Biji Eapen, President, IATA Agents Association of India (IAAI), urged Government of India through an appeal to the Prime Minister of India to introduce immediate bailout (Economic Relief Package) favoring Indian Travel & Tourism Sector
Travel & Tourism Sector in India has emerged as one of the significant sectors generating income, employment, and supporting the alleviation of poverty. Travel & Tourism Sector contributed 9.2 per cent of GDP in India, to the total Economy Rs 16, 907.9 bn in 2018 and now due to the spread of Corona Virus pandemic is crushing Travel & Tourism GDP loss to the World Economy equal to $2.1 trillion in 2020 alone.
Recent research conducted by WTTC shows that 75 million jobs are at immediate risk in the global Travel & Tourism Sector due to the effect of Corona Virus pandemic. And India is expected to be most severely impacted, with up to 9 million jobs at risk throughout the country. Presently, Travel & Tourism Businesses in India, predominantly SME’s are forced to lay off their Employees and stand apprehensive about the looming business situations, including liquidation.
Indian Travel & Tourism Sector faces an economic meltdown from which it will struggle to recover and nose-dive millions of people dependent upon it for their livelihoods into debt. The ‘domino effect’ will also result in massive job losses across the entire supply chain, hitting employees, and those in self-employment. According to the latest news reports, Panama City-based Bookit.com becomes the First OTA Casualty and Air Deccan, the first Airline closure in the Indian Aviation sector, since COVID-19 Travel Shutdown.
The Association has flagged the subject with the Government of India by submitting an appeal dated 4th April 2020, on behalf of the stakeholders of the Travel & Tourism Sector, to the Prime Minister of India with a request to aid the sector which is the backbone of Indian Economy, by way of assigning resources and coordinated efforts to rescue major Travel & Tourism Businesses such as Travel Agents, Tour Operators, GDS, and Technology Companies, Travel & Tourism Training Institutes; Tourist Guides and entire supply chain to save the jobs of millions of people and their families who depend on Travel & Tourism Sector for their livelihoods.
In order to overcome and sustain the present economic catastrophe caused by the sweeping Corona Virus pandemic, IAAI National Director Board requested the Prime Minister for an immediate bailout (Economic Relief Package) favoring Indian Travel & Tourism Sector, comprises and not limited to:
1) Protection of the Salaries, Incomes, and Jobs of the millions of Employees and benefits for the Self-Employed, who are at risk
2) Extend vital, interest-free loans (Economic Stabilization Loans) as Business / Working Capital Loans and Cash Credit / Overdraft with Nil / Reduced collateral requirements, to provide liquidity for large and small Travel & Tourism businesses, enabling them to quickly make their way to resume business, to prevent from financial breakdown
3) Moratorium on Interest payments of all existing Business / Working Capital Loans and Cash Credit / Overdraft for next 12 Months
4) Waive or remove all dues, taxes, or fiscal charges of Travel & Tourism Businesses for the next 12 months that affect cash flow, which can be critical to business’s survival
5) Reduction in Electricity Charges of Travel & Tourism Businesses, for the next 12 months
