Now Reading: India must redesign tourism PPPs around destination experience
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India must redesign tourism PPPs around destination experience
India needs to move tourism public-private partnerships beyond individual assets like hotels and resorts to managing the entire destination experience, a new analysis argues. A tourist does not experience the tourism ministry,…
India needs to move tourism public-private partnerships beyond individual assets like hotels and resorts to managing the entire destination experience, a new analysis argues. A tourist does not experience the tourism ministry, ASI, or municipality separately but as one trip involving airport, taxi, hotel, monuments and restaurants. If the road is poor or there is nothing to do after sunset, the destination disappoints.
The analysis points to the Delhi and Mumbai airport PPPs of 2006 as a successful model where government retained regulation and security while private operators brought capital and passenger focus. However, tourism cannot copy that model because a destination is not a defined asset. A heritage town may have multiple owners: ASI for monuments, state for roads, municipality for public spaces, and private owners for hotels and businesses.
A private partner could design visitor experiences, create heritage walks, organise transport and market the destination without owning all assets. Governments should resolve land, title, approval and heritage issues before seeking bids, and understand demand and viability. Karnataka has listed properties like Lalitha Mahal Palace for PPP, and Andaman and Nicobar are developing eco-tourism projects under the model.
Indian Opinion Analysis
India's tourism sector contributes roughly 5% of GDP, far below peers like Thailand or France. The core challenge is that monument upkeep falls under the Archaeological Survey of India, roads under state PWDs, and urban infrastructure under municipal bodies, each with separate budgets and priorities. No single authority is responsible for how a tourist experiences the whole place. The Aviation Ministry's airport PPP model worked because the Airports Authority of India held clear title and could grant a single concession. For tourism, the Ministry of Tourism has proposed a 'Destination Management Organisation' framework but no state has fully implemented it. The realistic next step is for one state to pilot a destination-level PPP, with the state tourism corporation acting as the single-window coordinator, before other states follow.
Source: economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above.
