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This is an archive article published on December 8, 2005

No more ‘cuts’ in Rajasthan

For more than 20 years, travel agents, in collusion with Rajasthan tourism staff, have been milking tourists on the Palace on Wheels luxury ...

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For more than 20 years, travel agents, in collusion with Rajasthan tourism staff, have been milking tourists on the Palace on Wheels luxury train by ensuring they shop at outlets that gave hefty commissions to these middlemen.

But now, the Rajasthan Government has decided to step in and break the nexus. And how? By making legitimate the process and officially claiming a profit share for its tourism department.

Instead of greasing the palms of agents and officials, traders would pay the Rajasthan Government a big cut from profits made from travellers of the Palace on Wheels, who would have already spent nearly $400 each per night for the journey.

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Courtesy this arrangement, the Rajasthan Tourism Development Corporation (RTDC), currently incurring huge losses from its other operations, is expected to earn around Rs 85 lakh every year.

Since 1982, when the train was launched, travel agents and tourism officials are known to have been making huge sums by taking wealthy tourists to select shopping outlets. According to industry sources, almost 40 per cent of the amount spent by travellers at these outlets was distributed among agents and officials as commission.

Apparently fascinated by economics of ‘‘commission tourism’’, the state tourism department invited bids from traders prepared to give the maximum amount to RTDC.

A few days back, the contract was awarded to retailers for Rs 85 lakh, sources said. Confident of making enough profits to keep the Government happy, the bidders had already paid the first installment of nearly Rs 40 lakh to RTDC, they added.

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In return, the RTDC would herd passengers to outlets run by successful bidders, who would be free to sell merchandise at a cost that helps them not only make a profit, but also pass on a share to RTDC.

The current arrangement is only with five dealers—two each in Jaipur and Udaipur, and one in Agra (UP). RTDC plans to extend the system to other destinations of the train.

According to sources in the Government, successful bidders would also have a say in selecting the tourist guides to accompany the travellers. ‘‘The handpicked guides would ensure that tourists shop only at shortlisted outlets,’’ sources said.

Former RTDC chairman and Congress leader Rajiv Arora said this was an ‘‘unfortunate’’ arrangement that would bring a bad name to the country. He added, ‘‘Have you ever heard of a Government taking a cut from shoppers?’’

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RTDC MD Rakesh Saini, however, said the process had now been streamlined for travellers. ‘‘We have empanelled showrooms so that travellers are not exposed to cheats and quality of service meets global standards,’’ he said.

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