Foreign Investment - the Key to Sustainable Tourism in the Indian

West Bengal: The state of West Bengal is unique in terms of tourism, given the fact that it is the only state in India, which has all the three vital ingredients – sea (The Bay of Bengal), mountains (The Eastern Himalayas) and forest (The Sunderbans).

At the time of partition, Bengal was split into East Bengal and West Bengal. East Bengal is now Bangladesh while West Bengal became a state of the Indian republic with Kolkata as its capital. Geographically, the state is long and narrow, running from the delta of the Ganges in the south to the mighty Himalayas with Darjeeling as the “Queen of hill stations” nestled in the north.

A Look into the Past:

During the British Raj, Bengal and more appropriately the city of Kolkata became the political hub of India. Much of Kolkata and Bengal’s most enduring developments took place between 1780 and 1820.

Later in the 19^th century, however, Bengal became a spark point in India’s Independence Struggle and this was the principal reason for the decision to transfer the capital to New Delhi in the year 1911.

However, the loss of political power did not alter Kolkata’s economic control and the city continued to prosper until after the World War II. Kolkata is the largest city in India and by now may be ahead of London as the largest city in the British Commonwealth.

Kolkata and much of Bengal is regarded as the cultural cauldron of India. The whole world knows about the great “Bengal Renaissance” of the nineteenth and early twentieth centuries that started with Raja Ram Mohan Roy (1775-1833) and ended with Noble Laureate Rabindranath Tagore (1861-1941).

The Present Tourism Scenario:

As far as tourism in West Bengal is concerned, it is still a backbencher as compared to the other Indian states that have marched way ahead of Bengal.

In spite of having places of sheer magic like the hill stations of Darjeeling and Kalimpong, the lush green tea gardens of Dooars in North Bengal, the coastal town of Digha, the nature’s retreat Santiniketan, historical places like Murshidabad, Plassey, Nabadweep etc.

The “City of Joy” – Kolkata itself, that lends an elegance to West Bengal which is irresistible and hard to match with that of any other tourist destinations of India.

The Marxist government in West Bengal has come in for much criticism for the present degradation of the state’s tourism industry, which seems to have touched the nadir.

Three decades of neglect and mismanagement of the state’s tourism treasures have reduced West Bengal to the status of minnows when it comes to generating tourist traffic.

Of late, things had come to such a pass that the mere mention of Kolkata was enough to conjure up visions of squalor, starvation, disease and death.

The state has been beleaguered with the lack of proper work culture and the militant trade unionism has hit the state hard in every sphere of activity.

New Dynamism of the State Government:

However, all is not lost and with the dynamic and visionary leadership of Miss Mamata Banerjee, the maverick Chief Minister of West Bengal, there has been a precipitous change for the better as far as the fortunes of West Bengal's tourism industry is concerned.

Nothing exemplifies this change in Bengal more than the presence of international hotel chains like one of India's finest luxury hotels – the ITC Sonar Bangla, the Hyatt along with the avant-garde Vedic Village resort.

Tourism, which was never a policy priority with the government, has suddenly been given a shot-in-the-arm, courtesy a slew of futuristic tourism / hospitality projects that promises to cater to the exacting needs of the discerning world traveler.

In its drive to improve the state’s image as a preferred holiday destination, the government of West Bengal has its task cut out.

The government has to realize that this sunrise industry that employs over 112 million people worldwide, making it by far the largest industry in the world has to be given its due importance in the government’s priority list, just the way the IT industry has been given the status of a “High Priority” industry.

Not only has the sector grown at a remarkable pace, but most tourism experts expect that it will grow even more rapidly in the future, thereby resulting in career opportunities and rewards to thousands of the state’s unemployed youths.

This is one industry, which is characterized by its dynamism, by the global scale on which it operates and by the vast range of employment opportunities it offers.

The government’s tourism policy should be planned in a manner that it becomes a unifying force, one that imparts direction and opportunity to the disgruntled youths. If properly implemented, Tourism can play the role of a non-invasive instrument of revitalization, conservation and growth.

The watchword would be “Balanced Tourism Development” that will ensure the type and scale of tourism development which is compatible with the environment and social cultural milieu of the state.

In order to achieve the desired objectives, the structural organization of the tourism set-up has to be further strengthened and toned up.

Processes and procedures has to be simplified along with the strengthening of the statistical machinery, reporting systems and development of a comprehensive data base to quantify and evaluate the socio-economic benefits derived from Tourism.

In view of the present global economic upheavals there has been a slow down in the flow of foreign tourists and even the business travelers have curtailed their visits to this part of the world.

Dissecting the reasons for the slow down of the economy is not just an academic exercise, but might provide significant insights as to how to proceed with a sustainable policy for Tourism development.

Amartya Sen’s Vision of West Bengal’s Tourism Industry:

Nobel Laureate Amartya Sen has on many occasions highlighted the immense economic viability of launching Eco-Tourism / Sustainable Tourism or more appropriately “Responsible Tourism” in his home state of West Bengal, which according to him, has the potential to ameliorate the sagging rural economy of not just West Bengal but other states of India as well.

The success story of Kerala is a case in point. They have not just implemented the visionary statement of Prof. Amartya Sen, but have even gone that extra mile towards creating niche rural tourism products like Spice Tourism, Agro Tourism, Ayurved Tourism, Monsoon Tourism etc…. which have been kind off lapped up by the discerning international travelers who keep coming to “God’s Own Country” due largely to the serene rural vistas along with highly cost effective rural tourism packages.

Needless to say, the state of West Bengal is land of stupendous dimensions and the Bengali prayer for peace – “Shanti Path” is one of the most ancient prayers for peace known to mankind and clearly reveals the inter-relationship of the environment and the synergy for peace.

Much of West Bengal’s industrial and economic problems can be solved if the mandarins of Writer’s Building listen to the clarion call of Nobel Laureate Amartya Sen and others of their ilk who have been giving a lot of stress on developing Tourism through local community initiatives.

NGOs who can act as useful vehicles for promoting environmentally sensitive tourism.

Instead of bickering about what went wrong with West Bengal’s tourism industry, let us consider the aspect of Foreign Investment, which holds the key to West Bengal’s success in the domain of Sustainable Tourism.

A well-planned Foreign Investment policy that is particularly tuned to the needs of the state’s Tourism industry, if implemented properly at the ground level, promises to usher in a second Bengali renaissance – “Renaissance Through Tourism” in Tagore’s land.

Foreign Investment in West Bengal’s Tourism Landscape:

Since Sustainable Tourism has emerged as one of the most dynamic and viable option for the state of West Bengal and with a pro-active government that is hell-bent on repositioning the state as a frontrunner in the country’s Tourism landscape, it is imperative to create the necessary environment and infrastructure to strengthen the state’s Tourism industry.

It is a well known fact that West Bengal doesn’t have the resources to do it all on its own, since the challenges faced by it are enormous and in terms of the overall economic condition, the state is amongst the poorest in India.

Hence, Foreign Investment holds the key to sustaining Tourism in West Bengal in the foreseeable future.

Till date foreign aid has played an important role in India’s development process, but it has to be admitted that foreign aid alone is not enough.

There has to be a realization that foreign aid has to be replaced by foreign investment for promoting and sustaining Tourism in a developing state like West Bengal.

Though, West Bengal, of late, has been reiterating at each and every available international forum that the possibility of exploring numerous hardcore collaborative ventures would be pivotal in the overall development of the state, not much headway has been made in real terms and the state’s dithering Tourism industry too has remained bereft of any large-scale developments.

The onus now lies on the sincerity and seriousness of both the public as well as the private sector Tourism players.

It may be mentioned that the state of West Bengal has already been projected as an economically vibrant state and the capital city of Kolkata being the gateway city to the whole of East and North Eastern states of India in itself holds a lot of relevance towards making Tourism more viable in West Bengal.

However, it is necessary to stress that Foreign Investment and collaborations are not to be viewed as encroachments upon the sovereignty of the state but perfectly in accordance with the principles of International Law.

Being a developing state, West Bengal faces the problem of resource crunch and thus it is pertinent to have foreign investment and collaborative ventures in the field of Tourism with friendly nations and international organizations in order to provide a boost to the sagging Tourism industry of the state.

A joint concerted effort is much more advantageous and fruitful than the efforts and measures adopted by an individual state.

Also, one has to take into consideration that the world has become very competitive and development has gone to such an extent that it is impossible to remain isolated anymore.

The areas where foreign investment could be profitable in the overall context of Sustainable Tourism in the state of West Bengal are enumerated below –

Accommodation – Resorts, Hotels, Lodges and Motels;

Trekking and Camp Equipment provisions;

Hot Air Ballooning and Para Gliding;

Travel & Trekking Agencies;

Rural Tourism Infrastructures like – Chalets, Amusement Parks, Golf Courses.

Let us now consider each of the above-mentioned schemes in brief –

(a) Accommodation – Resorts, Hotels, Lodges and Motels:

A major strategy in meeting the demand for hotel rooms in the state of West Bengal is to encourage private and foreign investment for the development of hotels, motels and resorts. The construction and operation of hotels and resorts offer promising prospects for profitable investment.

The emphasis should be on vernacular design and at the same time convey an exotic upcoming international brand image of the properties so developed by enforcing rigorous standardization norms and management practices.

(b) Trekking & Camp Equipments:

It is estimated that a fifth of the tourists visiting the Dooars and the Eastern Himalayas (Darjeeling, Kalimpong, Singalila, Lava and Lolegaon) of West Bengal want to go on trekking expeditions.

Most trekkers need equipments and logistical support and as such there is a very good prospect in terms of setting up exclusive manufacturing units for trekking and camp equipments such as sleeping bags, long jackets, weather proof tents, rucksacks, ponchos, wind gloves and other miscellaneous items.

It would also be possible to export these products to overseas destinations, as the cost of production in West Bengal would be comparatively low due to low labor cost.

( c ) Hot Air Ballooning & Para Gliding:

Both these adventure sports activities require technology driven products and since there is a worldwide craze to embark on such thrilling adventure Tourism activities, West Bengal can manufacture these equipments in collaboration with foreign investors.

There is no denying the fact that such mountain tourism adventure activities will be even more popular in the years to come and the demands for equipments and logistics will not go down.

(d) Travel & Trekking Agencies:

Travel and trekking agents have become a very important section of the Travel Trade and their contribution to the Tourism industry is beyond measure.

Since it is very essential to make one’s presence felt not only within one’s own state or country, but it is equally essential, if not vital to have outlets or “handling agents” to cater to the requirements and needs of the prospective travelers abroad, and it is in this perspective that foreign collaboration can play a significant role.

It has been observed that not all travel & trekking agents have the resources to open individual outlets in countries outside its own in spite of high demands.

In this respect, articulation agreements may be signed with reputed and reliable agents overseas and this could pave the way towards a more professional service standards vis-à-vis right itinerary, planning, costing of tours, payment procedures and credit facilities, all of which may be taken care of on mutually acceptable terms and conditions.

(e) Rural Tourism Infrastructures like – Chalets, Amusement Parks, Golf Courses:

Rural Tourism Infrastructures like Chalets, Amusement Parks, Golf Courses etc are an outright hit with the discerning Western tourists and investments on such themes could be very profitable.

In particular, when it comes to the question of designing Golf Courses, the lay out of the turf and the concept of Golf management itself are a costly business, which could be best harnessed through foreign investments and collaborative ventures.

Also, it is a proven fact that High Altitude Golf Courses in particular have a ready market in Europe and Scandinavian countries and the Japanese too are increasingly taking to this sport in the right earnest.

From the above mentioned opportunity areas of foreign investment in West Bengal’s Tourism industry, it is clear that a huge potential is there to be tapped.

The need of the hour is to formulate a well thought out Public Relations or PR drive in order to actually make the prospective foreign investors believe in the true intentions of the state’s Tourism mandarins.

Needless to say, the element of credibility and transparency has to be the watchword if West Bengal’s Tourism industry is to attract the attention of global investors in shaping its Sustainable Tourism industry.

PR Messages for Attracting Foreign Investors in the Sustainable Tourism Platform of West Bengal:

A list of positive PR messages for West Bengal’s Sustainable Tourism campaign are highlighted below, which could send the right signals to the prospective global investors –

A stable political climate;

Positive government attitude;

Liberal foreign investment policies;

Single window service to foreign investors;

Low establishment cost;

Abundant source of labor at competitive wages.

Very attractive incentives;

Warm and friendly people.

Besides the above-mentioned PR aspects for luring foreign investors in West Bengal’s Tourism industry, there are certain other positive PR messages too, which needs to be consistently highlighted in the International Investment Forums, particularly on the fiscal side where the state’s tax rate is considered to be one of the lowest in the country.

Also, it would perhaps be prudent to also usher positive changes in the bureaucratic system, delicensing and the increasing trend towards privatization in the government’s Tourism policy.

West Bengal’s friendly attitude towards foreign investors should be made more transparent. The setting up of an exclusive – “Foreign Investment Promotion Section” under the Department of Tourism, Government of West Bengal would indeed be a step in the right direction.

This exclusive Investment Promotion unit may be bestowed with a high degree of functional powers and independent identity. Since the stakes are going to be high, an attractive image of the state is of tremendous value, more so in the Tourism sector where visibility, transparency and effective communication often holds the key to clinch deals.

Unless an efficient PR network is in place, it could be a case of just another wasted opportunity for West Bengal.

PR has to be given its due recognition as far as maintaining a stimulating investment environment is concerned.

By constantly monitoring West Bengal’s Tourism image in the national and international media, the PR professionals would be in a better position to track trends and anticipate events of importance to West Bengal’s Tourism industry.

Since the domain of foreign investment is international in nature and foreign investors and investment agencies from abroad are subject to investigations by national and international “Watchdogs”, all legal and political aspects of investment will have to be brought to the notice of foreign investors and agencies from abroad on the part of West Bengal’s Tourism industry.