News

Rs 20-lakh crore package: Tourism industry’s hopes for survival measures dashed

Prashasti Awasthi Mumbai | Updated on May 17, 2020 Published on May 17, 2020

The 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), says the Indian tourism industry has gone into a state of disbelief and shock.

The industry was looking forward to a set of survival measures from the Rs 20-lakh crore package announced over five days, which, however, were not addressed.

Tourism, Travel and Hospitality have an almost 10 per cent impact on GDP, both directly and indirectly. It has already seen over one-quarter of accumulated losses, which began from February.

FAITH noted that no cash inflow is expected for many quarters over FY 20-21, as the key segments of the tourism economy will be down. International in-bound tourists, in-bound and VFR (visiting friends and relatives), and outbound travel will remain mostly non-performing due to international flight restrictions and the tragic impact in most key tourism markets of India.

It further revealed that domestic and corporate travel in the country may ease up post lock-down, but will be highly restricted due to the fear of travel among elders and children, the new social distancing norms, corporate travel freeze and the closure of the holiday season. This will impact all leisure, adventure, heritage, spiritual, cruise, and niche tourism segments.

The meetings, incentives, exhibitions and events segments will be impacted due to size restrictions, the association stated.

FAITH said it had proposed a dedicated interest and collateral-free long-term fund for paying salaries. This included operating costs and a minimum of 12 months of complete waiver of fixed central and state statutory and banking liabilities, without any penal or compounding interest. However, the proposal was not acknowledged.

FAITH & its 10 member associations (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) were in constant dialogue with the Centre over the past 10 weeks. The PMO and ministries of finance, commerce, aviation, and tourism, RBI, and all 28 Chief Ministers, Niti Aayog and the Empowered Group 6.

Indian tourism, travel and hospitality are said to impact 10-12 per cent of India’s employment, which is believed to cover almost 5 crore direct and indirect jobs.

The industry has gone numb from a lack of any umbrella direction from the Government and without any fiscal and monetary support.

With no cash inflows, the industry is looking at large-scale bankruptcies and business closures, which will lead to job losses across cities, towns, and the hinterland.

Published on May 17, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.