New stimulus: Tourism industry hopes to recover from pandemic blues

In FY20, tourism sector in India accounted for 39 million jobs, which was eight per cent of the total employment in the country. By 2029, it is expected to account for about 53 million jobs.

By 2028, international tourist arrivals are expected to reach 30.5 billion and generate revenue over $59 billion. However, domestic tourists are expected to drive the growth, post-pandemic.

International hotel chains are increasing their presence in the country, and it will account for around 47 per cent share in the tourism and hospitality sector of India by 2020 and 50 per cent by 2022.

Once visa issuance is restarted, the first 5 lakh tourist visas will be issued free of charge to visit India. However, the benefit will be available only once per tourist. The facility will be applicable till March 31, 2022, or till 5 lakh visas are issued, whichever is earlier. Total financial implications of the scheme to the government will be Rs100 crore.

The government will also provide financial support to travel and tourism agencies and 10,700 regional level tourist guides empanelled with the Tourism Ministry or any other State Government.

The loans will be provided with a 100 per cent guarantee, with an amount capped at $1million per travel and tourism agency and Rs1,00,000 for tourist guides.

Indian Association of Tour Operators (IATO), which represents more than 1,600 operators for inbound tourists, urged the government to consider giving one-time financial grant to all recognised tour operators which could be 50 per cent of the wages paid by the tour operators in 2019-20 and Rs 2.5 lakh to each tourist guide recognised by the ministry of tourism/state government.

The Reserve Bank of India (RBI) has opened a separate on-tap liquidity window to help mitigate the adverse impact of the second wave of the pandemic on certain contact-intensive sectors. The move would provide liquidity of Rs 15,000 crore till March 31, 2022, with tenors of up to three years.

Under the scheme, banks can provide fresh lending support to hotels and restaurants; entities related to tourism - travel agents, tour operators and adventure/heritage facilities; aviation ancillary services - ground handling and supply chain; and other services that include private bus operators, car repair services, rent-a-car service providers, event organisers, spa clinics, and beauty parlours.

Incentive, banks will be permitted to park their surplus liquidity up to the size of the loan book created under this scheme with the Reserve Bank at a rate which is 25 basis points (bps) lower than the repo rate. The hospitality and tourism sector welcomed the decision.In FY20, tourism sector in India accounted for 39 million jobs, which was eight per cent of the total employment in the country. By 2029, it is expected to account for about 53 million jobs.