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India Outbound is India’s only B2B travel media platform, that encompasses a print magazine, a website, an online TV channel and dynamic social media platforms, entirely dedicated to the promotion of foreign destinations and products in India. India Outbound is a niche platform not just for tourism destinations and products to promote themselves to the Indian travel industry, but also for decision makers to build/change their strategy in a context where the Indian outbound market is not only growing but changing with new dynamics. These trends, India Outbound analyse and predict them.

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Global Tourism Industry Dips Down

Indian tourism industry leaders seek a bailout package to beat COVID-19 fall out. With each passing day, the impact is coming out loud and clear for all the major economies that are hit hard by the blow of coronavirus.

With each passing day, the impact is coming out loud and clear for all the major economies that are hit hard by the blow of coronavirus. Travel and tourism not only involve leisure and holiday but binds the entire world for business, educational, medical and many other purposes that we may call as essential and unavoidable. The tourism industry currently accounts for 10 pc of global GDP and by now, it is crystal clear that the travel and tourism sector is facing the most disastrous phase ever.

The World Travel and Tourism Council (WTTC) has already warned that the COVID-19 pandemic could cut 50 million jobs worldwide in the travel and tourism industry and Asia is expected to be the worst affected continent. Within the travel and tourism industry, airlines and cruise ships are suffering bigger losses than the hospitality sector.

Once the outbreak is over, it could take up to 10 months for the industry to recover. Of the 50 million jobs that could be lost worldwide, around 30 million would be in Asia only, seven million in Europe, five million in the Americas and the rest in other continents, according to WTTC.

According to reports, the equivalent to a loss of three months of global travel in 2020 could lead to a corresponding reduction in jobs between 12 pc and 14 pc.

This impact would depend on how long the pandemic will last and could still be aggravated by all the restrictive measures, travel advisories, airline lockdown and revoking of the issued visas.

“Certain measures are not helping and they can prompt the economic impact to be way more significant,” WTTC’s managing director Virginia Messina told an international news agency, referring to the U.S. administration’s decision of travel advisory to Europe. Messina also said that such policies are too generic and not proven to be effective to contain the virus as these restrictions could complicate travel for medical experts and delivery of medical supplies.

The global travel industry is already crying out to governments to remove or simplify visas wherever possible, cut travel taxes and introduce incentives once the epidemic is under control. From big to medium to small, all travel agents and tour operators are trying to influence or manipulate their customers to postpone and reschedule, and not cancel their travel plans.

COVID-19 & Indian tourism industry

Over the last few years, India has emerged as a global front runner as far as travel and tourism is concerned by virtue of its sheer size of the travelling population. The global tourism industry considers India as a mighty player more in the outbound sector, though its inbound and domestic sectors leave tremendous opportunities left to be explored.

In a letter addressed to the prime minister of India, the Federation of Associations in Indian Tourism and Hospitality (FAITH), the policy federation of all the national associations representing the complete tourism, travel and hospitality industry of India has placed their unified agenda to stimulate the Indian travel and tourism sector.

As a result of coronavirus pandemic, the Indian tourism industry is looking at pan India bankruptcies, closure of businesses and mass unemployment. FAITH member associations estimate that around 70 pc out of a total estimated workforce of 55 million (direct and indirect) could get unemployed (38 million). The association is alarmed that this effect of job losses and layoffs has already begun throughout the country.

FAITH also estimates that about USD28 billion+ in forex and upwards of USD30.76 billion in domestic tourism activity will be at economic risk throughout the year. Thus, in excess of USD50 billion of direct tourism industry and almost double of that in total economic activity is at risk.

“As a result of this pandemic, the tourism industry in India has reached dire straits today and is staring at mass unemployment and bankruptcies...With declining revenues almost all tourism businesses are running out of working capital. However, with the responsibility of staff and payment of their salaries, EMIs to service, advance tax, PF, ESIC, GST, excise and other state levies, bank guarantees, security deposits, this industry needs your (government) support now more than ever,” the letter signed by Nakul Anand, chairman of FAITH and countersigned by all other leading members stated.

FAITH has urged for a twelve months moratorium on the EMIs of principle and interest payments on loans and working capital from financial institutions (both banking & non-banking). Additionally, the apex body has requested for doubling of the working capital limits and on interest free & collateral free terms so that it prevents all tourism businesses from going bankrupt.

Additionally to prevent insolvency, FAITH has requested for a deferment for 12 months of all statutory dues whether GST, advance tax payments, PF, ESIC, customs duties at the central government level or at any state government level the excise fees, levies, taxes, power & water charges, bank guarantees & security deposits and deferment of all renewals, across the tourism, travel, hospitality & aviation industry.

The letter also says, “We request you to set up a support fund for 12 months on the lines of MNREGA to support basic salaries with ‘direct transfer’ to affected tourism employees.

The TCS (tax collected at source) on travel has been proposed in Finance Bill 2020 to be levied from April 1, 2020 which FAITH has strongly requested to not introduce as it will displace business from India to overseas, practically shutting down the businesses of most Indian tourism companies.

Insurance also came as a matter of concern. It was requested that a deferment of increase in any insurance premium for a period of 12 months such as for example for standard fire and special perils rate for fire, loss or profits be announced.

On GST, a complete GST Tax Holiday for the tourism, travel & hospitality industry for a period of 12 months has been pleaded as with almost nil revenues there is hardly going to be any GST collection.

A grant of 200 pc weighted exemption for 12 months on expenses to Indian corporate companies to hold exhibitions, conferences and incentive trips in India could revitalise the industry, FAITH suggested.

Last but not the least, finally the industry body has asked the government to set up a national tourism task force of all the government departments at central and state levels as well as industry stakeholders to meet regularly to fast track all tourism investment approvals.

After MoT, OTOAI meets MoF to stop implementation of the TCS

Anticipating that taking an international trip will become more expensive from April 01, 2020, since Budget 2020 has proposed to levy TCS (tax collected at source) on overseas remittance and for sale of an overseas tour package, OTOAI (Outbound Tour Operators Association of India) is trying hard to lobby against the move and meeting authorities with their perspectives to stop the bill from being implemented.

Last week the OTOAI delegation met with Rupinder Brar, the additional director-general of the Ministry of Tourism. This week, the delegation met Kamlesh Varshney, the joint secretary of TPL, Ministry of Finance and explained the situation. According to TCS rules, while buying an overseas travel package or purchasing foreign currency above INR 700,000, one will be liable to a tax collection at source (TCS).

“Given the challenging times that we are facing with almost all overseas travel plans put on hold by people, conventions cancelled and even big sports events postponed, this move will only deter people further to travel and will make the survival of the travel agents tougher. The travel agents and tour operators are already struggling to keep their businesses afloat, given the precarious situation caused by Covid-19, and thus, an additional weight of TCS will only make matters worse. After listening to all our reasoning, we have been assured that our request will be positively looked into,” said Riaz Munshi, the president of OTOAI.

Tourism Authority of Thailand marks 60 years

March 18 marked the 60th anniversary of Tourism Authority of Thailand (TAT) which was established in 1960 and was the first organisation in Thailand to be specifically responsible for the promotion of tourism in the country. The two key offices of TAT in India jointly released a statement under the flag of TAT India and mentioned that they will continue to work relentlessly to maintain the Indian success story.

“We, on behalf of Tourism Authority of Thailand (TAT), India offices would like to take this special opportunity to extend our deepest gratitude and appreciation for your constant support in making Thailand a preferred destination for Indians. We have seen healthy growth and an increase in the number of travellers from India. To continue with this success, we are committed to making travel and tourism of Thailand the most economically promising, environmentally sustainable and culturally vibrant in the years to come. The past six decades have been truly historic and enjoyable for us, which would not have been possible without your friendship. We look forward to continuing this journey with you as we make Amazing Thailand the preferred destination for everyone,” said the statement jointly signed by TAT New Delhi director Vachirachai Sirisumpan and TAT Mumbai director Cholada Siddhivarn.

The two directors also said that this year has been a most challenging one for the tourism industry. However, as with previous challenges, the tourism industry will prove its resilience by not only overcoming the repercussions of the current pandemic, but also emerge stronger than it has ever been. They further said in a time of crisis, there are always opportunities, and TAT stands with everyone to explore all that can be done for the travellers and friends now and in the future.

However, TAT has cancelled its annual celebration on the occasion, in line with the Royal Thai Government’s current nationwide surveillance, prevention, and control measures put in place to fight Coronavirus.

“Till Then, Stay Safe”: New Greek Tourism campaign asking tourists to plan ahead

The new campaign by Marketing Greece urges international travellers to stay safe during these difficult times due to the coronavirus pandemic while continuing to dream and plan an escape to the stunningly beautiful country of Greece. Marketing Greece is a collaboration of private sector tourism businesses with the aim of promoting Greek tourism product abroad.

With their main slogan “Till Then, Stay Safe”, Marketing Greece has created content, offered without charge to Greek tourist enterprises. Their overall aim is to share the message with the international tourists that better days are surely coming while urging them to stay safe in the meantime. The new, innovative campaign uses photographs accompanied by the caption “When the time is right, we’ll be there for you. Till Then Stay Safe”, using the unique crystal-clear light of Greece to bring hope to the quarantine-weary public.

“In our times, humanity is called upon to rise to a shocking challenge, with messages of hope and optimism being more imperative than ever. Greek tourism, fully identifying with the sense of freedom and escape from the everyday grind sends its own message for the next day,” Marketing Greece goes on to say.

Egypt reopens oldest pyramid; waiting for tourists to return

Egypt has reopened its oldest pyramid, Djoser in Saqqara, south of Cairo, after a major restoration project that lasted 14 years, the state news outlet Al-Ahram has reported. Djoser, a 4,700-year-old pyramid located in Memphis, the first Egyptian capital, is the oldest standing pyramid in Egypt.

But no tourists are in sight at the pyramid as the coronavirus pandemic takes its toll on the country’s tourism industry. The reopening, which took place at the famous amphitheater at the foot of the pyramid, offered some good news for the country’s tourism sector, which is reeling under Coronavirus. On the occasion, Khaled El-Enany, the minister of tourism and antiquities said that the restoration is one of the ministry’s most important projects and the restoration cost 104 million Egyptian pounds (approximately $6.7 million).

A complex of halls and courts surrounds the pyramid, this pyramid was constructed under the rule of King Djoser, (2650--2575 BCE), the second king of the third dynasty of ancient Egypt. Renovations on the pyramid began in 2006 but were interrupted in 2011 and 2012 after Egypt's popular uprising and the toppling of President Hosni Mubarak, before resuming in 2013.


India Outbound is a publication of Media India Group