Tourism’s co-existence with COVID-19
As the world is collectively gearing up to embrace the new normal, tourism in India will also be back in demand with special safety measures and radical changes. While the pandemic has been a setback for travel tourism this year, it is now time for revival for the industry.
It is said that in nature, the greatest evolutionary mechanisms developed by any species have occurred in an attempt to beat the odds. Even Charles Darwin’s famed ‘survival of the fittest’ theory points out that in all of nature, organisms have adapted in order to defeat what was out to defeat them. But the evolution of flight took this manoeuvring on our planet to a higher level. Flying enabled several species to explore new territories that might otherwise be out of reach. This phenomenon is equally applicable to human civilization, and is true for the tourism industry all over the globe today, and the time has come for the industry to explore new territories and take flight in a way as never before.
The Tourism Sector has been affected by the pandemic, primarily due to the restrictions imposed globally to control the spread of the virus. However, this has also presented an opportunity for the tourism and travel industry to reinvent itself in new and innovative ways. Countries all over the world have adopted their own unique strategies to cope with the pandemic. India is also speeding up its re-opening strategies to re-generate cash flow. The tourism projects are being assisted by providing handholding support by institutions such as TFCI – a major lender to the tourism sector in India.
At a time like this, when international borders are almost closed, domestic tourism can truly take over, countries such as Japan have leveraged this, and it recently launched its “Go to Travel” campaign, an effort to boost domestic travel which provides subsidies on all domestic travel spending. This is also a huge opportunity for India and a wakeup call for the Govt. to boost domestic tourism.
The Indian travel and tourism sector contributed nearly $194 billion, around 6.8 per cent of the country’s GDP during the year 2019. Since India is gradually re-opening important sectors of the economy, the hospitality industry needs to get a thumbs up from the Government to restart the business, with special operative guidelines in place.
The pandemic is likely to change most travel trends in the short to medium term within the country. Travellers today would prefer to go local due to the global situation and shall not be averse to spend a tad higher for factors such as hygiene, safety standards deployed in a hotel to ensure the health of its staff, etc. An inclination towards domestic travel is bound to create good demand, steering money back into local economies. Incentives offered by the industry to attract tourists will also add to this trend.
These new trends can boost the MSME sector in the country as many hotels get categorised under this sector and it can also help small and micro ancillary support units catering to a hotel, as the tourist flow resumes. However, efforts are required both at the Central as well as State Govt. level to induce demand for tourism in India and some State Govts. have already initiated efforts in this direction.
The Andhra govt. and the APTDC is conducting webinars for its officials, to inculcate state-of-the-art technologies and increase tourist activities; while Kerala has been through a similar disaster before (devastating floods and Nipah virus attack in 2018), it’s all set to use its experience to restart tourism in the wake of the pandemic. Kerala is revitalising its domestic tourism by promoting Ayurveda, eco-tourism and adventure and is making its presence felt on the Incredible India digital platform by providing relevant content. Similarly, the Himalayan state of Uttarakhand has approved the expansion of the helipad at Kedarnath Dham, which shall allow the landing of Chinook helicopters to boost tourism. Also, under the Tourist Incentive Coupon Scheme, tourists will be given ₹ 1000 discount coupons for their e-booking for a minimum 3-day stay in hotels/homestays in Uttarakhand. Further, in a recent development, the Goa government has allowed restaurants and bars to reopen following SOPs and guidelines and lifted inter-state movement restrictions.
Financing institutions, such as TFCI are truly ‘Helping Tourism Grow’ by providing required financial support to assist units to withstand the temporary distortion during these challenging times. TFCI is deeply committed to supporting the survival, revival and growth of the tourism industry in India post COVID.
Anirban Chakraborty is the MD & CEO of Tourism Finance Corporation of India (TFCI).