TOURISM

INDIA LANDSCAPE

Key National Strategic Priorities

India envisions to become a one trillion-dollar tourism economy by 2047.
India ranks 39 in the World Economic Forum's Travel and Tourism Development Index, 2024.
USD 28 Bn foreign exchange earnings (FEE) from tourism FY 2023.
India carries enormous potential in expanding tourism; introduced several government initiatives to support the sector's development:
- Under the 'Pilgrimage Rejuvenation and Spiritual Augmentation Drive' (PRASHAD) scheme, 46 projects have been sanctioned at a cost of USD 195.32 Mn and 29 sites have been identified for development across the country.
- The Swadesh Darshan Scheme has been revamped as Swadesh Darshan 2.0 (SD2.0) with the goal of developing sustainable and responsible destinations using a destination-centric approach. The Ministry has selected 57 destinations across 32 States and Union Territories, sanctioning 29 projects with a total funding of USD 77.59 Mn under the SD2.0 Scheme.
Rajasthan has seen remarkable growth in the number of domestic and international tourists. The domestic tourist has seen a growth of 65.29% and foreign 329% in comparison to previous year i.e. 2022.

Rajasthan Landscape

Rajasthan: Key Sector Performance:

Tourism and Hospitality sector has been accorded full benefits of Industry Status.
Tourism sector contributes to around 12% to State's GDP.
In FY 2023, 179 Mn domestic tourists and 1.7 Mn international tourists visited Rajasthan.
In the year 2022, Rajasthan ranked 7th in terms of domestic as well as international tourists.
Nine sites have been listed as UNESCO World Heritage Sites.
Under the 'Pilgrimage Rejuvenation and Spiritual Augmentation Drive' (PRASHAD) scheme, the Integrated Development of Pushkar/Ajmer was approved as a project. Additionally, Shri Karni Mata Mandir in Bikaner District and Sun Temple in Budhahita, Kota District were recognized as key sites.
Under Swadesh Darshan 2.0 (SD2.0), Bundi (Keshoraipatan) and Jodhpur have been identified sites for development in Rajasthan.

Awards and Accolades:

Best State Promoting Fairs and Festivals Award and Best State Promotion Film Tourism, The Economic Times Travel and Tourism Annual Conclave and Awards in the March 2023.
Favourite Indian State for Road Trip and Favourite Leisure Destination in India, by Conde Nast Traveller Readers Travel Award in the December 2023.

Rajasthan: Value Proposition for Tourism Investors

Historical and Cultural Richness: Rajasthan is home to numerous historical forts, palaces, and heritage sites, such as the Amber Fort, Mehrangarh Fort, and City Palace. These attractions draw tourists interested in history and culture.
Geographical Diversity: The State offers a variety of landscapes, from the Thar Desert to the Aravalli Range, providing opportunities for diverse tourism experiences, including desert safaris, wildlife tours, and trekking.
Connectivity: Rajasthan is well-connected by air, road, and rail. Major cities like Jaipur, Udaipur, and Jodhpur have airports with flights to and from key Indian cities and international destinations. This makes it accessible for both domestic and international tourists.
Part of the Golden Triangle: Jaipur, the capital of Rajasthan, is part of the famous Golden Triangle tourist circuit, which also includes Delhi and Agra. This circuit is popular among tourists for its rich cultural heritage and historical landmarks.

The State has many national and internationally reputed institution contributing to the growth and development of Human Capital in the State.

Universities: There are 52 private universities and 31 State funded universities and one central university.
Nationally and Internationally Renowned Institutions: The State is home to numerous technical institutes, including prestigious ones like the Indian Institute of Technology (IIT) Jodhpur, Indian Institute of Management, Udaipur, Indian Institute of Information Technology (IIIT) - Kota, National Institute of Logistics and Material Management, Udaipur, National Law University, Jodhpur, All India Institute of Medical Sciences, Jodhpur, FDDI - Jodhpur, The Birla Institute of Technology & Science, Pilani etc.
Availability of Manpower: Pool of a large young trained workforce with 62% of Indian population in the working age group of 15 to 59 years.

Policies & Incentives

To reposition Rajasthan as a preferred tourist destination for both domestic as well as international tourists, the State government has formulated sector specific policies:

Rajasthan Investment Promotion Scheme (RIPS) 2024

View Policy

Tourism is designated as a key sector under RIPS 2022, offering the following benefits to the service sector.

Asset Creation Incentives (ACI)

Investment Subsidy (SGST Reimbursement) -75% of the State tax due and deposited for a period of 7 years OR
Capital Subsidy -10-20% of EFCI* to be disbursed in annual instalments over 10 years OR
Turnover Linked Incentive (TLI) -1.00% - 1.40% of Net Sales Turnover to be disbursed annually for 10 years

Special Incentives

Employment Booster -10% - 15% booster on chosen Asset Creation Incentive.
Training & Skilling Incentive - Skilling support in form of a Training Subsidy of Rs. 4000 per worker per month for 6 months for training delivered in Rajasthan.

Exemptions

100% Stamp Duty
100% conversion charges
100% exemption of Electricity duty for 7 years

Additional Incentives

Thrust Sector Booster - 10% Thrust Booster on top of ACI chosen OR
Regional/Sectoral Anchor Booster - 20 % Anchor booster on top of ACI chosen

Customized Packages

Investment of more than Rs. 500 cr - Option to redistribute benefits among ACI (Capital Subsidy, TLI and SGST reimbursement).
Investment of more than Rs. 1000 cr and employment of more than 800 persons - Customization on a higher NPV of the Asset Creation Incentive upto 20% of the NPV of the chosen ACI.

Other unique features

Telescoping and upgrade the earlier set of incentives paid on a lower slab basis the total incentives applicable once the full investment is completed.

Ease of Doing Business

RajNivesh portal provides a single point, online interface and a time-bound clearance mechanism by acting as a one-stop information / registration / approval / tracking centre for clearances & approvals.
The platform integrates 120+ services across 14 departments, emphasizing the State's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development.
Officials from 14 concerned Departments of State government have been deputed to Bureau of Investment Promotion, Rajasthan for facilitation of investment proposals.
Under the Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act-2019:
- For the execution of this Act, the Government of Rajasthan launched a web portal on 12th June 2019 for filing applications.
- Issuance of 'Acknowledgement Certificate' up on submission of 'Declaration of Intent' electronically or physically to the nodal agency.
- On basis of said certificate an MSME unit is exempted from approvals and inspections under all State laws for 5 years from the date of issuance of the Acknowledgement Certificate

Opportunities

Eco-Tourism

The State has ample opportunities for eco-tourism. There are 3 national parks, 26 wildlife sanctuaries, 5 tiger reserves and 36 conservation reserves in the State. 4 biological parks at Jaipur, Udaipur, Kota and Jodhpur have also been developed.

Hospitality Units

Hotels, resorts and conversion of heritage properties into hospitality units - Potential to invest in Rajasthan's booming hospitality sector by acquiring and developing hotels and resorts, capitalizing on the State's rich cultural heritage and growing tourism industry. The State caters to needs across traveller segments, ranging from backpacker hostels to luxurious palaces and forts.

Rural Tourism

Desert tourism, wildlife and eco-tourism, rural tourism experiences - Opportunities in development of innovative sites and activities in the desert, wildlife sanctuaries and rural areas to provide tourists with authentic and immersive natural and cultural experiences.

MICE Tourism

Meetings, Incentives, Conferences, and Exhibitions Tourism - Government of Rajasthan announced to promote MICE tourism in preferred locations like Jaipur, Ajmer, Jodhpur and Udaipur. MICE facilities having area more than 2 lakh sq. ft will be exempted from stamp duty.

Wedding Tourism

Rajasthan is a prime wedding destination, famed for its opulent palaces and rich cultural offerings like traditional music and dance, appealing to both domestic and international couples. Its robust event infrastructure ensures seamless accommodation of large-scale celebrations, enhancing its allure as an ideal locale.

Tourism Start-ups

Benefits available under Rajasthan Investment Promotion Scheme, 2022 will be extended to all startups. The department plans to organize an annual event 'Rajasthan Startup Tourism Connect' for startups to showcase their services and connect to stakeholders.

Heritage Hotels

In recent years, one of the most exciting tourism products in Rajasthan has been the conversion of old buildings into charming heritage hotels. This has led to a new experience for tourists in the hinterlands of the State, as well as has played a very important role in their conservation. Privately owned heritage properties are available at many places which have the potential for development as Heritage Units. The Department of Tourism has put together a list of properties after confirming the interest of the owners.