Every Dark Cloud Has A Silver Lining
COVID-19 has been the biggest challenge not only India but the entire world is facing. In my lifetime, I have seen a lot of crises like the Indo-Bangladesh war, Indo-Pakistan war, Indo-China war etc. This is not only the mother of all crises but a complete disaster. It seems we are going through an undeclared third world war where the enemy is not visible and it is not any country but a virus which we till now have not been successful in destroying.
The Aviation, Travel & Tourism Industry has come to a grinding halt. Since no visas are being issued, no airline is operating even buses and trains have stopped. This has never happened in the history of the world.
I do not know how many travel agents and tour operators will be able to survive after this COVID-19 pandemic. Still we are trying our best jointly with all the associations under Federation of Associations in Indian Tourism and Hospitality (FAITH) and its members like Federation of Hotel & Restaurant Association of India-FHRAI, Hotel Association of India-HAI, Indian Association of Tour Operators-IATO, Travel Agents Association of India-TAAI, Travel Agents Federation of India-TAFI, Association of Domestic Tour Operators of India-ADTOI, Adventure Tour Operators Association of India-ATOAI, Indian Convention Promotion Bureau-ICPB, Indian Heritage Hotels Association-IHHA, Indian Tourist Transporters Association-ITTA; by writing to the Prime Minister, Finance Minister, Commerce Minister, Civil Aviation Minister and Tourism Minister on the following lines:
The Indian Tourism industry is looking at pan India bankruptcies, closure of businesses and mass unemployment as a result of this pandemic. It is estimated that around 70% out of a total estimated workforce of 52 million (5.2 crores) could get unemployed (38 million in the first phase and 50 million direct and indirect) if a bailout package is not given immediately.
A large percentage of total tourism business activity of India, which is estimated at $ 28 billion+ in forex and upwards of ₹ 2 lakh crores in domestic tourism activity will be at economic risk through the year. Thus, in excess of ₹ 5 lakh crores of direct tourism industry and almost double that of total economic activity is at risk.
We have requested for immediate support for revival and survival from the Government:
* A twelve months moratorium on our EMIs of principle and interest payments on loans and working capital from all Financial Institutions (banking & non-banking). Additionally, we request for doubling of our working capital limits and on interest free & collateral free terms.
* A deferment for twelve months of all statutory dues whether GST, Advance Tax payments, PF, ESIC, customs duties at the Central Government level or at any state government level the excise fees, levies, taxes, power & water charges, deferred renewals periods for all permits, licenses, bank guarantees & security deposits across the tourism, travel, hospitality & aviation industry.
* A support fund for twelve months on the lines of MNREGA to support basic salaries with ‘direct transfer’ to affected tourism employees.
* TCS (tax collected at source) on travel as proposed in Finance Bill 2020 from April 1st not to be introduced.
* A deferment of increase in any insurance premium for a period of 12 months such as for example for Standard fire and special perils rate for fire, loss or profits.
* The restoration of 10% duty credit of SEIS scrips and the previous year’s foreign exchange earnings can be taken as a reference point for credit.
* A 200% weighted exemption for twelve months on expenses to Indian corporates to hold exhibitions, conferences and incentive trips in India.
* A national tourism task force of all relevant ministries of the Central Government along with ministry of tourism and chief secretaries of State governments and industry stakeholders headed by the Honourable Prime Minister of India.
My views for revival, if we are able to survive
After COVID-19 we need to focus more on digital and social media marketing not just in English but in the major languages of the world like Chinese, Spanish, Arabic, Japanese, Korean, German, Russian etc. We also need to ensure that taxation both direct and indirect on this industry, under no circumstances add up to more than five per cent if we do not want to “kill the geese that lays golden eggs” by outpricing ourselves with high taxes and lose out from our neighbouring countries like Dubai, Sri Lanka, Thailand, Malaysia etc.
If we will be able to survive with the help of the Government, we will have to completely restructure and reorient our businesses. International Outbound & Inbound Tourism will take at least six to seven months more or may be an year, so the only segments which will bounce back fast are:
* Domestic Tourism
* Yoga & Wellness Tourism
* Spiritual Tourism
* Medical Tourism
Another sector which will bounce back slowly is M.I.C.E. i.e. events, weddings, marriages, conferences would now take place in India rather than abroad. If the government gives incentives to these sectors, they will bounce back faster. The government instead of giving LTC once a year should give LTC twice a year for all banks and government departments. The private sector should be given a tax incentive for sending their staffs on travel and tourism leave once a year. This would help the industry to bounce back.
My message for the Industry professionals
Friends, the travel agent and the tour operators are one of the toughest people in the world and it is rightly said, “when the going gets tough the tough get going”. It is time for all of us to do the following:
* Reduce our expense to bear minimum.
* We negotiate our rentals and other fixed expenses and working capital loans with the banks.
* To consolidate and form small consortiums to work as a group.
* To diversify to Domestic, Religious, Medical and Health tourism.
I strongly believe that it is the darkest before dawn and every dark cloud has a silver lining. Therefore, I request my professional friends in the industry to learn at least one foreign language and some new skills in digital marketing and using more and more social media as a marketing tool. If we are able to do this I am sure we will emerge stronger and better.
