About 3.8 crore tourism jobs may be lost in India, FM told
In a joint letter to finance minister Nirmala Sitharaman, the Federation of Associations in Indian Tourism & Hospitality (FAITH), CII Tourism National Committee and ASSOCHAM Tourism sub-committee has urged the government to help the sector to come out of the present crisis created by the corona virus pandemic.
“We are identifying points of urgent concern for this industry and request you for your kind support. Indian tourism industry is looking at pan India bankruptcies, closure of businesses and mass unemployment as a result of this pandemic. It is estimated that around 70% out of a total estimated workforce of 5.5 crore (direct and indirect) could get unemployed (~ 3.8 crores),” the letter stated.
A large percentage of the total tourism business activity of India, which is estimated at $28 billion in forex and upwards of ₹2 lakh crores in domestic tourism activity will be at economic risk through the year. The current situation on tourism is equivalent to a national disaster and requires a response invoked from perhaps laws suitable to handling such a national disaster for rehabilitation and urgent support of the people of this industry. If not addressed immediately the impact of this pandemic will stretch over years and revival of jobs will become almost impossible.
“We request for a twelve months moratorium on our EMIs of principal and interest payments on loans and working capital from all Financial Institutions (banking & non-banking). Additionally, we request for doubling of our working capital limits and on interest free & collateral free terms,” the letter said.
A deferment for twelve months of all statutory dues whether GST, Advance Tax payments, PF, ESIC, customs duties at the Central Government level and excise fees, levies, taxes, power & water charges, deferred renewals periods for all permits, licenses, bank guarantees & security deposits at the state government level across the tourism, travel, hospitality & aviation industries, may be granted.
The letter also requested for a support fund for twelve months on the lines of MNREGA to support basic salaries with ‘direct transfer’ to affected tourism employees.
