Tourism body IATO seeks financial relief package for battered sector

The Indian Association of Tour Operators (IATO) on Sunday urged the government to provide relief to the tourism industry as it has experienced heavy losses due to the coronavirus pandemic and the survival of the sector is at stake.

While IATO said it fully supports the lockdown, the tourism industry has suffered heavy losses amid zero cash flow. This has put the survival of entire industry in question, it said in a statement.

"To tide over the crisis, IATO is seeking scrapping of GST in entirety for period of one year for all outbound, inbound and domestic bookings," it said.

The tourism industry also wants advances paid to hotels, airlines and to state governments for luxury trains, wildlife safaris and road tax to be entirely refunded, IATO said.

 

The industry is also seeking "financial bailout package to defray the salaries of the employees and operational cost of office based on the turnover of the company in last financial year", it added.

A 9-to-12 months deferment (without any interest) on all principle and interest payments on bank loans and doubling overdrafts bringing in liquidity for allowing business continuity is also required, IATO said.

Further, a 5-year tax holiday for tour operators who are registered under GST/shop and establishment norms prior to March 15, 2020 and employers and employees contribution towards PF payments and TDS for the next 1 year should be subsidised by the government, it added.

IATO President Pronab Sarkar said: "This financial assistance is very much needed because of governments directives both by the Centre and state government, not to lay off staff and to pay full salary to all their employees."

Under the present situation of zero business, "we are not certain how long this situation shall continue and when are we going to revive our business," he added.

IATO also said when the situation improves, free visa for all tourists for 12 months along with free entry to ASI monuments for one year for all foreign tourists should be allowed.