Travel, tourism sector likely to lose ₹5 trillion due to covid-19 crisis: Report
The organised sector alone is likely to lose $25 billion. The figures are quite alarming and the industry needs immediate measures for survival, the CII-Hotelivate report said
The coronavirus pandemic has dealt a crippling blow to the Indian travel and tourism industry and the entire value chain linked to the sector is likely to lose around ₹5 trillion or $65.57 billion, according to a study by industry chamber CII and hospitality consulting firm Hotelivate.
The organised sector alone is likely to lose $25 billion. The figures are quite alarming and the industry needs immediate measures for survival, according to the CII-Hotelivate report.
"This is the one of the worst crises ever to hit the Indian tourism industry impacting all its geographical segments — inbound, outbound and domestic, almost all tourism verticals — leisure , adventure, heritage, MICE, cruise, corporate and niche segments," it said.
The shut down and slowdown which was initially expected to affect revenue streams till October, have now indicated otherwise. Trends are currently indicating only 30% of occupancy in hotels till the start of next year, with hotels seeing an 80% to 85% erosion in revenue streams, it said.
"The coronavirus pandemic has given a crippling blow to the Indian travel and tourism industry...The entire value chain linked to Travel & Tourism is likely to lose around (Rs) 5 trillion or $65.57 billion, with the organised sector alone likely to lose $25 billion," it said.
According to the study, occupancy was at its peak in January this year at 80% followed by February at 70%, dipping to 45% in March and then to the lowest at 7% in April.
In May, June, July and August occupancies were at 10%, 12%, 15% and 22%, respectively, it added.
The CII-Hotelivate study projected that in September occupancy will be at 25%, 28% in October, 30% in November and 35% in December.
In a worst case scenario, the estimated loss in hotel for both branded and unbranded segments in 2020 is $19.31 billion (around ₹1.42 trillion), it added.
On the other hand, the report said the estimated revenue loss of travel agents and tour operators in a worst case scenario is $4.77 billion (about ₹35,070 crore).
However, in the best-case scenario, industry revenue will improve by 10-15%, said the report, to which online travel services MakeMyTrip also contributed.
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Business NewsNewsIndiaTravel, tourism sector likely to lose ₹5 trillion due to covid-19 crisis: Report
First Published:9 Sep 2020, 03:53 PM IST
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