India Travel & Tourism Associations Plead with Government for Bailout
The Chairman of the Associated Chambers of Commerce and Industry of India (ASSOCHAM) & Hospitality Council, and Honorary Secretary of the Federation of Associations in India Tourism & Hospitality (FAITH), Subhash Goyal, MBA, PHD, issues the following statement on the COVID-19 coronavirus crisis:
The whole world is in a virtual lockdown position because of this deadly Coronavirus (COVID-19). It seems like the third world war.
As far as India Travel & Tourism is concerned, the total tourism business activity of India is estimated at $28 billion, including Rs 2 lakh crore in domestic tourism activity. We have lost about 15 lakh foreign tourists arrivals in the month of March and April and we are not sure of the future business. Tourism industry will go into big loss of about 15,000 crores of foreign exchange. This has caused lot of our members business going into big losses and some small companies are on the verge of closing their business, as they are not in a position to meet the expenses and survive. Tourism is not only an economic activity, but the largest employment generate in the world. Inf act, being labour intensive and having a multiplier effect, the tourism industry is responsible for 10% of the world GDP, 11% of the world taxes and provides millions of jobs to the poorest of the poor in the remotest rural areas of the world.
We have requested Hon’ble Prime Minister, Finance Minister directly and through the Tourism Minister for a bailout package for the Travel & Tourism Industry.
Most of the countries in the world have given the following bailout packages:
– US Govt released 50 Billion $ to stimulus economy for just 4 weeks
– Chinese Govt 44 Billion
– Hong Kong Govt gave $10,000 to each citizen above 18 to spend
– EU allowed entire Tourism Industry & Hotels to extend repayments for 12 months & no taxes for 12 months
– UAE relieved all hotels & attractions from VAT for 12 months (They will need to collect but not to pay, those amt is support from Govt)
– South Korea: 35 Billion support to economy + no taxes for 1 year
– Singapore 25 Billion + 1year tax holiday
Long list… Australia, UK, Japan, New Zealand & many more.
Most of the leaders of the world are appearing on TV on a daily basis, updating their nation and sharing what measures & support their respective govts are giving to fight against coronavirus & save the economy from Disaster in their respective countries.
In India after the Prime Minister’s speech and the constitution of a Task Force, we are hopeful that the Tourism and Travel Industry, which is affected most, will also get a bailout package as has been given by other countries.
On behalf of Assocham Tourism & Hospitality Council and FAITH, we have made the following representations to the Prime Minister, Finance Minister directly & through Tourism Ministry. We are very hopeful that a bailout package is given to us very fast, so that we are able to pay salaries to our staff, rent of our offices and EMIs to our Banks.