TCS Will Not Only Affect Outbound But Also Inbound, TAFI President

On one hand, we talk about the G20 presidency and its potential to uplift tourism and the economy, but on the other side it is getting difficult for the practitioners of the industry to survive – Ajay Prakash.

Ajay Prakash, President, Travel Agents Federation of India (TAFI) mentions during an interaction with T3, that the biggest hurdle is the application of TCS. This places the Indian travel agents, tour operators, or MICE organizers at a huge disadvantage.

“On one hand, when we talk about the G20 presidency and its potential to uplift tourism and the economy, but on the other side it is getting difficult for the practitioners of the industry to survive. The online booking platforms like the KAYAK, Booking.com, Expedia, and more are at a much better advantage, as compared to an Indian tour operator”, mentioned Prakash.

He further added, “All we want is an enabling environment. We, as travel agents, are ‘Aatma Nirbhar’, but we need an environment where our businesses can flourish.” Adding more, Prakash mentions that tourism operates both ways, if outbound travel gets expensive due to the application of TCS, it is also going to affect inbound. Airlines need traffic in both directions. “We believe that they will rethink this move.”

Prakash also rues the fact that there is little protection for agency when airlines like Kingfisher, JetAirways, and more recently GoAir went bankrupt. “GoAir, till the morning when they got into insolvency, they were accepting bookings and payments. But we are unsecured creditors”, said Prakash. “We propose to the Civil Aviation Minister to look into the uncertainty of the business scenario currently pertaining and the risks that the airline business is fighting with. The government must mandate insurance against airline failure on every ticket that is issued in the country. It’s not just about protecting the money of the agent, but also the consumer, as ultimately the money is being paid by the passenger.”

TAFI President also drew attention towards overseas marketing to attract foreign tourists. He said, “If we want to encourage inbound tourism, we also need a sustained marketing effort, which is not happening. When other neighboring countries were promoting travel, we were not doing much on that front of overseas travel. The government has also shut down its tourist offices overseas, and now we are dependent on embassies and Consulates to do tourism promotion. We need to have a certain path and direction which is missing”, reiterated Prakash.