Zero from 20 lakh cr relief package left tourism industry in the fight for survival

The Tourism and Hospitality industry of India has expressed its shock and disappointment over not being included in the ‘Atmanirbhar Bharat Abhiyan’ relief package the guidelines for which were announced by the Minister of Finance of India Nirmala Sitharaman in a series of press conferences till yesterday.

Numerous industry bodies like FAITH, CII, IHHA, FHTR, among others were working in coordination with the #Ministry of Tourism for weeks with constant discussions which have amounted to a naught. The Government has also failed to address the growing wage issues for a sector that generates large employment.

It is to be recalled that the tourism industry sought to negotiate a revival package with the Government. Apart from this they also urged for policy support for waiving off electricity charges, reduction of GST rates, State tax reimbursement, salary support, interest and collateral free long term funds, reduction in bar fees and much more. The collective might of all travel and tourism stakeholders is required to fight the forthcoming battle the industry
will be facing.

Nakul Anand, Chairman Federation of Associations in Indian Tourism & Hospitality (FAITH) has written a letter to the Tourism Minister Prahlad Singh Patel reiterating the demands of all the ten associations of the tourism & hospitality industry.

The Indian Tourism industry was looking forward to deep set of survival measures for tourism from ₹ 20 lakhs crore package announced over 5 days, which however were not addressed. The Indian Tourism, Travel & hospitality is believed to impact almost 10% of GDP through its direct and indirect impact. It has already seen over one quarter of accumulated losses which began from February onwards.

To prevent this and to ensure survival, FAITH had proposed a dedicated interest and collateral free long term fund for paying salaries and operating costs and for minimum 12 months complete waiver of fixed central & state statutory and banking liabilities without any penal or compounding interest which have not been addressed.

“The entire tourism industry has been totally disappointed that out of the 20 lac crores bail-out package, not a single rupee has actually come for bail-out of the travel tourism and hospitality industry,” said Subhash Goyal, Honorary Secretary, Federation of Associations in Indian Tourism & Hospitality.

Pronab Sarkar, President, Indian Associations of Tour Operators (IATO) has expressed his disappointment and said: “We have been completely disappointed by government’s lack of empathy for the suffering of tourism sector. This sector directly and indirectly employs about four crores people yet not a single word of solace for the sector in the entire five press conferences held by Hon’ble Finance Minister.”

Sarkar further explains that the tourism industry has borne the maximum brunt of this pandemic and an industry of the size of ₹ 18 lakh crore is on the brink of collapse. Tourism industry was the first, which was affected even before the lockdown in the month of February, when the international flights and visa got cancelled starting with China, followed by Italy, Iran, Korea and then followed by all the countries. Lack of any mitigating announcement by the Finance Minister in the series of announcements made, only goes to show that government consider the entire sector not worthy of any attention.

“We had requested for financial support, refund of advance payments made to the airlines for air tickets, refund of advance payments made for luxury trains and wildlife safaris and all this funds stuck with the airlines, state government, abolishing GST, enhance SEIS to 10%, reducing VISA fee and several other measures all that would have made India an attractive inbound destination,” he added.

Jyoti Mayal, President TAAI & Vice Chairperson FAITH says: “It is very sad that such a huge industry of travel tourism hospitality & aviation has not been mentioned even once in the entire bail-out package of our Finance Minister. We are going to see a lot of unemployment & businesses getting shut.”

“We understand that the PMs focus on better infrastructure & for the underprivileged but what is the use of infrastructure if the industry only doesn’t survive? What is the use of reduction in GST, TCS, TDS for a couple of months if there is not going to be any business? Unless we get a survival package as requested for there is not going to be a thrust in revival for our members.  The government has left us Nirbhar on ourselves.”

Gurbaxish Singh Kohli, Vice President, Federation of Hotel & Restaurant Associations of India and President, Hotel and Restaurant Association of Western India (HRAWI) said: ” The hospitality industry pledges its hotel rooms to the Government for accommodating the quarantined, we prepare and distribute lakhs of free meals to lakhs of people and we support the govt whenever they call for us but unfortunately we do not even figure in their list of sectors that are in desperate need of help.

“We are very concerned how Tourism which was specifically mentioned by the PM in his address at the Red fort as one of the five pillars that drove the economy of the country was not featured as one of the pillars in his updated list in a recent address to the nation. We have made several representations to the Government informing it about the current state of our industry.”

“The FHRAI calls for the Centre to pay immediate attention to hospitality and tourism which contributes almost 10 per cent to the GDP. We are immediately writing to the Hon. FM, the PMO and also the RBI again pleading for justice to be done to the hospitality and tourism industry.”

Captain Swadesh Kumar, President, Adventure Tour Operators of India (ATOAI) says: “This industry is scattered across the country, even in small towns, where people are completely depended on the adventure tourism activities for their livelihood. For example, in Leh, Ladakh, there are more than 5000 taxis and more than 3000 motorbikes which are presently vacant and waiting for the business to restart.”

“Similarly, a large number of Home Stays across the country have no business at present and are struggling for their survival. As per our estimate, it will take at least six months of time to restart the operations and they all need support at this crucial period,” he added.

Amaresh Tiwari, Vice Chairman, India Convention Promotion Bureau (ICPB) reiterates the MICE industry’s immediate demands. “Allow us to open Meetings and Conference Venues both hotel and standalone venue. MICE Participants and Gathering are two different things. MICE is having its standard, guidelines and adhere to all rules and regulations of safety & hygiene. Creation of India MICE fund under ICPB to market and promote MICE under Champion Sector Schemes of Ministry of Commerce and Ministry of Tourism.”

PP Khanna, President, Association of Domestic Tour Operators Association (ADTOI) said: “There is no cash flow at all in the domestic tourism and it has not been supported at all. Travel within the country may slightly ease up post lockdown but will be highly restricted due to fear of travel among elders & children, social distancing norms, corporate travel freeze and the closure of the holiday season but will be highly restricted due to fear of travel among elders & children, social distancing norms, corporate travel freeze and the closure of the holiday season impacting all adventure, heritage, spiritual, cruise and niche tourism segments.

Satish Sehrawat, President, Indian Tourist Transporters Association (ITTA) says that the tourist taxi operators have not been able to pay the EMIs of the vehicles they own in the absence of cash flow. Also they have not been able to pay the salaries to their drivers.

Pradip Lulla, President, Travel Agents Federation of India (TAFI) says: “It’s a big disappointment that in the huge bailout package of 20lakh crores the travel and tourism We sector has received no stimulus or positive cash flow solutions as we are the most vulnerable with zero business .As 10% GDP contributors and paying taxes for all these years we have been left on our own to weather the storm.”

Indian Heritage Hotel Association of India (IHHA) says that despite the sector having made numerous requests and appeals to the Government for assistance and bailouts, the industry has been viewed as a part of the ‘Luxury’ category. This has created immense grievances for those needy citizens whose livelihood has been affected during the Corona pandemic. These include tourist guides, auto drivers, taxi drivers, souvenir sellers, shopkeepers, craftsmen, handicraftsmen as well as folk artistes who perform for tourists.