The Federation of Associations in Indian Tourism & Hospitality (FAITH) has expressed concern over the continuing economic challenges the Indian tourism industry is facing in the face of the coronavirus pandemic. This pandemic has had a bigger impact on the economy than the combined effect of 9/11 and the slowdown of 2009.
FAITH has also stated that all the cash flow of the industry has frozen and may stay that way for the rest of the year. To deal with issues of cash outflow, FAITH has made some recommendations. These measures for survival include a complete deferment for twelve months of all statutory dues payable by tourism, travel and hospitality industry at the Central Government level, state, and municipal government level without attracting any penal interest. These would include GST, Advance Tax payments, PF, ESI, customs duties, excise fees, fixed power & water charges and any fees for licenses and renewal at the state level.
FAITH wants a ‘Tourism COVID-19 Relief fund’
The association is also calling for the creation of a support fund ‘Tourism COVID 19 Relief fund’ by RBI or Ministry of Finance or Tourism to support salaries and establishment costs. The industry estimates the value of the fund to be a minimum of Rs.50,000 crores. The amount is almost equal to gross banking credit to the Indian Tourism industry.
FAITH wants the government to declare immediate survival measures to prevent mass bankruptcy and crores of unprecedented layoffs.
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