Infrastructure is nothing but the prerequisites for economic development. It is not the engine but the wheels of economic development. Since the onset of economic crisis, followed by economic reforms, the importance of infrastructure development has been emphasized through policy, pronouncements, higher budgetary allocation of funds, formation of infrastructure development, financing corporation, huge private intervention in infrastructure development, both Indian and foreign. It opens out a region by providing an access to its tourist places. In its absence, the resource potential for tourism i.e. attractions and amenities, can’t be of any benefit. We cannot talk about the planning of tourism in an area without organizing its transport system. In addition to the common infrastructure tourism development requires special infrastructures, which growing importance to India and foreign tourists in recent year in India has already made a place on the world’s tourism map because of its great potential to attract tourists to the diversity of its tourist sites spread all over the country. Considering the potentialities of these diversities in attracting tourists, the infrastructure requirement for their development must be assessed in terms of its availability and future needs. By making available sufficient funds through public and private sector involvement and engaging both Indian and foreign experts, tourism could be developed and made attractive without harming the green environment of the surrounding areas. This paper tries to investigate the significance of infrastructure as a factor of tourism development. The study also reveals the impact of tourism on the greater need for development of transport network. This paper uses the panel data estimation techniques and finds that the infrastructure has been contributing positively to tourist arrivals, particularly from India and abroad. Moreover, tourism infrastructure, relative prices, distance and income in the origin countries are important ingredients in their own respect in the tourism demand equation. Direct and indirect forms of government intervention might be necessary to ensure the protection of natural resources and the equitable distribution of economic benefits from tourism development. At the same time, incentives must be provided to the private sector to encourage financial investment in development activity that adheres to the principles of sustainable tourism. Encouraging cooperation and collaboration among different actors, as well as publicprivate sector partnerships, should assist in reducing potential and actual conflicts of interests and values. In addition, these actions should facilitate the more efficient use of resources and capabilities to achieve the destination’s economic objectives.
Keywords: infrastructure, tourism development, panel data analysis, indian tourism.
JEL Classification: L83, H54, C23.
Cite as: Das, K. S., Naskar, K. (2018). Nexus between Infrastructure and Tourism Development. SocioEconomic Challenges, 2(2), 6-12. DOI: 10.21272/sec.2(1).6-12.2018