Trying to provide some relief to the ailing tourism sector, Indian Finance Minister Nirmala Sitharaman on Monday announced 8 economic relief measures as part of a package to support the pandemic-hit economy. But with large part of the relief coming in terms of loans, the tourism industry is not happy. It has always said that it wants financial support, but definitely not in form of loans.
Package includes Rs 1.5 lakh crore of additional credit for small and medium businesses, more funds for the healthcare sector, loans to tourism agencies and guides, and waiver of visa fee for foreign tourists as part of a package to support the pandemic-hit economy.
With the tourism sector being hit hard by the pandemic, she announced up to Rs 10 lakh loan to tourist agencies and Rs 1 lakh loan to tourist guides while waiving off visa fee for the first five lakh foreign tourists visiting India after travel restrictions ease until March 31, 2022. Tourist visa fee waiver will cost the government Rs 100 crore.
The scheme for guides will cover 10,700 regional level tourist guides recognised by the Ministry of Tourism and Tourist Guides recognized by the State Governments and Travel and Tourism Stakeholders (TTS) recognized by the Ministry of Tourism. The scheme will be administered by the Ministry of Tourism through NCGTC.
“This will benefit any tourist only once. The scheme is applicable till March 31, 2022, or will be closed after distribution of first 5 lakh visas,” she said.
A total of 10.93 million foreign tourists visited India in 2019, spent US $ 30.098 billion on leisure and business. The average daily stay for a foreign tourist in India is 21 days and average daily spending of a tourist in India is around $34 (Rs 2400).
Rajiv Mehra, president of Indian Association of Tour Operators said, “Not many operators will be taking any loan when business is already halted. A loan will be a more of a burden than benefit.”
Even the guides associations have been asking for monthly relief and not loans. Having said that the loan limit of 1 lakh rupees for the guides is of no use.
Package says nothing about the hotel and restaurant sector, whereas a large number of employees in this sector have lost their jobs due to pandemic in last 14 months. Announcement provides no relief to all those employers who have worked hard to save many jobs despite zero business.
The much talked visa-fee waiver with two types of caps also seems quite hollow and isn’t going to benefit a long haul destination like India. With resumption of regular international flights to and fro India not anywhere near and Delta variant already causing a lot of concern again, a nine-month far deadline of March 31, 2022 for visa waiver makes no sense.
Instead of clamouring on a non-happening event, it would have been better to focus on more urgent direct relief to the industry.