Federation of Associations in Indian Tourism Hospitality (FAITH) on Monday revised the economic value of the industry at risk upwards, to Rs 15 lakh crore due to the pandemic. The value has been calculated in terms of the economic output of tourism in India, it said. FAITH is the policy federation of all national associations in the tourism, travel, and hospitality industries. In March, FAITH had pegged the economic value risk at Rs 5 lakh crore.
FAITH said that supply chains have broken down, and is not expected to recover for a minimum of five more months, taking the total impact to nine months — from March to December — at the least. Three-quarters of tourism will be impacted, it said.
“This value covers the whole tourism value chain from airlines, travel agents, hotels, tour operators, tourism destinations restaurants, tourist transportation, tourist guides. Each of these segments of tourism is non - performing or underperforming and will stay that way for many months of this year,” it said.
This will be the worst performing year for tourism in a century, FAITH said.
In addition, FAITH said that the cumulative job loss for the full year in both the organized and unorganized sectors could go as high as four crores.
A spokesperson said that a customized relief package for the sector “cannot be delayed any further”.
FAITH’s demands include
A tourism fund which tourism enterprises can use to take care of employees
A multiyear moratorium by the Reserve Bank of India on principal as well as interest
Immediate full-year waiver of all central and state statutory liabilities such as provident fund, income tax, fixed power and utility tariffs, etc.
Refund mechanism for agents and operators from airlines, railways, state tourism parks, and other suppliers.
FAITH said that the direct and indirect economic impact of the tourism industry in India is approximately estimated at ~10% of India’s GDP, or roughly Rs 20 lakh crore.
“Till the time there is a vaccine found, the very concept of tourism will be in question,” it added and said that this will be reflected in GST collections, banking data, etc.
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