An integrated approach to develop tourism in Punjab, Haryana, Himachal Pradesh and Chandigarh should be launched by linking inter-state circuits and rationalising transport taxes, PHD Chamber of Commerce and Industry president P K Jain said.
Jain said at Rs 2,400 per day on temporary permit for a 35-seat bus, the tourist transport tax in Punjab was the highest in the country.
Also the State Government had provided only Rs 1.5 crore (Rs 15 million) for the tourism department in the budget.
He was addressing a two-day meet on "Opportunities for Developing Tourism in Punjab" in Patiala.
Addressing the meet, Punjab Chief Minister Amarinder Singh said the State Government was facing a financial crisis and 64 public sector undertakings in the state were incurring losses. The state had a debt burden of Rs 52,000 crore (Rs 520 billion), he added.
The meet was organised by PHDCCI in collaboration with the Indian National Trust for Art and Cultural Heritage and the Punjab government.
At present, the State Government could only play the role of a facilitator, co-ordinator and regulator for the development of tourism, he said.
A new tourism policy for increasing the private sector's role was being prepared, the chief minister said.
As per the new policy, the private sector would be encouraged to invest in tourism and the government would create an environment conducive for the investors. Singh said disinvestment of all 18 resorts of the Punjab Tourism Development Corporation was in the process.
Stating that tourism was the third revenue generating sector in the state, the chief minister said the support of the private sector was imperative to promote tourism.
PHDCCI tourism committee chairman V N Dalmia said, "An investment of Rs 10 lakh (Rs 1 million) generates 89 jobs in the tourism industry compared to 46 in agriculture." To encourage tourism, taxes should be rationalised, Dalmia added.
He said the tax on the hotel industry in India was 30 per cent against 14 per cent in Singapore, 21 per cent in Thailand and 15 per cent in Malaysia.
The chamber asked the State Government to introduce a single-window clearance system for tourism projects, assistance to entrepreneurs for setting up projects and to allow non-resident Indians to invest in tourism projects.
It also asked the State Government to forge alliances with other countries to evolve innovative tour packages and identify new opportunities.
