Tours & Travels Association of Andhra (TTAA) has asked the state government to announce a comprehensive tourism aid and restructuring package for the sector. In a recent letter addressed to the Chief Minister, Y.S Jagan Mohan Reddy, the association highlighted the grave situation being faced by the stakeholders of tourism segment in the wake of Covid-19 pandemic.
The association has requested the state government to declare tourism as an industry considering its contribution to the GDP and employment it generates. The governments of Maharashtra, Kerala, Jammu, Jharkhand, Himachal Pradesh, Assam and Pondicherry have already declared tourism as an industry.
“The coronavirus pandemic has crippled the tourism sector. The stakeholders started losing money from as early as January which was prior to the lockdown announced in the country. We started receiving cancellation requests from the time coronavirus cases were reported in markets like Thailand, Japan, Hong Kong and Japan. It was only the travel sector which virtually shut down much before than any shutdown across the globe. It would create a stimulus for the tourism sector, if it is accorded industry status,” said K. Vijay Mohan, President, TTAA.
The association also requested that there should be an exemption on taxes for passengers travelling on interstate routes. We also request that a complete tax exemption should be given to 8-seater and above mini busses operating as intra city tourist buses till March 2021, considering that there is no tourism,” added Mohan.
There are close to 1,000 travel agents in Andhra Pradesh who employee around 6,000 people. As per estimates, travel agents in the state recorded a revenue loss of Rs. 2,000 crores because of the pandemic and are expected to record a loss of Rs.3,400 by the year-end.
An approximate 30 percent of the travel agents have almost become bankrupt and are on the verge of closing down their businesses. If the present situation continues 90 percent of the travel agents would close down their businesses by the end of 2020.
TTAA in its letter to the Chief Minister has also asked that hotels and convention facilities should also be allowed to host MICE based events and destination weddings. “Instead of having a blanket restriction of 40-50 persons for weddings and MICE, the numbers should be based on the size of the venue,” the letter stressed.
“We request our state government to start the quick rapid test, an innovation that Dubai Health Authority (DHA) and Middle East countries have started by conducting on-site rapid Covid-19 tests for passengers going out and coming in the emirates. The quick blood test results are available within 10 minutes. Our government should also start such an initiative,” said Mohan.
TTAA has also asked for permissions to restart boating, diving and other related water activities. It has also sought trekking permission in the Eastern Ghats.
“It would be most ideal if we can work on developing some landmark tourist attractions on the lines of Disneyland Park or Universal studio. This will help attract family travel from other states as well as boost international tourist arrivals,” said Mohan.
The association has requested the state government to take up with the central government a bailout package based on the GST each travel agent paid over the last one year. GST paid for the last financial year should be credited back to the respective accounts of the companies, which can be used to pay the salaries and wages of the employees for the next one year, the association communicated in its letter.
“This exercise will help companies to retain their employees. Also, GST on domestic tour packages should be brought down to 2 percent,” said the association in its communication.
“The central government should also offer an exemption up to Rs.50,000 in income tax under 80C on domestic tours as this would make people spend within the country. Our Prime Minister, Narendra Modi had asked Indians to visit at least 15 tourist destinations within India by 2022, and such an exemption will motivate Indians to travel domestically,” said Mohan.