Assocham Suggests Cell In Pmo For Services Sector

The Associated Chambers of Commerce and Industry (Assocham) has suggested the creation of a special cell in the Prime Minister's Office to oversee the implementation of a four-fold strategy to realise the economic potential of the services sector including tourism.

The strategy entails the reduction of vicious circle of red tape, high tax, less demand and less jobs; simplification and automation of border movements, improvement in the investment climate by demonstrating regional solidarity and cohesion, and recognition of the importance of retaining highly qualified personnel in the industry.

The Associated Chambers of Commerce and Industry 's `Travel: Vision 2010' points out that the mearge allocation of 1 per cent of public spending on travel and tourism services is far below the world average of 6.8 per cent, making it impossible for the Indian tourism products to be competitive with the rest of the world.

 

Underlining the importance of travel and tourism exports as a growing source of foreign exchange, Assocham said at present, the sector generates an estimated 10.8 per cent of total Indian exports. This is expected to rise to 12 per cent by 2010. In real terms, over the next 12 years, service exports or spendings by foreign tourists is expected to grow by 216.7 per cent.