Indian Tourism Sector worst hit by COVID-19; 38 million jobs at risk
The spread of COVID-19 has delivered a big blow to the tourism sector globally. In the wake of this pandemic, tour operators, airlines, hotels and allied industries have been the worst hit.
Back home the story is no different. The Indian tourism sector has witnessed about 70-80 percent cancellation in bookings since the scare took an alarming turn. According to reports, the apex body of the industry-- Federation of Associations in Indian Tourism & Hospitality (FAITH) has approached Prime Minister Narendra Modi for a possible bailout.
According to industry chamber CII, 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.
The reports further stated that FAITH has requested the Prime Minister for twelve months moratorium on EMI’s of principle and interest payments on loans and working capital from Financial Institutions (both banking & non-banking).
It has also asked for a complete GST Tax Holiday for the tourism, travel and hospitality industry for a period of 12 months. “With almost nil revenues there is hardly going to be any GST collection. This will make a very strong statement and will promote both domestic and inbound travel,” it said in its letter.
Further, it has predicted that a near halt in travel and tourism may result in a Rs 10-trillion hit to the country’s economy. “As a result of this pandemic, the Indian tourism industry is looking at pan-Indian bankruptcies, closure of businesses, and mass unemployment,” said FAITH.
