COVID-19 effect: No formal study yet, but indications of major revenue loss, says tourism ministry

Ministry of Tourism informed Parliament on Monday while formal study has been conducted to assess impact of COVID-19 pandemic on tourism sector, discussions with stakeholders have indicated that sector has suffered a massive loss in revenue.

In a written reply in Lok Sabha, Tourism Minister Prahl Patel said due to fact that sector is largely urganised, impact can be assessed only in due course.

" formal study has been instituted for assessment of impact on tourism sector and job losses. However, several rounds of discussions and brainstorming sessions with industry stakeholders indicate massive loss of revenue, foreign exchange and jobs.

"In view of highly urganised nature of sector, impact in numerical terms can only be ascertained in due course," he said.

He furr said that various ncies and government have outlined several stimulus packs for sector, which includes extended moratorium from Reserve Bank of India (RBI) on term loans till August 31 this year.

Patel said government has furr anunced an 'Atmanirbhar Bharat pack' of Rs 3 lakh crore, which is a collateral-free automatic loan for micro, small and medium enterprises (MSMEs).

loan will have a four-year tenure and will have a 12-month moratorium.

Under Atmanirbhar Bharat pack, PF contribution of both employer and employee has been reduced to 10 per cent each from existing 12 per cent each for all establishments covered by EPFO for next three months i.e. up to September this year, he said.

It has also deferred TCS up to October this year, Patel ded.

central government has also given relief from various regulatory compliances under Income Tax Act, Companies Act and GST Act for varying period in wake of COVID-19 crisis to ensure business continuity and survival, he said.

He also said tourism ministry has t received any proposal from any state for increased allocation of funds for development and promotion of tourism in view of COVID-19 pandemic.