The Economic Survey 2018-19 has recommended a series of measures to boost the tourism sector, which saw a “sharp slowdown” last year.

The recommendations include increased budgetary allocation for development of infrastructure, making land available for hotels, and reduction in taxes.

The Survey, which was tabled in Parliament on Thursday, added that there was a need to strengthen the coordination mechanism of various Ministries and stakeholders to resolve issues in promotion of tourism in the country.

Additionally, the State governments need to be sensitised about tourism being a major driver of employment and poverty alleviation, it said.

Pointing out that the sector experienced a sharp slowdown in 2018, the Survey stated that the foreign tourist arrivals (FTAs) in 2018-19 stood at 10.6 million compared with 10.4 million in 2017-18.

“In terms of growth, the growth rate of FTAs declined from 14.2% in 2017-18 to 2.1% in 2018-19.”

Likewise, foreign exchange earnings (FEEs) from tourism stood at $27.7 billion in 2018-19 as compared to $28.7 billion in 2017-18. “In terms of growth, the FEEs declined from 20.6% in 2017-18 to -3.3% in 2018-19.”

“Land should be made available for hotels and reserve land for hotels in all new townships under planning… Fast-track clearances for hotel projects… Increase skill development efforts to train more persons… Make the taxation regime on hospitality industry globally competitive,” the Survey said.

The Survey also showed that FDI in hotel and tourism also declined from $1,132 million in 2017-18 to $1,076 million in 2018-19.