Vibrant Gujarat 2011

Seminars
Report on Gujarat Tourism Conclave June 2010

Disclaimer

This report has been prepared by PricewaterhouseCoopers (P) Limited for Industrial Extension Bureau (iNDEXTb), Government of Gujarat. Contents of this report should not be copied or reproduced by any third party or otherwise quoted or referred to, in whole or in part, without the prior permission of PricewaterhouseCoopers or iNDEXTb in writing. PricewaterhouseCoopers disclaims any responsibility for any loss or damage suffered by any third party by taking reliance of this report. Furthermore, PricewaterhouseCoopers will not be bound to discuss, explain or reply to queries raised by any agency other than the intended recipients of this report. The information contained in this report is selective and is subject to updation, expansion, revision and amendment. It does not, and does not purport to, contain all the information that a recipient may require. Further this is not an audit report and no reliance should be based on this report for the purposes of audit. Each recipient must conduct its own analysis of the information contained in this document and is advised to carry out its own investigation into the proposed project, the legislative and regulatory regime which applies thereto and by all matters pertinent to the proposed project and to seek its own professional advice on the legal, financial, regulatory and taxation consequences of entering into any agreement or arrangement relating to the proposed project.

Table of Contents
1. 2. Introduction ................................................................................................................................................................. 3 Inaugural Plenary........................................................................................................................................................ 3

2.1. Objective ............................................................................................................................................................... 3 2.2. List of Speakers .................................................................................................................................................... 3 2.3. Session details ...................................................................................................................................................... 4 3. Plenary I Presentation and Brainstorming on Gujarat Tourism The Way Forward ...................................... 7 3.1. Objective ............................................................................................................................................................... 7 3.2. List of speakers ..................................................................................................................................................... 8 3.3. .................................................................................................................................................................................... 8 3.4. Session details ...................................................................................................................................................... 8 4. Plenary II Health and Wellness Tourism Advantage Gujarat......................................................................... 12 4.1. Objective ............................................................................................................................................................. 12 4.2. List of Speakers .................................................................................................................................................. 12 4.3. Session details .................................................................................................................................................... 12 5. Plenary III Civil Aviation in Gujarat Opportunities and Challenges .............................................................. 13 5.1. Objective ............................................................................................................................................................. 13 5.2. List of Speakers .................................................................................................................................................. 14 5.3. Session details .................................................................................................................................................... 14 6. Way Forward ............................................................................................................................................................. 19

1. Introduction
A seminar on tourism in Gujarat Gujarat Tourism Conclave 2010 was organized by the Department of Tourism and Federation of Indian Chambers of Commerce and Industry (FICCI) in Ahmedabad on 24th June 2010. PricewaterhouseCoopers (PwC) was the Knowledge Partner. The seminar was attended by a large number of delegates including representatives of government departments, agencies involved in tourism, representatives of domestic airlines, hotel industry, hospitals, travel and tour operators and consultants. The seminar was relevant in the context of reforms and policy interventions being planned by the government in the tourism sector. The objective of the seminar was to bring together government, private players (domestic and international), researchers, academicians, and other stakeholders under for discussions on the opportunities in the sector in the state of Gujarat and the key challenges in realizing these opportunities.

2. Inaugural Plenary
2.1. Objective The objective of this plenary was to provide a brief background about the tourism sector in Gujarat. This provided the backdrop and platform for deliberations in the three plenary sessions. The introductory remarks by the speakers in this session formed the starting points for further discussions and deliberations during the seminar. 2.2. List of Speakers

Speaker Mr. Pankaj Patel Mr. Vipul Mittra, IAS Mrs. Jyotsna Suri Mr. Sanjay Gupta Mr. Kamlesh Patel Mr. Jaynarayan Vyas Mr. Anoop Shukla, IFS

Profile Chairman, FICCI Gujarat State Council and Chairman and Managing Director, Zydus Cadila Secretary, Tourism and Civil Aviation, Government of Gujarat Chairperson, FICCI Tourism Committee and Chairperson and Managing Director, The Lalit Suri Hospitality Group Chairperson, Tourism Committee, FICCI Gujarat State Council and Chairman and Managing Director, Cambay Hotels and Resorts Chairman, Tourism Corporation of Gujarat Limited Honourable Minister for Tourism, Health and Family Welfare, Government of Gujarat Managing Director, Tourism Corporation of Gujarat Limited

2.3.

Session details Mr. Pankaj Patel, set the background for the seminar the objective of the seminar was to provide future direction and roadmap for fast track development of the tourism sector in Gujarat through interactions and deliberations between various national and state leaders of the tourism industry. He informed the audience that Gujarat offers the most varied type of tourist destinations among all states of India including but not limited to business tourism, spiritual tourism, health and wellness tourism, adventure tourism etc. He said that Gujarat has world class hospitals, spas and ayurvedic centres that support these sectors of the tourism industry. He pointed out that tourism is a labour intensive industry and contributes heavily to the economic development and employment generation of any region. Mr. Patel pointed out that Gujarat is currently the industrial engine of the country and the time has come for Gujarat to become the 'Gateway to India'.

Mr. Vipul Mittra, IAS, conveyed that the recommendations made by the participants of the seminar would be considered while developing the Tourism Policy. He informed the audience that tourism industry has the capability of employment generation and economic development which is both inclusive and participative. The industry brings an additional source of income for the host country and is more environment-friendly when compared to other industries. He briefly talked about the global and national trends in the tourism industry. Later, he gave a brief introduction about Gujarat to the participants including the industries in Gujarat, the accomplishments of the state and stressed on the availability of quality infrastructure. He informed the audience regarding the three waves of growth that Gujarat has experienced industrial growth, infrastructure development and agricultural growth. He was of the view that the next wave of growth would be led by the tourism sector. As regards the tourist statistics in Gujarat, Mr. Mittra informed the audience that the number of domestic tourists has doubled and the number of foreign tourists has grown five times from 2004 to 2009. He informed the audience that of the total number of tourists visiting the state, the majority were domestic tourists (98%) of

which 77% were Gujaratis. Mr. Mittra said that the state was divided into 8 tourism hubs (Ahmedabad, Ahmedabad metro, Bhuj, Surat, Jamnagar, Junagadh, Rajkot and Vadodara) with each hub offering a gamut of tourist sites. Mr. Mittra highlighted that as part of tourism development in the state, the following initiatives have been taken by the government: 2006 was celebrated as the tourism year in Gujarat. Several festivals such as Navratri, Rann Utsav and International Kite Festival are being celebrated every year on a massive scale. 14 sites have been identified for beach and coastal tourism. 7 Buddhist sites have been identified for development. Development of the Dandi Heritage Corridor Project which includes the sites where Mahatma Gandhi had stayed/visited during the historic Dandi March. Development of Saputara hill station. Development of tourist facilities around the Ambaji Shakti Peeth. Development of tourist facilities on the tourist circuit: JunagadhSasanVeravalPorbandarDwarka. Destination development of Tarnetar to promote the unique Tarnetar Fair at the international level. Development of good tourist facilities at Lothal. Promoting the Gandhi Circuit Gandhi Ashram, Rajkot, Porbandar and Dandi. To give an idea about the tourism infrastructure development in the state, Mr. Mittra said that as of now there are about 20 star category hotels in Ahmedabad and during the last two years 32 new hotels with a bed capacity of 3,000 were added. The overall bed capacity in the state has increased from 140,471 to 149,302. He noted that there was a quantum jump in the number of MoUs and the investment proposed in the sector from Vibrant Gujarat 2007 to Vibrant Gujarat 2009. The following table provides these details: Year 2003 2005 2007 2009 No. of MoUs signed 7 16 55 147 Proposed Investment (in Rs. crore) 3,177 7,532 10,786 41,428

Of the total projects listed above, 37 have been dropped and 188 are either under implementation or have been commissioned. Mr. Mittra said that for development of tourism projects in the state on PPP mode, a joint venture company Gujarat Tourism Project Development Company Ltd. (GTPDCL) has been formed between TCGL & IL&FS. He said that GTPDCL has taken up several projects including Mega International Convention Centre at Vadodara, Luxury Beach Resort at Kutch, Mandvi and Gujarat Tourism Mart. Mr. Mittra said that the following opportunities are available for investment by the private sector: Segment Hotels Wayside (WACs) Amenities Centres Remarks Huge demand for accommodation for the tourists. The state government is envisaging 250 WACs along the State Highways. Demand for apartment hotels at Ahmedabad, Surat, Vadodara etc.

Apartment Hotels

Motels/Cottages/Resorts Star Hotels

Demand at Porbandar, Kutch, Champaner, Dwarka etc. Valsad, Vapi, Rajkot, Saputara, Bhavnagar, Veraval/Somnath, Palitana, Kutch, Ahmedabad, Vadodara, Champaner (Pavagadh), Surat, Jamnagar and Porbandar. These could be film cities, entertainment parks, sports complex and so on. TCGL plans to develop 14 beaches across the state on PPP mode. Other projects such as floating hotels/restaurants, sea parks etc. to be developed.

Media and Entertainment Beach tourism Projects

Religious Tourism Logistics Airports and Helicopter Services

Great potential across Gujarat especially Dwarka, Ambaji, etc. Airports to be developed on PPP, intra state airline on PPP. Opportunity for Heli-Tourism.

Mrs. Jyotsana Suri briefly talked about the potential for tourism development in Gujarat. She said that the tourist spots in Gujarat are densely located and cater to a diverse group of tourists including religious, adventure, spiritual and medical tourists. She said that there would be about 100 tourist spots in each of the 26 districts of Gujarat which can be promoted by the state government. She also talked about the future plans of the Lalit Suri Group which is planning to open about 4-5 hotels spread across Gujarat. Mr. Sanjay Gupta briefly talked about the tourism sector in the state. He said that the sector in the state is poised for a huge change. He also reiterated the reception and warmth that Gujarat offers to its tourists along with the numerous and diverse tourist assets that the state possesses. Mr. Kamlesh Patel briefly talked about the budgetary allocation (2009-10) for the tourism sector. Rs. 2.5 crore is being spent to develop tourist centres in the state. Rs. 21 crore is being given as grant to the public sector undertakings in tourism sector of which about Rs. 12 crore was for TCGL, Rs. 5 crore for development of new buildings of TCGL and Rs. 2.5 crore for setting up of sound and light shows at various tourist centres in the state. Rs. 8.5 crore is being planned to be spent on advertising and publicity and Rs. 7.5 crore on fairs and festivals. Mr. Patel highlighted the importance given to the tourism sector by the state government in terms of financial assistance.

Mr. Jaynarayan Vyas briefly touched upon the history of Gujarat and talked about how the state has grown over the years. He mentioned that Gujarat has taken huge strides in all spheres of the economy he mentioned some of the areas in which Gujarat is a leader, both in India and internationally. largest producer of potato and onion in India. produces about 1/3rd of cotton in India 1/5th of groundnuts production of India produces 52% of cumin seed of the world. He informed the audience that Ahmedabad airport is the only Indian airport having 24 hour visibility throughout the year and hence has the potential to emerge as a major aviation hub both for passenger and cargo traffic. He said that by about 2025, tourism sector would overshadow industrial and agricultural sectors in Gujarat. As per Mr. Vyas, leisure, medical and business tourism will put Gujarat in the forefront when it comes to tourism. Mr. Vyas informed the audience that health tourism will lead this growth as Gujarat is: The largest eye donating state of the world The quickest and largest knee joint operations, spine operations in the world, dental implants kidney transplantation, stem cell, liver transplantation are carried out in Gujarat.

He said that major hospital chains are coming up in the state and the state government is improving medical education in Gujarat to provide adequate and quality manpower to the industry. He informed the audience that about 500 seats in MBBS admission were added last year. Mr. Anoop Shukla summarized the points made by the other speakers, provided the concluding remarks and closed the inaugural session.

3. Plenary I Presentation and Brainstorming on Gujarat Tourism The Way Forward

3.1. Objective Gujarat as a tourism destination is a travellers paradise. Apart from the complete range of travel destinations religious tourism, adventure tourism, entertainment, historic sites, architectural marvels it also offers hospitality, food and local culture which make the visit of a tourist unforgettable. With a strong asset base, Gujarat could become the tourist destination of choice. The objective of this session was to discuss the current status of tourism and allied sectors in Gujarat, identify strengths, weaknesses, opportunities and threats for the sector in Gujarat and explore ways to capitalize on the strengths and work on the weaknesses.

3.2.

List of speakers
Speaker Mr. Tushar Pandey Speaker Profile Executive Vice President and Country Head, Yes bank Topic Furthering the growth trajectory of Gujarat with a special emphasis on Health and Wellness Tourism Brainstorming on Gujarat Tourism The Way Forward

Mr. Vipul Mittra, IAS Mr. Kamlesh Patel Mr. Anoop Shukla, IFS Mr. Himmat Anand

Secretary, Tourism and Civil Aviation, Government of Gujarat Chairman, Tourism Corporation of Gujarat Limited Managing Director, Tourism Corporation of Gujarat Limited Co-Chairperson, FICCI Tourism Committee and Founder, Tree of Life Resort and Spa

3.3.

Session details Mr. Tushar Pandey briefed the audience about the global tourism scenario, the Indian tourism scenario and current trends. He informed the audience that the policy initiatives of the government, public private partnership, marketing and other support from the government are the key drivers for the tourism industry in India. He said that the new themes which are emerging in the tourism industry are: Spiritual and well being tourism Heritage and cultural tourism Rural & agriculture tourism Adventure tourism Nature and eco tourism Business tourism

Talking about the global Health and Wellness industry, Mr. Pandey informed the audience that countries which are actively promoting medical tourism are: Cuba, Costa Rica, Hungary, South Africa, Jordan, Israel, Turkey, Lithuania, India, Thailand and Malaysia. He said that currently the market size of the global medical tourism industry stands at USD 300 million with an annual growth rate of 30%. Similarly the current size of the global health tourism market is expected to be USD 40-60 billion with an annual growth rate of 20%. Briefing on the medical tourism sector in India, he said that currently the industry is growing at 30% annually. Mr. Pandey informed the audience that India attracted 5 lakh foreign medical tourists in 2006 generating revenues of USD 350 million. He noted that Indias key strengths in the Health and Wellness tourism sector are: Availability of world class facilities, Availability of large pool of doctors, nurses and medicos, Low cost and availability of wide variety of treatments and modern medicines Indigenous healthcare traditions like Ayurveda, Yoga, Unani, Siddha.

Mr. Pandey also talked about the tourism sector in Gujarat including statistics about the number of domestic and international tourists visiting the state. He said that Gujarat as a tourism destination has significant untapped potential and there is a need for integrated & strategic positioning of existing religious and heritage

destinations. He said that the state can partner & link with established destinations and other states in developing the tourism industry. Few upcoming themes which the state can focus in marketing are: forest trail, eco-tourism, rural tourism, historic sites, entertainment and recreational tourism, religious tourism, fairs and festivals and health and wellness tourism. As regards the Health and Wellness tourism in Gujarat, Mr. Pandey summarized the value chain as given below: Marketing packaging Logistics and Need for identification of medical services and internal information dissemination about the services offered among government departments, tourism industry, hospitals, etc. Need for augmentation of rail connectivity and more services for patients including special railway car for patients, special attention for patients traveling by air etc. Need for tie up between hospitals, spas and resorts. Need for development of accreditation system for hospitals and hotels.

Accommodation

As per Mr. Pandey, the following are the key challenges for Health and Wellness tourism in Gujarat: Infrastructure facilities (air connectivity to main markets of Africa is limited) Competition from other countries Post operative care (surgical procedures require follow-up) Lack of quality accreditations Government policy and legal issues Demand-supply mismatch Improvement in medical infrastructure in the patients native country Lack of adequate tourism products and their branding

Mr. Pandey made the following recommendations: Need to intensify discussions about developing the sector while involving domestic & international partners. Need to develop corporate medical tourism & support logistics for foreign patients. Government should have a disaster plan management for any kind of eventuality. Hospitals need to tie with outsourcing agencies that can provide high quality of services to patients. Law should be made for meeting international quality accreditations. Medical insurance is an important aspect to promote inflow of international patients therefore, tie ups with international agencies should be explored. Capacity management plan should be developed to prevent stress on local resources. Government should encourage investment in developing quality accommodation. Development of physical as well as social support infrastructure. Policymakers should lay down rules and guidelines for international visitors.

Brainstorming on Gujarat Tourism The Way Forward:

Mr. Himmat Anand commented that Gujarat does not have a unique brand identity in international tourism market. He said that Kerala is known for its backwaters and Rajasthan for its forts and palaces similarly Gujarat needs a marketing campaign which focuses on one or two unique selling points. Mr. Vipul Mittra, IAS responded by saying that Gujarats brand identity is its diversity. Mr. Anand said that Rajasthan has 10.7 lakh international tourists and Gujarat about 3 lakh international tourists of which 1.7 lakh are NRIs. He said that all Indian states claim to have everything but Gujarat needs to identify its core strengths and unique selling points. Mr. Anand asked the panel for suggestions on what areas Gujarat should focus on. Mr. Rohit Kohli reiterated the need for a unique brand identity and focused marketing. Mr. Sarabjit Singh suggested that the Government of Gujarat should reconsider the prohibition policy. He also mentioned the demand-supply mismatch in the accommodation facilities in the state, need for having connected circuits and need for greater private sector involvement in the tourism sector. Ms. Tejaswini suggested that Gujarat should venture into adventure and wild life tourism. She suggested that the dolphins on the coast of Kutch and the super luxury trips to the Kutch coast might have many takers. She supported Mr. Anand on the need for a unique identity of Gujarat tourism as she says that this is an era of specialization and promotion and branding might not help if Gujarat does not have a unique identity. She suggested that the Kutch festival and Pushkar can be taken to the next level by having homestays, sham-e-sharad, etc. Mrs. Jyotsana Suri stressed on the need to focus on domestic tourists. She said that there is infrastructure but focus of infrastructure should be on tourism. She said that archaeological tourism is important and has to be further developed in the state. She opined that in this context, sites like Dholavira are a goldmine and need to developed as key tourist destinations. She said that Dholavira might become the face of Gujarat tourism and the Buddhist trails need to be explored. She agreed that the private sector needs to work along with the Government to develop tourism in the state.

Mr. Mittra was of the view that it was not possible for development of a unique brand for Gujarat tourism he opined that it was not viable to promote only one brand, unless a state has only one brand. He said that beaches can grow with adventure tourism, sand sculptures etc. There were other suggestions regarding world class marketing for Gujarat tourism, setting up of an advisory council from industry and time bound action plan. The representatives of hotel industry said that usually it takes about 3-4 years in setting up a hotel and major portion of the time (around 6 months to one year) is taken in getting approvals from the Government. They requested the Government to reduce this time and asked for relaxation of norms regarding prohibition. There were also suggestions about the availability of quality manpower in the hospitality industry. Mr. Anand said that Gujarat needs to educate even the Indian tour operators on what Gujarat has to offer regarding tourism.

In response, Mr. Mittra informed the audience that the Government is planning 11 road shows in major cities to educate other states about what Gujarat has to offer in terms of tourism. For human resources development, he said that meetings with vice chancellors, hotel management institutes, catering institutes are going to be set up by the Government. For faster clearances from the Government he said that a single window - Gujarat Tourism Infrastructure Promotion Board is being planned to be setup with the honorable Chief Minister as the head. He said that Gujarat Industrial Development Corporation (GIDC) would enable the investors in faster allocation of land. He informed the audience that Vibrant Gujarat is the fastest single window to get clearances. Mr. Anand suggested that the road shows should also be conducted in Gujarat as well to educate the domestic tour operators in Gujarat. Mrs. Jyotsana Suri talked about the idea of disinvesting the toran hotels (TCGL hotels) after sufficient due diligence. Mr. Mittra said that privatization of tourism properties is in advanced stage. The representative from Bloomberg TV asked about the status of development of sports related tourism in Gujarat. Mr. Mittra responded by saying that corporate investments are being made in a big way. For example, Transtadia is setting up a sports complex with an investment of Rs. 200 crore. He also said that tourism might be declared as an industry soon so that the benefits (subsidies, grants, concessions, etc.) that an industry in Gujarat enjoys are shared by the tourism sector as well. There were other suggestions about the introduction of a luxury tourist train in Gujarat, which can also work as a marketing tool. There were suggestions about projecting Gandhi as the brand ambassador to lure international tourists to the state, leveraging the Incredible India brand and using the network of Gujarati diaspora to promote Gujarat tourism all over the world.

4. Plenary II Health and Wellness Tourism Advantage Gujarat

4.1. Objective The objective of this session was to understand the Health and Wellness tourism sector in Gujarat. In this session, the current status of the sector, the potential for development, the strengths and opportunities available in Gujarat was discussed and deliberated upon. 4.2. List of Speakers
Speaker Mr. Bhaskar Subramanian Mr. Naresh Jadeja Profile Associate Director, PricewaterhouseCoopers Private Limited President, International Wellness and Healthcare Travel Association (IWHTA), USA Topic Present status of the sector in the country and its prospects Gujarat: A medical tourism destination opportunities and constraints

4.3.

Session details Mr. Bhaskar Subramanian informed the audience that the market can be divided into two segments: Health/Medical Tourism and Wellness Tourism with the latter being less known but having a market size almost double that of the former.

Mr. Subramanian talked about initiatives and government interventions being done by competing countries. He briefly talked about the Indian healthcare industry mentioning that the industry size is about USD 38 billion (2008 figures) with the primary health segment having a share of 78%. Talking about the key trends in the industry, he said that penetration of the health insurance market is 86% and health cities are evolving as a new concept in healthcare in India. He then briefly talked about the Indian wellness industry including the key players. He mentioned the key drivers for international medical travel to India viz. non availability of treatments in native country, long waiting lists in the native country, availability of affordable & quality health care organizations in India, opportunity to combine wellness travel with vacation covering diverse tourist destinations, great reputation of Indian doctors and high success rates compared to other countries. He mentioned that the government of India is taking several initiatives to promote medical and wellness tourism including extension of the Marketing Development Assistance (MDA) Scheme to include Medical Tourism in its

purview, introduction of new category of Medical Visa for patients and their attendants and large scale publicity and promotion of Health and Wellness tourism. Mr. Naresh Jadeja talked about the scenario in the US after president Obamas healthcare reforms, which aims to provide health insurance to every individual. He informed the audience that currently there are 50 million un-insured and 25 million under-insured people in the US.

Talking about the revenue cycle of a hospital chain, he said that the revenue cycle depended on: range of procedures offered in the hospital, number of hospitals operated by a chain, number of patients the hospital treats for a procedure, number of visits each patient makes to the hospital for a treatment, number of procedures they undergo at each visit, and price of each procedure

He said that the key constraints in developing medical tourism in Gujarat are: lack of marketing and promotion about healthcare facilities, non-availability of quality support infrastructure, lack of a unified approach between the hospitals, tour operators, government and other stakeholders and strong competition from other healthcare destinations. He said that the key opportunities for the sector in Gujarat are: presence of a big pool of NRG diaspora and availability of good physical infrastructure (airports, railways, roads, etc.). He suggested the following long term strategies for development of the sector in Gujarat: establishing the need for international patients, establishing international standards and accredited hospital infrastructure, development of human resources to provide quality manpower for the healthcare industry, active marketing and promotion and partnering with well established international and national players.

5. Plenary III Civil Aviation in Gujarat Opportunities and Challenges

5.1. Objective Civil aviation and tourism are two inter-dependent and inter-related sectors of the economy. Every tourist needs to undertake a journey to reach the destination. With the advent of private low cost airlines in the country, the domestic and international travel by air has grown by leaps and bounds. This growth has directly helped in resurrecting the robust growth of the tourism sector in India. The objective of this session was to understand the correlation between tourism and civil aviation sector, understand these sectors in India and Gujarat from a historical perspective, evaluate the current status and come up with a roadmap and an action plan for the development of these sectors in Gujarat.

5.2.

List of Speakers

Speaker Capt. Ajay Chauhan (Retd.) Mr. Hemant Bhattbhatt Mr. S. C. Hota

Profile Director of Aviation, Government of Gujarat Senior Director, Deloitte Touche Tohmatsu India Private Limited Jt. GM (ATM), SVP International Airport, Ahmedabad

Topic Gujarat Aviation Scenario Furthering growth of aviation sector in Gujarat Aviation in Gujarat Opportunities and Challenges

5.3.

Session details Mr. Ajay Chauhan briefly talked about the history of civil aviation sector in Gujarat. He said that aviation activity started in 1973 in the state when aerial spraying on various crops like sugar cane, cotton, ground-nut, tuvar, etc. was done by helicopters and fixed wing aircrafts to help the farmers. In the 1980s, cloud seeding operations were carried out by aircraft for making artificial rain whenever there was a short fall of rain. In the 1990s, civil aviation in the state was mainly carried out for VIP travel. Currently, the State Government has its own Directorate and has setup a new company (GUJSAIL) to carry out the activities of the Civil Aviation Department. Talking about the aviation sector in Gujarat, Mr. Chauhan informed the audience that there are currently 12 civil airports, 3 IAF airports and 2 private airports in the state. The total cargo handled by these airports in the month of May 2010 was 2,324 tonnes. The state is connected to 15 cities (national and international) and over 550 planes fly over Ahmedabad every day.

The map below shows the location of the various airports present in the state of Gujarat.

Mr. Chauhan informed the audience that the Government is planning 10 more airfields at Palitana, Mandavi, Morbi, Rajkot, Ankleshwar, Parsoli, Rajpipala, Ambaji, Dwarka and Dholavira. He said that the State Government intends to encourage private sector participation for development of aviation infrastructure at the existing airports and airstrips and development of green field airports for schedule and non-schedule aircraft operations. Talking about the investments in the sector, Mr. Chauhan said that 17 MoUs have been signed over the past two Vibrant Gujarat Summits with a total proposed investment of Rs 22,072 crore of which 11 MoUs are actively progressing towards investment grounding. Mr. Chauhan briefly mentioned about the key tenets of the draft Civil Aviation Policy 2010. He said that the policy aims at development of airstrips, airfields, airports and helipads, promotion of regional airlines for intrastate/interstate connectivity, starting of helicopter services, provision of concessions to the partner, promotion of an aviation training institute, promotion of air cargo infrastructure, setting up of MRO facilities and setting up of aviation SEZ. He also talked about the newly incorporated company, GUJSAIL and said that the aim behind establishing the company was to help interested private players in aviation related development in the state. He said that with the help of the Civil Aviation Policy, the task of this company would be to act as a single window clearance system for all private sector led initiatives in the civil aviation sector of Gujarat. He said that the focus areas of the Directorate of Aviation for the year 2010 are: Development of new airports at Palitana, Ambaji, Dwarka and Ankleshwar.

Starting of regional airlines for inter-state services Introduction of helicopter services Starting of Aviation Training Institute for helicopters in Gujarat To establish a Maintenance, Repair and Overall (MRO) Hub Development of an Air Cargo Complex Development of helipads at taluka level and next to expressways To make Deesa and Keshod airports operational Offer scholarships to students to take up aviation as career To commence aero-sports activities by encouraging enthusiasts to conduct adventure sports like gliding and micro light aircraft flying at existing and potential sites. Mr. Hemanth B. Bhattbhatt, briefly talked about how the aviation sector boosts the growth in tourism and economic activities in a region. He said that air transport is a key driver of economic growth developed economies generally have high levels of air transport activity. He said that travel & tourism is a high-multiplier-effect industry which creates more jobs per million rupees of investment than any other sector of the economy. He talked about how tourism and aviation industry are interlinked and said that leisure and business tourism especially are highly dependent on aviation.

Talking about the aviation sector in Gujarat, he said that Gujarat has 13 airports and 3 airstrips. He gave details about the domestic, international and total passenger air traffic in Gujarat. He said that a comparative analysis of the airports in India taking number of domestic and international passengers per lakh population as the parameter shows that the aviation sector in Gujarat is still in a nascent stage. He also conveyed that airport connectivity to major tourist destinations in Gujarat needs to be improved. He informed the audience that about 77% of the total tourists (domestic and international) are Gujaratis and hence it would be a good idea to start regional airlines. He said that the future of the sector looks bright with investments such as Airbus, Boeing and the Government of Singapore eyeing Gujarat to set up their maintenance, repair and overhauling (MRO) facilities and Gujarat Vittal Innovation City (GVIC) planning to build aerospace and avionics sub-conclave in their 2,500-acre SEZ. He said that major growth opportunities are air connectivity to tourism hubs, intra-state/regional air connectivity and aero sports for adventure tourism. Talking about the specific advantages that Gujarat offers, he said that: South Gujarat is about only 10 minutes flying time from Mumbai The state has the highest number of airports in the country Gujarat is industrially developed state with high economic growth rate Gujarat has a rich cultural & religious heritage Presence of diverse tourist spots spread across the state

He listed the initiatives taken by the state government for the development of the sector as: Drafting a state level aviation policy Setting up of Gujarat State Aviation Company (GUJSAIL) Creation of infrastructure in aviation such as airports, air strips, aviation training institution, Maintenance, Repair and Overhaul (MRO), regional air lines, cargo complex and meteorological facilities Promotion of religious tourism including short-listing of Dwarka, Palitana, Ambaji and Morbi for air connectivity

Providing air connectivity within the state by roping in two private airlines, Luan Airways and Ventura, to begin operations between important towns daily 8 flights to connect Bhuj, Rajkot and Jamnagar to Ahmedabad and Surat.

Mr. Bhattbhatt listed the following areas where the state government needs to take more initiatives for the development of civil aviation sector in Gujarat: Airport and airport related infrastructure development Regional airlines MRO, manufacturing & SEZ Human resource development Equity participation and privatization Assistance in land procurement Financial assistance to private players Periodic certification of the state Government air fleet Mr. S. C. Hota, talked about the aviation sector in Gujarat and said that Gujarat possesses one of the largest networks of airports and airfields in the country. It has 11 airports (including one international airport) under the operational jurisdiction of the Airports Authority of India (AAI). He said that apart from the AAI airports, there are three airstrips under State Government jurisdiction located at Mehsana, Amreli, and Mandvi. He said that the goals for the sector in the state should be to:

Ensure availability of quality airport infrastructure and air connectivity to passengers in the state. Trigger development through the high visibility greenfield international airport project. Explore opportunities in non passenger aviation segments such as maintenance, repair and overhaul of aircraft, air cargo, regional hub of airlines, air taxi services, etc. Encourage manpower development and skill building in aviation sector by encouraging flight schools and aviation academies at not-in-use air fields.

Talking about the trends in civil aviation in India, he said that the number of airlines including low cost carriers have increased, high fuel costs, taxes and user charges are leading to huge margin pressures on airlines, initiating a trend of consolidation through mergers and acquisitions of airlines, airport infrastructure has attracted private investment through the PPP route at four international airports (Delhi, Mumbai, Bangalore Greenfield and Hyderabad Greenfield airports) and larger private sector role in airport infrastructure and management has led the Central Government to introduce an Airport Economic Regulatory Authority(AERA) Bill to regulate private airport and airline operators market. He said that the following are the opportunities for private participation in the sector in Gujarat: Maintainence, Repair and Overhaul (MRO): The Centre for Asia Pacific Aviation (CAPA) has predicted that India has the potential to service a fleet of 1,000 commercial planes and 500 general aviation aircraft by 2020, including replacement. Another factor that could drive MRO business in India is availability of low cost manpower. The MRO facilities will foster creation of ancillary and associated industries and services like training institutes, component repair and testing of avionics equipment, electrical and electronic system components, hydro mechanical and pneumatic system components repair of composite structures, passenger seat repair, cabin panel repair, etc.

Cargo: Gujarats strength in chemical, textiles and horticulture can be leveraged by augmenting air cargo export from the state. Gujarat also has a potential in perishable goods due to considerable emphasis on the development of horticultural crops. The major fruits crops grown in Gujarat are banana, mango, citrus and chikoo. South Gujarat region is leading producer of flowers and fruits and central Gujarat region is leading producer of milk and flowers. Small Airport Development: Small airports would be required at Ankleshwar and Mundra to support the local industrial, commercial and economic activities. Similarly small airports at Mandvi, Dwarka and Ambaji would be of immnese help to the large number of tourists visiting these places. Regional Network: Need for connectivity between the airports in the state and with airports of the other states to foster economic development and industrial activity. Human Resources for the Aviation Industry: An Aeronautical University and Flying School can be considered to cater for quality and trained personnel requirement for aviation. Need for another International Airport: The capacity of the existing airport may get much before 2020. The proposed new international airport will be coming up near Dholera Special Investment Region (SIR).

Mr. Hota said that the key challenges for the sector are high fares, operating costs and the global meltdown are hampering the growth, security, law and order issues and long gestation periods of the projects.

6. Way Forward
Some of the key suggestions that emerged out of the discussions during the seminar are presented below: 6.1. Tourism sector in Gujarat Need for focused marketing: A strong need for key product identification and unique selling points about tourist destinations in Gujarat was widely discussed. After the key product identification, a focused and sustained marketing campaign was suggested by a large number of participants to establish a unique brand identity for Gujarat tourism in the national and international tourism markets. Reconsidering the prohibition policy: It was widely discussed that norms relating to prohibition be relaxed by the government for the growth of the tourism sector in the state. Human resource development: Availability of trained and quality manpower to meet the requirements of domestic and international tourists was identified as a key constraint for the development of the tourism sector in the state. Setting up of hotel management institutes, catering technology institutes, skill development of tour operators including language skills, communication skills, knowledge of foreign languages, etc. can be considered by the Government. Improvement in support infrastructure especially accommodation facilities: Many participants highlighted the shortage of quality accommodation facilities at key tourist destinations in Gujarat. Incentives can be provided for the hotel industry for setting up establishments at important tourist destinations and faster clearance mechanisms can be set up to reduce the delay in setting up hotels. 6.2. Health and Wellness Tourism sector in Gujarat Marketing and packaging: A strong need for identification of key medical services (core strengths of hospitals in Gujarat) was identified as a key constraint. These services then need to be adequately marketed and packaged to the target customers and countries. Logistics: There is a strong need for improvement of air and rail connectivity especially to the target states and countries and associated augmentation in the services offered to the patients (special railway car for patients, special attention for patients traveling by air). Need for development of accreditation system for hospitals and hotels: To increase the level of trust that medical tourists place upon the medical tourism industry in Gujarat, hotels, spas, resorts, hospitals, diagnostic centres and other stakeholders need to seek internationally accepted accreditation systems. Clear policy for Health and Wellness tourism: There needs to be a clear policy and specific guidelines at the national/state level for international tourists seeking treatment in India/Gujarat.

Tie up with international agencies: Medical insurance is an important aspect to promote inflow of international patients therefore tie ups with international agencies is a pre-requisite. These tie ups need to be explored with international medical insurers, travel agents, tour operators, etc.

Lack of unified approach between hospitals, tour operators, government and other stakeholders: The hospitals, spas, resorts, tour operators, relevant government departments, medical insurers, and other stakeholders need to work together for internal marketing of core strengths so that they can approach the end customer (medical tourists) together with clear full-fledged packages that take into account all the needs of a medical tourist.

6.3.

Civil Aviation sector in Gujarat Airport and airport related infrastructure development: Availability of quality airport infrastructure and air connectivity to passengers in the state is required. Greenfield airports at key locations, upgradation of brownfield airports and inter-connectivity between these airports through daily services would foster economic development of the state. Regional airlines: Need for connectivity between the airports in the state and with the key airports of the other states is necessary to serve the huge demand for faster travel within the state for business tourism, religious tourism, etc. Maintenance, Repair and Overhaul (MRO) opportunities: Considering the strategic location of the state and Ahmedabad in particular, there is a huge opportunity for setting up of MRO facilities and other related industries (air cargo, air taxi services, training institutes, component repair and testing of avionics equipment, electrical and electronic system components, hydro mechanical and pneumatic system components, repair of composite structures, passenger seat repair, cabin panel repair, etc.) in the state. Human resource development: There is a need to set up more flight schools, aviation academies and aeronautical universities to provide adequate trained and skilled manpower to the civil aviation industry in Gujarat and in the country.

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