New Delhi: Indian Association of Tour Operators (IATO), which represents more than 1,600 operators for inbound tourists, has sought urgent relief from the ministry of tourism in the wake of disruption caused by the covid-19 pandemic.
Ahead of the World Tourism Day on 27 September, IATO, which submitted a memorandum to director general in the ministry Meenakshi Sharma, said the industry that contributes about ₹15 lakh crore to the economy and provides direct/ indirect employment to more than 5 crore people, is on the brink of closure.
The association urged the government to provide MSME loan scheme, special non- collateral, interest free long term (5 to 10 years) loan to all categories of tour operators. As per present rules, new borrowers are not being given any loan. For tour operators who have already taken loan, a moratorium of 24 months could be given with no penal interest being charged, it said.
Financial relief could be given to tour operators, travel agents, tourist transport operators with onetime financial grant of 75-80% of the gross salaries amount paid to the staff based on balance sheet of 2018-19.
IATO also requested for release of advances paid by the tour operators of the association to the airlines for air tickets, hotels for accommodation, and government departments like IRCTC for luxury trains and also for the wildlife safaris have not been acceded.
The industry body also urged the government to increase the incentive of 7% to 10% for tour operators under the Service Exports from India Scheme (SEIS). Under this scheme, service providers, located in India, are rewarded for all eligible export of services from India.
The tourism body said that the SEIS Scrips for financial year 2019-20 should be announced at the earliest as this amount is already invested and spent for developing business for the year 2019/20. This benefit can help save many companies.
Pronab Sarkar, president IATO said, “These are one of the worst times ever for tourism industry and it pleads government for help as without aid and support at this juncture from the government our survival is not possible and the industry which contributed billions of rupees in better time to economy and employed crores of people would be wiped out.”
Since March tourism business has been at a standstill and while many small tour operators have shut down, the larger ones are working with skeleton staff required for maintenance, creditors and supplier's payments and payment of mandatory government dues. In terms of employment more than 4 crore jobs have been lost.
The domestic tourism market could have an impact oalmost 60% to 70% of total value. This implies almost ₹ 2.5 to ₹ 3 lakh crore of direct domestic tourism loss. On an indirect basis, the economic impact could be almost ₹ 6 to ₹9 lakh crore. Meanwhile, international outbound travel originating from India is around $26 billion. Assuming over 60% loss in this segment and almost 30% ticketing retention within the country implies almost ₹ 38, 000 crore worth of hit.
