FAITH pegs industry loss due to pandemic at Rs 10 lakh crore

The Federation of Associations in Indian Tourism & Hospitality (FAITH) — the nodal federation of all the national associations representing the tourism, travel and hospitality sectors in India — has estimated a loss of Rs 10 lakh crores to the industry, as a result of the pandemic.

The federation presented the revised guidance during a meeting with the Empowered Group-6 (EG-6), an inter-ministerial panel set up by the government and headed by Niti Aayog chief executive Amitabh Kant. The earlier estimate was given to the government in March, when it had pegged the loss at Rs 5 lakh crores.

The federation now believes the value at risk could go as high as ₹10 lakh crore given the way tourism supply chains are breaking down across all its key inbound, domestic and outbound markets. While the government has allowed reopening of several industries in the third phase of the lockdown, hospitality services including hotels and restaurants remain prohibited.

The direct and indirect economic impact of the pandemic and the lockdown on the tourism industry in India is estimated at about 10% of India’s GDP. This roughly puts the full-year economic multiplier value of tourism in India at almost ₹20 lakh crore, FAITH said.

It said the estimates covered the whole tourism value chain across airlines, travel agents, hotels, tour operators, tourism destinations restaurants, tourist transporters and tourist guides.