Tourism sector estimates ₹15 tn loss for FY21 due to covid

Revising its estimates of the losses that the country’s tourism is likely to suffer in FY21, the Federation of Associations in Indian Tourism and Hospitality (FAITH) states a recovery is not possible for the next five months as the pandemic is still raging and tourism supply chains have broken down. It expects a threefold increase from ₹5 trillion loss estimated in March to ₹15 trillion in its latest update.

FAITH noted that each of the segments of tourism – airlines, travel agents, hotels, tour operators, tourism destinations restaurants, tourist transportation and guides – is non-performing or underperforming. The situation is likely to remain same for many months of this year. It added that at least three quarters of tourism business will be affected by COVID-19. It also anticipates around 40 million cumulative job losses for the full year in the organized and the unorganized category of tourism.

The industry body has requested the government to set up a tourism fund that can be used by enterprises to take care of employees and a multi-year moratorium by the Reserve Bank of India (RBI) on principal and interest payments for tourism, travel and hospitality businesses.