The ‘IFC’ touch in 3 tourism projects
In a freewheeling discussion with , Shaun Mann, Senior Tourism Sector Specialist, International Finance Corporation (IFC)-South Asia talks about the organisation’s work with India’s MOT, state governments, and private stakeholders to create an integrated
In which avenues of tourism in India do we see IFC?
The International Finance Corporation (IFC) is the private sector development and investment arm of the World Bank Group. We provide a variety of invest- ment instruments for private sector companies (including hotel investors) and we advice and partner with governments - through jointly financed technical assistance projects - to implement positive changes to the business and investment environment.
Please throw light on the new initiatives by IFC in the country?
We have a specific practice area focussed on tourism development where we are currently working in India on three projects: (1) Buddhist Circuit Upgrading - we are working with the State Governments of Bihar and Uttar Pradesh and the Ministry of Tourism to develop a very focussed strategy for upgrading the Buddhist Circuit experience, improve connectivity and site-level infrastructure, improve marketing and promotion strategies to reach new markets, and improve overall coordination and collaboration of different stakeholders around the circuit, including bringing into the discussion the monasteries and their constituents; (2) Rajasthan tourism development - IFC is partnering with the Government of Rajasthan in the municipalities of Udaipur and Jodhpur to enhance the tourism experience through improvements in the urban offerings for tourists. These involve planning and design for upgrading municipal spaces to include options for private investment in tourism services and attractions; (3) Odisha tourism development - IFC is partnering with the Govt of Odisha to plan and develop its tourism assets.
How are these projects funded?
These projects are not loans provided to the state governments. They are jointly funded and jointly implemented technical assistance agreements that are focussed on delivering specific results that leverage other investment. For instance, on the work with the Buddhist Circuit, the project identified approximately US$ 200 million of infrastructure and tourism development improvements that were submitted to the Planning Commission for consideration and inclusion in the 12th National Development Plan. A part of that is now being operationalised through a proposed World Bank loan to Uttar Pradesh to upgrade infrastructure and urban environments in Sarnath and Kushinagar.
Which region in India has the maximum growth potential in terms of tourism infrastructure?
India’s cultural and historic heritage are world-class assets that are hugely underutilised and under-valued. These assets could fuel local economic growth and employment with more investment in the sites and improved visitor management. The same applies for national parks in India. These have immense potential for the ‘African Safari’ type of experience. Authorities are currently unclear on how to use these areas optimally for both tourism and conservation objectives. Many parts of Africa have very successful tourism and community development initiatives in and around its national parks. In some cases, this has led to financial and ecological sustainability for some of them. The challenge in India is the high volume of domestic tourism visiting or wanting to visit these cultural and natural areas. This can be mitigated with well zoning and effective visitor management.
Could you elaborate on the kind of progress that has been made in each individual project?
IFC’s tourism work in India is too recent. We only started working here in 2012. IFC does not give loans to governments, this is not its mandate. We are a private sector development institution and any loans that are made, are made to the private sector on commercial terms for financially-viable projects. With respect to our tourism projects, we do not have results yet. All our work are in initial stages.