write an aritical on the topic Tourism in Inadia current status opportunity and challanges due to covid 19
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The COVID-19 pandemic has probably been the most devastating of financial and social crisis of recent times, leading to suspension of almost all economic activity and forcing a country wide lockdown. While the INR 20 lakh crore economic recovery has assuaged some apprehensions, some sectors that have been more affected than others, and sectors that could help with economic recovery have been overlooked.
Tourism, which contributes 5.06 per cent in India’s GDP (2016-17) is one such industry which has been ignored in this recovery package. The ongoing pandemic, travel restrictions, and the country wide lockdown have brought the entire tourism industry to a standstill, and unlike other sectors, tourism will take longer to recover, especially leisure tourism. This will have a direct impact on states like Uttarakhand, Rajasthan, Kerala, Himachal Pradesh, Goa, Sikkim and other north eastern states which depend extensively on tourism as a source of state revenue.
The Indian tourism industry employs 8.75 crore people (12.75 per cent of the total employed population in 2018-19), such as people from the hospitality industry, tour operators, travel agents, homestay owners, drivers, guides, small traders, artisans and craftsmen among a host of other service providers. The sector also has strong forward and backward linkages to other sectors such as agriculture, transport, handloom, and FMCG to name a few. Disruptions in tourism sector will render many people in unemployed. The food and hospitality sector is already reeling under pressure from high fixed costs and no footfalls. FAITH, a policy federation of associations of tourism and hospitality industry has estimated a loss of Rs 10 lakh crore for the industry due to COVID-19. This will also impact inflow of foreign tourists, which means a drastic fall in foreign exchange earnings which was close to Rs 2,10, 981 crore in Q1-Q3 2019. India is yet to address the concerns of the tourism sector.
Interestingly, the global scenario is completely different. The EU has provided benefits in the form of liquidity support, fiscal relief, and easing of state aid rules for those in the tourism business and is currently considering a tourism recovery plan. Italy, one of the worst country to be affected by COVID-19, has recently announced a four billion euros bailout package for tourism and will incentivise domestic tourists to holiday on home soil. The French government too has announced an eighteen billion euros “Marshall Plan for Tourism” bailout for tourism. Similarly, South Africa has initiated a relief package of approximately $11 million exclusively for MSMEs in the hospitality and tourism sector. Indonesia has announced a $725 million stimulus package in order to revive its tourism and civil aviation industry, with additional tax waivers to hotels and restaurants in select regions. Countries such as US, UK and Singapore too have initiated focussed efforts to revive tourism. India’s lack of focus on tourism and its conspicuous absence from the recovery package is both surprising and disappointing. Even more so when the government has been paying particular attention to the sector these last six years.