Canada Association of Tourism Employees

India journey and tourism dealing with pressing financial disaster | eTurboNews | Traits

The impact of the pandemic continues to wreak havoc on the lives and livelihoods of India’s travel and tourism industry and hospitality for the second year running. While some sectors are slowly opening up again, the fight continues to make ends meet.

  1. The Indian travel and tourism industry had contributed $ 194 billion to the Indian economy in 2019 and created about 40 million jobs, or 8 percent of its total employment.
  2. All of this came to a standstill due to the pandemic and this has created a ripple effect in the industry.
  3. The result was that many hotels and businesses were closed, resulting in job losses for many of those who depended on the industry for a living.

Health experts have predicted that a third wave of COVID-19 is inevitable. The government must act now and take immediate relief measures to resolve the urgent liquidity crisis facing the Indian travel and tourism industry.

The Federation of Indian Chambers of Commerce & Industry (FICCI) has again appealed to the government to extend the August 2020 moratorium on working capital, principal, interest payments, loans and overdrafts for a further year. August 2021.

The RBI’s resolution framework, which was created during the first wave of the pandemic, needs to be reviewed. Given the ongoing effects of the second wave, it will take at least 4-5 years for the hotel industry to return to some semblance of normalcy in its operations. In this situation, the restructuring period and quotas need to be reviewed. The restructuring phase for this sector must definitely be extended to March 2024 – 2025.

FICCI has also asked the government to increase the duration of the Emergency Credit Line Guarantee Program (ECLGS) to 8 years (4 years moratorium plus 4 years repayment). The tour operators, which are among the hardest hit in this sector, urgently need the Service Exports from India Scheme (SEIS) notes for the 2018-2019 financial year that have yet to be paid. This will help them stay reasonably afloat through the crisis.

Travel and tourism in India in the face of an urgent economic crisis 4

The postponement of GST and tax prepayments at the central government level and the abolition of fees for all pending licenses, permits / renewals and rescue packages to fund and support employee salaries will also bring some relief. The government must now announce the relief measures so that the industry has hope of surviving the crisis.

The Indian travel and tourism industry continues to need government support to revitalize and stay strong in the future. The FICCI has recommended that tourism in India be included on the concurrent list of the constitution so that both the center and states can shape tourism policies for the growth of tourism. In order to revive domestic tourism, the government should grant a tax rebate of up to 1.5 lakhs rupees on domestic vacation expenses under the Leave Travel Allowance (LTA).

Major policy changes such as granting infrastructure status to all hotels, granting export status for foreign exchange income for inbound tours and hotels, and establishing an amusement manufacturing hub under Atmanirbhar Bharat Abhiyan in all states will support the overall development of the sector.

Travel and tourism in India are facing an urgent economic crisisTravel and tourism in India are facing an urgent economic crisis 5

India’s travel and tourism industry speaks

Amit Prasad, CEO of Le Passage to India, a well-respected Indian travel and tourism guide, is seriously concerned about the current state of the travel and tourism industry. He said the Indian government is not doing much to revive travel and tourism in the country. He added that the country’s industry was on the verge of collapse and those who previously survived in the industry had to lay off workers and cut wages just to stay afloat.

In India, from January 3, 2020 to today, June 23, 2021, 30,028,709 confirmed cases of COVID-19 with 390,660 deaths have been reported to the World Health Organization (WHO). As of June 15, 2021, a total of 261,740,273 vaccine doses had been administered.

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