50% of visa fee to be cut for Commonwealth natives

NEW DELHI: Taking a leaf out of its slogan `Athithi Devo Bhava', the tourism ministry is likely to waive off 50% of the visa fee charged from visitors of Commonwealth nations as an incentive to boost slagging foreign tourist arrivals. This is part of its effort to incentivise tourism to India for the Commonwealth Games to be held in October.

"We are considering a proposal to waive off 50% of the visa fee. The expense will be borne by the tourism ministry," a source said. The move comes after the positive response to `Visit India 2009' promotion where major stakeholders like hospitality partners, tour operators and others had offered schemes and promotions in addition to what the visitor paid for.

The visa fee waiver will supplement the promotions and the ministry is already in talks with hotels, travel agents and tour operators for extending these incentives for another year.

There are 54 members of the Commonwealth of nations of which visitors from UK, Australia and Canada form a large part of India's tourist inflow. India received 5.11 million tourists of which 0.5 million come from Commonwealth nations. Sources estimate an expense upwards of Rs 75 crore if the waiver plan comes through as visa fees are fixed on a reciprocal basis.

While visa fees for UK is 30 pounds or Rs 2,280, Australia charges Rs 3,168 while Canada charges about Rs 2,751. "It will prove to be a heavy dent on the public exchequer but we feel that the decision will boost tourist inflow to India," the source added.

Foreign tourist arrivals during 2009 were 5.11 million, down from 5.28 million in 2008. Growth in tourism dropped after the Mumbai terror attacks and slowdown in the eceonomy. Though the growth rate for 2009 was negative, India performed better than UNWTO's projected growth rate of (-)6% to (-)4% for the world. Incidentally, foreign exchange earnings have increased from Rs 50,730 crore in 2008 to Rs 54,960 crore in 2009.