FAITH revises upwards forecast on tourism value at risk at up to Rs 15 trn

Apex industry body Federation of Associations in Indian Tourism and Hospitality (FAITH) on Monday said it has further revised upwards its forecast on Indian tourism's economic value at risk at up to Rs 15 trillion.

Its first guidance, which was calculated and shared with the government in March 2020, had put tourism's economic value at risk at Rs 5 trillion from the ongoing coronavirus pandemic, FAITH said in a statement. This was revised further during the quarter as the situation deteriorated and the value at risk was put at Rs 10 trillion, it added.

"This has been revised again to touch a value at risk of up to Rs 15 trillion in terms of the economic output of tourism in India," it added.

Given the way coronavirus cases are rising, tourism supply chains have broken down in India across all its key inbound, domestic and outbound markets and is not expected to recover for the next 5 months also, making the total impact to a minimum of nine months starting from March this year, the statement said.

This value covers the whole tourism value chain from airlines, travel agents, hotels, tour operators, tourism destinations restaurants, tourist transportation and tourist guides, it added.

"The cumulative job losses for the full year, both in organised and unorganised category of tourism, could go as high as 40 million," it added.

For the survival of the sector, a FAITH spokesperson said, "The tourism sector requires a customised sector-specific relief package, and it cannot be delayed any further."

Among the measures it is asking for are multi-year moratorium by the Reserve Bank of India (RBI) on principal and interest payments by tourism, travel and hospitality businesses, and a 'Tourism Fund' which can be used by tourism enterprises in India for taking care of their employees, FAITH said.

It also asked for immediate full-year waiver of all central and state statutory liabilities for the survival of the sector.