Lakshadweep needs infra push for tourism growth

We hope that there would be some relief for the tourism sector in the Budget -- Jaison Chacko, Secretary General, FHRAI

Current Status

• Only 19 are inhabited in this group of 36 islands
• It recorded 18,590 visitors in FY22
• There were only 2 foreign tourists in this period
• There are not many direct flights to Lakshadweep
• Only 150 hotel rooms available
• Whereas, Maldives with 5.2 lakh population attracts 17 lakh foreign tourists

New Delhi: The recent controversy arising out of three Maldivian ministers’ intemperate remarks against India and Prime Minister Narendra Modi had an unintended effect: a lot of people have expressed interest in Lakshadweep, and this is expected to improve the prospects of tourism in the island.

Hitherto, it was just a Union Territory (UT) as people read about it in schools—and little more than that. The Prime Minister’s visit to Lakshadweep and praise of its scenic beauty made the country wake up to the possibility of visiting it.

“In fact, PM Modi is the greatest brand ambassador for Indian tourism, not just Lakshadweep,” says Jaison Chacko, Secretary General, Federation of Hotel & Restaurant Associations of India (FHRAI). He underlined the fact that in his 2019 Independence Day speech Modi had urged the people to try and visit at least 15 tourist destinations within the country by 2022.

This gave a fillip to domestic tourism, Chacko said, adding that this has stood the sector in good stead in the post-Covid period.

The derogatory remarks by the Maldivian ministers and the ensuing storm had geopolitical and economic ramifications. It was not just India that showed its displeasure, but also tour operators and people at large also responded angrily. Many Indians and the government want Lakshadweep to emerge as a rival to the Maldives, the tiny island nation with 5.2 lakh population which attracts 17 lakh foreign tourists. However, it will take more than PM Modi’s statements and Indians’ emotional outbursts to boost tourism in Lakshadweep in particular and in India in general. Lakshadweep got 18,590 visitors in 2021-22; worse, there were only two foreign tourists in this period.

The reasons are not difficult to find. There are not many direct flights to Lakshadweep. Besides, there are only 150 hotel rooms available. Also, the ecology being fragile, tourism promotion has to be responsible. Lakshadweep has 36 islands, of which only 19 are inhabited.

Concerted efforts are needed to boost tourism in general, Chacko said. It is a long-standing demand of the sector to be given the infrastructure status and the industry. The former will help the stakeholders’ access to long-term finance feasible. The industry status, which is granted by states, would bring down the cost of electricity and other dues paid to States.

Another long-standing demand pertains to the high incidence of taxation that the sector suffers from. The Parliament standing committee highlighted this fact. It appealed to the Ministry of Tourism to evaluate and review the effect of higher and multiple taxes on inbound tourism.

While Finance Minister Nirmala Sitharaman will come up with an interim Budget on February 1, the proper Budget will be brought in by the new government. Chacko hopes that there would be some relief for the tourism sector in the Budget.