Yet another unique feature was that the States in the South were prepared to cooperate with each other and build circuits running through different States, market them jointly and help each other in building the required infrastructure. A beginning in this respect was made about a year ago and very soon one can expect a permanent liaison machinery to be set up. The States of Kerala, Karnataka, Andhra Pradesh, Tamil Nadu and Pondicherry are planning joint marketing and joint presentations and to take effective steps to remove all existing barriers that divide them, at least in the field of tourism.

All these States, without exception, have increased their budget allocations many times, and are setting up infrastructure comparable to international standards. Andhra Pradesh Chief Minister Chandrababu Naidu has taken a lead in many respects. He has made Andhra the first State that has decided to charge the lowest sales tax on aviation turbine fuel to encourage aviation. The result is that the airlines have increased their uplift of fuel many times, thus ensuring that the State’s revenues remain protected. It may be mentioned that initially the rate of sales tax in Andhra Pradesh was the highest in the country. The States are now negotiating with neighbouring States to cut barriers created by the high rate of tax on road transport.

Naidu has also liberalised prohibition by giving licences for some fancy bars and restaurants used by tourists and other high class visitors. He has also allowed one deluxe category hotel to open a disco. Naidu may not have made Hyderabad into a pub city like Bangalore, but one does not have to try very hard to get a drink in the evening if he so desires. Another area in which Naidu has made a mark is in the state of roads, building overbridges and setting sanitary standards in the State. It is no surprise that Andhra Pradesh’s efforts were recognised at all levels as it won nearly half the national awards given by the Tourism Ministry. The situation is expected to improve further with the completion of Cyber City.

The city hotels have been upgraded and effort is on to attract conventions and conference traffic. Andhra is also the first State to set up a strategic Tourism Board, which has representatives of private trade. The Board meets every two months. The Andhra Pradesh Tourism Development Corporation has turned the corner and made a profit for the first time. According to Veer Vijay Singh, President, Andhra Pradesh Hotels and Restaurants Association, the State has made strides in building infrastructure and attracting domestic tourists; in the very near future it can be expected to break fresh ground in attracting foreign tourists. The efforts to make foreign airlines use Hyderabad airport have also made good progress. And as such, hoteliers in Andhra feel that despite big investments made, the industry will do well as the occupancy has improved and so has the yield. In the case of Kerala, which has, in a very limited period, emerged as an important destination, it is now concentrating on improving its product so that it can get quality tourists and high-spenders in the State. The State Minister for Tourism, K. V. Thomas, explained that they would now be working to increase the yield as they were not in the numbers game in view of the small size of the State. They hope to sell the State, which will provide complete rejuvenation of mind and body through its backwaters, landscape and Ayurvedic treatment. He said that their efforts to attract fresh investment in India as well as from abroad have made good progress. The State of Karnataka after its strides in the field of infotech has made tourism its main priority. According to K. B. Inamdar, Minister for Tourism, they will be able to attract good traffic because of their heritage properties, Buddhist sites and forests. The State enjoys good connectivity and infrastructure.

While the State Ministers were making promises and talking about efforts in their respective States, Chandrababu Naidu won the hearts of tour operators by offering to become their unofficial ambassador at the Centre to get them favourable terms. He not only promised to make the necessary changes at the State level but also use his clout and influence at the Centre to make them adopt tourism-friendly policies. He said the time has come when tourism should become a major tool of economic growth and job creation. His practical approach and quick action have made the South an important contender for sharing the goodies offered by the green industry.

As for the Indian Association of Tour Operators of India, they have made a major contribution by bringing about awareness about tourism in the States, which were indifferent in the past. If the last convention in Kolkata was important in opening doors and windows in the East and North East, the current session has created waves in the South. The result is that a competition has started among the States to host the IATO conference and bids are being offered for the same. The major contribution of IATO is bringing about awareness about this industry at State levels and popularising the approach of joint marketing by States.

Overall, the picture for tourism may be gloomy as numbers have fallen and cancellations are pouring in in the wake of the Iraq war and the SARS scare, but as far as domestic tourism is concerned it is booming and the demand for products, particularly innovative ones, is growing. If the States are able to offer competitive products and offer packages that can compete with offers from neighbouring countries, the industry may be able to grow despite internationally depressed conditions at least in the domestic sector. The difference, however, will be that volume will be the criteria and not overpricing. One only hopes that our tour operators and airlines will be able to make use of this opportunity.

Another issue that needs to be resolved is the question of dual tariffs. They are charged by hotels, airlines, railways and Government in the form of entry fee to monuments. It is true that most of the tourists pay a negotiated rate for room and not the printed tariff, but why punish customers who walk in alone and without prior booking. A time has come to reduce gaps between the published tariff and negotiated rates and to make them more transparent by using tools like Internet booking .The shadow boxing on this account which spreads the myth about India being an expensive destination at least as far as hotels are concerned needs to be clarified.