Economy

28 states set to lose tourism as an industry: Tourism federation

Prashasti Awasthi Mumbai | Updated on April 29, 2020 Published on April 29, 2020

Federation of Associations in Indian Tourism & Hospitality (FAITH), the policy federation of all the national associations representing the tourism, travel and hospitality industry of India (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) has appealed to the Chief Ministers of each state to come up with a state-specific package.

FAITH has shared with each state their share of domestic and foreign tourists and how most of those total tourist footfalls will not be available for 2020-21.

This tourism business has almost completely come to a standstill in FY 2020-21. Almost all of India’s top-performing foreign source markets for tourism (USA, Canada, UK, Germany, China, Japan, Singapore, Russia, Italy, Spain), are severely impacted and are not likely to travel before FY 2021 - 22.

The interstate domestic season which happens almost 60 per cent in the April-July period has collapsed for the year FY 2020 - 21 and will be negligent for the rest of the year with stringent travel restrictions and reduced connectivity across Indian states.

The tourism body has said that the Tourism industry of India first needs to survive, then needs to revive and then only can it thrive.

It has appealed to the Chief Ministers of each state to come up with a state-specific package.

The guidelines include - A complete waiver of all fixed electricity and other utility charges for FY 2020-21 without any penalties. A complete waiver of all excise duties for FY 2020-21 without any penalties. Renewal of all licenses, permits, permissions which were expiring in FY 2020-21 without any financial charges or penalties. A refund of the FY 2019-20 of SGST collected from all travel agents, tourist transporters, hotels, tour operators, restaurants, and any other tourism, travel and hospitality enterprises in the state to help them manage working capital crisis. This can be paid back in subsequent years interest-free and without any penalties.

The tourism association further suggested a complete waiver of any other taxes, fees, cesses or levies such as the property taxes or interstate tourist transport taxes at the level of the state, municipal, district, or panchayat on the tourism, travel & hospitality industry.

Additionally, it has requested the Chief Ministers for their support with a complete waiver of income taxes, GST, PF & ESI, and any other statutory taxes, fees, cesses or levies on the tourism, travel & hospitality industry for FY 2020-21.

It has also requested Governor RBI for increasing the moratorium period on loans from three months to the full financial year of 2020-21 without any penal or accumulated interest.

It appealed to the Finance Minister the RBI Governor for setting up a Tourism COVID 19 fund for a 10-year interest-free loan for enabling tourism, travel & hospitality industry to meet salary costs. This could be for a minimum fund size of ₹50,000 crore which would be almost equal to the gross banking credit to Indian tourism, travel & hospitality industry.

The collaboration thinks that this will help retain jobs, ensure that the tourism business does not go bankrupt, and also will protect the principal amount of loan and overall banking exposure.

FAITH, travel and tourism, India, RBI, finance, coronavirus, COVID-19, lockdown

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Published on April 29, 2020
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