New Delhi, Jun 17 (PTI) The Federation of Associations in Indian Tourism and Hospitality (FAITH) has reached out to the chief ministers of all states on “proportionate relief” from statutory obligations to the pandemic-hit tourism sector in order to revive the industry.
FAITH, the policy federation of all the national associations representing the complete tourism, travel and hospitality industry of India (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) have highlighted that after a devastating financial year in 2020-21, tourism business in India in FY 2021-22 will continue to be highly restricted due to stringent travel requirements, reduced international and domestic connectivity and apprehension of people to travel.
“This will heavily impact the viability of tourism enterprises and jobs. In absence of any business, FAITH member associations look forward to chief ministers of states for proportionate relief from the fixed statutory obligations across the entire tourism value chain for the year,” said Aashish Gupta, Consulting CEO, FAITH in his letter to the CMs.
The sector has requested a complete waiver of all fixed electricity and other utility charges, excise duties, property taxes, interstate tourist transport taxes, waiver of SGST and any other other local taxes for FY 2021-22 without any penalties.
It has also sought automatic renewal of all licenses, permits, permissions which were expiring in FY 2021-22 without any financial charges or penalties and industry status for tourism travel and hospitality.
In the letter, FAITH also sought refund of unutilised GST credit lying with state governments to the tourism, travel and hospitality players to get immediate liquidity among other relief.
It has sought permission to leverage open spaces such as terraces and adjacent areas for F&B to enable compliance with social distancing norms while also enhancing the eating out experience to stimulate the industry demand.
“Liquor VAT under GST and reduction of state liquor VAT/excise to stimulate overall tourism inflow. A mandatory vaccination of all tourism front line staff 18+ to be able to create confidence in the tourists travelling to the state,” the letter said.
One of the worst hit sectors in the pandemic, the tourism industry has come to a virtual halt over the last year.
The World Travel and Tourism Council (WTCC) said in a recent report that the COVID-19 pandemic could cost the tourism industry a job loss of 50 million worldwide and revenue loss of USD 22 billion. PTI ASG RHL