38-50mn people may lose jobs in tourism value chain
As per recent estimates by FAITH & CII, battered by the Covid-19 pandemic and failing to get any financial assistance under the ₹20-lakh-crore package, the entire tourism value chain may see up to 50 million jobs getting axed in the next three months. In fact, restaurants and air travel operations, the travel service providers, hospitality companies and tour operators have already begun laying off staff.
Rakshit Desai, MD of the global travel management services provider FCM Travel Solutions, “We are looking at least three months of zero revenue. So, some opex rationalisation had to be done. We don’t have the capacity. Not many businesses can’t withstand months and months of zero revenue. I would be hugely surprised if there are other companies in our sector that are not in the same situation.”
According to Mandeep Lamba, president, South Asia, at hospitality consultancy HVS Anarock, the all India hotel occupancy rate of 11% and revenue per available room dropping by 87% in April. “Continued loss of business coupled with bleak prospects for the year ahead and no relief in sight is forcing companies to consider reviewing and restructuring their manpower costs which the sector was trying its utmost to avoid,” he stated.
While hotels have still not been allowed to operate, on Wednesday, civil aviation minister Shri Hardeep Singh Puri tweeted domestic flight operations will recommence in a calibrated manner from May 25. However, according to the industry, travel services providers are not expecting a full recovery till next year.