Lower taxes, improve visa policies
The World Travel and Tourism Council (WTTC) behemoth warns taxation and restrictive visa policies can prove disastrous for the Indian tourism industry.
David Scowsill, President and CEO, WTTC has urged the Government of India to address two major concerns – high taxes on aviation and Visa-on-Arrival (VoA) issues – that are hampering the growth of tourism in the country. Speaking at the Hotel Investment Forum India (HIFI) in Gurgaon, Scowsill says, “India is the 12th largest travel and tourism economy in the world, and has the potential to become one of the biggest in our industry. Yet it risks squandering this opportunity through excessive taxation and restrictive visa policies.”
It is vital, he says, for the government to reduce the tax burden on the industry. According to Scowsill, India is becoming increasingly expensive.
“Taxes are rampant in India’s aviation sector. This indicates the government views the sector as a revenue source rather than a revenue generator,” he laments.
While IATA says the country’s aviation industry will be the fourth largest market for domestic passengers globally by 2016, driving profitable operations is still a challenge. “There is oversupply in the hotel sector in key cities in India, which is reflected with decrease in the three performance metrics (occupancy, average daily rate and revenue per available room) during the first nine months of 2012,” he adds.
Regarding the recent initiatives taken by India, he points out, “The expansion of Visa on Arrivals to include Malay and Thai visitors and the ending of restrictions requiring a two-month gap between re-entry for most visa-holders are definitely encouraging developments in India. This reflects the positive government support for the country’s tourism industry. However”, he cautions, “This is not enough.”
There is much more to do between India and particularly the other G20 coun- tries to remove these visa restrictions. “Measures to make it easier for travellers to enter the country is a key priority. Continuing the process of providing VoA to more nationalities is another component in this progress. Along with easing visa restrictions, it is also important to make the visa process faster and ultimately electronic, so that travellers who want to come to the country do not face unnecessary obstacles.”