The associations urge the government to hike the budget for promotion abroad. Besides, a PLI on the lines introduced for the manufacturing sector can be given to tour operators as that can help in earning precious foreign exchange and with this money, they can promote the destinations abroad. Besides, it advocated the govt to consider visa fee waiver as the resultant increase in numbers would easily offset the revenue lost in terms of visa fees.
The Indian Association of Tour Operators has yet again voiced the concerns relating to the blurry growth of inbound tourism to India. They have sought immediate government assistance as tour operators continue to suffer in the wake of sluggish FTAs which remain below 2019 levels. The major reason for little revival in this sector can be attributed to lack of budgetary support for publicity abroad and withdrawal of incentives to tour operators which could be utilised for promotion in the key source market like UK, Canada, USA, Germany, Australia, France and Russia, as per the association.
Notably, the tourism sector suffered the most during the pandemic. However, since then, there has been a robust revival in domestic tourism and outbound travel. “This is mainly due to pent up demand, allure of foreign locations and incentives like visa fee waiver announced by multiple countries. They have wooed our tourists as that boosts their economy but unfortunately there have been no such measures from our country and that has led to lack of foreign tourist numbers in India. Besides, the incentives announced by neighboring countries have also weaned some foreign tourists away from our country,” IATO said in a statement.
Adding further, Rajiv Mehra, President, IATO shared, “In 2018 and 2019, India had 10.56 million and 10.93 million foreign tourist arrivals, 2023 which was a normal year the figure was 92.36 lakhs. Even this year we are not expecting 2019 level to be reached. At best we are expecting 7-9 percent growth over 2019 levels.”
“Travel and Tourism created 79.86 million (direct + indirect) jobs and 15.34 per cent of jobs in the 2019–2020 year. Forex earnings in 2020 were in the tune of $7 Billion In terms of GDP during 2019–2020, tourism contributed 5.19 per cent (direct + indirect). These figures indicate potential both in terms of contribution to GDP as well as the tourism potential. By that yardstick we can easily assess the huge opportunity lost for the country,” said Mehra.
In the wake of this, IATO urges the government to restore, if possible, hike the budget for promotion abroad. Overseas advertisements both electronic and print and road shows abroad should resume. Besides, a PLI on the lines introduced for the manufacturing sector can be given to tour operators as that can help in earning precious foreign exchange and with this money, they can promote the destinations abroad. Besides, the Govt should consider visa fee waiver as the resultant increase in numbers would easily offset the revenue lost in terms of visa fees.
IATO believes that these measures together can help in restoring FTAs in India.
