Question : FINANCIAL LOSSES DUE TO TOURIST TRAINS



(a) whether the Railways have suffered huge financial losses on its tourist trains;

(b) if so, the details of such losses suffered during the last three years;

(c) whether the formula adopted by the Railways on sharing ratio with State Tourism departments has not proved worthy; and

(d) if so, the steps contemplated to check such losses in the tourist trains?

Answer given by the minister

MINISTER OF RAILWAYS (SHRI NITISH KUMAR)

(a) to (d) A statement is laid on the Table of the Sabha.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 524 BY DR. RAMESH CHAND TOMAR AND SHRIMATI SHYAMA SINGH, TO BE ANSWERED ON 2.5.2002 REGARDING FINANCIAL LOSSES DUE TO TOURIST TRAINS.

(a) Only the Royal Orient Express, which runs as a joint venture with the Gujarat Tourism, has incurred losses.

(b) As per available information approximate losses during the last three years i.e. from 1998-99 to 2000-01 are about Rs. 11 crores. The Gujarat Tourism, who operate this service, advised drop in tourist arrivals due to the natural calamities in Gujarat.

(c) & (d) The tourist trains have long gestation period. The formula for sharing ratio is worked out on the basis of capital investments and recurring operational costs. Its worthiness depends on the total revenue generated. The steps taken, in case of less patronage, are curtailment of frequency of services, reduction on operating costs, intensive monitoring, improved marketing, etc.