NEW DELHI/CHENNAI: The tourism sector is in dire straits due to the Coronavirus pandemic. According to the Federation of Associations in Indian Tourism and Hospitality (FAITH), direct tourism activity in excess of Rs 5 lakh crore, including foreign inflows, is at risk and in the process over 3.8 crore people are likely to lose jobs.
“With declining revenues almost all tourism businesses are running out of working capital. A large percentage of total tourism business activity of India, which is estimated at above $28 billion in forex and upwards of Rs 2 lakh crore in domestic tourism activity will be at economic risk through the year. Thus, in excess of Rs 5 lakh crore of direct tourism industry and almost double that of total economic activity is at risk,” FAITH stated in a letter to Prime Minister Narendra Modi, seeking government intervention to aid the bleeding sector.
Stating that the industry stares at bankruptcies, business closures and mass unemployment, the tourism and hospitality body has requested that tax collected at source (TCS) on travel has been proposed in Finance Bill 2020 to be levied from April 1, 2020 is waived.
Other recommendations
12 months moratorium on EMIs of principle and interest payments on loans and working capital from banking and non-banking institutions, doubling of working capital limits on interest free etc.