India’s apex Inbound Tour Operators body IATO, seeks immediate government assistance as tour operators continue to suffer in the wake of sluggish FTA’s which still remain below 2019 levels.
The major reason for little revival in this sector can be attributed to lack of budgetary support for publicity abroad and withdrawal of incentives to tour operators which could be utilised for promotion in the key source market like UK, Canada, USA, Germany, Australia, France and Russia.
There is no gain saying that the tourism sector suffered the most during the pandemic. However since then, there has been a robust revival in Domestic Tourism and Outbound Travel. This is mainly due to pent up demand, allure of foreign locations and incentives like visa fee waiver announced by multiple countries.
They have wooed our tourists as that boosts their economy but unfortunately there have been no such measures from our country and that has led to lack of foreign tourist numbers in India. Besides, the incentives announced by neigbouring countries have also weaned some foreign tourists away from our country.
Speaking on this IATO’s President, Rajiv Mehra said: “In 2018 and 2019, India had 10.56 million and 10.93 million foreign tourist arrivals, 2023 which was a normal year the figure was 92.36 lakhs. Even this year we are not expecting 2019 level’s to be reached. At best we are expecting 7-9 percent growth over 2019 levels.”
“Travel and Tourism created 79.86 million (direct + indirect) jobs and 15.34 per cent of jobs in the 2019–2020 year. Forex earnings in 2020 were in the tune of $7 Billion In terms of GDP during 2019–2020, tourism contributed 5.19 per cent (direct + indirect). These figures indicate potential both in terms of contribution to GDP as well as the tourism potential. By that yardstick we can easily assess the huge opportunity lost for the country,” added Mehra.
In the wake of this, IATO urges the government to restore, if possible, hike the budget for promotion abroad. Overseas advertisements both electronic and print and road shows abroad should resume. Besides, a PLI on the lines introduced for the manufacturing sector can be given to tour operators as that can help in earning precious foreign exchange and with this money they can promote the destinations abroad.
Besides, the Govt should consider visa fee waiver as the resultant increase in numbers would easily offset the revenue lost in terms of visa fees. These measures together can help in restoring FTA’s in India.
