A memorandum in this regard was submitted by Tourism Minister Kumari Selja to Finance Minister Pranab Mukherjee.

While tourism was growing at an encouraging pace in 2007, there has been a fall in foreign tourist arrivals and foreign exchange earnings later due to the global economic slowdown.

Against this background, Selja asked the Finance Minister to provide some incentives in the next Budget, slated to be tabled on July 6, to boost the tourism sector.

Changes in the Income Tax Act to provide tax incentive for the growth of tourism infrastructure, deemed export status for foreign exchange earned by inbound tour operators and de-linking hotels from real estate sector for the purpose of credit are some of the main demands included in the memorandum submitted to the Finance Minister.

Selja also sought relaxation of import duties on adventure tourism equipment.

Though several regions have a tremendous potential of adventure tourism, the growth is being hampered due the existing import policy.

Allowing import of the equipment through vendors is expected to give a boost to the adventure tourism in the country.