Despite the recommendations from the Tourism Corporation of Gujarat and the state branch of the Confederation of Indian Industry, the state government has decided against relaxing the prohibition policy even as it is giving final touches to the tourism policy to be announced ahead of the 'Vibrant Gujarat -- Global Investors' Summit 2003'.
Both the corporation and the CII had said tourism will receive a boost if prohibition is partially relaxed in special zones such as graded hotels, beaches and places frequented by tourists.
The state government loses Rs 1,200 crore (Rs 12 billion) to Rs 2,000 crore (Rs 20 billion) in excise duty on liquor.
The decision effectively means that those in Gujarat and even the tourists arriving from other parts of the country will not have any legal access to liquor.
Only foreign tourists will get a liquor permit (a practice that already exists) and information on liquor permits from airports and luxury hotels.
Minister of state for home Amit Shah, who also holds the prohibition portfolio, said although the Gujarat chapter of the CII and even the Tourism Corporation had proposed lifting or relaxing of the policy, the state government has never considered any change.
"Yes, there have been suggestions and proposals for relaxation of the policy. Although a new tourism policy is being finalised, the government has no plans to relax the policy in any way," Shah said on Sunday.
The CII, in a report submitted to the government in July 2003 ahead of the formulation of the tourism policy, had stressed the need for partial removal of prohibition in the state for tourism development.
The Tourism Corporation's proposal to relax prohibition was part of the various recommendations made by the corporation to the government.
Some of the likely new features in the new tourism policy include setting up of special entertainment zones along the coastline, developing eco-tourism, bringing down sales tax for tourism and travel industry and abolition of luxury tax.
The minister in charge of prohibition said there has been no meeting to discuss any change or relaxation in the prohibition policy.
As a series of meetings have been held over the past month to give finishing touches to the draft tourism policy, there were speculations that the government might partially relax prohibition.
The tourism industry has been on the downslide in the state. The communal riots that rocked the state last year also worsened the tourism scenario.