Highlighting the plight of the tourism industry due to the coronavirus outbreak, the Federation of Associations in Indian Tourism and Hospitality (FAITH) has urged Prime Minister Narendra Modi to intervene and provide financial relief to the sector.
“We request you for a 12-month moratorium on our EMIs of principal and interest payments on loans and working capital from financial institutions (both banking and non-banking). Additionally, we request doubling of our working capital limits and on interest-free and collateral-free terms. This will prevent all our tourism businesses from going bankrupt,” FAITH said in a letter to the Prime Minister.
Around 70 per cent of the total estimated workforce ― around 3.8 crore employees ― of the Indian tourism industry are likely to be unemployed as a result of this pandemic, the letter said.
A large percentage of the tourism business activity of India, estimated at over $28 billion in forex, and upwards of ₹2-lakh crore in domestic tourism activity, will be at economic risk through the year, it added.
FAITH has also sought a complete GST tax holiday for the tourism, travel and hospitality industry for a period of 12 months.
Among other suggestions, the tourism and hospitality body has requested a 200 per cent weighted exemption for 12 months on expenses incurred by Indian corporates on holding exhibitions, conferences and incentive trips in India.