Tourism Ministry Indicates “Massive” Revenue Loss Due To COVID-19

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The Ministry of Tourism informed the Parliament on September 14 that discussions with stakeholders have indicated that the sector has suffered a massive loss in revenue.

However, no formal study has been conducted to assess the impact of the COVID-19 pandemic on the tourism sector.

In a written response in Lok Sabha, Tourism Minister Prahlad Patel said that due to the fact that the sector is largely disorganized, the impact can only be assessed in due course.

Also, today, Ministry of Tourism tweeted today that –

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In the Lok Sabha during the monsoon session of Parliament on Monday, our Hon’ble Minister Shri @prahladspatel ji said that the tourism sector has been severely impacted because of the Covid-19 pandemic. He also reached out to international tourists through his response saying –

“MoT through India Tourism Offices overseas proposes to undertake various activities such as participation in travel fairs & exhibitions; advertising in media; organising webinars to highlight success stories about Covid-19 to build confidence among tour operators & travellers”.

“No formal study to assess the impact on the tourism sector and job losses has been conducted. However, multiple roundtable discussions and brainstorming sessions with industry stakeholders indicate massive losses in revenue, foreign exchange and jobs. Given the highly disorganized nature of the sector’s numerical impact can only be seen in due course, “Mr. Prahlad said.

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He said various agencies and the government have drawn up several stimulus packages for the sector, including an extended moratorium by the Reserve Bank of India (RBI) on fixed-term loans through August 31 this year.

Mr. Patel said the government has also announced a ₹ 3 lakh crore “Atmanirbhar Bharat Package” which is a safety-free automatic loan for micro, small and medium-sized enterprises (MSMEs).

The loan has a term of four years and a 12-month moratorium.

As part of the Atmanirbhar Bharat package, the PF contribution from employer and employee was increased to 12 percent each for all EPFO-covered facilities for the next three months; H. Lowered to 10 percent each by September of this year, he said.

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It has also postponed TCS until October this year, added Mr Patel.

The central government has exempted from various governmental regulations of the Income Tax Act, Company Act and GST Act for various periods in the wake of the COVID-19 crisis to ensure business continuity and survival, he said.

He also said the Ministry of Tourism had not received any proposal from any state to increase the allocation of funds for the development and promotion of tourism in the face of the COVID-19 pandemic.


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