FAITH doublesloss guidance on Tourism from Rs 5 lakh crores to Rs 10 lakh crores in meeting with EG-6

Kolkata : Federation of Associations in Indian Tourism & Hospitality, 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 revised upwards it’s value at risk to Indian tourism.
In a meeting with EG -6, yesterday, FAITH informed that they would like to revisit and double their
earlier guidance.
The earlier guidance which was calculated and was shared with the Government in March 2020 had
put tourism’s economic value at risk at almost ₹ 5 lakh crores + from this pandemic.  FAITH believes this value at risk could go as high as ₹ 10 lakh crores given the way tourism supply chains are
breaking down in India across all its key inbound, domestic & outbound markets.
The direct and indirect economic impact of Tourism industry in India is approximately estimated at
~ 10% of India’s GDP.  This roughly puts the full year economic multiplier value of tourism in India at
almost ~ ₹ 20 lakh crores.
This value covers the whole tourism value chain across airlines, travel agents, hotels, tour
operators, tourism destinations restaurants, tourist transporters, tourist guides etc. These are
across all the segments of tourism be they leisure ( inbound, outbound, domestic) corporate travel,
heritage, adventure, meetings incentives, exhibitions & events, religious and spiritual tourism and
in upcoming high value niche tourism products such as sea & river cruises, camping, rafting, golf
 film tourism, jungle tourism, agri tourism and many more.
Tourism has one of the largest economic multipliers. FAITH based upon its industry estimates
believes, that in India given its globally unique natural and cultural heritage which is spread across
the Indian hinterlands, 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.

Empowered Group -6, an inter-ministerial group of Government of India, headed by the CEO Niti
Aayog has carefully listened to the concerns across all the tourism verticals and have assured to
take it up with the Government and with the RBI.

FAITH has requested that for revival of any demand in tourism, the tourism supply in India has to
first remain intact. For the same, they have requested Niti Aayog for a COVID 19 Tourism fund of
minimum ₹ 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 & of all central and state statutory liabilities be it PF , ESi, income taxes, GST , fixed power
and utilities tariffs, property tax, excise, inter-state tourist transportation taxes and license fees, all
without any accumulated or penal interest has to be done immediately.
FAITH communicated to EG 6 that this is the only win - win - win outcome as it will not only keep
the Indian tourism industry alive for a revival, it will also keep the jobs intact and it will also protect
the exposure of the banking sector to tourism preventing their loans from  becoming NPAs.
The meeting was attended by the presidents of all founding associations of FAITH - ADTOI, ATOAI,

China’s recent experiment of opening up after a minimum of 6 months lockdown saw some soft
opening of Tourism and that too with very limited, short- haul domestic travel.

Faith believes that if one goes by that example a minimum of 6 months of direct and indirect output
of tourism will be impacted which will put almost ₹ 10 lakh crores economic value at risk in India.
FAITH has already raised requests over the past seven weeks to the Prime Minister, the Finance
Minister,customized requests to each of the 28 chief ministers, to RBI, to the Tourism
Parliamentary panel,  to Ministry of Commerce, ministry ofCivil aviation and is closely in
coordination with ministry of tourism.

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