The tourism and hospitality industry in India is anticipating a big hit this year due to the Covid-19 pandemic, with the Federation of Associations in Indian Tourism & Hospitality (FAITH) projecting losses up to Rs 15 lakh crore. The estimated direct loss has multiplied over the last four months, growing threefold from the initial predicted loss of Rs 5 lakh crore.
In a statement issued by FAITH, the apex body of tourism and hospitality in India said, “Given the way the virus is progressing, tourism supply chains have broken down in India across all its key inbound, domestic and outbound markets, and is not expected to recover for the next five months too, making the total impact to a minimum of nine months starting from this March. The direct and indirect economic impact of the tourism industry in India is estimated at about 10% of the GDP. This roughly puts the fullyear economic multiplier value of tourism in India at about Rs 20 lakh crore. A minimum of three-quarters of tourism will be fully impacted.”
The Covid-19 pandemic has caused a massive breakdown across the tourism and hospitality sector, with the entire spectrum ranging from airlines and travel agents, tour operators, tourism destinations, hotels, and restaurants being impacted by global lockdowns.
“Be it for leisure (inbound, outbound, domestic), corporate travel, heritage, adventure, meetings, incentives, exhibitions and events… and in upcoming high-value niche tourism products… and many more across all states, this will be the worst performing year for tourism in a century,” the FAITH statement added.
The body has made an appeal to the government to take urgent measures for the revival of the sector so it may survive losses till the pandemic subsides or a vaccine is ready. The appeal includes a request for an immediate, full-year waiver of all central and state statutory liabilities such as Provident Fund, ESI, income taxes, GST, interstate tourist transportation taxes and license fees.
