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

The Ministry of Tourism informed Parliament on Monday while no formal study has been conducted to assess the impact of the COVID-19 pandemic on the tourism sector, discussions with stakeholders have indicated that the sector has suffered a massive loss in revenue. In a written reply in Lok Sabha, Tourism Minister Prahlad Patel said due to the fact that the sector is largely unorganised, the impact can be assessed only in due course. "No formal study has been instituted for assessment of the impact on the 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 the highly unorganised nature of the sector, the impact in numerical terms can only be ascertained in due course," he said. He further said that various agencies and the government have outlined several stimulus packages for the sector, which includes extended moratorium from the Reserve Bank of India (RBI) on term loans till August 31 this year. Patel said the government has further announced an 'Atmanirbhar Bharat package' of Rs 3 lakh crore, which is a collateral-free automatic loan for micro, small and medium enterprises (MSMEs). The loan will have a four-year tenure and will have a 12-month moratorium. Under the Atmanirbhar Bharat package, PF contribution of both employer and employee has been reduced to 10 per cent each from the existing 12 per cent each for all establishments covered by EPFO for the next three months i.e. up to September this year, he said. It has also deferred TCS up to October this year, Patel added. The central government has also given relief from various regulatory compliances under the Income Tax Act, Companies Act and the GST Act for the varying period in the wake of the COVID-19 crisis to ensure business continuity and survival, he said. He also said the tourism ministry has not received any proposal from any state for increased allocation of funds for development and promotion of tourism in view of the COVID-19 pandemic.

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

The Ministry of Tourism informed Parliament on Monday while no formal study has been conducted to assess the impact of the COVID-19 pandemic on the tourism sector, discussions with stakeholders have indicated that the sector has suffered a massive loss in revenue.

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