Covid impact of tourism: 14.5 million jobs lost in the first quarter of 2020 alone

NEW DELHI: A study on the impact of the coronavirus on tourism conducted by the National Council for Applied Economic Research reported that the pandemic caused “significant” job losses in the tourism sector after the lockdown was implemented .
On the opening day of parliament, the Tourism Ministry referred to the NCAER report in response to a question from Lok Sabha MPs Ramesh Kaushik and Raju Bista, in which it said 14.5 million jobs were lost in the first quarter, followed by 5.2 million jobs in the second. quarter and 1.8 million additional jobs in the third quarter of 20-21, after the foreclosure was imposed.
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The NCAER report, a draft of which has been approved by the Tourism Department, has yet to be released. The sponsored study resulted in an analytical report that used mathematical models to assess the loss to the economy in terms of tourism spending, projects that full recovery can only occur in 3-4 years, estimates the loss. of household income and contains recommendations for reviving the tourism sector.
The ministry hired the NCAER in January 2021 to conduct a study on “India and the coronavirus pandemic: economic losses for households engaged in tourism and policies of recovery”.
He also set up a working group led by the Minister of Tourism to “meet the challenge posed by the COVID 19 epidemic and make appropriate recommendations for the revival of the tourism and hospitality sector in the country”. However, no formal studies have been conducted to assess the impact of Covid-19 at the state / UT level on the tourism industry.
He also said that Foreign Exchange Income (FEE) in the months between January and December 2020 fell 76.3% compared to the corresponding period in 2019.

India’s travel and tourism sector, which accounts for nearly 2.5% of GDP, has repeatedly called on the government to seek help from travel and tourism businesses on the brink of collapse due to the coronavirus pandemic.
From hotels to tour operators, tour operators and tourist guides, organizations representing the tourism sector have submitted several petitions to the government highlighting the deep financial stress caused by the pandemic on the travel and hospitality sector in 2020-2021.
With the resulting impact on the viability of tourism businesses and jobs, FAITH, the federation of travel and hospitality companies in the country, requested a waiver of statutory obligations and added that states should offer a 100% waiver, without penalty, to travel and hospitality companies on all costs. fixed electricity and utilities, excise duties, property taxes, interstate tourist transportation taxes, SGST exemption and all local taxes.
The industry body has also requested an automatic renewal of all licenses, permits, authorizations expiring in the 2021-2022 fiscal year without finance charges or penalties and industry status for tourist travel and hospitality. , as well as a refund of their unused GST credit for travel industry liquidity needs.
The industry’s response to the finance minister’s “bailout” also did not generate much enthusiasm, as companies said they needed cash flow to keep companies afloat rather than cash flow. monetary policy interventions.

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