ADTOI urges govt to help tourism sector tide over cash crunch

The Association of Domestic Tour Operators of India (ADTOI) has urged the central government to take steps that will help the tourism industry to tide over its cash crunch, in the light of the coronavirus outbreak.

In a meeting with the tourism ministry, a 10 member multi-association team discussed a series of steps that could revive the sector. The ADTOI team requested the ministry to provide a complete GST tax holiday for the travel and hospitality industry for the next 12 months. It has called for a 6-9 months’ moratorium on all principal and interest payments on loans and overdrafts.

The associations urged the government to advise airlines not to levy cancellation fees or issue credit notes. Besides, they have requested the ministry to consider deferment of GST & Advance Tax payments at the central level and removal of fees for any upcoming licenses or provide excise exemption for liquor for the hospitality and travel industry across the states.

To provide a boost to the sector, ADTOI has also asked the government to consider a 200% weighted exemption of expenses to corporates on all domestic conferences. It also requested that the proposed TCS on travel not be introduced in the Finance Bill 2020.

The associations urged the government to set up a national tourism workforce at the central and state levels which would meet regularly to develop a revival plan and fast track investment proposals. ADTOI also requested the government to use MNREGA funds to support salaries of employees in the tourism sector till it revives.