Indian Association of Tour Operators (IATO), an apex body representing more than 1600 inbound tour operators, on Friday urged government to provide relief measures to the tourism industry which has suffered a blow due to the coronavirus outbreak.
The body estimates that 3.8 crore jobs associated directly or indirectly with tourism industry are at stake and economy can lose revenue of about Rs 5 lakh crore in the next one year. With statutory dues, salaries, utility bills standing amidst zero cash flow, the industry needs immediate help, it said. ‘We need both short-term and long-term measures. Where short term measures can help in survival, the long term one’s can help in revival. However, what we need is urgency in action as jobs and livelihoods are at stake and delay is announcement of sops is only adding to the existing strain,’ said Pronab Sarkar, president, IATO.
Among the long-term measures, the body has urged that inbound tourism Industry be given the status of deemed exporters based on their foreign exchange earnings and thus by placing them at par with exporters of goods and IT industry. It further asked the government to consider exemption of GST on foreign exchange billing. To encourage domestic tourism, LTA incentives for Indian citizens should be available with all the tour operators recognised by the Ministry of Tourism, and Government of India and not remain limited to government tour operators alone, IATO said adding that visa fee could be either abolished or drastically reduced to make India a favourable tourist destination. All import duties required to upgrade tourism infrastructure should be waived off, it said.
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