We Need Inward Looking, Domestically Oriented, Incredible India 2.0 as Future Solution: Amitabh Kant

In the 5th edition of BW HOTELIER’s Indian Hospitality Awards and Summit, eminent journalist and Talk Show host Vir Sanghvi speaks to Amitabh Kant, CEO, NITI Aayog to better understand the government’s take on the worst hit sector—travel, tourism & hospitality. Kant spells out plans to support the restaurant industry including an inward looking Incredible India 2.0 and much more. Excerpts:

How do you see the pandemic progressing? How long before things return to normal?

First of all, we must understand the nature of this crisis. It is one of the biggest crisis the world has ever seen. It is bigger than what happened in the 1920s and the 2008 financial crisis. It is about 50 times bigger in terms of financial and economic parameters as compared to 2008 when the global economy had declined by about one per cent. Now, the global economy has already declined by 6.5 per cent. Therefore, the COVID-19 pandemic has impacted every sector across the world. Perhaps to my mind, the travel, tourism and hospitality sectors are the most impacted of all. And this is true about tourism across the world.

The World Tourism Organisation has predicted a fall in international travel spending between $910 billion to $1.2 trillion this year. Of the 217 destinations tracked by them, close to 72 per cent have closed their borders for the international tourists. Therefore, states after states closed their borders. There is one statistic by OECD (Organisation for Economic Co-operation and Development) that says nearly 75 per cent of all tourism in countries which are considered wealthy is confined to their national borders.

To my mind, there has to be an inwards focus for short to medium terms and there is a huge opportunity for domestic tourism. It is that one door open for Indian tourism industry for the medium term as India is bigger than 24 countries of Europe, has a wide variety of tourism products and Indians have still to discover the unique facets of India.

My belief is, soon after the pandemic, travel and tourism will bounce with vengeance. We will bounce back and in a big way. At present, we really need an inward looking, domestically oriented, incredible India 2.0 as the future. And there are massive opportunities for domestic travelers to find options in travel, accommodation, cuisine, etc. And these are actually above par offerings anywhere in the world. Infrastructure and accessibility have actually improved radically in the past couple of years.

The ‘Bharatmala’ and ‘Sagarmala’ projects have led to massive investments in highways, roads and airports. We are privatizing vast number of airports and creating the next-gen airports across the country. My view is that there will be a huge quantum jump in domestic tourists. We are also undertaking island development based on sustainability of Andaman & Nicobar and Lakshwadeep islands. It will be an integral part of the domestic tourism plan.

The domestic component of travel, tourism and hospitality will have a huge multiplier impact on the economy and this is a massive opportunity for Indians as hotels and restaurants start opening up in the months to come.

India has a massive amount of heritage and post COVID-19 there will be a huge focus on cultural tourism. My own belief is that the world will move towards shorter duration holidays and more of experiential travel which is about discovering and giving back to the destination. India is far more richer than other countries in these assets. Therefore, India has a unique opportunity to attract the rich and famous from across the world in the post Covid-19 era.

There is certain level of disappointment that the government and various state governments have not done enough to help the restaurant and hotel industry. How valid is that disappointment?

If you look at all the sectors, tourism, hospitality, restaurant and aviation have been the worst impacted. The government has not looked at sectorial packages at all but measures (fiscal and monetary) have been taken—both by the government and the Reserve Bank of India. Measures including the Atmanirbhar Bharat package and the Pradhan Mantra Relief Yojana that provides a lot of assistance and support.

My personal belief is that we will continue to assist and support travel, tourism and hospitality as this is the sector that creates vast number of jobs and it has a huge positive impact across economy. My belief is that when government and RBI look subsequently for sectors to support; travel, tourism and hospitality sector will be the first and foremost to support.

What do you have in mind for the restaurant sector?

The restaurant sector has done enormously well for the Indian economy and therefore that’s a sector which requires a big impetus and push for growth. I feel, that while we have been able to do Ease of Business on a large number of other areas, but not in the restaurant business. I feel, it is very complex business as land and renting is involved. The rents are very high and we need to do something very radical about it. I’ll be very happy to work with the Restaurant Association to see how we can bring in a genuine online clearance for the restaurants and also see how best we can reduce their rentals in the long run. We will work in partnership with the states. It is also unfair that while bars are non-functional during Covid-19 pandemic license fee continues to be change. 

What is your message to the people who have been impacted by the pandemic and had to go back to their villages. Are the gloomiest predictions true or is it that there will be some kind of shake up with which we will bounce back?

There is no doubt in my mind that we are going to bounce back. Same was said in the 1920s when the great depression happened and the same was the feeling there when the 2008 economic collapse had taken place. But let me tell you: A pandemic can only alter the progress, it cannot stop it. A responsible and a phased recovery is eminent for travel and tourism sector. I believe, a few months after the pandemic, it will boom. 

All of us who have been locked up in our houses would like to travel and therefore there will be robust demand. In the long run you will also see the international tourism bouncing back. Probably one year down the line, each one of us, who has a stake in the travel and tourism sector, will realise that the sector can be suppressed for some time by Covid, but in the long term, it will grow and expand in a very big way. This is a sector where some restructuring will be required and everybody must innovate. It is also an opportunity for innovating as it is happening in other sectors. All tour and travel operators will have to digitize and use technology in a very big way. 

My belief is that the travel and tourism industry must use technology in a very big way, make it pervasive and use it across all chains. The sector is actually driven by the private sector. From the taxi driver to tour operator, to the guides and the hotels- the entire experience must be seamless digitally.

Summarising the session, Vir Sanghvi said, "What you are saying is that the government might have not done that much for the sector but this is not true only for travel and tourism, it is true for every other sector. When the government takes a sectoral approach, one of the first that the government will take care of will be ‘travel and tourism’. You have said to the industry that there are just too many bodies and it gets confusing. Why don’t it get itself organized? And you have said to the industry that don’t be ‘so pessimistic’ as the industry will bounce back soon. Also accept that there will be a degree of restructuring and use this time not just to mourn but relook at your businesses."