce ugly side and enhance good side Example: Civil society overlooking conservation efforts, private player managing hospitality and public player leveraging expertise and of each organization and coordinate activities of various stakeholders Modernization and population explosion has impact on environment, 30% of forest area cover is under pressure of rapid land use changes Gradual deforestation has led to decrease in rainfall by 4.88mm/day in NE region Conservation is possible when the primary stakeholders are involved and are fully aware of the need for it To create a sustainable model, a relative interlinked value chain should be developed: conservation & development effort + export potential
Conservation & development Tourism potential Strategic location, rich biodiversity, heritage and culture make north east India an attractive tourism destination Biodiversity hotspot, wildlife sanctuaries, natural beauty Education tourism: higher than national average literacy rate, IIT G,NITs,NIFT,regional medical & engineering colleges,schools can help attract students from other states & South Asia Medical tourism: NEIGHRIMS, GMCH, floating hospital (on the Brahmaputra) can be developed further for quality and affordable healthcare Spiritual tourism: Vaishnavism (pioneered by Sri Sankardev), syncretic hub (Hajo), presence of monasteries and other religious and tribal places of worship Historical tourism: Rich history, monuments throughout the region 5. Team Highlanders: IIM Kozhikode Holistic development through tourism Tourism has the potential to bring a holistic development of the entire north east region and address some age-old typical issues. Parameters to be considered Economic viability Local prosperity Employment quality Social equality Local control Community well-being Cultural richness Physical integrity Biological diversity Resource efficiency Environmental purity Visitor fulfillment

Conservation happens best when primary stakeholder livelihoods are directly linked to it Rural tourism: More villages similar to Mawlynnong: Asias cleanest village, should be developed to encourage cultural as well economic sustainability Eco tourism: Tourism hubs at undisturbed natural areas should be developed Volunteer travel: In order to conserve nature travelers must be encouraged to take up volunteering travel where they can involve themselves in charitable acts

Tourism as an answer (continued)

Common Management

Responsible Tourism

Tourism bridging the gap Public sector

Stakeholder responsibilities
Provide investment options to private sector and donors Drive co-ordination among various stakeholders Create environment for market driven investment and growth Adopt commercial initiatives to cater to unique regional needs Provide commercial and social value, thereby winning trust and confidence Create and sustain innovation ecosystem Gatekeeper of transparency and implementation of best practices Incorporate best practices from companies regarding efficiency and scalability Leverage funds for greater impact of private sector led initiatives

Common Management Objective of National Tourism Policy of India: to achieve a superior quality of life for Indias people through tourism When planning for rural tourism in the NER, various elements (ref: Parameters to be considered, previous slide) should be incorporated All this start with a Private Public Partnership (PPP) Model as tourism is primarily a private sector driven industry In NE the following elements should be stressed upon:
Financing new infrastructure projects Evolving a modern, focused, comprehensive and intensive marketing collaboration Collaborating in human resource development Sharing in the development, beautification and maintenance of various tourism products/sites Participating in the preservation of heritage Providing leadership in creating awareness about sustainable norms by adopting environmentally-benign practices Private sector

Civil society

Financers

Media

Change agent Creating a favourable perception of north east India

6 6. Team Highlanders: IIM Kozhikode

Proposed solution # 1: Bridging the gap

2 Way Street Model

Problems
Creating awareness Awareness about tourist places

Development of infrastructure

Online

Changed perception

Perception

Terrorism

Connectivity

Development of local industries

Boosts tourism

Development of websites, print media, ads

NE as a safe tourist destination rich in flora and fauna

Tourism

Infrastructure Development of infrastructure boost tourism which in turn infuses funds which can be used for further development

Common Management

Responsible tourism

Overall development of the region

Tourism as a solution

Long term growth model

Development of tourism in the North Eastern States will help eradicate common misconceptions that people foster about North East Funds generated will help in the overall development of the region Benefits
Emergence of North East as a region of diverse culture with scenic beauty and an array of untapped potential Foster growth and development in the region Help in the improvement of infrastructure- connectivity Increases awareness about the region
Ad jingle with catch phrase: North East India: Explore the unexplored mystique of nature

2 main problem headings addressed

Awareness about the region

Growth and develop ment

7. Team Highlanders: IIM Kozhikode

Proposed solution #2: Developing economic hubs based on agriculture, tourism potential, handloom, crafts and SMEs

Increase in total production Development of economic hub Development of quality and competitiveness

Market mechanism development

Development of economic hub

Selection of specific hub(eg. Sulakuchi for silk, Darangiri for bananas) Development of soft and hard infrastructure Construction of market to farm/factory roads Strengthening of market information systems Introduction of computerized market yards Development of internationally accepted product grades and standards Strengthening of quality control mechanisms Expansion of rural credit facilities/creation of SHGs Imparting training to local producers/manufacturers on promotion of product and importance of quality standards Yearly festivals in each economic hub as promotional strategy Leverage specialty of each hub to attract tourists

More employment opportunities

Income generation

Economic development of region

These hubs will act as ink-spot hubs and help the surrounding areas to develop, thereby improving the market linkages on three scales:

Within north east India With the rest of India With international markets

Please refer to Annexure A for exhaustive diagram (Causal Loop Diagram) on how tourism in NE India can help develop other sectors and vice versa
8. Team Highlanders: IIM Kozhikode

Proposed solution #2: Developing economic hubs (continued)

Creation of focus crop groups and their development for boosting tourism
NE India is heavily dependant on agriculture, as it provides livelihood to more than 70% of the regions population. Although the region covers 8% of the total area of the country, yet agricultural produce is only 1.5% of total produce in India. Special attention needs to be given to the development of certain crops along with development of economic hubs and tourism, to bring holistic and sustainable growth . These crop groups may be identified on the basis of their economic value, demand in distant markets, post harvest infrastructure, exclusivity to the north east region and inherited advantage. Cash crops like tea, rice (especially joha rice) shall continue to be focus of attention alongside the focus crop groups. Other crops like apples, bananas, rubber, orchids, areca nut, coconut and guavas can also grown in a large scale. Focus crop group^ Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura

Proposed economic hubs

14 1 9 7 8 10 12 3 6 4 2 5 15 13 11 16 17 18 20 19

Pineapple
Citrus Ginger Turmeric Passion fruit

Kiwi fruit
Naga chilli Large cardamom Vegetables*

^ISAP analysis *Potato,cabbage,cauliflower,brinjal,tomato,bitter gourd,okra,bean

1. Gangtok (Orchid) 2. Sualkuchi (Silk) 3. Sarthebari (Bell metal) 4. Hajo (Syncretism) 5. Guwahati (Nerve centre) 6. Pabitora (Bird sanctuary) 7. Darangiri (Banana market) 8. Kaziranga (Wildlife sanctuary) 9. Dibrugarh(Tea) 10. Hojai (Fragrance) 11. Kohima (Naga shawl)

12. Dimapur (Export hub) 13. Djukou (Floriculture) 14. Tawang (Adventure sports/monastery) 15. Majuli (Cultural centre) 16. Shillong (Sacred groves/JFM) 17. Cherrapunji (Honey/caves) 18. Moirang (Loktak lake) 19. Aizwal(Development of sports infrastructure) 20 Agartala (Rubber/palaces)

9. Team Highlanders: IIM Kozhikode

Realizing the growth potential of tourism in north east India: Goals and measuring their progress
Drivers of tourism development
Economic opportunity Multi-stakeholder planning process Define shared aspirations Market driven, govt. the enabler Designed for scalability Choose not to do certain things Realistic and quantifiable objectives Trade-offs among various value chains Bankable investment opportunities across chain Engaging appropriate manpower Incentives for their motivation Encourage entrepreneurship Creation of an innovation ecosystem E x a m p l e s

Leadership & prioritization

Tanzanias SAGCOT Rwandas CAADP

Tourism development

Environmental sustainability

Investment opportunities

CII, FICCI, NEC, DONER initiatives PPP model by GOI

through holistic development of tourism

o f
b e s t p r a c t i c e s

Measuring the goals

Goal
Economic opportunity

Infrastructural development

Indicator
Development of trade Growth in SMEs Growth in agriculture etc. Development of hospitality and allied industries GHG emissions Water usage efficiency Soil usage

Unit
Increase in state GDP Population migration from BPL to APL Increase in inflow of tourists SPM Water quality Use of organic farming practices

Development of roadways, railways, airways, waterways Provision of power, irrigation facilities, telephony Development of IT services and human capital PPP projects, creation of SEZs
Catalytic capital financing mechanisms Combination of guarantees, grants & commercial money Insurances and guarantees Funding commitments Regulations and control mechanisms

Feeder roads in South Sudan Brazils SENAR

Financing Risk management

Tourism development Environmental sustainability

NREGA scheme Contract farming in Punjab Reliances Farm to Fork model Ryuthu Bazaar model, Andhra Pradesh Grameen Danone, Bangladesh

Delivery unit to monitor change Availability of resources for operational Institutions development for delivery Transparency monitoring and real time monitoring Manage conflicts and controversies 10. Team Highlanders: IIM Kozhikode

Challenges to holistic tourism development

Difficulty in gaining attention of mainstream Indians Thorough leverage of mass media/ advertisements /online agencies to create awareness of tourism potential of north east India Changing the negative notion that North East India is unsafe Issue of Development versus Preservation: the need to maintain sustainability in the face of urbanisation/commercialisation Regular agitations/strikes/bandhs called by different groups (political/militant/student) Changing the mentality of the local population to be positive for the cause Hindrance of crime(abductions/asking ransom amounts/threats) Varying demands of each stakeholder: Each region has unique stakeholders, hence difficult to agglomerate demands Complacent government machinery Region is prone to natural disasters(lanslides/floods/earthquakes): impediment to development of infrastructure and growth of tourism

Addressing these challenges through active participation of all stakeholders (mutual give and take) and rising above narrow self interests for the cause of the entire north east region is the key to holistic tourism development. The drivers of tourism development should work in sync with one another to realise the true potential of tourism in north east India.

11. Team Highlanders: IIM Kozhikode

References

Korstanje M.E., Clayton A., 2010; Tourism and terrorism: conflicts and commonalities; Emerald Group Publishing Limited Stronza A.L., 2010; Commons management and ecotourism: ethnographic evidence from the Amazon; International Journal of the Commons Small Farmers Agribusiness Consortium (SFAC), 2012; Value chain analysis of select crops in north eastern states E&Y-FICCI, 2012; India Infrastructure Summit 2012 World Economic Forum-McKinsey & Company, 2012; Putting the new vision for agriculture into action: a transformation is happening Ministry of Tourism, GOI, (2011); Annual Report 2011-12 Ministry of Tourism, GOI, (2011); India tourism statistics The Convention on Biological Diversity (CBD), 2010; A good practice guide sustainable forest management, biodiversity and livelihoods KPMG-CII, 2009; Infrastructure development in agriculture: Route to rural transformation

12. Team Highlanders: IIM Kozhikode

Annexure A: Causal Loop Diagram (CLD) of tourism development in NE India vis--vis other macroeconomic variables

13. Team Highlanders: IIM Kozhikode

THANK YOU!

Together, we shall overcome.

14.Team Highlanders: IIM Kozhikode