With the tourism industry expected to take a long time to recover from the blow dealt by the pandemic, travel and tourism trade in the region is looking up to the government for some urgent financial support to stay afloat.
It has been disappointed on “being ignored” in the Atmanirbhar Bharat Abhiyan economic package and hopes that the government would soon take note of its critical situation and come out with appropriate relief.
In a recent representation to the Union Finance Minister and others, the Travel Agents Association of India (TAAI) expressed shock over absence of any relief to the sector in the package.
The travel and tourism trade provided direct employment to over 12% of the workforce in the country but yet no relief has been given to it, the association said but expressed confidence that the Centre would soon come to their aid.
“The industry has been badly affected due to the lockdown. Most of us are facing a severe cash crunch as refunds from airlines are not coming through. Airlines are resorting to credit vouchers by asking passengers to travel at a later date. But this is not accepted by many customers who demand cash. Besides, we are struggling to pay salaries to our employees. We are badly in need of some urgent support in the form of interest-free loans and moratorium on loan repayments to stay afloat,” said S.Jaffer Sadiq, chairman, TAAI, south Tamil Nadu Chapter.
The major demands put forward by the TAAI in its representation to the Centre include refunds for cancellation with waivers and advances of travel agents and tour operators from all airlines; a support fund/contribution towards payment of salaries and meeting establishment costs including electricity bills for a minimum of six months; waiver of statutory liabilities such as GST for a year; tax holiday and enhancement of working capital limits or overdrafts, free of interest and collaterals.
“The tourism industry is a significant contributor towards the GDP but the sector is considered a luxury. Starting from roadside restaurants, tour guides, vendors to mid-sized travel agent firms, tour operators and restaurants like star hotels and transport companies belong to this industry and contribute to the economy. The livelihood of people involved in all these areas has been hit hard by the pandemic,” said G.Ravichandran, treasurer,Tamil Nadu Tour, Travel and Hospitality Association.
Being an industry with minimum profit margins, it may take up to two years for the industry to recover fully, Mr.Ravichandran said. “We are not seeking freebies. We demand policies that would help the industry such as loans at concessional rates, equity infusions and tax relief,” he added.