TOURISM is one sector in which India is shining and the shine is likely to become brighter in times to come. The government has adopted some innovative policies for improvement in the security environment and long awaited action in the field of aviation to boost connectivity with other parts of the world as well as within the country. If the present trend continues, India, which had suffered in the wake of September 11 events, can certainly grow at a much faster pace in days to come.

India recorded an improvement of over 20 per cent but this was based on low figure of tourist arrivals in 2001 and 2002. So far the government has made up for the losses suffered during the two bad seasons and hoping for a record growth by at least 10 per cent in days to come. The more heartening feature is that domestic tourism figures are rising much faster with a growth record of 22 per cent.

In the meantime, the foreign exchange earnings have also grown by Rs 300 crore to Rs 17,000 crore against Rs 14,000 crore in the previous year. Though the tourist arrival of 2.8 million is not a high figure, it certainly shows that the days of growth have come back. This year many tourists had to turn back as rooms were not available at prime destinations like Goa, Rajasthan and Kerala.

The air seats were at a premium. Despite the additional capacity increased with liberal policies, the growth was not in keeping with the demand. The recent moves to allow all carriers to add additional capacity in season and new rights given to carriers from Asean region to fly to metro towns, the position is expected to improve but it will take a long time before India becomes an easy destination to visit. According to a conservative estimate, what India requires is a big jump if it has to realise its full potential as a tourist destination. A target of five million tourists has been talked about for nearly a decade now, but to achieve it the government has to double the existing air services connecting India with rest of the world. This can happen only if it strengthens the international carrier in a big way. It is a shame that the size of the country’s international carrier does not even compare with the small neighbours in South Asia. This is an essential requirement if India has to grow in tourism sector.

Yet another factor is that this will call for a massive investment. Even if the current investment proposed in Air India is made, it will become at best a modest carrier with a fleet of 60 aircraft. More so, with bilateral rights being given away freely, the national carriers------Air India and Indian Airlines------will lose their net worth and chances of attracting any strategic investor or formidable player as partner will be lost for good.

The problem with the present policies of the government is that it is not allowing the state carriers to turn around by giving them professional management or the necessary investment. The slow bleeding of these carriers will soon turn them into sick units. With announcement of reduction in duty on aviation turbine fuel, abolition of inland travel tax, the airlines in domestic sector will certainly become healthy but the real change will come when an even-playing field is provided to them. What India needs is that the Aviation Ministry should give up its role as owner of airlines and instead become a regulator like TRAI in the telecom sector.

Till that happens the problems of aviation sector will not be solved. The change in aviation sector is essential because the country by and large has come to recognise the potential of tourism as an engine of economic growth. For the first time, South is emerging as a major player in the tourism sector. The current year statistics show that the share of South is increasing. While in 80's 71 per cent of tourists stayed in North, the current share has been reduced to 48 per cent. This has happened because of the innovative campaign launched to market Kerala and improved infrastructure in South. The situation is expected to improve further with development of Hampi in Karnataka and introduction of Formula One Racing and other innovative plans by Andhra Pradesh Government.