Debjit Dutta, CEO of Impression Tourism Services and Chairman, IATO & ADTOI, West Bengal Chapters believes that in the absence of direct support from the government, many tour operators are on the verge of bankruptcy.
Q. How are the stakeholders of the tourism and hospitality industry in West Bengal coping up with challenges caused by the pandemic?
A. Like in other parts of the country, tourism and hospitality stakeholders in West Bengal are facing the biggest crisis in history. There is zero cash flow and companies don’t have money to sustain this crisis. The industry has undergone a lot of changes in the last 16 years. The market has become very competitive with digitalization. Margins are wafer-thin and now with the pandemic, there is zero traffic.
We are also noticing a lot of job losses because a majority of companies have their limitations in terms of working capital and bank liabilities. We have mostly small and mid-size travel companies in West Bengal. There are very few national brands operating from here. I fear that a lot of entities will be shut down in days to come without any direct support from the government.
West Bengal has a diverse portfolio of tourism products and experiences. The state government has worked a lot to promote the destination in domestic and international markets. West Bengal had hosted the annual convention of the Indian Association of Tour Operators (IATO) last year. I think the benefits of such initiatives have now gone down the drain due to Covid-19 pandemic.
Q. When do you expect market sentiments to improve?
A. At one side West Bengal is not receiving tourist from outside and on the other hand, Bengalis are also not travelling. We know that people from West Bengal are a major source of traffic for many destinations. So, it is not good news for domestic as well as outbound tourism.
I think it is difficult to predict when things will improve. Tourism with new ‘normal’ is going to be difficult to sustain. The only solution for our woes is a vaccination for Covid-19.
However, people are now exploring nearby destinations. Though there has been a tremendous development in the demand for such weekend destinations, the present scenario has catapulted their importance. People are looking to travel short-haul, preferring to holiday in destinations that are at a drivable distance. There are travellers who never considered nearby destinations but now such travellers are also thinking otherwise.
Q. Going forward, what trend you expect to see in the tourism sector?
A. I think travelling will become more expensive because of the changes caused by the pandemic. Responsible tourism is the future and will gain a lot of importance. The industry is at present experiencing a transformation. When travel tech entered the market, a lot of companies found it difficult to sustain. Even though what’s happening at present is a drastic change, we need to adapt to the new realities of travel. There are four ‘R’ which are key in the tourism industry, review, research, restructure and revive.
We are now seeing some resorts even sold out. However, for tour operators, demand for drivable destinations doesn’t change much as travellers are booking on their own.
Q. Do you think more direct bookings will happen now?
A. This has been happening for some time now. We need to understand that as a tour operator we are not just selling a product but knowledge too. The value addition that we offer makes us important. I think there will be more demand now for experiential travel. So, we need the skills to cater to such demands.
Q. A lot of states are now opening their border for tourism. So, are these positive signals for the tourism sector?
A. I think the government can’t make exceptions for the tourism industry. We have to follow protocols defined by state and central governments. Moreover, the problem is not with restrictions. The fact that the present scenario is not conducive for tourism is the biggest challenge.
When a tourist visits a destination, locals are sceptical about their presence. It is not an ideal situation to travel. So, whether it is advisory against travelling to India or borders opening for travellers, it doesn’t mean much as the confidence to travel is lacking in the market.