Ease Of Doing Tourism Key, Says Amitabh Kant As Goa Hotel Rates Outprice Thailand
Kant emphasised the need to simplify, merge, and remove redundant procedures to boost competitiveness.
Former NITI Aayog CEO Amitabh Kant on Tuesday highlighted some key reasons why India’s tourism sector remains uncompetitive. Noting that the sector is a major driver of job creation, he emphasised the need to simplify, merge, and remove redundant procedures to boost competitiveness.
Kant stated that tourism has a strong multiplier effect on the economy. “Regulatory complexity has made India’s tourism uncompetitive – a 4-star room in Goa costs almost twice as much as in Phuket or Da Nang. State governments must simplify, merge and scrap redundant processes essential to restore competitiveness,” he wrote on X.
He also cited a report by the Atithi Foundation on the sector, which offered key suggestions aimed at improving India’s tourism sector.
The report, originally shared by the foundation on Nov. 9, focused on Ease of Doing Business (EoDB) for the sector. It evaluated “regulatory bottlenecks” across key tourism sectors: Accommodation, Food and Beverage, Transport and Adventure and Water Sports.
“The report provides actionable recommendations for state-level policymakers to simplify, digitise, unify, and rationalise the licensing framework,” it said.
The report suggested three key measures to improve India’s tourism sector: Merge licenses that can be issued simultaneously across departments, remove redundant or irrelevant licenses, and simplify licenses with complex procedures by easing approvals. It also called for data sharing between departments.
The report identified the dozens of licenses that are needed to operate these categories at the union, state and municipality levels. Some suggestions included simplifying fire no objection certificates, building plan approvals, and liquor licenses, among others.
For hotels, it also pointed to certain “irrelevant” requirements, such as separate licenses for pools and traffic police. Instead, it recommended methods such as maintaining compliance with local police like the way metros like Delhi have always done. The report also suggested merging licenses for activities like discos, social events, or entertainment into a single unified license to simplify processes.
Similarly, it recommended improvised licensing for homestays and restaurants. The report suggested merging around eight restaurant-related licenses and permissions to simplify procedures. These include general storage, roofing/monsoon shed, Al fresco, social function, entertainment, etc.
According to the report, procedures for four transport-related licenses and permissions can be simplified or removed. These include All India Tourist Permit (AITP), vehicle registration, etc.
