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IATO Requests Government To Provide Immediate Relief To Tour Operators

Recently, the Indian Association of Tour Operators (IATO) requested the government to provide immediate assistance to the tourism industry. 

The assistance will protect the interests of the tour operators

Due to the pandemic, the tour operators of the industry were either forced to lay off their staff or send them on furlough. The remaining employees are also at a loss as they’re getting less than 30 percent of their salaries.  

To prevent further losses, the IATO has urged for a one-time financial grant of the gross salaries amount to be paid to the staff of the tour operators. This will be based on the balance sheet of fiscal year 2018-19 which has been submitted to the government authorities.

IATO has further urged the government to raise duty drawback under the SEIS (Service Export India Scheme). The request is to increase it from the existing 7 percent to 10 percent. If this measure is implemented, it would go a long way in alleviating the liquidity problem. This will be quite helpful as the sector currently has zero billing. 

MSMEs Registration, Tour Operators

 

“The industry body has also sought amendment in rules regarding the granting of loans to micro, small, and medium enterprises (MSMEs). Presently only those who have established relationships with banks are being offered loans,” mentioned IATO.

Pronab Sarkar, President, IATO said, “The measures we have sought do not involve huge outgo from the government. If these relief requests can be granted, it can go a long way in providing respite to the stressed sector. If not granted, many tour operators would have to shut down.”

Also Read: Social Distancing Impedes Progress of MICE Sector

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