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Development of 5 star beach resorts Tourism Government of Gujarat
Contents
Project Concept 3
Market Potential 4
Growth Drivers 5
Gujarat – Competitive Advantage 6
Project Information 12
- Location/ Size
- Key Players/ Machinery Suppliers
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Considerations
Project Financials 16
Approvals & Incentives 18
Key Department Contacts 20
Page 2
Project Concept
Indian hotel industry
The Indian hotel industry is expected to
reach US$1.8 billion by 2016, driven by an
increase in online bookings. The industry is Classification of hotels
closely linked to the tourism industry and is
a major driving force behind the growth of
the services sector in India
Tourism infrastructure includes hotels and Star category Heritage
resorts, tourist amenities (cloak room, hotels category hotels
changing rooms, crèche, spa, wayside
amenities), boarding and allied facilities One star Heritage Grand
(multi-cuisine restaurants, bars, specialty Two star Heritage
restaurants) and transport facilities (tourists Three star Classic
buses, boats, battery operated vehicles, Four star Heritage Basic
ropeways, porter services) Five star
The Indian hotel industry is highly
fragmented with a large number of small
and unorganized players accounting for the
majority share
Tourism activities in India
Religious and spiritual
Religious places, meditation centres
experiences
Natural experiences Beach tourism, wild life excursions, hill stations
Built environment Fairs and festivals, art and craft
Cultural experiences Archaeological remains, heritage monuments
Advanced health care systems, traditional healing
Medical tourism
services
Top 5 hotel brands in India by existing inventory
Number of rooms* (August 2015)
Taj Hotels, Resorts & Palaces (includes Ginger) 13,250
ITC Hotels (includes Fortune) 9,000
Carlson Rezidor Hotel Group 8,900
Marriott International 8,000
Starwood Hotels & Resorts 7,000
Source: HVS Research
Page 3
Market Potential
Indian tourism and hospitality industry
The Indian tourism and hospitality industry contributed ~US$187.9 billion or 12.5% to the
country’s GDP in FY15, growing at a CAGR of 11.7% from FY12-FY15
The industry is expected to employ 13.5 million people across sub-segments such as
restaurants (10.5 million), hotels (2.3 million) and travel agents/tour operators (0.7 million)
According to HVS, the average rate and occupancy rate in the Indian hotel industry improved
in FY15
The average rate of hotels in India increased slightly to INR4,789 in FY15 from INR4,729 in
FY14. Hotel occupancy also increased after two years of stagnation to 61.3% in FY15
Occupancy and average rate
4,789
Average rate (INR)
5000 4,578 4,677 4,507 4,729 70%
Occupancy rate
4000 65%
3000 62.1% 60%
60.9% 60.4% 60.4% 61.3%
2000 55%
1000 50%
FY11 FY12 FY13 FY14 FY15
Source: HVS Average rate (INR) Occupancy rate (%)
In the Indian hotel industry, the contribution of On a per available room basis, both
revenue from rooms has declined from 57.2% in revenue as well as net income has
FY11 to 50.9% in FY15, while contribution from increased since FY11
F&B increased from 36.6% in FY11 to 42.6% in However, there is a declining trend in
FY15 net income ratio from 32.4% in FY11 to
Sources of revenue (%
28.9% in FY15
contribution to total revenue)
Revenue and net income (per
6.2% 6.5% 6.6% 6.9% 6.6% available room in `000s)
36.6% 38.3% 2,010 2,108
41.2% 41.9% 42.6% 1,861 1,864
1,746
57.2% 55.2% 52.2% 51.3% 50.9% 523 566 585 559 604
FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15
Rooms F&B* and banquets Others Revenue
Net income
Source: HVS Source: HVS
Page 4Growth Drivers
Rise in foreign tourist arrivals (FTAs) and tourist movement within the
country has driven growth in the hospitality industry. The number of
FTAs reached 7.4 million in 2014, up 27.6% from 2010
Increase in India is known as a destination for spiritual tourism and also offers
tourist cruises, adventure, medical, wellness, sports, film, rural and religious
movement tourism. Medical tourists inflow is estimated to be 320 million in 2015,
up from 85 million in 2012
Travel and tourism is the third largest forex earner for India, which
contributed US$19.7 billion in 2014
Campaigns such as Khushboo Gujarat Ki, Incredible India, Athithi Devo
Bhava launched to harness the tourism industry’s potential
FDI under the automatic route in tourism and hospitality is allowed up
to 100%, subject to applicable regulations and laws
Policy
Capital subsidy programme for budget hotels
support
Introduction of ‘Medical Visa’ for tourists coming into the country for
medical treatment
Exemption of Fringe Benefit Tax on crèches, employee sports and
guest house facilities
The GoI has made efforts to improve and upgrade infrastructure
facilities at important tourist destinations, thereby, improving
Improved accessibility
infrastructur FY16 Union Budget allocated INR14.8 billion toward infrastructure
e development for destination and circuits, domestic / overseas
promotion and publicity
Trends in Indian hotel industry
There is a rise in the concept of budget/no frill hotels which offer smart
Emerging basic services at an affordable price
budget hotels Examples include Ginger, Lemon Tree and Red Fox Hotels
Online and mobile based booking is picking up in hotel industry with
Apps for web the emergence of companies such as Make My Trip, Yatra, Cleartrip,
and mobile Goibibo and ixigo
based It is estimated that ~8.4 million Indians will book hotels online by 2016,
booking up from 3.5 million in 2014
There are sites that compare the results from all these sites to provide
Growing cheapest booking options to the customers
aggregators sites Examples include Trivago and OYO Rooms
Page 5Gujarat - Competitive
Advantage
Mapping Gujarat Tourism
Somnath Dwarka Palitana
Religious Temple, Temple, Jain Ambaji
Sites Junagadh Jamnagar Temple Temple
Kevadia
Beaches/ Mandvi Chorwad Colony
Dumas
Water Bodies
Gir Ratanmahal Ran of Nal
Forest, wildlife Dahod Kutch Sarovar
& Ecosystems
Pavagadh
Archaeologica Archaeologica Lothal Dholavira
l Sites l Park
Modhera Adalaj Rani ki
Heritage and Sun Step well Vav Idar
Architectural Temple
Key initiatives to promote Gujarat tourism by the Government
Tourism policy announced by the Government in 2015 provides many incentives to boost
tourism in Gujarat. Investment in Gujarat’s tourism sector is expected to grow five-fold from
INR54 billion (US$0.8 billion) to INR269 billion (US$4 billion) during 2014–2025
Eight tourism hubs have been created for the convenience of tourists visiting Gujarat. These
are in Ahmedabad metro, Ahmedabad (north Gujarat), Surat (south Gujarat), Vadodara (central
Gujarat), Rajkot, Junagadh, Jamnagar (Saurashtra) and Bhuj (Kutch)
Gujarat Infrastructure Development Board has prepared concession agreement model under
PPP for the development of tourism sector projects in Gujarat
The state government has implemented Panchavati Yojana, with the objective of providing
facilities for recreation in villages and encouraging environment friendly activities to develop
natural sites with tourism potential
Emerging areas in Gujarat’s tourism industry are spiritual tourism, heritage tourism, cultural
tourism, event based tourism, water and adventure sports, nature tourism, cruises, theme
parks, convention centres for meetings and conferences
Page 6Gujarat - Competitive
Advantage
Availability of skilled resources
Tourism policy announced by the Government in 2015 provides many incentives to boost
tourism in Gujarat. Investment in Gujarat’s tourism sector is expected to grow five-fold from
INR54 billion (US$0.8 billion) to INR269 billion (US$4 billion) during 2014–2025
Eight tourism hubs have been created for the convenience of tourists visiting Gujarat. These
are in Ahmedabad metro, Ahmedabad (north Gujarat), Surat (south Gujarat), Vadodara (central
Gujarat), Rajkot, Junagadh, Jamnagar (Saurashtra) and Bhuj (Kutch)
Gujarat Infrastructure Development Board has prepared concession agreement model under
PPP for the development of tourism sector projects in Gujarat
The state government has implemented Panchavati Yojana, with the objective of providing
facilities for recreation in villages and encouraging environment friendly activities to develop
natural sites with tourism potential
Emerging areas in Gujarat’s tourism industry are spiritual tourism, heritage tourism, cultural
tourism, event based tourism, water and adventure sports, nature tourism, cruises, theme
parks, convention centres for meetings and conferences
Gujarat stands at an excellent business opportunity for domestic and
international tourists
As per HVS State Ranking Survey 2015 of Hospitality Industry, Gujarat stands fifth among the
Indian states, scoring high in the ease of doing business, Gross State Domestic Product (GSDP)
per capita and intangible parameters
The supply of branded hotel rooms in India reached 107,132 in FY15, up 3.2% from FY14.
The number of branded hotel rooms in Gujarat reached 5,727, which translates to 2.92
branded rooms/100km2
Total number of hotel rooms in Gujarat were 79,000 in FY13
During FY16, the overall room occupancy in Gujarat was 46.3%, with occupancy at business,
spiritual and leisure destinations amounting to 56.8%, 38.3% and 48.9%, respectively
The gross tourist flow in Gujarat reached 38.3 million in FY16, growing at a CAGR of 14.1% over
the period FY11-FY16
Ahmedabad, Ambaji, Dwarka, Surat and Vadodara accounted for ~42% of gross tourist flow to
Gujarat in FY16
Tourist flow to Gujarat in FY16 was driven by business purpose (56%), followed by religion (35%),
leisure (7%) and other purpose (2%)
Page 7Gujarat - Competitive
Advantage
Beach tourism in Gujarat
Gujarat is geographically well-located with a long coastline (1660 km) and a multitude of
beaches. These beaches are the finest in India and attract a huge number of tourists every year.
The pristine waters, soft sands and, rich flora and fauna are their main attractions
The Government of Gujarat introduced a new tourism policy in 2015 and gave industry status to
the tourism sector to attract investments for building tourism infrastructure
The policy also focuses on developing infrastructure for cruise tourism and beach tourism
on coastal areas under PPP model
Gujarat organized the Gujarat Beach Festival for the first time in 2016 in order to attract more
tourists. The festival was hosted by five famous beaches of Gujarat namely Mandvi, Veraval,
Tithal, Madhavpur and Shivrajpur
Popular beaches in Gujarat
Mandvi
Bet Dwarka
Shivrajpur Poshitra
Dwarka
Ghogha
Miyani Kuda
Odedar
Katpar Ubhrat
Madhavpur
Sarkeshwar Dandi
Ahmedpur Tithal
Mandvi
Nargol
Umbergaon
Source: Gujarat tourism website
Page 8Gujarat - Competitive
Advantage
Gujarat stands at an excellent business opportunity for domestic and
international tourists
Domestic Tourists (in lakhs) International Tourists (in lakhs)
CAGR: 1,233 22
CAGR:
14.1% 13.2%
637 12
376 7
194 4
FY11 FY16 FY20E FY25E FY11 FY16 FY20E FY25E
Source: Tourist Flow Information System- Annual Report 2015-16
The total flow of tourist is expected to record an increase over the years
This is attributed to the growing prominence of the state as a major business hub.
Total contribution to GDP Total Investment (USD billion) Employment (in million)
CAGR: CAGR:
5.0% 3.00
5.76% 11.0% 4.00 CAGR:
15.63%
2.7%
0.95
0.81
2014 2025P 2014 2025P 2014 2025P
Source: Tourism Policy for state of Gujarat(2015-20)
Tourism in India accounts for 7.5% of the GDP and is the third largest foreign exchange earner
for the country. Gujarat is expected to contribute 5% to the total GDP by 2025.
The business is expanding both in terms of turnover and boundaries and therefore
contributions total investments by Gujarat are expected to increase.
Today worldwide, one in eleven jobs may be ascribed to the tourism industry. Gujarat is
expected to generate 3 million jobs by 2025.
Page 9Gujarat - Competitive
Advantage
5 Star hotels approved in Gujarat by Ministry of Tourism, India
Hotel name City Valid from Valid to Rooms
The Gateway Hotel Surat 11 April 2012 10 April 2017 206
Welcom Hotel Vadodara Vadodara 28 December 2011 27 December 2016 133
The Pride Hotel, Ahmedabad 19 December 2011 18 December 2016 110
Hampton by Hilton Puri 13 May 2013 12 May 2018 58
The Gateway Hotel Vadodara 20 June 2013 19 June 2018 86
The Fern Gir Forest Junagadh 13 May 2013 12 May 2018 40
Resort
St. Laurn Towers Ahmedabad 19 November 2014 18 November 2019 129
Hotel Novotel Ahmedabad 27 October 2014 26 October 2019 184
The Fern, Ahmedabad Ahmedabad 09 January 2015 08 January 2020 20
Fortune Landmark Ahmedabad 09 January 2015 08 January 2020 95
Total 1,061
Source: Ministry of Tourism, Government of India
5 Star Deluxe hotels approved in Gujarat Ministry of Tourism, India
Hotel name City Valid from Valid to Rooms
The Grand Bhagwati Surat 03 June 2013 02 June 2018 170
Source: Ministry of Tourism, Government of India
Rooms available within Gujarat as of FY11*
3-5 Star category Other Star category Un-classified
District
hotels hotels hotels
Jamnagar 425 964 2,648
Surat 1,657 1,305 2,108
Valsad 245 605 1,505
Source: GITCO analysis, TFIS FY11
*For Shivrajpur, Dandi and Umbergaon, nearest major city’s information is provided. Shivrajpur – Jamnagar, Dandi –
Surat, Umbergaon – Valsad
Page 10Project Information
Potential destinations
Dwarka Shivrajpur
Surat Dandi
Tourist
flow*
Valsad Umbergaon
Tourist flow (in ‘000s)
Located at a distance of nearly 10 km 8,034
from Dwarka, Shivrajpur beach makes
Shivrajpur 3,978
an ideal holiday destination for
beach 847 1,436 2,267
travellers with its picturesque view, blue
water and fine white sands
FY FY FY FY FY
2009 2012 2016 2020E 2025E
Located very close to the Dandi village 9,593
is the beautiful Dandi beach. It is a
huge beach and is known for its historic
4,197
significance. The historic Salt March
Dandi beach was led by Mahatma Gandhi in the 1,411 2,166
681
year 1930 at this place. The natural
beauty of the place attracts huge FY FY FY FY FY
amount of tourists 2009 2012 2016 2020E 2025E
Umbergaon is a village located in the
Valsad district of Gujarat state near to
Umbergaon the border of Maharashtra state. The 3,034
serene beach attracts many tourists 668 1,309
beach 206 259
from both Maharashtra and Gujarat for
its calmness and peacefulness FY FY FY FY FY
2009 2012 2016 2020E 2025E
* For Shivrajpur, Dandi and Umbergaon, nearest major tourist destination’s tourist flow has been provided
Source: TFIS Annual report FY16
Page 11Project Information
Potential destinations*
Shivrajpur beach
Top hotels Rentals (INR)*
Dwarkadhish Lords Eco
3,046
Inn
Goverdhan Greens
2,539
Resort
Hotel Gomti 1,944
Hotel Shree Darshan 1,469
Hotel Dwarka
1,124
Residency
Dandi beach
Top hotels Rentals (INR)*
The Gateway Hotel
5,711
Athwa Lines
Best Western Yuvraj 2,599
The Grand Bhagwati 4,588
Hotel Ginger Surat 2,978
Lords Plaza - Surat 4,150
Umbergaon beach
Top hotels Rentals (INR)*
The Umbergaon Club 5,108
AXN Resort & Spa NA
Hotel Grandeur & Vista
2,474
Rooms
Hotel Orizon NA
Srilekha Hotel NA
* For Shivrajpur, Dandi and Umbergaon, nearest major city’s hotel information is provided. Shivrajpur – Dwarka, Dandi –
Surat and Umbergaon - Valsad
Source: Hotel and rentals taken from Tripadvisor on 28 July 2016
Page 12Project Information
Infrastructure availability - logistics & connectivity
Dwarka Surat Valsad
Dwarka is a station on Surat is well connected with Valsad has a
the Ahmedabad-Okha Valsad, Vapi and Mumbai major railway
railway line, with trains towards its south and with station where
connecting it to Bharuch, Vadodara and almost all the
Jamnagar (137 km), Ahmedabad in the north major trains
Rail Rajkot (217 km) and Hazira port in Surat is ~16 km stops
Ahmedabad (471 km) away from the Surat railway
station
Dwarka is on the state Proximity to NH-8 and NH-6 Valsad is located
highway from further enhances on National
Jamnagar to Dwarka. connectivity in the city Highway
Direct buses are connecting Surat
Surat also has very good
available from to Mumbai. Valsad
connectivity with Vadodara
Road Jamnagar and is 200 km from
(154 km) and Ahmedabad
Ahmedabad Mumbai and 100
(265 km)
km from Surat
Nearest airport is Surat has a domestic Nearest airport is
Jamnagar (137 km), airport which is well Surat with daily
where regular buses connected to different flights to Delhi,
and taxies are metros. It has daily flights Jaipur, and
Air Ahmedabad
available for travel to Delhi, Jaipur, and
to Dwarka Ahmedabad
Magdalla and Hazira Ports Nearest seaport is
Nearest port from
in Surat have good rail and at Surat- Hazira;
Dwarka is Okha
road connectivity and two new ports
port, which is at a
Magdalla port is 2 Km are proposed at
distance of about 30
away from the state Nargol (60 km
Port km
highway and 15 Km away from Valsad) and
from NH-8 at Vansi Borsi (100
km from Valsad)
* For Shivrajpur, Dandi and Umbergaon, nearest major city’s connectivity is provided. Shivrajpur – Dwarka, Dandi – Surat
and Umbergaon – Valsad
Page 13Project Information
Estimated manpower requirement in potential locations
Designation Shivrajpur (15 rooms) Dandi (30 rooms) Umbergaon (20 rooms)
Manager 2 3 2
Attendants 17 33 22
Sweepers 8 17 11
Security guard 7 14 9
Cook 2 5 3
Helpers for kitchen 2 5 3
Total 38 75 50
Project components
Shower/ changing
Cottage Swimming pool
room
Massage and treatment
Sauna and steam bath Fitness room
rooms
Recreation room with
Yoga and meditation hall Restaurant
indoor gaming facility
Open and landscaped
Kitchen Staff accommodation
area
Project Structure & Implementation Model
The project is to be completed and funded through a PPP model on BOT basis (Build, Operate and
Transfer), DBFOT (Design, Build, Finance, Operate and Transfer), Operate and Maintain (O&M),
Direct private sector investment
Government releases an RFP to the empanelled list of consultants for Project Consultant role
Government authority
Government selects the private player
through competitive bidding process and
SPV
enters into an agreement to form an SPV
Private investor
(project developer)
The developer will create suitable facilities at the site mentioned considering site specific
environmental and relevant factors
Page 14Key Considerations
Key points to consider while developing beach resorts
Gujarat would become the state which would
uphold, host and develop various eco,
adventure sports and water sports initiatives
Government It is said to become one of the major tourists
Initiatives attractions and place Gujarat ion the global
map with Adventure and Sports Tourism with
Proactive Governance promoting the growth
of the Sector
The site could be promoted together with
other water sports like surfing, jet skiing,
kayaking or swimming, where the beaches
of Gujarat would serve as the perfect
Promotion of water location for different water activities
sports on the beach Integrated development of Tourism
infrastructure facilities is also being
materialized
Coastal erosion is a major problem in
Gujarat. Erosion reduces the water
availability in coastal aquifers and increases
the salinity intrusion
Coastal erosion
Coastal communities in Gujarat migrate to
other locations due to environmental
degradation, which results in manpower
shortage in beach resorts
Page 15Project Financials
Project location area
Component Area (sq mt)
Location Shivrajpur (15 rooms) Dandi (30 rooms) Umbergaon (20 rooms)
Site area 4,000 30,000 20,000
Resort area (@150 sq
2,250 4,500 3,000
mt per room)
Tourist amenities
500 1,500 1,000
complex
Parking space 1,150 9,200 6,900
Circulation space 100 8,250 5,500
Total area utilized 4,000 23,450 16,400
Area for future expansion 0 6,550 3,600
Total capital cost
Component Total cost (INR million)
Location Shivrajpur Dandi Umbergaon
Levelling of the site 3.7 27.7 18.4
PCC base 0.1 1.0 0.7
Horticulture 0.8 5.8 3.9
Building construction 42.4 84.7 56.5
Furniture and furnishing 1.8 13.6 9.0
Machinery and 0.7 5.0 3.3
equipment
Lighting and electricals 1.1 8.5 5.7
Total 50.6 146.3 97.5
Operation cost (per month)
Component Total cost (INR)
Location Shivrajpur Dandi Umbergaon
Staff cost 453,375 906,750 604,500
Power Cost 50,625 101,250 67,500
Diesel Cost 13,500 27,000 18,000
Water supply 1,800 3,600 2,400
Maintenance
17,654 35,307 23,538
expenditure
Net Expenditure 536,954 1,073,907 715,938
Page 16Project Financials
Total project cost and revenue
Costing Total cost (INR million)
Location Shivrajpur Dandi Umbergaon
Base construction cost (INR
50.6 146.3 97.5
million)
Pre-operative expenses (INR
1.5 11.2 7.5
million)
Interest during construction
1.7 4.9 3.3
(INR million)
Landed project cost (INR
53.8 162.3 108.2
million)
Terms of concession
Construction period (Years) 1.0 1.0 1.0
Concession period (Years) 35.0 35.0 35.0
Upfront premium (INR million) 0.0 0.0 0.0
Annual premium (INR million) 0.3 1.0 0.7
Financing assumptions
Debt (INR million) 26.9 81.2 54.1
Equity (INR million) 26.9 81.2 54.1
Rate of interest of debt 12.0% 12.0% 12.0%
Demand assumptions
Occupancy of resort for
60 days in a year 60 days in a year 60 days in a year
wedding
300 non-wedding
300 non-wedding days 300 non-wedding
days in a year,
in a year, occupancy days in a year,
occupancy starting
starting from 30% in occupancy starting
Occupancy of resort (non- from 30% in the
the first year, from 30% in the first
wedding days) first year,
increasing at 3% per year, increasing at
increasing at 3%
annum, stabilizes at 3% per annum,
per annum,
60% stabilizes at 60%
stabilizes at 60%
Revenue assumptions
INR75,000 per INR150,000 per INR100,000 per
Revenue from rental for
function, increasing function, increasing at function, increasing
destination wedding
at 5% per annum 5% per annum at 5% per annum
INR5000/Day INR6000/Day INR6000/Day
Revenue from booking of resort increasing at 5% increasing at 5% per increasing at 5% per
per annum annum annum
INR500/day (when INR500/day (when a INR500/day (when a
Revenue from food and a room is booked). room is booked). 50% room is booked).
beverages (F&B) at resort 50% of this would of this would be cost of 50% of this would
be cost of F&B F&B be cost of F&B
IRR 17.1% 14.6% 12.2%
Page 17Approvals and
Incentives
Approvals required
Coastal Regulation Zone (CRZ) approval
Local body clearances
Acquisition of land from concerned office /owner
No objection certificate from Gujarat Pollution Control Board
Environmental clearance from Ministry of Environment and Forest and Government of Gujarat
(State Impact Assessment Committee)
Arrangement of power with zonal distribution company
Arrangement of water with concerned municipal corporations
Any other clearances required
Incentives from Government of Gujarat
Government of Gujarat has granted Industry status to Tourism sector thereby providing a great
boost to the industry. The incentives under Tourism Policy for the State of Gujarat (2015-2020)
shall be applicable to the eligible tourism units as mentioned in the next sections.
Capital Subsidy to the Eligible Tourism Units
Eligible Capital Investment (excluding land cost) Admissible Maximum limit
subsidy
Investment upto INR500 million 15% INR75 million
Investment above INR500 million 15% INR100 million
Tented accommodation (with minimum investment of
20% INR1.5 million
INR2 million)
Equipment worth INR10 million and above for adventure
10% INR5 million
& water sports
Additional Capital Subsidy of 5% for New Tourism Units
Within the Corporation limits of Gandhinagar and falling within the radius of 20 kms.
Owned and managed by women entrepreneurs (with minimum equity participation of 51% in
the entity)
SC/ST categories to an additional 5% subsidy over and above the ‘Admissible Subsidy’.
Page 18Approvals and
Incentives
Interest subsidy to the eligible tourism units
@5% of the loan amount with maximum amount of INR2.5 million per annum for a period of
five years in Municipal Corporation areas for eligible tourism units
@7% of the loan amount with maximum amount of INR3.0 million per annum for a period of
five years in the areas other than mentioned above.
Other Exemptions
Luxury Tax - 5 years from the date of commencement of commercial operation
Entertainment Tax - 5 years from the date of commencement of commercial operation
Electricity Duty - 5 years from the date of commencement of commercial operation for New
Tourism Units only.
100% reimbursement of stamp duty and registration fee on sale/lease/transfer of land for the
first transaction only.
Support for Sustainable Tourism
Assistance to eligible tourism units up to 75% of the cost of carrying out Energy Audit by a
recognized institution/consultant, Water Harvesting / Conservation and Environment-friendly
practices like Green Buildings, Solar and other Renewable Energy measures
Special Package for Mega Tourism Units
The State Government shall duly promote and facilitate Mega Tourism Projects that have a large
multiplier effect on the economy, leading to employment generation and inclusive growth in the
State. Any type of Mega Tourism Units like Film City, theme parks, amusement parks, water
parks, etc. meeting the qualifying criteria of Mega Tourism Units will be eligible.
Following incentives would be offered to eligible Mega Tourism Units:
100% reimbursement of stamp duty and registration fee on sale/lease/transfer of land for the
first transaction only. Reimbursement of stamp duty and registration fee would be done after
the commencement of commercial operations.
Capital subsidy of 15% of eligible capital investment (excluding the cost of the land) subject to
a ceiling of INR200 million.
Exemption from luxury and entertainment tax for a period of seven years from the date of
commencement of commercial operations.
Exemption in electricity duty would be for a period of five years from the date of
commencement of commercial operations.
Mega tourism units shall not be entitled to any interest subsidy.
Page 19Tourism Corporation of Gujarat Limited
http://www.gujarattourism.com/
Department of Tourism, Gujarat
http://www.gujarattourism.com/
Industries and Mines Department, Gujarat
www.imd-gujarat.gov.in/
iNDEXTb - Industrial Extension Bureau
www.indextb.com
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.
Tourism Corporation of Gujarat Ltd,
H. K. House, Opp: Bata Showroom,
Ashram Road, Ahmedabad,
Tel: +79 26578044/46/26589172
Fax: +79 26582183
E-mail: tibahd@gujarattourism.comYou can also read
