TOURISM & CO-OPS A Symbiotic Relationship Presentation By Rajiv I.D. Mehta Director – Development, ICA - AP

Global Scenario  Globalization has liberalized trade regime  Open Market System has expanded the markets  Free Trade Agreements have brought MFN culture  Free flow of services and products have improved flow of international tourists

Co-op Advantages  Co-operation is a Philosophy of Right Attitudes  Value Based / Idealistic form of enterprises  Enterprises with unique blend of economic and social objectives  Member owned  Stakeholder Controlled  Cost Effective  Transparent  Effectively Governed  Reliable  Responsible &  User Friendly

Co-op Efficacy  Works best at the primary level (production of a commodity, delivery of services)  Proven track record in Agriculture, Consumer, Housing, Health, Transport sectors  Federal Structure adds to the competitive skills – lobbying, marketing, knowledge, skill building  Helps equitable distribution of benefits  Leadership development and membership education builds social capital  Leads to inclusive growth of economy

Tourism Industry  Fast growing industry  Expanding scope of the industry  Increasing interest in green, rural, tribal, health, social, eco & adventure tourism  ICT a great booster of tourism through network of tourism related services  Bottom line – Destination ought to be market friendly, impressive, convenient, cost effective, clean, reliable, friendly & convivial

Types of Tourists  HIGH END: Comfort Conscious - Sensitive  For leisure, pleasure & business  MIDDLE SEGMENT: Facility Conscious  For leisure, religion, social, academic, research & business  LOW END: Flexible  For leisure, religion, academic, research & business

Common Choices for Tourist Destination  E (electronic) -friendly destinations  Well integrated destinations (comfortable lodging, clean boarding, local dedicated transport, personal advisory and warmth)  Reliable and responsible destination  Convenient destination (well connected by road, rail, air)  Safe destination

Components of Tourism Industry  Travel Planning & Ticketing  Boarding & Lodging  Local Advisory / Guide service  Reliable & affordable local transport  Health & General care  Insurance both life & general  Captive markets / buyers

Convergence  Solidarity factor for travel plans & ticketing  Cooperative of small hotel owners, paying guest accommodations, extension of existing cooperatives’ services, dedicated tourism cooperatives  Taxi owners, tourists’ guides, service providers to be enrolled as members  Investors & market providers to be inducted as stakeholders at secondary level  Enabling policy environment & clear guidelines

Institutionalization  Why do we need to institutionalize small producers, service providers & small entrepreneurs…………To attain a body corporate status !!  OPTIONS ARE……Company Law, Co-operative Law & Special Provisions of the Co. Law  Company law protects the interests of investors & not service producers  Co-operative Law assures democratic control & equitable distribution of benefits among members  Recent amendments allow non-active members of special category to be the stakeholders & participate in decision making  Tourism & Co-op Ministries should formulate a joint strategy to develop both the tourism & co-operative sector in line with the process of SYMBIOSIS.

RECOMMENDATIONS of Jaipur Conference Tourism & Cooperatives A WIN WIN STRATEGY Recommendations made by the Delegates from 9 Countries at the JAIPUR Conference

Recommendations  A vision and goal statement in the policy of the Governments & Cooperatives for promoting tourism through co-operatives is fundamental  Incorporation of the options to institutionalize (networks & structures) tourism development through co-operatives is mandatory  Setting the standards (domestic & international) on demand & supply for the tourism initiatives taken by co-operatives is essential  Guidelines, certification procedures for tourism through co- operatives are important  Strategic choices to carve out coop tourism market niche and mainstreaming the brand are pre-requisites in finding a place in the market  Model projects to illustrate best practices are valuable demonstrative tools..