Fair trade

The year 2006 was a watershed year for Indian tourism. Foreign tourist arrivals crossed the four million mark. While 3.92 million foreign tourists visited in 2005, in 2006 the figure was over 4.42 million. Foreign exchange earnings have also correspondingly increased, standing at $6,569.34 million in 2006, an increase of 14.6% over 2005. This substantial increase can be attributed at least partly to the Incredible India campaign.

But even amidst the accolades, problems persist. Accommodation continues to be a concern, with shortages pegged at over one lakh rooms. The Ministry of Tourism has sanctioned 146 new hotel projects, but this will only add 12,623 rooms. Average room rates have also increased by 18-22%. To redress this situation the ministry has sanctioned a capital subsidy for 43 budget hotels and an interest subsidy for 86 budget hotels. It has also launched the Incredible India Bed and Breakfast scheme, which has been implemented on a pilot basis in Delhi and is expected to add some 10,000 rooms in the city alone. While increasingly large numbers of tourists visit India each year, the removal of infrastructural bottlenecks could see a much higher figure.