Addressing tourism sector’s concerns

As India steps on the pedal to further unlock and speed up economic recovery, the recent US travel advisory does not build confidence. Flagging issues of crime, terrorism, unrest as well as Covid-19, India’s Level 4 ranking in the advisory has left the tourism and hospitality industry alarmed. The Federation of Associations in Indian Tourism and Hospitality (FAITH), an umbrella body of 10 national tourism, travel and hospitality organisations in the country, has requested the Union tourism minister to take up the matter with the external affairs ministry. 

The body’s concerns are justified because the current travel rating pegs India with countries like Iran, Pakistan, Iraq, Yemen and Syria, among others. According to FAITH, its associations have been instrumental in bringing up the number of tourists from 10-15 million to about 40 million in the last decade. It remains a top source for tourism across various segments, while its tourists net the highest average stay in India. In the current scenario, when the country is looking to revive the economy, the travel rating shows India’s state of affairs in poor light.

Given the continuous surge in coronavirus cases, the Indian tourism sector has taken a bad hit and is considered to be making one of the worst recoveries in the global market. Hotel bookings are very low, as is the tourist confidence level. This is ominous for a sector that contributes significantly to the GDP while being a top employment generator.

The asymmetry of states using different lockdown and shutdown measures to control the spread of infections has proved detrimental for the travel and tourism sector. Last week, the Ministry of Home Affairs asked states to allow unhindered movement of persons and goods, which should pave the way for the normalisation of travel and tourism.

But much of it would depend on the confidence levels of domestic tourists. Once domestic tourism picks up without hurting the Covid-19 containment measures, it would send the right message to international tourists too. The festive season that sets off the peak tourism calendar is right ahead, but the onus would be on states to display resilience. It would be for their own socio-economic well-being as well.