Commonwealth Games : A big Boost to Brand India Foreign exchange earnings, employment generation to go up

July 7, 2008, New Delhi - The upcoming Commonwealth Games, in New Delhi in 2010, are expected to lead to a tourism boom in the country with share of India in international tourist arrivals anticipated to go up to 1.5 per cent in 2010 as compared to 0.52 at present. The neighboring North Indian States of Haryana, Rajasthan and Uttar Pradesh are likely to benefit the most from the spill-over effect of the influx of sportspersons and tourists coming to watch the games, according to a Study by PHD Chamber.

According to the PHD Chamber, the arrival of international tourists for Commonwealth Games (CWG) would lead to a spurt in foreign exchange earnings for the country. Receipts from inflow of inward bound international tourists are expected to rise to $18 billion from around $ 7 billion at present. Besides, the CWG can well prove to be a catalyst for major investment in the country’s sporting, social and economic fabric since it will effect the tourism industry directly and indirectly,

Not only that, with the Commonwealth Games two years away from now , several government schemes are on the anvil for putting in place the requisite infrastructure to meet the requirements of foreign tourists.  The Finance Minister, Mr. P Chidambaram, in his Budget speech, has announced that the provision for building tourist infrastructure will be increased from Rs.423 crore in 2006-07 to Rs.520 crore in 2007-08 and Rs.624 in 2008-09. He also proposed to provide Rs.150 crore to the Ministry of Youth Affairs and Sports and Rs.350 crore to the Delhi Government for the Commonwealth Games in 2010. India was the host of 1982 Asian Games which was a spectacular success in terms of tourist arrivals and earnings from tourism.  The hotel boom in New Delhi in the eighties could also be attributed to Asiad. Other cities that have hosted the CWG have also recorded a spurt in tourism inflows to their country. Keeping this in view, major investments are being made to create maximum facilities in the Capital.

It is needless to say that the vast infrastructure being created for the Games would provide a fillip to economic development and employment generation in and around Delhi. It is expected that the tourism sector would generate 45 million jobs by 2010 from 42 million at present. This employment would be generated in the hotel and restaurant industry, tour operators, airlines, airports, among others which would require extra hands. Besides, work force would also be required for the creation of the large number of infrastructure projects including hotels projects, airports, construction of new age separators, flyovers, bridges and for improvements in some major linking roads which are being envisaged under public – private partnership to meet the requirements of tourists and sportspersons coming for the Games.

The PHD Chamber feels that it is important to further expedite the preparations for CWG. For this, it is important to identify and acquire unencumbered land for tourism. Preferential allotment of land to hotel industry, to cater to the requirement of 70,000 additional rooms in Delhi and NCR by 2010, should be expeditiously considered. Besides, airport up-gradation and modernization of air traffic control system should remain priorities. Up-gradation of tourism infrastructure, by State Governments, at places of tourist interest is also crucial. Above all, the tourism Ministry should embark on aggressive campaigning under the Incredible India Scheme which would focus on marketing the CWG. Indeed, what is needed is to create a buzz, both nationally and internationally; that India would be a destination to watch out for during the Commonwealth Games in 2010.