Draft Report of the High Level Group on Services Sector



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3.9 Tourist Clusters

In the affluent countries there is flow of tourists out of the cities not only during holidays and almost every weekend, weather permitting. The weekend tourists, particularly those with children, normally go out short distances to resorts and tourist destinations, such as mountains, lakes and beaches. But they also go to man made attractions and clusters of attractions such as Santosa Island Resort in Singapore.

The rapid increase in disposable income in the upper middle class in India presents a big opportunity for development of tourism in the country. The Group recommends the creation of tourism clusters of areas between 100 and 500 acres within a distance of 150 kms for the cities for the setting up of a cluster of facilities and attractions for tourism. They may have hotels, restaurants, spas, theme parks like Appu Ghar in Delhi and Essel World in Mumbai, and attractions such as skating rinks, lakes with boating and sailing facilities, golf courses, tennis courts, and indoor games. Although the clientele of tourist clusters will primarily be domestic, they will also serve to increase the attractiveness of traditional tourist destinations for international tourists. The entire development, including the acquisition of land, will have to be undertaken by the private sector, but as an incentive they will need to be given infrastructure status under Section 80- 1A of the Income Tax Act.


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