‘India’s tourism sector may lose Rs 5 lakh cr and 4-5 cr jobs could be cut due to COVID-19’
New Delhi The coronavirus pandemic would have a great impact on India’s tourism sector with the industry estimating an overall loss of Rs 5 lakh crore and job cuts for 4-5 crore people.
Of the total losses, the organized sector in the industry — branded hotels, tour operators, travel agencies which are the mainstay of the sector – may be hit the hardest with an estimated loss of around Rs 1.58 lakh crore, according to Confederation of Indian Industry estimates
The industry body has said that branded hotel groups are set to lose as much as Rs 1.10 lakh crore, online travel agencies Rs 4,312 crore, tour operators (inbound and domestic) Rs 25,000 crore, adventure tour operators Rs nearly 19,000 crore and cruise tourism Rs 419 crore.
Source in the Union Ministry of Tourism said the government is considering helping the sector with soft loans, working capital and deferment on loan repayments.
The ministry itself, in a presentation to a parliamentary panel on transport and tourism last month, had pegged the losses at Rs 5 lakh crore, quoting industry estimates.
Other than the organised sector, the tourism industry also gives employment to small homestays, bread and breakfasts and small hotel operators and their services will also take a major hit ..
The national federation of 10 tourism, travel and hospitality organisations of India, FAITH, said it was safe to say that the overall value of the losses could be in the range at Rs 5 lakh crore, covering all aspects of the business.
“The problem is that we have the majority of tourists who come to our country from October to March and there are people who travel the country during summer holidays, pujas or in December and then there are people who go abroad for Vacation with family.
“There is no one coming ..
As per the World Economic Forum (WEF), the coronavirus pandemic is putting up to 50 million jobs in the global travel and tourism sector at risk. Around 50 million jobs that could be lost from that around 30 million would be in Asia only.