Newer Border Crossings

in South Asia :

Emerging Tourism Potentials

ByMahendra P Lama

5555thththth South Asia Economic SummitSouth Asia Economic SummitSouth Asia Economic SummitSouth Asia Economic Summit

IslamabadIslamabadIslamabadIslamabad

Newer Border crossings in South Asia

Nathu la Trade Route (India and China)

Kathmandu-Lhasa Route (Nepal and China)

Land Bridge between India and Sri Lanka

North East- Chittagong Route (India and Bangladesh)

Wagha Border (India-Pakistan)

Border Descriptions Trade routes

Indo-Bangladesh (North

East - Bangladesh)

Assam Fakiragram, Mankachar, Suterkhandi and Karimgunj

Meghalaya Baghmara, Lichubari and Dawki

Mizoram Tlangbung, Champai

Tripura Kailashsahar, Agartala, Sonamora, Bilonia and Sabroom

Manipur Moreh

Indo-Bangladesh(W ) Petrapole, Bagdha, Mejdia, Lalgola, Mohidpur, Radhikapur,

Kaliaganj and Hilli

Indo-Nepal Kankarvitta and Sukhia Pokhari (Pashupati in )

Bihar Jogbani and Raxaul

Uttar Pradesh Barhi, Nautanwa and

Indo-Bhutan Gelephu and Samdrup Jhonkar

India-China ()

Jammu-Kashmir (Ladakh) Khardung la and Chang la

Uttaranchal Lipulekh

Himachal Pradesh Shipkila

Arunachal Pradesh Bumla, Nyamjunag Chu valley (Tawang districts)

Sikkim and Darjeeling Nathu la and Jelep la

Informal /Formal Trade Routes

World's longest unbroken sandy

sea-beach - Cox's Bazar,

Kuakata beach : enjoy both sunrise

and sunset.

Kuakata : one of the highest

Buddhist statues in Asia.

Could be linked to North East

region-Lasha in Tibet- Central Asia

North East Vision Document 2020

makes it as a major venture

Nathula Trade Report 2005 puts it as a

Major intervention

India-Bangladesh Rail and Air links

could make it a reality soon.

Principal HandicraftsPrincipal Handicrafts

• Basketwork

• Cane furniture

• Mats

• Woodcarvings

• Terra cotta

• Artistic textiles

• Bell metal artwork

• Brass metal craft

• Dolls and toys

• Embroidery

• India-Sri Lanka Land Bridge

• Board of Investment (SL) announces Indo-Lanka Land Bridge as toll road/rail link (May 2002)

• Joint Statement signed between SL-India to jointly undertake techno-economic feasibility study of Land Bridge across the Palk Strait in July 2002

• Connecting the island nation with the mainland of South Asia by road and rail through India. The proposed bridge is between Dhanushkodi (South-East of Tamil Nadu state) and Talaimannar (North-West Sri Lanka).

• Envisaged bridge is expected to be 44 kms in length.

– Toll Road

– Railway Link

– Telecom/Optical Fiber Link

– Transmission Link

– Power Generation

– Gas Pipeline

Consider Economies of Bundling of

Land bridge with the following :

• 40 km span across Adam’s Bridge

• 4-lane toll way : Rail link (connecting Columbo/Trincomolee)

• $500 - $900M initial cost estimate

• The Land Bridge will connect the entire South Asian community in terms of transport, exchange of people, movement of goods and services and other development purposes

Land Bridge and Tourism: Economic Gains

It will open up the avenues for passenger travel between the two countries at a very low cost, and within the South Asian region (except Maldives) in general.

• It will extend the tourist resorts of India and Sri Lanka over new geographical areas : massive expansion of the industry to take place.

•Open up a ‘new’ differentiated tourism markets in India and Sri Lanka, as compared with their traditional ones.

Sri Lanka TourismSri Lanka Tourism

2009 2016

Tourist arrivals 447,890 2,500,000

FE earnings (US$ mn)

326.3 3,000

Average Duration of Stay

9.1 8.5

Expenditure per day in US$

80 130

Employment (direct and indirect)

125,000 625,000

Sri Lanka TourismSri Lanka Tourism

2009 2016

Tourist arrivals 447,890 2,500,000

FE earnings (US$ mn)

326.3 3,000

Average Duration of Stay

9.1 8.5

Expenditure per day in US$

80 130

Employment (direct and indirect)

125,000 625,000

Nepal – China :Kathmandu-Kodari-Lhasa - old route :

Trade and tourism getting integrated

Bus service started : China bringing railway line

New routes are being discussed for use as trade and tourism points/facilities

Rasuwa (Rasuwagadhi), Mustang (Nhechung), Olangchungola (Taplejung), Kimathanka (Sankhuwasabha), Lamabagar (Dolakha), Rasuwa Rasuwagarhi), Larke (Sirdhibas), Mugu (Mugu) and Yarinaka (Yari, Humla)

Nathu la Trade Route (India and China)

A Macro Perspective

The reopening of historical trade route : a long drawn process.

Atmosphere vitiated by a range of geo-strategic, politico-security and socio-cultural factors

Protracted impasse in the Sino-India relations after the 1962 war

Abrupt disconnection in 1962 meant a major loss to all the stakeholders

on both sides of the border

China’s Changing Approaches

Visible changes in the policies : 1980s and 1990s.

General policies of China

i) It had to change its policy where it was “regional power without regional policy”

ii) Realised national security relies heavily upon maintaining good relations with

neighbouring countries in the Asia-pacific region.

Internal RestructuringMajor driving force for China to open its

border for trade and investment

: urgent need to bring periphery provincesof western region to the national mainstream.

Western region : 2/3 territory, 23 % population

9 provinces and autonomous regions i.e.

Gansu, Guizhou, Ningxia, Qinghai, Shaanxi, Sichuan, Tibet, Xinjiang and Yunnan

Tremendous regional disparity to end

Hope : Eastern China’s 14000 km long

coastlines brought fortunes

Now western China : 3500 km land frontier lines will become second golden area of reopening.

Rich in land and natural resources

Premier Zhu Rongji’s “Report on National Economic and

Social Development during the Tenth Five Year Plan”(2001-2005) : eight most important tasks

Included developing the western region and deepening reform

and the open-door policy.

Launched “develop-the-west” campaign in 2000.

Improvement in relations with India substantive : 1988-2003

1988 : Prime Minister Rajiv Gandhi visited China 1991 : Chinese Premier, Li Peng visited India

An array of visits

2003 : Prime Minister Atal Behari Vajpayee’s visit to ChinaSigned the agreement on reopening of Nathu la Trade route

China recognised Sikkim as a part of India2005 : Prime Minister Wen Jiabao’s Visit to India

Significant Aspect : Economics triggered by Globalisation

Along with the politico-security rapprochement and negotiations, a significant thrust

has been on engaging in the commercialand economic fields at three levels :.

i) the national levelii) the local level

iii) the regional level : SAARC and ASEAN

i) National LevelIndia sees a huge scope in the market of China

Significant increase in both exports to and imports from China in the last 10 years.

China’s WTO membership in 2001 further paved the way.

ii) Local Level

Border Trade Agreements : signed on 13 December 1991 Two border trading points :

Lipulekh pass (5200 meters) in Uttaranchal Shipkila pass in Himachal Pradesh

Nathu la Trade – 2003

iii) Regional Level

a) Nepal Route : Border Trade in Nepal b) Kunming (Yunan ) Initiative

Stilwell Road (Ledo Road) is the most viableIntense lobbying going on to reopen this route

c) SAARC Membershipd) South East Asia Parallels : Already in ARF

Growth Triangles in Operation mostly triggered by China Hong Kong, the Guandong and Fujian provinces

of China and Taiwan (SCGT) Greater Mekong Basin Growth Triangle (GMBGT)

consisting of Myanmar, Cambodia, Laos PDR, Southern China, Vietnam and Indonesia

Golden Quadrangle covering Thailand, Myanmar, Laos PDR and southern China

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LHASA (4000m.57km

.)

CHUSUL (4200m., 3.5km.)

NAKARTSE(4410m.,28km

.)

GANGTOK(1800m., 0km.)

YATUNG (1600m., 31km.)

GYANTSE(3990m.,10km.)

KANGMAR(4600m.,26km.)

GALA(4400m.,33km.)

SHIGATSE(3860m.)

PANAM DZONG(3800m.)

·

B H U T A N

C H I N AT I B E T

I N D I A

S I K K I M

N E P A L

Map Not To Scale

Gangtok-Lhasa

Trade Route

NATHU LA (4350m.54km.)

W E S T B E N G A L

SEVOKkkKKK

RANGPO

SILIGURI(136m.,128km.)

To Guwahati

Sikkim

Tib

et H

ighw

ay

TSANGPO BRIDGE

(4000m., 17km.)KHAMBA LA(4794m., 30km.)

YASIK(4390m.,

19km.)

KARO LA(4960m., 41km.)

SIMI LA(4400m., 15km.)

NENYING(4400m.,

13km.)SAPUGANG(4300m., 24km.)

PHARI DZONG (5000m.,38km.)

TANG LA(5060m., 13km.)

TUNA (4800m., 19km.)

Friendship

Highway

Friendship

Highway

TRADE ROUTELA (PASS)BRIDGE

LEGEND

Widespread Gains

Possible extent of revenue generation Transport Gains

Tourism GainsHuge revenue for the State of Sikkim

Impact on prices reduction Remarkable improvement in the welfare, health and

social status of the consumers. Energy inter-connections

Electricity grid and Gas pipelines

Projection : Trade Flow through Nathu la

Scenario I (higher side projection) showed that trade flow through Nathu la :

2007 : $ 48 million2010 : $ 527 million 2015 : $ 2.84 billion

Scenario II (lower side projection) showed

2010 : $ 7.84 million2015 : $ 10 million

2020 : $ 12.76 million

Railway line : Golmund (Qinghai province) to Lhasa crossing – 1118 km railway $ 3.6 billion

Started construction in 2001 and Running since July 2006

Railway line could link the Nathu la trade route with other major business centres in eastern and

south-eastern sea coast of China known for their massive commercial activities and

also the Special Economic Zones.

Sikkim and surrounding areas could become a dry port,

Sikkim route is shorter and more friendly for both the Indian and the Nepalese traders.

Bangldesh, Bhutan and Nepal could use this trade route for

Both trade and tourism

Tourism Potentials

Buddhist circuit now identified : priority areas in GOI policy Bodh Gaya in Bihar, Rumtek in Sikkim,

Tawang in Arunanchal Pradesh, Lumbini in Nepal and Paro in Bhutan -- to Lhasa in Tibet. Nathu la trade route : could integrate the tourism industry

of Himalayan states

Most fascinating Eco-tourism Route

Most endowed intellectual properties

Chinese tourists can also come to Eastern India

High Potentials to Extend to South Asia

Tibet

Tourists arrival figure reached2.25 million in 2008 as against 0.928 in 2003

Revenue recorded 2.259 billion Yuan (US $ 376.5 million) in 2008 as against

1 billion Yuan (US $ 125 million) in 2003.Direct employment to 20,000 people and

indirect employment to 75,000 people.

Mansarovar : Pilgrimages: foreign tourismMansarovar visit : 6000 pilgrims from India every year

So far used routes Pulan Port at Taklakot (Uttaranchal)

Kathmandu – Lhasa routeLhasa to Mansarovar lake is more than 1000 kms.

Nathu la would be economic and also magnificently attractive

Trade has started taking place:

However, very low volume in 2008 (May – October)

TAR Traders could only sell items worth $ 3000Sikkimese trader US $ 21111

On the other hand: Nepal’s export to Tibet Autonomous Region through land border route has increased from US $ 5.8 million in 1991-92 to US $ 32.72 million 2005-06

Nepal’s import from China has increased from

US $ 13.25 million in 1991-92 to US $ 107 million in 2005-06.

Major Recommendations

Phasing of Actions

2005-2010 : Initial Trading Actions on both sides Start building wider and deeper infrastructural facilities.

2010 : Major trading actions start : based on highly upgraded and developed infrastructures

2012 : Integration of Trade with Tourism activities A fresh bilateral arrangement is required

to facilitate the movement of tourists across the border. Package Tours : During 2012-2015, for only Indian

and Chinese tourists Open tourism : 2015 onwards among Indian

and Chinese tourists.

2015 : Inclusion of movement of freights to and from the neighboring countries

2018 onwards : SAARC Tourism. Open for all the tourists to cross the border.

i) Lift Ban on Foreign Touristsii) Tourism Infrastructure Package

iii) Tourism Networking

iv)Gangtok-Lhasa Bus Service

Thank You