Editorial: Getting tourism back on its feet

The industry had supported 87.5 mn jobs, which was roughly the equivalent of 12.75% of India’s total employment base in 2018-19. The COVID-19 crisis is estimated to shave off as many as 40 million jobs (both direct and indirect) and about $17 bn in revenue over the next one year. The global hit is even more painful to fathom as losses of up to $2.7 trillion are estimated, with 100 million jobs being deemed at risk.

The implication of such statistics is significant in a state like Tamil Nadu, which apart from being an international gateway or a hub to South East Asia, is also one of the most visited states in terms of domestic tourism influx. Religious and leisure tourism aside, the state has an enviable track record as a hotspot for medical tourism, which is also set to suffer in the backdrop of the pandemic. The state which saw a footfall of 39 crore domestic tourists and 61 lakh foreign travellers two years ago, is staring at a major crisis this year as over 5 lakh families have been rendered without income in the tourism sector. Apart from the direct hit on aviation and hospitality, one must also consider staffers in the ancillary industries that thrive due to tourism that have been impacted due to the crisis - transport services like taxicab and tour operators, tourist guides, amusement park operators, regional craftsmen and artisans, itinerant vendors and everyone in between.

To put things in context, many nations the world over paid special emphasis to their tourism industries that were rocked by the virus. Italy and France have announced bail-out packages in the range of 4 bn euros and 18 bn euros, respectively, to help the nation’s key revenue generators get back to action. But, when the Prime Minister announced a national relief package worth Rs 20 lakh crore, to help businesses tide over the pandemic-induced losses, the hospitality and tourism sectors were excluded.

However, it’s not too late to help these sectors bounce back. To start with, the Ministry of Tourism has now constituted a National Tourism Taskforce, that will make appropriate recommendations for the revival of the tourism industry in India. The sector also has a long wishlist that FICCI had put forth to the Centre for consideration. Some of the suggestions include a 12-month waiver of all statutory dues including Customs, Excise and licence fees; a waiver and/or reduction of GST on products offered by the sector for the same period; short-term, interest-free or low-interest loans for rebuilding businesses; a stimulus package to offer salary support to businesses; and the creation of a separate tourism fund under the aegis of Ministry of Tourism, among others.

As part of reinstating trust among tourists and travellers, both domestic and global, the sector will require infrastructure development funds to prioritise health and safety measures, going forward. It is imperative that both the industry and government as well as end consumers pay attention to ideas such as sustainable tourism - and take baby steps in incorporating practices that allow for a lower carbon footprint, and more efficient means of travel.