Loss of revenue in tourism sector expected to cross Rs 20,000 crore
CKTI President urges govt to take series of steps to revive sector
The Confederation of Kerala Tourism Industry (CKTI) has said the state’s tourism sector will witness a loss of revenue to the tune of Rs 20,000 crore this year, due to the severe impact of the corona virus. This calculation was done based on the fact that Kerala generated a sum of Rs 45,000 crore from the tourism sector last year.
Hence, the confederation has requested the government to consider offering the state’s tour operators a cumulative sum of Rs 5 crore as Marketing Development Assistance (MDA). CKTI President EM Najeeb said the scheme could be extended to 50 approved tour operators, with each agency receiving Rs 10 lakh.
CKTI in a letter addressed to chief minister Pinarayi Vijayan, tourism minister Kadakampally Surendran and finance minister Thomas Isaac, stated that transport operators in the tourism sector, approved by the Kerala government, may be given a road tax waiver for six months and a deferment for another six months.
As far as the hospitality sector is concerned, the confederation urged the government to provide 50% salary support to all employees. Taxes such as corporation and municipal taxes, and also license fees may be deferred for six months. With regard to electricity high tension (HT) users, they may be charged minimum rates and electricity subsidy reinstated for their benefit.
The MDA scheme may extended to the hospitality sector also with an amount of Rs 10 lakh per unit in advance, as lumpsum. Homestays may be given Rs 2 lakh in lumpsum as advance.
Besides this, licensed vendors at tourism centres may be given loans of up to Rs 2 lakh on an interest free basis or as an advance. Loans from KFC, KSIDC, state corporation banks or Kerala Bank may be provided with a minimum amount of Rs 25 lakh at low interest rates without collaterals, CKTI said.
The registered taxi drivers have a welfare fund and their salaries may be paid from this fund for six months. The fund is already with the welfare board and only needs to be quantified.
The CKTI President while elaborating on the required revival plans, said that the state will have to start destination marketing very aggressively once the situation improves. The plan of action should start from June onwards to reap the benefits from September.
“A minimum of Rs 150 crore needs to be earmarked for marketing. Free participation and marketing support need to be extended for all international and domestic exhibitions. All tourism entities must be treated as priority sector lending,” President Najeeb said.
Banks and financial institutions should extend a moratorium for the next 12 months on all interest, principal to be paid on loans availed by tourism entrepreneurs through a special directive. “Aviation turbine fuel taxes should be limited to a maximum of 4% for the period of next six months,” he added.
