As you may be aware, Travel and Tourism industry is hit economically globally and in India due to outbreak of coronavirus with many prospective domestic and foreign tourists cancelling their travel plans. This global pandemic has prompted the Indian government to impose increasingly tough restrictions on travel resulting in further drop in hotel occupancies since the imposition of the ban.
It is estimated that as a result of this pandemic, Indian Tourism industry is looking at pan India bankruptcies, closure of businesses and mass unemployment. It is believed that around 70% out of a total estimated workforce of 5.5 crores (direct and indirect) could get unemployed (~ 3.8 crores). This effect of job losses and layoffs has already begun throughout the country.
A large % of total tourism business activity of India, which is estimated at $ 28 billion+ in forex and upwards of ₹ 2 lakh crores in domestic tourism activity will be at economic risk through the year. Thus, in excess of ₹ 5 lakh crores of direct tourism industry and almost double that of total economic activity is at risk.
In this backdrop, The Federation of Associations in Indian Tourism & Hospitality (FAITH), the umbrella body of the industry has written a letter to Honourable Prime Minister Shri Narendra Modi to highlight the devastating economic impact of the coronavirus pandemic on the tourism industry and seek his intervention in terms of financial relief for the industry to grapple with the situation.