Tourism sector pegs loss at ₹15 trillion for FY21 due to covid-191 min read . Updated: 27 Jul 2020, 03:35 PM IST
Amid the relentless spread of the virus, tourism supply chains have broken down in India and recovery is not possible until the next five months
NEW DELHI : The Federation of Associations in Indian Tourism and Hospitality (FAITH), has sharply raised the estimated industry’s losses for FY21 to ₹15 trillion owing to the covid-19 pandemic. This is a threefold increase from ₹5 trillion loss estimated in March.
A recovery is not possible for the next five months as the pandemic is still raging and tourism supply chains have broken down, the industry body said. “This makes the total impact to a minimum of nine months (till the end of the year) starting from March this year," said FAITH, which represents all national associations in the tourism, travel, and hospitality industries.
The direct and indirect economic contribution of the tourism industry is estimated at 10% of India’s GDP, which is roughly around ₹20 trillion. At least three quarters of tourism business will be affected by the pandemic, added FAITH.
The industry covers the whole tourism value chain from airlines, travel agents, hotels, tour operators, tourism destinations restaurants, tourist transportation and guides. Each of these segments of tourism is non-performing or underperforming and will stay that way for many months of this year, FAITH said.
The cumulative job losses for the full year in the organized and the unorganized category of tourism could be as high as 40 million.
FAITH has urged the government to set up a tourism fund that can be used by enterprises to take care of employees and a multi-year moratorium by the Reserve Bank of India (RBI) on principal and interest payments for tourism, travel and hospitality businesses.