New Delhi: The outbreak of the novel coronavirus has resulted in an unprecedented downturn in the business of India's tourism and hospitality industry which is one of the worst-hit sectors amid corona pandemic.
Speaking exclusively to ETV Bharat Akshay Kumar, Vice Chairman, FAITH said, "The Federation of Association in Indian Tourism and Hospitality (FAITH) has estimated an overall loss of 5 lakh crore in tourism and hospitality sector which is 10% of the Indian GDP. We have seen an overall about 70-80% cancellation in all businesses."
"Nothing is happening except for some of the hotels, transports running due to security purposes. 3.8 crores direct and indirect employees on the tourism value chain which includes hotels and restaurants, airlines, tour operators, transport providers, adventure tour operators, campsites and other allied business are sitting idle. Business is not slow but completely zero," he added.
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Vice-Chairman of FAITH underlined "Indian tourism travel and hospitality are said to impact 10-12% of India's employment which is believed to cover almost 5 crores direct and indirect jobs. These are across an estimated 53,000 travel agents, 1,15,000 Tour Operators (inbound, domestic, outbound), 15,000 Adventure, 2700 MICE, 19,11,000 Tourist Transporters, 53,000 hospitality and 5 lakh restaurants".
"The direct and indirect economic impact of the tourism industry in India is approximately estimated at 10% of India's GDP. This roughly puts the full-year economic multiplier value of tourism in India at almost Rs 20 lakh crores", the VC informed.
However, FAITH believes this value at risk could go as high as Rs 10 lakh crores or a minimum of 6 full months of output given the way tourism supply chains are breaking down in India across all its key inbound, domestic and outbound markets due to the pandemic. Already a quarter of economic value in tourism is destroyed.
This value covers the whole tourism value chain across all the segments of tourism which include leisure (inbound, outbound, domestic) corporate travel, heritage, adventure, meetings, incentives, exhibitions and events, religious and spiritual tourism and in upcoming high-value niche tourism products such as sea and river cruises.
"We don't expect anything to happen before July or August, but maybe a trickle is going to start from the domestic side. But the international business will only start once the vaccine is finalized There are some people who are willing to travel but the number is going to be less", Akshay Kumar told to ETV Bharat.
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Highlighting on the domestic tourism scenario of the country post-COVID-19, the vice-chairman added, "There is going to be two segments of domestic tourism that would come in, one is the standard mass over-tourism, people would look for cheap packages, these are people who will travel no matter where they would just want to get away with some friends and family after lockdown. On the other hand, there will also be some conscious travellers who would be willing to look at hotels, camp sides and services which would be keeping up with COVID-19 precautions. People would choose the property which is less crowded, away from the cities, small boutique hotels etc. Travelling in groups will not work anymore".
"We are also predicting self-drive holidays which will start post-COVID. Short-haul destinations from metro cities which is 6-10 hours ride away will start first. These are some conjectures and ideas we are getting after the pandemic. Moreover, the Ministry of Culture is keen on opening monuments very soon. They are working on strict protocols which includes online ticketing, controlling entry etc. We are expecting that in a week, they are going to announce the sample opening of monuments. There would be a boom in the domestic business", he further pointed out.
