The fight is on Still resilient in survival mode
Since the start of the pandemic, Travel and Tourism Associations in India have been constantly engaging the Govt to take urgent measures on jobs and business protection. Very recently, the Indian Govt has started to understand the importance of the sector and is trying to cushion the blow to the sector, albeit, not much to the expectations. Much more needs to be done in a more coordinated way by governments and the sector. Presently, flexible policies and solutions are needed to enable the tourism economy to live alongside the virus in the short to medium term period. In the next few pages, TTJ interacts with the Presidents of India’s leading Tourism Associations to know from them: their current issues, job disruptions, expectations, and the future of the travel and tourism industry in India by 2022.
Our Hon’ble Finance
Minister recently announced 500,000 free visas and a loan guarantee scheme for the travel sector. The Free Visas augurs well for the future and we see the silver lining in international travel. If everything works towards normalcy, the borders should open by October 2021. By early 2022, we should be on the road to recovery and by end of 2022, we will witness the surge. I do not have a crystal ball, but let us be positive. Also, the entire world is now keeping a watch on the Delta plus variant of the disease and the efficacy of vaccination on this new variant will depend upon how the situation is being handled.
To survive during this stressful situation, some points to be noted are that the Government should consider giving a one-time financial grant to all recognised tour operators which could be 50 per cent of the wages paid by the tour operators in 2019-20 and a `2.5 lakh to each tourist guide recognised by the MoT/State Government as a one-time grant.
We are hopeful for the release of SEIS 2019-20 for tour operators which is pending the government’s announcement. The percentage may be considered at minimum 10 per cent of the foreign exchange earnings so that it can give some support to the tour operators for them to survive and revive their business. Also, e-Tourist Visa/International is the key. For us to be ready for the tourism activities, all our front-line tourism workers must be 100 per cent vaccinated.
The E-Tourist Visa/International flight operation should start from October 1, 2021, if the situation remains under control. The announcement in this regard should be made as early as possible so that lead time is given to the foreign agents to prepare themselves to promote India packages. E -Tourist Visa should be opened for all countries on a reciprocal basis.
It is important to open up domestic tourism without any restriction as soon as possible, in places where the number of COVID cases has reduced drastically. This will help build confidence among foreign tourists to visit India.
SOPs, as laid down by the government, have to be put in place and continued by all the stakeholders operating in various segments.
Removing the cascading effect of GST on Tourism Industry by charging GST on Deemed Value should be looked into. Along with that GST on services provided outside India to foreign tourists should be removed. The tourism industry has to be treated as a deemed exporter at par with the IT Industry under Export of Services.
Tourism has impacted more than 10 per cent of India’s employment. This means almost 5 crores jobs. Assuming 75 per cent loss in tourism would imply a proportionate impact on job losses of almost 3.5 crores plus. The industry has lost key skills but the appeal to jobseekers lingers on as the past potential is still present in our memory. The demand will return at a pace and will offer time to garner skilled manpower yet again. Job creation will have its own value and draw once again. IATO is engaged in skill development in anticipation of the demand. The industry is confident in all measures and will be equipped to welcome the much-awaited challenge of demand.