4th July  2020

To: All Members

 

Subject – Update from the President -  IATO, ADTOI and ATOAI Meeting with Niti Aayog on 2nd July 2020 for Survival of the Tourism Industry

Dear Members,

As you all know,  IATO has been making all its efforts for getting some relief for the members for their  survival. We have been raising our concern through all possible means and platforms, i.e. FICCI, CII, PHDCII, ASSOCHAM, FAITH and have been writing to all the concerned ministries directly and through Ministry of Tourism, Government of India and also to PMO. We also approached the Chief Ministers of many state governments for relief to the tour operators on State Level.

In continuation of such efforts being made by IATO, a meeting was arranged by IATO with Mr. Amitabh Kant, CEO, Niti Aayog, Government of India in his office on 2nd July 2020 and IATO took along ADTOI and ATOAI for the meeting.

During our meeting with Mr. Kant, following points were discussed:-

1.    Monetary help for survival of tour operators/travel agents/tourist transport operators in the form of cash support.

It was explained that due to Covid-19, Tourism industry is struggling to survive without any business and zero billing. Industry is not in a position to pay salaries to the staff from July onwards.  To retain the experienced and professionals of the tourism industry, we need government help to pay them salaries till such time the inbound travel begins. If no financial support is provided by the Government, all those young tourism professionals will have no other option but to be either be without job and wait for tourism business to revive or leave the tourism industry for long time to learn other jobs and join other industries, which will be a big blow and great loss to the tourism industry by losing highly skilled tourism professionals and service providers.

It was suggested that financial relief should be given to all 1043 Ministry of Tourism Government of India recognised inbound, domestic, adventure tour operators, travel agents and tourist transport operators which can be in the form of one time financial grant of 75 % to 80% of the gross salaries amount paid to the staff  in financial year 2018-19.

2.     Non Collateral Interest Free long term (5 to 10 years) to tour operators for revival.

It was requested that under the MSME loan scheme, special non- collateral, interest free long term (5 to 10 % years) loan to be provided to at least 1043 Ministry of Tourism Government of India recognised inbound, domestic, adventure tour operators, travel agents and tourist transport operators. Mr. Kant was also apprised that  as per present MSME rules,  new borrowers are not being given any loan. The eligibility is only for those MSME members who all have already established relationship with collateral bank loan facility. For new borrowers there is a need to amend the rule to accommodate the new MSME members with moratorium period of 12 months and non-collateral loan.

3.     Increase in SEIS Scrips from 7% to 10%.

Mr. Kant was apprised that the Government of India has so far has not taken any decision on the SEIS scrips. He was apprised that IATO has recommended to the Ministry of Commerce and Ministry of Finance that for the year 2019-20, this should be increased from 7% to 10%.  This will help our members to revive their business by offering competitive packages comparing to our neighbouring countries and also they will have additional funds not only for promotion and marketing in overseas markets but also help to breath for a few months.

Mr. Amitabh Kant gave us a very patient hearing and being former Joint Secretary in the Ministry of Tourism, understood the problems the tourism industry is facing and assured his full support to the industry by taking up the matter with Ministry of Finance, Ministry of Commerce and RBI.

We hope some positive results will come out after this meeting with Mr. Amitabh Kant.

Thanks and regards,

Pronab Sarkar

President