28 Indian States set to lose Tourism as an Industry

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Kolkata : 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) has appealed to the Chief Ministers of each state for coming up with a state specific package.
FAITH has shared with each state their share of domestic and foreign tourists and
how most of those total tourist footfalls will now not be available for 2020-21.
This tourism business has almost completely come to a standstill in FY 2020-21.
Almost all of India’s top performing foreign source markets for tourism (USA,
Canada, UK, Germany, China, Japan, Singapore, Russia, Italy, Spain), are severely
impacted and are not likely to travel before FY 2021 - 22.
The interstate domestic season which happens almost 60%+ in the April - July period
has collapsed for the year FY 2020 - 21 and will be negligent for the rest of year with
stringent travel restrictions and reduced connectivity across Indian states.FAITH has
been repeatedly saying to all key Government bodies that the Tourism industry of
India first needs to SURVIVE, then needs to REVIVE and then only can it THRIVE.
FAITH has appealed to the Chief Ministers of each state for coming up with a state
specific package.
• A complete waiver of all fixed electricity and other utility charges for FY
2020-21 without any penalties.
• A complete waiver of all excise duties for FY 2020-21 without any
penalties.
• A renewal of all licenses, permits, permissions which were expiring in
FY 2020-21 without any financial charges or penalties.
• A refund of the FY 2019-20 of SGST collected from all travel agents,
tourist transporters, hotels, tour operators, restaurants and any other
tourism, travel & hospitality enterprises in the state which will help

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manage their working capital crisis. This can be paid back in subsequent
years interest free and without any penalties.
• A complete waiver of any other taxes, fees, cesses or levies such as the
property taxes or interstate tourist transport taxes levied at the level of
the state, municipal, district or panchayat on the tourism, travel &
hospitality industry.
Additionally, FAITH has also requested the Chief Ministers for their support
with the following:
 Request to the Finance Minister, of Govt of India for a complete waiver of
income taxes, GST, PF & ESI and any other statutory taxes, fees, cesses or
levies on the tourism, travel & hospitality industry for FY 2020-21
 Request to Governor RBI for increasing the moratorium period on loans from
three months to full financial year of 2020-21 without any penal or
accumulated interest.
 Request to Finance Minister, Govt of India & Governor RBI for setting up a
Tourism COVID 19 fund for 10-year interest free loan for enabling tourism,
travel & hospitality industry to meet salary costs. This could be for a minimum
fund size of Rs. 50,000 crores which is almost equal to the gross banking credit
to Indian tourism, travel & hospitality industry. This will help retain jobs,
ensure that tourism business don’t go bankrupt and also will protect the
principal amount of loan and overall banking exposure.
This crisis emanating from COVID 19 is the worst ever to hit the tourism industry,
bigger than the combined financial impact of 9/11 and economic downturn of 2009
and said to be even bigger than the impact of world war 2 and the Great Depression.
FAITH has thus appealed for urgent support to prevent mass bankruptcies and
unemployment in tourism, travel & hospitality industry in each state.

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