COVID 2019: Turning Adversity Into Opportunity
The apparent invisibility of the developed world has taken a major hit. The tourism and travel industry is among the top sectors that is going to face trouble. The lifestyles of people will become more reserved, more insular & there will be less travel. Industry will face struggle between staying afloat and protecting their workforce. The tourism industry, in particular, is severely hit and the extent of distress is widespread in this sector. The industry needs to have two level of strategies ( i.e. Survival and Revival) and a stimulus package from Govt is essential at both these levels.
There will definitely be a reset of the industries across the globe considering various new aspects. Unfortunately, travel and tourism is the worst hit due to this pandemic and it will take longer than most to recover. Industry will need to set a protocol to have a few major concerns addressed in which hygiene and sanitisation will be the most important thing to be kept in mind.
With the globalisation, there was a segment of people who would explore and learn through travelling. For any celebration, people preferred travelling. With that in mind, the industry was expanding as everyone thought that travel is something which will never stop. But nobody could imagine a situation like this pandemic has created.
Industry professionals should now concentrate on domestic instate and interstate tourism. Hygiene and sanitation will be the key factor. Every region to focus on clean and safe environment along with sanitisation. Henceforth, the properties will be graded for their hygiene and sanitisation levels above all. Create long stay travel itineraries for the urban people based on nature, culture, healthy living, local cuisine and handicraft. Consider engaging idle staff in some ancillary business like takeaway food business or anything that can be done with existing infrastructure at low cost & for which there is a demand. Review of the current scenario and measures for the future situation should be taken with proper research & development new marketing strategies to meet the need of the hour.
Steps for the industry's recovery
* Lobbying at State and Central Level for conducive policy measures for short term and long term relief.
* Focus on Domestic market especially Domestic Outbound with aggressive & imaginative marketing of domestic alternatives.
* Every region to focus on clean & safe environment and measures taken for sanitation. Note henceforth properties will first be graded by sanitisation and hygiene levels above all.
* Create special long stay itineraries for family groups or groups of friends, intimate Birthdays/Anniversaries parties & Weddings & Brain Storming sessions.
Relief measures for the industry leadership
* A complete deferment of all statutory dues payable by tourism, travel and hospitality industry at the Central and State Government level without attracting any penal interest such as GST, Advance Tax payments, PF, ESIC, Custom Duties, etc. for 12 months.
* A support fund called Tourism Relief fund needs to be set to support salaries and establishment costs. It could be either in the form of an interest-free loan to Tourism corporates for repayment of the principle within the 5-10 years. Alternatively, it could be a grant to support basic salaries with ‘direct transfer’ to affected tourism employees.
* RBI has already provided for three months moratorium on EMIs of principle and interest payments on loans and recalculation of working capital from Financial Institutions. This need to be without any accrued and accumulated interest during this period and it needs to be extended for 12 months. Loan interest should be totally waived off at least for a period of 12 months.
* The government should appoint a National Tourism task force of the Centre and the State which meets regularly and develops the revival plan, organizes roadshows, domestic & international marts and fast tracks investment approvals for tourism.
* All licenses required by a tourism unit such as bar license, fire license, hotel operation license, pollution control license, license fees of Municipal Corporations, etc paid / payable for the renewal of the same during the FY 20-21 be fully waived and the validity of the licenses be automatically extended for one more year on submission of just an extension request.
* Going forward, the Tourism Department of various State Governments have to work towards a marketing strategy with a focus on safety, hygiene and domestic tourism. We are closely working with the Department to evolve that strategy.
* Industry professionals should collaborate with the Government and experts and draft a plan national plan for the industry’s survival and revival. The same should be done at each State or Regional level.
Post-Covid crisis, initially, the promotion will have to be done for domestic market with a new marketing focus on health, wellness, nature & environment & more intimate weddings, celebrations and think tanks. Outbound tourism business needs to be diverted to Indian destinations with a more focused approach.
Pearls of Wisdom
We should never lose heart “necessity is the mother of invention” so we must turn “adversity into opportunity”. Think positively, life is going to change so it will be necessary to be inventive & do things differently by anticipating the needs of the future. Of course, this time was much needed by the mother nature to heal. Undoubtedly, pollution was increasing day by day, people were going crazy for their own excesses and were taking nature for granted. The new normal will be work from home, more conservative lifestyle and to move into highly mindful consumption of resources. It is a time when we must self-correct and celebrate the gifts of mother nature!
