The PHD Chamber of Commerce and Industry (PHDCCI) has estimated that the state of Uttarakhand has lost a revenue earnings of about Rs.12,000 crores from its tourism sector alone in the current fiscal on account of torrential rains that devastated the state. Close to about 11 per cent of state’s GSDP has been ruined in terms of prospective tourism earnings on account of the flood in all its riverbeds through which the services sector, specially the tourism industry was flourishing in the state in the last couple of years, points out the assessment of the PHD Research Bureau, the research arm of PHD Chamber of Commerce and Industry.
In a statement issued here today, Saurabh Sanyal, Executive Director, PHDCCI said, ‘Gross State Domestic Product (GSDP) of Uttarakhand at factor cost at current prices stands at about Rs.1,07,548 crores in the year that came to an end on 31 March 2013, 11 per cent of the GSDP has been washed away in terms of prospective tourism earnings due to floods that engulfed the state in mid of this month, further points out the PHDCCI quick assessment on losses of its tourism sector. It may be highlighted here that tourism was concentrated vastly along sides of rivers of Alaknanda, Bhagirathi, Mandakini and Dhauliganga in both Garhwal and Kumoan regions.’
Around 60 per cent of the total tourism prospectus of the state has been severely damaged due to excessive rains, remains of which are even hardly seen as indicated in the pictures carried out by army, airforce, as well as government and privately owned helicopters. Massive damage has been resulted from infrastructure ruined including roads, buildings and houses.
Uttarakhand is one of the fastest growing states of India; the State’s economy posted an annual average real growth rate of 12.4 per cent during the period 2005-06 to 2012-13. The services sector contributes around 53 per cent in GSDP followed by the industry and agriculture sectors at around 36 per cent and 11 per cent respectively in 2012-13. Share of tourism sector in the state’s economy has shown excellent growth during the recent years.
The share of tourism in the GSDP of Uttarakhand is estimated at around 25-30 per cent in the recent years boosted by the recent developments in the tourism infrastructure of the state. The state is expected to attract around 47 million domestic tourists and about 0.5 million foreign tourists in 2013. However, it is expected to severely hit due to most recent disastrous flash floods.
Since there exist huge potential for tourism in the state, with demand emanating from both the domestic and international tourists. Therefore, tourist zones needs to be connected by roads, rails, and airports. The potential of tourism sector needs to be diversified to overcome the seasonality factor and to create employment for year-round tourism, said PHD Chamber of Commerce & Industry.
