Covid-19 led economic meltdown: Tourism sector may lose INR 5 lakh cr and 4-5 cr jobs in India
The impact of the coronavirus pandemic is debilitating the whole economy, it’s hitting the Indian travel sector the worst. In the opinion of the experts, the industry might lose over INR 5 lakh crore while cutting around 4-5 crore jobs across India.
To break it up, the mainstay of the industry — organized sector which includes hotel brands, travel agencies, and tour operators will incur the maximum loss that is estimated around INR 1.58 lakh crore by the CII.
The top industry body estimated a loss of around INR 1.10 lakh crore for the branded hotels, INR 4,312 crore for the travel agencies, INR 19,000 crore for adventure tour operators, and INR 419 crore for cruise tourism.
As per the recent reports available, the Union Ministry of Tourism is expecting help from the Central government in the near future to the sector with loans, working capital, and loan repayment deferments.
Earlier, the ministry while presenting its case to the parliamentary panel had approximated a loss of INR 5 lakh crore. Moreover, the slowdown is a big blow to the small hotels, home-stays, and other food services.
The suffering of the Indian tourism industry is not an exception. The World Economic Forum has approximated the loss of 50 million jobs in the sector worldwide, 30 million in Asia alone. Indicating a critical juncture that could turn the industry towards existential crises.
Most of the countries across the world are witnessing a strict lockdown situation which is directly impacting the international as well as domestic tour and travel business negatively. The CII also added that cash flow might improve by November 2020.
Short term interest-free loans/low-interest loans and a year deferent on all taxes and dues are suggested by the experts to the government so that the businesses could not only sustain during the time of difficulty but could also revive after the situation normals.