Federation of Associations in Indian Tourism Hospitality (FAITH), the policy federation of all the national associations representing the complete tourism, travel and hospitality industry of India (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) cause partner AIRDA has again requested multiple Ministries of Government of India, RBI and Niti Aayog.
FAITH has over the week appealed RBI, Ministry of Finance, Ministry of Civil Aviation, Ministry of Commerce, Ministry of Tourism, Niti Aayog for structured fiscal monetary support to the tourism, travel hospitality industry.
The Systemic Risk Survey carried out by which has been presented in their Financial Stability Report, July 2020 has also been quoted. These five sectors have been identified which are most affected by the COVID-19 pandemic. Within them further, the tourism hospitality sector is the one which is most affected where 90% of the respondents foresee a bleak business scenario for at least the next six months. FAITH has also quoted the feedback from collections data of GST IT from Q1 that too demonstrate that the hospitality and tourism sectors are among the most facing difficulty. This implies that almost 75% of the FY 2020-21 business of Indian Tourism, travel hospitality will get compromised until a mass vaccine is available.
From the Ministry of Finance, FAITH has requested complete fiscal statutory support. They have requested for a Tourism COVID 19 fund which enables tourism businesses to support their employees and their operating costs. They have requested prioritized access to very low-cost funds for tourism which are much closer to the repo rate made available through a process of direct benefit transfer mechanism from the Ministry of Finance. Additionally considering the scenario of negligible cash flows for the tourism industry, they have requested consideration of waiver of statutory payment obligations for the FY 20-21.
RBI had been asked to consider urgently a tourism sector-specific economic monetary package that considers relief through multi-year moratorium for both principal interest and access to very low-cost funds closer to the repo rate. They have also requested RBI to consider a restructuring package for the tourism, travel hospitality industry.
From the Ministry of Commerce, FAITH has requested help with enabling SEIS credit to be made available to the tourism industry against the foreign exchange earnings. They have also requested that at this time of crisis and business re-building for the tourism industry the SEIS rate should be pegged at 10% for both tour operators and hotels category and should be made applicable on gross foreign exchange earnings. To provide cash flow support and policy continuity they have requested it may be made available for FY 2019-20 and also for the policy period of the FTP 2020-25with a provision of an additional 500 basis points increase during the lean tourism period to stimulate enhanced foreign exchange earnings.
Ministry of Civil Aviation to help with a robust policy mechanism to ensure cash refunds to travel agents tour operators from both domestic and foreign airlines. The majority of travel intermediaries are micro small enterprises and with their cash flows blocked they are undergoing an unprecedented crisis of existence and confidence from both customers and employees.
Tourism connectivity has to be started in true earnest. FAITH has also appealed to the Ministry of Civil Aviation to expand air connectivity to Asia, the Middle East Africa, in addition to the planned ones for the USA to Europe. While this move will encourage tourism trade, it needs to be accompanied by travel-friendly Standardised quarantine policies across the country which ensure passengers are pre-tested at point of embarkation as per WHO guidelines and only the ones with positive symptoms are quarantined and not all the incoming travelers.
Earlier FAITH had called out for support from the Chief Ministers of all states the Member of Parliament of both the houses individually. FAITH has requested Niti Aayog for help with all of these points and with the other ministries of Government of India with State Governments.
Internationally countries are stepping in to support the Tourism, Travel Hospitality sector. In the UK, Government has reduced VAT on restaurants by 75% to encourage dining and is also subsidizing 50% of the food bill. In Japan financial support is being extended to the sector for their lost income during the lockdown. Even in the EU, under the SURE program, tourism enterprises have access to funding to save jobs through a corpus and also give access to vouchers to consumers to support their preferred tourism service providers. In Singapore, the government has supported the Tourism industry with funding for rent, taxes, and salaries.
FAITH has also urgently requested the Ministry of Tourism for help with the other ministries of Government of India with State Governments on these points. They have also requested them to ensure travel agents tour operators for getting back cash refunds from airlines, railways state national parks.
To fast track revival of tourism interest, FAITH has also urged the Ministry of Tourism to request their creative agency to suggest ideas that elegantly communicate positivity safety of Indian tourism while weaving these messages around different product segments, destinations, and incredible concepts of Indian tourism. These could be designed as multiple series of 30 seconder social media ads each with different versions of voice over of maybe 5-7 Indian and international languages to help stimulate both domestic international tourism traffic as soon as external conditions permit.
Almost all segments of the tourism industry (inbound, domestic, or outbound) will remain highly stressed whether they are travel agents, hotels, tour operators, restaurants, tourist transporters, and any other tourism businesses. There will be negligible cash inflows for most of the tourism businesses but the pressure on cash outflows will remain throughout the FY 2020-21.
FAITH has said that these actions will help in preventing further tourism business shutdowns and job losses. For the tourism sector to survive and thereafter revive this structured support is most critical from among all ministries of Central Government, State Governments, Niti Aayog the RBI. This is once in a century crisis that has threatened the very existence of generations of tourism businesses in India.
News Courtesy: BW HOTELIER
Follow us: Facebook, Twitter, Instagram, Linkedin.
