Federation of Associations in Indian Tourism & Hospitality (Faith) on Monday estimated the industry’s losses for the year at Rs 15 trillion owing to the COVID-19 pandemic. This is significantly higher than the Rs 5 trillion loss estimated in March.

Amid the relentless spread of the virus, tourism supply chains have broken down in India and recovery is not possible until the next five months, said the associations representing the tourism, travel and hospitality industry in India.

“This makes the total impact to a minimum of nine months starting from March this year,” read a statement from Faith. The direct and indirect economic impact of the tourism industry in India is approximately estimated at 10% of India’s GDP. This roughly puts the full-year economic multiplier value of tourism in India at Rs 20 trillion. Faith said at least three-quarters of tourism will be fully impacted due to the global virus outbreak.

This industry covers the whole tourism value chain from airlines, travel agents, hotels, tour operators to tourism destinations, restaurants, tourist transportation and guides. Each of these segments is non-performing or underperforming and will stay that way for many months of this year, Faith added. The cumulative job losses for the full year both in an organised and unorganised category of tourism could go as high as 4 crores.

The depleting demand is visible through pending refunds for travel agents, vacant hotels and restaurants, tourist transport lying vacant, laid off or leave without pay staff and no visible bookings for the peak October March season.

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