COVID-19 is not only impacting the health of the people worldwide but also has a more significant impact on the economy and travel industry mainly. It has taken a toll on every industry, but travel and tourism have been the worse hit. With no airlines operating throughout the world, and all of us should stay at home, going out on an expedition is a far thought.
Losses Incurred by the Indian Travel Industry
According to the World Travel and Tourism Council, about 50 million people may lose jobs in the travel and tourism industry.
The tourism industry accounts for about 10% of the total global GDP. It may take about 10 months for the industry to recover after the world recovers from this pandemic, which seems unlikely as of now.
Moreover, the stocks related to the travel and tourism industry dropped down by a whopping 70% for this year in these few months.
With the suspension of domestic as well as international flights amid COVID-19, the Indian travel industry is being greatly affected.
In the wake of the COVID-19 outbreak, WTTC has urged governments to follow certain measures like:
Providing Fiscal support to global travel and tourism industries, and extending unlimited interest-free loans.
Inject liquidity and cash in the Travel and Tourism Industry
Protecting the livelihood of employees of the tourism sector
Measures that are taken by the Indian Government
Indian Government is also working for the best interest of the general public and the economy as a whole. Finance Minister Nirmala Sitharaman has announced a relief package amounting to 1.7 Lakh crores.
In addition to these measures, the (Reserve Bank of India) RBI, is providing three-month EMI relaxation on loan repayments so that the livelihood of the poor and middle segment can be secured amid COVID-19 pandemic.
Furthermore, RBI has also reduced the repo rate by 75 points, CRR by 100 points to free up liquidity. More relief packages for worst-hit sectors like the Travel industry are still worked upon by the government.
Some Suggestions
The measures mentioned above may not be enough therefore the government need to keep looking for better means to ensure COVID-19 pandemic doesn’t take away the will to live.
Here are some of the suggestions by industry leaders and economists on the same:
SpiceJet CMD and WTTCII President Ajay Singh advised the government to urge domestic and international tourists to disseminate the message of ‘Postpone Travel, don’t cancel’ on Incredible India website.
‘For the first couple of months, this could potentially be handled through mandatory leave and leave-without-pay initiatives for 1-2 months’ is stated by a CAPA report.
Apart from this, economists suggest getting rid of the pandemic quickly with ‘Whatever-it-takes’ approach. To prevent economic slowdown, governments need to focus on bringing bankruptcies down to ensure they have money. “This is the time to bring out the big artillery; this is not a time to be timid, but to do whatever it takes, fast.” they said.
Other measures may include tax relief, gaining from inheritance tax and imposing relaxation on other taxes like buyback tax and Foreign
Portfolio Investment (FPI) can help out in balancing the economic slowdown and further help the travel industry to recover.
Financial and political commitments are the only reliable key to ensure the revival of the tourism industry. UNWTO has joined hands with WHO and calls on governments to include tourism as a priority sector in COVID-19 recovery plans and actions.
