Utility of PPP model in Tourism Infrastructure and Capacity building

PPP refers to Public Private Partnership. In India, PPP has had a mixed experience. 

According to the performance, it is divided into 3 categories:

1. Overall successful
2. Failure for both the parties
3. Failure for one of the parties e.g Nhava Sheva Port in Mumbai and NOIDA DND Toll road

Despite its assessment as a ‘Not so good’ tag as per Planning Commission of India, PPP pundits analyse that Private participation as a partner is here to stay. The primary cause is that neither the Government is short of funds nor is it shirking from its responsibilities. In fact, Government is seeking better management through PPP and it understands that addressing ‘Time overrun’ and optimum use of Government resources including transferring risk to the private partner to a reasonable extent. State of the art technology and ‘Value for money’ are another factors that keep compelling policy makers in Government to keep faith in the PPP mode. 

PPP is a popular model of governance all over the world

Factors that have hindered PPP in the past: 

Some factors have hindered PPP Projects in the past are as follows:

• Blame game between Government and private partner on delays on land acquisition etc. and interpretation of clauses in concession agreement.
• Requests by private partner for frequent increase in user charges or seeking compensation on unforseen escalation of costs.
• No institutionalised mechanism (at least, hither to) for mid term correction in concession agreement.

Despite some negative points and past failure of some PPP projects mainly in the Highway sector, PPP could be addressed by way of mid-course correction of projects with the newly created institutional mechanism.

Why is PPP model a necessity?

Let us look back into the past and see the reasons for the necessity of the PPP model. The governments in Developed/Developing/Underdeveloped countries may not be short of funds but it can hardly afford to invest public money by procuring latest technology which shall be used by its own workforce, which is not known for its optimum efficiency. There is no doubt that following  factors warrent urgent attention to improve Governance for bringing in development agenda;

• Deficit in infrastructure
• Inefficient service delivery 
• Unprofessional approach. 

Here, it is to be kept in view that the private sector may bring in capital, technology, better management and can share the substantial risk of market forces etc. So, a sensible division of roles, fair sharing of responsibilities and market risks be appropriately borne by the private sectors. The expected results are “availability”, “quality” and “efficiency of services” along with “efficiency of capital utilisation”. If properly implemented, there will be “transformation from a subsidised economy to commercial economy and output based contracting”. In this way, Government resources could be better utilised with better technology, innovation and global best practices under PPP regime.

This was the status of PPP procurement timelines in 2013 at the global level.

 Advocates against PPP model will certainly argue that PPP model resorts to more expensive (user charges etc.) or would lead to privatisation in disguise and that public employees shall lose their jobs and that it is backdoor sale of government assets. However, these arguments can be rebutted with citations based on International success stories learning and improving based on earlier mistakes, mid-term correction/review, though in a limited way. Thus, there is a need to hold a workshop for the government officials by semi government organisations like PHD Chamber of Commerce, FICCI, CII, ASSOCHAM etc so that PPP model can be made a highly successful and mutually beneficial model for all stakeholders!

 Now, question arises whether the regulator should be under the sole control of concession authority or should work like an umpire. Since last letter of P in PPP embraces Partnership, the concession authority should treat Private player/concessionaire as a partner and agree to appoint a neutral ‘Regulator’ in a transparent process.

(The creative inputs are given by Ambuj Saxena, co-founder of www.bnbnation.com)

Ahoy! Happy World Tourism Day

Many people associate tourism with a recreational activity but as per UNWTO, Tourism is a people-based economic activity built on social interaction. It prospers if it engages the local population by contributing to social values.

World Tourism Day

The World Tourism Organization (UNWTO) declared 27 September the World Tourism Day with the purpose to raise the awareness of the global community about the importance of tourism and its social, cultural, economic and political value. World Tourism Day (WTD) is a global observance to highlight tourism’s social, cultural, political and economic value.

The theme of this year's World Tourism Day is Tourism and Community Development which is sync with the Bed and Breakfast scheme. 

World Tourism Day; Tourism & Community Development

Tourism and Bed & Breakfast industry

The Bed and Breakfast industry is not a new concept in the world though it is adopted as a novel idea in the B&B scheme of “Incredible India” over the age old practice of “paying guest accommodation in India”. As per figures of foreign tourist arrival as mentioned in (MoT, Statistics at a Glance, 2012), in countries like France (8.02%), USA (6.3%), China (5.57%), Spain (5.57%), Italy (4.48%) where maximum percentage of foreign tourists arrive every year the shortage of regular commercial accommodation is met by the B&B stays prevalent in these countries but in different modes.

According to Caroll Cathy, an author of “Travel Weekly”, the utility of B&B type accommodation is increasing as many business travelers are finding that B&B inns suit their needs, and owners are furnishing these guests such equipments as private telephones and computer connection.

The ‘B&B stay’ concept helps in saving huge additional infrastructure costs towards construction of hotels, recycling of waste water, electricity generation ,and  cutting of trees etc. and other materials required for creating additional facilities for accommodation.

In a country like India, additional land for constructing more hotels is made available by shrinking of forest land, cutting of trees, generation of more electricity & water etc. In Delhi, there is always a shortage of accommodation particularly in budget category during the period of various festivals, carnivals, conventions, functions, national and international conferences etc. These events are generally planned from September to March every year where large number of foreign and domestic tourists arrive in Delhi thereby increasing the demand for more accommodation.

This day last year...

I remember clearly that on this day, last year, as the Managing Director, Delhi Tourism (DTTDC), our Department had facilitated the shooting of the upcoming Rajkumar Hirani’s Bollywood movie PK (Peekay), best known for its Nude-Aamir-Khan poster, in the bustling streets of Delhi by getting the various permissions from various departments. 

PK poster

To appreciate our effort, the crew of Peekay held a dinner for Delhi Tourism where we interacted with Aamir Khan, his son, Mr Rajkumar Hirani, Anoushka Sharma and other members.

With Aamir Khan

Interesting facts about Bed and Breakfast establishments in Delhi

In a recent survey of around 50 Bed and Breakfast establishments (out of about 350 total B&Bs), some interesting facts were revealed. There is a group of substantial number of domestic tourists who stayed in lower tariff of B&B units at Rs. 1500 to Rs. 2000 per month (equivalent to US 25$ to 34$). These are generally those tourists who came to Delhi for pilgrimage. However, most of domestic and foreign tourists stayed in the tariff range of Rs. 3500 – Rs. 4500 (US 60$ - US 70$) per night. Average stay of tourists was 3 days in Delhi. Most of the B&B units are located in South Delhi particularly in Vasant Kunj, CR Park, Greater Kailash, Hauz Khas, East of Kailash and Kailash Colony. Out of total foreign tourists staying in B&B units, majority are from USA & UK (20%), followed by Australia (13%), Germany (12%) & France (11%). Chinese tourists seem to avoid B&B establishments). These tourists, generally, visit three world heritage sites in Delhi namely, Red Fort, Qutub Minar and Humayun Tomb.

Humayun's Tomb

Qutub Minar

Red Fort

Some of the tourists visit Akshardham Temple, Bahai Temple, Jama Masjid also. Most take taxis or package tours of Delhi as these are cheaper compared to other cities in the world. Unlike cities like Berlin, Amsterdam, London, etc. there are not many souvenir shops in Delhi. However, Dilli Haat is popular among tourists and serves as a good shopping stop for souvenirs, handlooms and handicrafts. While Dilli Haat purchases are less costly, some foreign tourists also prefer to make such purchases from Janpath street shops at slightly higher rates. 

Janpath shopping street

The tourists staying at homestays in Delhi very well know where from to purchase, how to travel within the city and where to eat at reasonable rates. The tourists staying in hotels have lesser choice of interacting with people, though they are also able to avail such information through sites like India Tourism, Delhi Tourism and other websites of local travel agencies. Delhi gets maximum number of tourists in the months from September to February.

If you wish to book your stay in authentic Bed and Breakfast accommodations in Delhi, please feel free to contact me at ggsaxena@gmail.com or +91 9810603010. 

These data are generally taken from DTTDC and are incorporated in the author’s Ph.D. thesis and research article “Economics of B&B Scheme of Delhi” published in July’13 issue of SAJTH.

Why should you visit India amidst security concerns?

In India, Tourism was first conceived as Tirthatan (religious travel) then as Deshatan (travel around the country) and finally as Paryatan with the sole purpose of promoting intermingling among people of neighboring states, to acquaint them with the culture of the host country.

In India, hospitality is based on the principle of Atithi Devo Bhava, i.e. "the guest is god".  Here people live in unity though there is diversity in Caste, Creed and Culture.

Atithi Devo Bhava- Incredible India

During various festivals, all the communities including Hindus, Muslims, Christians and others enjoy with great fervor and gaiety. Neighbours share their joy during family functions and also console each other at times of mourning. All Indian religions follow the principles of mutual respect, peaceful coexistence, and sharing of joys & sorrows with a sense of togetherness.

Thus, India has something for every tourist who wishes to get a taste of the unique culture of India. There are

•       22 languages with 1542 dialects
•       27 world heritage sites
•       7500 km. of coastline
•       9000 years old history, civilization and heritage
•       55,000 km. of lakes, streams and rivers
•       476 forts and palaces
  

View of Radhanagar beach (Andaman and Nicobar islands) at sunset

India is also well known as a rich culinary heritage destination. It boasts of the following:

•       70 million hectares of forest
•       147 dance forms
•       5000 years of experience in Ayurveda and Yoga. 

If you enjoy having morning tea then India is a must visit! There are a large number of “Tea states” totaling 1641 in India. 

Tea plantation in India

Furthermore, India is host to almost 60% of the world’s tiger population. There are 60 national parks, 400 wild life sanctuaries.

Gir Wildlife Sanctuary in Gujarat

If you still have doubts about visiting India with your friends and family, feel free to reach me at ggsaxena@gmail.com or +91 9810603010.