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Business News/ News / India/  Tourism federation urges government to launch campaign to dispel consumer fear
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Tourism federation urges government to launch campaign to dispel consumer fear

It has suggested incentivising travel within India--both for business and leisure--by creating structured tax breaks and urged brining down GST on hotel room tariffs above ₹7,500 to 12% from 18%

Tourism is among the worst hit sectors following the coronavirus pandemic. (Photo: Bloomberg)Premium
Tourism is among the worst hit sectors following the coronavirus pandemic. (Photo: Bloomberg)

NEW DELHI: The Federation of Associations in Indian Tourism and Hospitality (FAITH) on Wednesday met representatives of the tourism ministry to suggest of ways to revive demand which has taken a severe hit following the coronavirus pandemic.

The industry body urged the ministry to form a task force to coordinate state and central government policies to allay consumer fears. It added that the ministry should launch a high-decibel campaign focussing on how safe Indian tourism is in different local languages.

It has suggested incentivising travel within India--both for business and leisure--by creating structured tax breaks.

It also urged a statutory waiver on all fixed liabilities such as power cost, liquor permits, property cesses, among others, and brining down GST on hotel room tariffs above 7,500 to 12% from 18%.

A multi-year e-visa holiday for all categories has also been proposed as and when international tourism reusmes. This needs to be complemented by publicising widely the revised 96-hour policy for covid-19 testing and ensuring standardisation across all airports.

They also discussed holding the Indian Tourism Mart for international tour operators to establish confidence and showcase the incredible tourism offers in the first or the fourth week of November.

Tour operators and travel agents recognised by tourism ministry should be allowed to operate tours for adventure, religious, or education purposes, the association said.

For tourist hinterlands, last-mile air connectivity has been recommended under the Udaan policy, with increased state support till private demand picks up.

The federation has mooted revising guidelines to to allow 300 guests for an indoor event and up to 500 in open areas. It added that IGST be enabled for hospitality industry as it will allow companies to claim GST credit while using hotels for meetings in other states.

"To financially protect the tourism companies, till the resolution plan is set in motion by the RBI, FAITH Associations proposed extension of the moratorium of tourism & hospitality companies. They have also requested for automatic extension of all tourist transport and tour operators permits , liquor licenses and other extensions," according to a statement.

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Published: 12 Aug 2020, 06:08 PM IST
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