The Federation of Indian Chambers of Commerce and Industry (Ficci) has estimated the total loss to the tourism industry at Rs 4,000 crore on account of the recent terrorist attacks in the United States and the subsequent uncertainty created in south and central Asia.
The chamber has estimated an over 30 per cent dip in the industry's target of forex earnings at Rs 15,922 crore for the current fiscal. The calculation is based on over 70 per cent cancellations by in-bound foreign tourists in the forthcoming peak season.
It has urged the government to increase budgetary outlays at both central and state levels as an immediate relief for the industry and announce the national tourism policy without any further delay. Ficci wants tourism to be placed on the concurrent list.
The chamber has mooted an eight-point package for reviving the tourism sector.
It has suggested that financial institutions ease terms of debt repayment for the current year considering the sharp drop in earnings which will make it difficult for the companies to repay their debts.
Other measures include identifying and customising potential packages highlighting pilgrimage, heritage, nature (hill/forests/beach), rural and economic tourism apart from shifting to new markets, Ficci said.
It further asked the government to rationalise tax structure including reduction in taxes on food and beverages, abolition of expenditure tax and uniformity in luxury tax rates. Revision of domestic air fares, sops for the tourism industry to pull it out of the current recession were a few other recommendations made by the chamber.
