Indian Tourism industry goes into a state of shock & disbelief

Kolkata, May 18, 2020: 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) says the Indian tourism industry has gone into a state
of disbelief and shock.
The Indian Tourism industry was looking forward to deep set of survival measures
for tourism from the ₹ 20 lakhs crore package announced over 5 days, which
however were not addressed. The Indian Tourism, Travel & hospitality is believed to
impact almost 10% of GDP through its direct and indirect impact. It has already seen
over one quarter of accumulated losses which began from February onwards.
There is no cash inflow expected for many quarters over FY 20-21 as the key
segments of the Indian tourism economy will be down. The international inbound
tourists, inbound and VFR - (visiting friends and relatives) and the outbound travel
will remain mostly non performing due to international flight restrictions & tragic
impact in most key markets tourism markets of India.
Domestic travel and corporate travel within the country may slightly ease up post
lockdown but will be highly restricted due to fear of travel among elders & children,
the new social distancing norms, corporate travel freeze and the closure of the
holiday season which will impact all leisure, adventure, heritage, spiritual, cruise and
niche tourism segments. The meetings incentives exhibitions & events segment will
be severely impacted due to meeting size restrictions.
Consequently all tourism service providers, the hotels, travel agents, tour operators
tourist transporters, restaurants, guides will be compromised and the tourism
industry of India will be operating with extreme under capacities making most
tourism businesses unviable on a cash operating basis.

To prevent this and to ensure survival, FAITH had proposed a dedicated interest and
collateral free long term fund for paying salaries & operating costs and for a
minimum of 12 months of complete waiver of fixed central & state statutory and
banking liabilities without any penal or compounding interest which have not been
The proposed MSME fund with its many underlying restrictions may have a very
limited usage.
FAITH & its ten member associations (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA,
ITTA, TAAI, TAFI) had been constantly dialoguing with all factions of the Government
over the past 10 weeks the PMO, ministries of Finance, commerce , aviation, and
tourism, with RBI, with all 28 chief ministers, Niti Aayog and with the Empowered
Group 6.
Indian tourism travel and hospitality is said to impact 10-12% of India’s employment
which is believed to cover almost 5 crore + direct and indirect jobs.
The industry has gone numb from a lack of any umbrella direction from the
Government or without any fiscal & monetary support.
With no visibility of cash inflows the Indian tourism industry is now looking at large
scale bankruptcies, business closures which will lead to job losses across cities,
towns and hinterlands of India. This has the potential to set back the Indian tourism,
travel and hospitality industry by many years.

No comments