(b) promotion, have set up separate organisations

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(b) Marketing and Promotion:

(i) Representing the country as tourist destination

(ii) Understanding market research and forecasting studies

(iii) Production and distribution of tourist publicity material

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(iv) Opening and operating tourist information centres

(v) Advertising, sales promotion and public relation at home and abroad

(c) Financial:

(i) Advising industry of capital development

(ii) Recommending financial loans to private sector for various tourism related projects

(iii) Directing, approving and controlling programmes of government assistance for tourist projects

(d) International Relations:

(i) Liaison, co-operation (economic and technical) with NTOs of other countries

(ii) Liaison with international organisations.

(iii) Research concerning tourist policies in foreign countries.

(iv) Collection and compilation of international tourism documents.

(v)Facilitation of frontier formalities and elimination of travel barriers.

(vi)Proposing joint ventures

(vii) Assistance in manpower development including education and training (e) Co-ordination

(i) Co-ordination in planning the provision of tourist amenities and attractions

(ii) Linking with trade or professional bodies, government, regional or local

(iii) Undertaking co-ordinate marketing activities with private tourist bodies

(iv) Participating in travel trade fairs and exhibitions and organising workshops/seminars for buyers and sellers.

(v) Liaison Answers with various departments concerned with tourism indirectly

(vi) Liaison with trade and industry bodies.

The National Tourist Organisation in a particular country promoting tourism may be a government department either independent or under a Ministry, it may be a Statutory Corporation, a semi-government or a non-governmental organisation.

In some countries like France, India, Spain, both the functions of planning and development as well as promotion overseas are performed by a single organisation at the national level. On the other hand, in countries like Italy, Japan, Switzerland, there are two separate organisations, one each for planning and development, and promotion overseas.

Countries which give greater emphasis to tourism promotion, especially overseas promotion, have set up separate organisations responsible for promotion overseas.

The administrative set-up and the scope of functions of a tourist organisation in some of the countries actively promoting tourism will give a clear picture as to how a tourist organisation conducts its affairs.

The Tourism organisation in four countries, namely, Japan, Itely, Russia and Indian is being discussed in this chapter at length. In all these four countries, the tourism sector is well organised and is considered as priority sector.

In Italy and Japan there are two organisations at the central level responsible for tourism. In Italy, the Director General of Tourism, under the Ministry of Tourism and Entertainment, is responsible for development and licensing of the tourism industry whereas, the National Italian Tourist Organisation is responsible for promotion.

In Japan the Department of Tourism, under the Ministry of Transport, is responsible for development, improvement and coordination of the tourist industry, whereas, the Japan National Tourist Organisation is responsible for promotion.

On the other hand, there is a single tourism organisation in India responsible for both development coordination and promotion overseas as well within the country.

(a) One- star

(b) Two-star

(c) Three-star

(d) Four-star

(e) Five-star (including five-star deluxe).

(g) Non-graded.

A hotel must get approval to become eligible for various benefit! And Incentives granted by the government from time to time.

The suitability of a hotel for the foreign tourists, so as to ensure that a certain minimum level of standard of service and amends are maintained and provided, is the basic criteria for grant of approval by the government. Approved hotels set the following benefits:

(a) Various incentives and benefits.

(b) Income tax concessions.

(c) Priority consideration of its various facility, namely, telephone and telex, LPG etc and other similar benefits from the central and state government and local and municipal authorities, semi-government or quasi-government bodies.

(d) Foreign exchange allocation for its essential imports of equipment and provisions.

(e) Worldwide publicity through tourist literature published by the government and distributed in India and abroad.

(J) Entitlement for foreign exchange for advertising.

(g) Publicity and promotion abroad.

(h) Loans from IFCI, TFCI, IDBI, ICCI, SFC etc.

Process of Approval of the Hotels:

These hotels would have to go through a system of procedures to get approvals. The process is complicated but, the government wants to be sure that the clients of the hotels would get all those amenities as have been defined according to its grade. The procedure for the approve of a new hotel runs in following stages

Application is submitted:

The owner of the hotel (or the promoters of the firm that would run the hotels) submits an application with respect to the hotel project. The central government is the authority to receive application for building four-Star and five star hotels.

The regional directors of four cities (namely, Mumbai, Kolkata, Delhi and Chennai) are the authorities for receiving application from those parties who want to start one-star, two-star and three-star hotels. They would receive the applications for the hotel proposals only of their respective regions.

The application for is prescribed by the government. It would have to be filled up and signed by the party. It must have all the documents attached to it that have been demanded by the central government or the regional authority.

The application must mention the types of facilities that would be provided in the hotels, once it is operational.

Project Report is submitted:

The details of elevators, car parking space, entry, exit points and other amenities must also be given. The local land authority must given a certificate to the hotel owners to acquire the land for making the hotels at the proposed site; this certificate must be submitted to the government or the regional director, as the case may be.

This authority must also ensure that the proposed land site is appropriate for the construction of a hotel. Its location must be convenient and tourists/guests must be able to reach the hotel with ease and commonly available modes of transport.

The site must be at such a place where there is no threat to the ecology, environment or local people of the area. The report must also include an authenticated copy of the Memorandum and Articles of Association of the hotel firm.

A copy of the certificate of the firm to prove that it is a partnership/public/private limited firm should also be attached. In some cases, the power of attorney must may have to be given to one or some of the partners/directors.

The copy of such power of attorney must be given along with the project report. Further, the cost of the project, cost of production and profitability, breakeven analysis, methods of raising funds (and the amount to be raised from each and every mode) must be clearly mentioned.

Normally, project reports give profitability calculations for a period of five years starts showing profits. The hotel owner or promoters should contact a project consultant in this context.

Finally, the background of promoters of the project and their consent to rules and regulations in the context of hotel promotion and operation must be appended in the project report.

They may have to submit quarterly progress reports regarding the progress of the project to the relevant authority, once the project gets a green signal.

Project is approved:

The government or a representative thereof may call the promoters for an interview or discussion regarding the feasibility of the project. After thoroughly scrutinizing the report and visiting the site, the officials of the central government or representatives of regional directors approve the report and allow the hotel to be constructed at the proposed site.

Government’s Support:

The government or its agencies like the TFCI extend financial support to the hotel owners or promoters once the project has been cleared.

The government officials also help the promoters get telecommunication service, approvals for the land, electric power and materials for construction.

If the project needs foreign exchange for importing some machines (like kitchen equipment), then the government grants the promoters a special foreign exchange quota. TFCI also allow the promoters to release advertisements in the global markets so that the new hotel woos foreign tourists.

Hotel Tariffs are decided:

When the project is near completion, the promoters inform the government about the total expenditure incurred on its construction. This statement of expenses is signed by a chartered accountant.

An estimate of revenues that would accrue in the future (when the hotel starts working) is also given. Now, the government has to help the promoters arrive at the tariffs for rooms of the hotel. This is done on the basis of well-defined criteria.

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