Poor mathematics undervalues Tourism dept146;s forex earning

To correct the anomaly in calculation, the Tourism Ministry adopted a new methodology and used Consumer Price Index figures instead of Wholesale Price Index, which was being used till now, Banerjee said.

Consumer Price Index includes services like transport and communication, housing, recreation and amusement, many of which are used by tourists. Wholesale Price Index did not take into account the services sector.

8220;The new method of calculation correctly reflect the contribution of the tourism sector to India8217;s foreign exchange earnings,8221; Banerjee said.

By citing this enhanced contribution to foreign exchange reserves by tourism sector, the Tourism Ministry is hoping to make a stronger case for increasing its budget.

8220;It is important that tourism gets an appropriate level of investment. A number of projects require big investments. There is a case for a bigger budget,8221; Banerjee said.