The reasons for the poor performance of local bodes in India are as follows:
Poor Finance: It is very difficult-to provide for any service or undertake any function without proper finance available. Unfortunately, Indian local bodies have always been wanting of adequate and required amount of finance. This dissuades the bodies to take up maintenance as well as development tasks.
Lack of Incentives: Tourists approach a particular tourist spot in a city. They spend heavily over these on account of staying as well as eating. Profit earned through it goes to the agency concerned, whether private or governmental, and no share from that is given to the concerned local body.
Local bodies and officials, both elected as well as civil servants, have their own interests and politics. Very often development programs are taken with short term gain in mind. Lack of long term perspective stands in the way of maintaining or developing works contributing to the promotion of sustainable tourism.
There is mismanagement of the activities undertaken by the local bodies. The local bodies functionaries are neither well qualified nor properly trained to perform the assigned duties appropriately.
At times the local bodies and the state administration existing at the District/City/Sub-division/Block levels, are not having sound workable relationship. Lack of cordial relation affects the performance of both whereby the tourism promotion also faces challenges and problems.
Another factor is on account of political implications if the party in power at the state level is different than the party in power at the local level, the later hardly gets support of the State Government in developing the area.
Every local body has elected representative as well as professional permanent officials. Often it is found that relationship between these two wings, that is the deliberative and the executive, is not as it should be. At time lack of mutual trust stands in the called for performance of the local bodies.