Kolkata,06 May(HS): The projected economic loss of Indian Travel and Tourism industry has now been increased to over Rs 10 lakh crores from around Rs 5 lakh crores even a three weeks ago leading to the possibility of a loss of jobs to millions of employees associated with this dual industry posing a great danger to the overall economy of the nation.
This view was expressed here today by the All India Federation of Associations of Indian Tourism and Hospitality(AIFAITH) in its latest report for facing the danger that 50 per cent or more loss of value of almost 10 per cent of India’s revenue generation from Tourism industry apart from countering the risk of a total collapse.
Referring to the earlier survey in March this year which had put tourism’s economic value at risk at about Rs 5 lakh crores because of this pandemic, AIFAITH said but now within a gap of only about a month this value at risk had now gone up to as high as Rs 10 lakh crores given the way tourism supply chains were breaking down in India across all its key inbound, domestic and outbound markets.
‘The direct and indirect economic impact of the tourism industry in India is approximately estimated at 10 per cent of India’s GDP. This roughly puts the full-year economic multiplier value of tourism in India at almost Rs 20 lakh crores’. the AIFAITH in its survey said.
This value also covered the whole tourism value chain across airlines, travel agents, hotels, tour operators, tourism destinations restaurants, tourist transporters and tourist guides, the survey report said adding these were across all the segments of tourism be they leisure (inbound, outbound, domestic) corporate travel, heritage, adventure, religious and spiritual tourism and in upcoming high-value niche tourism products such as sea and river cruises, camping, rafting, jungle tourism, adventure tourism and many more.
Tourism has one of the largest economic multipliers. AIFAITH survey stated further and estimated that in India given its globally unique natural and cultural heritage, each rupee spent on tourism could have an economic multiplier of between 2.5 – 3 times. ‘While this is India’s global competitive advantage in tourism, this can also quickly translate into a competitive disadvantage due to this pandemic, if not supported immediately as tourism jobs are spread right across the cities to remote areas pan India’, it said.
‘We have brought to the notice of this possible disaster to an inter-ministerial group of Government of India, headed by the CEO Niti Aayog who had carefully listened to the concerns across all the tourism verticals and assured to take it up with the Government and with the RBI soon’, Association sources informed Hindusthan Samachar here today.
AIFAITH has requested that for the revival of any demand in tourism, the tourism supply in India has to remain intact. We have also requested Niti Aayog for a COVID 19 Tourism fund of minimum Rs 50,000 crores which can be used by tourism enterprises in India as a 10-year interest-free loan for taking care of their employees.
This along with a 12 months full waiver of all banking loans and of all central and state statutory liabilities be it PF, ESI, Income taxes, GST, fixed power and utility tariffs, property tax, excise, inter-state tourist transportation taxes and license fees, all without any accumulated or penal interest has to be done immediately., they said.
