Stimulus Package – too late and too little

While reacting on the stimulus package announced (June 28th) for the crisis ridden Tourism & Hospitality sector as a sort of relief by Finance Minister Nirmala Sitharaman, President of Confederation of Tourism Professionals of India (CTPI) Dr. Subhash Goyal said, “This announcement is too late and too little. Already 10 million people have become jobless and thousands of companies have become bankrupt. Tourism is not only the largest employment generator but has a multiplier effect on all other sectors of our economy.”
While elaborating on the announcement and its relevance to the travel agents and tour operators including guides Dr Goyal suggested:

  1. Without the announcement of the date for issuance of e-tourist visas and the date for starting of scheduled international flights, we cannot revive tourism and free visas will be meaningless. Moreover, all tourists who are spending air fare can easily pay for the visa fee.  This will only benefit overland tourists from Myanmar, Bangladesh and Pakistan.  The money saved by not giving free tourist visas can be utilized for giving grants to Tourist Guides and Tourism workforce.
  1. The giving of loans to Tourist Guides and Small Tour Operators is also meaningless because how will they return the loan and pay the interest when there is no business. If the government really wants to help, then there are only about 11000-12000 govt. recognised guides and govt. can easily give them a onetime grant under the same provision like they are giving to Farmers and Ration to the Below Poverty Line (BPL) people. In the same provisions, grants can be given to Tourist Guides, small & medium Tour Operators, Tourist Bus/Taxi owners & Drivers etc. This would help them to survive till the time our borders are opened and Tourist start coming to India.
  1. If the government is serious, they have the balance sheet of all tour operators who have honestly being paying taxes for such a long time, based on the before Covid-19 balance sheet, they can give an interest free loan;  repayments of which should start only one year after international borders are opened.  Similarly, based on this the govt. can pay at least 50% of the staff/workers’ salaries of these companies.
  1. Before talking about loans, government should first pay the SEIS amount which is legally long overdue and then talk about interest free loans.
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