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Friday, 24 April, 2020, 11 : 00 AM [IST]

FAITH seeks immediate stimulus to avert collapse of travel & tourism businesses


The Federation of Associations in Indian Tourism and Hospitality (FAITH) has sought immediate “survival” measures to prevent mass bankruptcy and crores of unprecedented layoffs in the sector due to the COVID-19 pandemic. The umbrella association of the industry said that without a booster shot the industry is on the brink of collapse. 

The crisis has jeopardised India’s INR 5 lakh crore tourism industry and employment of an estimated 3.8 crore jobs, FAITH said in a statement.

Over the past six weeks, FAITH has been appealing to the Prime Minister, Finance Minister, Tourism Minister, Commerce Minister, Aviation Minister, NITI Aayog and the Parliamentary Committee on Tourism and Reserve Bank of India. Indian Tourism industry, in 2018-19 handled business of over 10.5 million foreign tourists, more than 5 million visiting NRIs, 1.8 billion domestic tourist visits & over 26 million outbound travellers. 

The industry is facing its biggest economic challenge with the larger and combined effect of 9/11 and the slowdown of 2009 and estimated bigger effect than the Economic Depression and World War II, FAITH said.

All the cash inflows of the industry have completely frozen and are likely to stay that way for the financial year 2020-21.  To address the issues of cash outflows, FAITH has recommended immediate measures for survival that need to be addressed parallelly.

FAITH has recommended setting up 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. This should be with legislative powers on the lines of GST council for state-wise standardised tourism response.

 
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