According to the World Travel and Tourism Council, the tourism sector is the second largest job provider in the country. It is providing 42.7 million direct and indirect jobs. The tourism industry is contributing Rs 16.9 lakh crore, which is 9% of the total Indian Gross Domestic Product (GDP). Covid-19 made a major impact on this sector, and needs careful revival plans, since a significant number of people depend on this. This pandemic crisis is affecting the whole world, hence there is no point looking for international tourists for the next 12 months after this Covid-19 crisis period. During this period encouraging domestic tourism is the only way to revive this industry. A suitable strategy also is to boost the aviation and rail industries apart from the hospitality segments.
The aviation industry should also be considered along with the tourism industry since both of them depend on each other. There are approximately 2.0 million jobs and 1% of GDP contribution from the aviation industry. Even though the GDP contribution is less, this industry is indirectly playing a vital role in overall business in a huge country like India. The following proposals, are a few practical suggestions and strategies to revive this industry in short and long range.
- Claiming provision of leave travel allowance/concession (LTA/ LTC) for Central Government, PSU, Banks and other corporates should be made yearly, instead of two years, and its tax benefits should be applicable to only domestic tour packages. Options for boarding, lodging and travelling should be included in the LTA. All the Indian airlines companies should be eligible for the claim (Not only AIR INDIA).
- Tourism packages need an all-time low GST tariff for the next 12 months. GST for room tariff should be unified while fixing it as a lower slab. Tax for the travels and taxis also should be on the same tariff.
- EPF and ESI payment should be waved off for the employers for one whole financial year. Only employee contribution should be there.
- Encourage pilgrim tourism, and making basic infrastructure available, such as temporary construction, will be nature friendly and easy to set up.
- On arrival visa for foreign tourist hailing from more countries should be provided. This will provide better safety and security for the tourist. Since less tourists will be arriving, this reduced numbers should be used to build a better image of the country.
- GST for Aviation turbine fuel (ATF) needs to be reduced by 5% and unified in entire sub-continent for entire financial year under regional connectivity scheme for domestic flights, which reduces the burden on airlines.
- User fee, space rentals, landing, parking, and other commercial charges in all the Airport operators should be reduced by 50% till December 31. The government should provide viability gap funding (VGF) to the forced vacant seats in airlines. The losses of the airport operators should be balanced by some corporate tax relaxation. Reduction of ground handling tax also should be considered by government.
- Allowing international and domestic ticket cancellation for Airline industries will be having a burden of Rs 6,000 crore, which may put Airlines industries in a state of dilemma. Instead, an open ticket can be kept which can be used at any time within a year with the same price, 15 days prior to travel. This could help the industry to survive from a huge crisis. Same could be adopted for 6 months for international flight.
The government should propagate Ayurveda, yoga, and spiritual tourism in foreign countries, since the epidemic has made the people to peek into their inner soul and bring them back to nature. This can be an opportunity for tourism after this crisis.
(Author is a techno legal expert, strategist and Management consultant)
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