Around three hundred tour operators gathered at India Gate, New Delhi after taking out a car rally on Sunday (September 27). Participants holding placards highlighted their miseries in the wake of the coronavirus pandemic and requested the central government to pay attention to their woes.
The rally that coincided with World Tourism Day consisted of more than 130 cars. It started from Qutub Minar and passed through landmarks like Humayun’s Tomb and Raj Ghat before ending at India Gate.
Tour operators appealed to the government to disburse their Service Exports from India Scheme (SEIS) benefits at the earliest.
Rajesh Mudgil, Managing Director, Planet India Travels said, “There are almost 5 crore jobs at stake. We are appealing to the government that they should relook at the request of the industry. The government should disburse SEIS claims pending for the financial year 2019-2020 at the earliest. The government should help us to be competitive in the international market by waving off the entrance fees of monuments till 2022. Similarly, tourist vehicles should be exempted from the transport tax for the next two years.”
Under the SEIS scheme, the government offers incentives to all service providers who are providing services from India to organisations outside India. These incentives are not given in the form of money but are given in the form of duty-free credit scrip. The duty credit scrips issued under SEIS scheme can be used for payment of various taxes levied on goods and services. These scrips are also freely transferable and can also be easily sold to some other assesses.
A section of tour operators requested the government that their moratorium on bank loans and statutory payments should be extended by one year at least.
“We have sent many communications to different ministries like commerce, finance and Prime Minister’s Office (PMO) but unfortunately we have not received any positive reply or acknowledgment. Our incentives under SEIS are still pending. The government should provide soft loans to tour operators and extend the moratorium for one or one and a half year,” said Sunil Mishra, Managing Director, Cosmos Travels & Tours.
Tour operators also conveyed to the government that if it can’t give a bailout package, soft loans at a subsidized rate of 3-4 per cent should be offered to the tourism industry.
Tony Marwah, Managing Director, Indian Travel Promotion Company “Our demands seem reasonable but for the government there may be other priorities at present. The government should consider to give us some fiscal relief like a soft loan where interest is subsidized as the Kerala government has done at the state level.”
Kerala government has absorbed the gap between the actual bank interest and the subsidized interest through funds allocated to the tourism department.