Tourism Finance Corporation of India Ltd. (TFCI) – the dedicated funding agency for the tourism sector in India – expects the investment climate in the tourism and hospitality sector to pick up steam in the next six months. Speaking to TravelBiz Monitor on the sidelines of the two-day Tourism Investors Meet (TIM), organised recently by the Federation of Indian Chambers of Commerce & Industry (FICCI) in association with TFCI, S K Sangar, Managing Director, TFCI, said the agency expects the excess supply of inventory that has come into the market during the years of economic downturn, to be absorbed by the market over the next six months to augment another spell of investment.
“We are very much encouraged by the response the first-ever Tourism Investors Meet has evoked,” Sangar stated. There were over 300 B2G meetings during the two-day meet, where tourism officials from 14 states presented to the investors various investment opportunities. “There were a lot of enquiries from investors for mid-segment hotels and river cruises, especially in the Brahmaputra, during the meet,” he informed.
TFCI has funded more than 750 projects in the tourism sector ever since it was set up in 1989. The Corporation has supported the creation of almost 46,000 hotel rooms in the classified category, which is almost 40 per cent of the total room inventory in the country, Sangar claimed. While TFCI has a cap on the funding, i.e. Rs 60 crore for a project, he said that for mega tourism projects, which demand more funding, TFCI can consider creating a consortium of banks for funding such projects.