Japan would like to know if the government of India has any intention to review the causes of low FDI inflows (i) No foreign presence is allowed in travel agencies, tour operators or tourist transport operators and/or ii) multiple taxes on tourism services at central and state level) in the tourism subsector.
Reply: Hotel and tourism sector has been open for FDI up to 100% on automatic basis. The Ministry of Tourism grants approval/recognition and not licences to the various service providers in the categories of inbound tour operators, domestic tour operators, tourist transport operator, adventure tour operator and travel agencies as per the revised guidelines dated 18.07.2011. The aims and objectives of the scheme for recognition of service providers in all the said five categories are to improve their quality standard and service so as to promote tourism in India and abroad. The FDI in hotel sector has been increasing since April 2000.
Thus India has a liberal policy in the sector to promote foreign investment. India has also offered market access to tourist guides services up to a total ceiling of 500 tourist guides conversant in Chinese, Spanish, Portuguese, French and Japanese languages.
