In this post, let'sdiscuss, in short, the impact of the corona crisis on the touring sector inIndia. A topic that you can't and shouldn't ignore.
India's travel andtourism sectors have been a significant contributor to the country's grossdomestic product. The area even generates a vast employment base. So by mid-March, the famous tourist attractions in India started to shut down. And the report on putting a stop on flights commenced making rounds. We all started to forecast the lousy future of the tourism industry in the country already. The closing down of the exemplary Taj Mahal on 17th March last year, whichattracts millions of travelers every year, was a signal enough to judge the hard blow this crisis was launching at us.
This text will try tounderstand the importance of the travel industry in the country's economy, thepresent and future impacts of the virus, and the proposed action plans andrecovery plans.
Let us first discuss the part of travel & tourism inIndia
● In 2018, travel & tourism contributed 9.2% of the country'sGDP and generated 26.7 million jobs that year. This sector not only employsworkers in towns but also provides an earnings base for the rural area.
● The tourism industry accounts for 12.57% of employment in India,5.56% of it is direct, and 17.9% is indirect.
● Over 87 million persons were employed in the travel sector in2018-19 in India, as per the ministry of tourism (MOT) yearly report for2019-20.
● It is approximated that in India, branded and organized hotels'yearly profit is 38000 crore rupees (5 billion dollars).
● The restaurant sector in India has a yearly turnover ofapproximately 4 lakh crore rupees (53 billion dollars). This sector givesdirect employment to more than 7 million persons.
● India's air vehicle sector employs over 400,000 personsdirectly, and 940,000 are used in associated supply chains.
Effects of corona crisis on travel & tourism in India
● India's tourism & hospitality industry had expected apotential job loss of about 38 lakh on the pandemic.
● In March 2020's 3rd week itself, the motel industry saw adecrease of more than 65% in occupancy rates compared to the same era in 2019.
● With global and domestic travel put on a stop, demand forturbine fuel has heavily decreased.
● Indian association of tour operators (IATO) estimated the hotel,aviation, and tourism industry will together suffer a loss of around 85 billionrupees, keeping in mind the travel barriers imposed on foreign tourists.
● The impact of coronavirus was felt on both blue-collar andwhite-collar jobs.
● The country's inbound and outbound travel witnessed an all-timelow.
● The restaurant sector in India expected almost zero income inthe immediate term and a decrease of 50% in the months that came.
● We at India by Car & Driver predicted that at least 30percent of hotel and hospitality sector income could be impacted if thesituation doesn't improve by the end of June 2020.
● A 15% job loss warning was there in the hotel and restaurantsector once the lockdown was lifted as such industries did not see an immediateflood in demand.
● It was also predicted that the flight sector in India could havelosses worth 27,000 crore rupees (3.3 dollars to 3.6 dollars) in the firstquarter of 2020-21
● The passenger growth of airlines was likely to fall sharply to anegative 20 to 25% growth for 2020-21.
Things you should know
● India's travel & tourism sector was already facing sometrouble before the rise of the corona pandemic due to the impact of theinternational economic slowdown.
● Economic growth in the world slowed down in 2019-20, resultingin weaker growth in overseas tourist arrivals and foreign exchange earningsfrom travel in India.
● With more than 60% of organized hotels in India closed, recoveryshould be expected gradually.
We are starting at asteady or, in fact, slow recovery scenario of the tourism sector in India.However, the critical thing to focus on is the faith of recovery after all.But, unfortunately, for the recovery of the industry, few things were proposedby the industry leaders.
● Experts have emphasized the requirement to focus on domestictourism's potential and gain profit.
● ICC has suggested setting up a fund to prevent financial and jobloss.
● Experts strongly advise cost optimization.
● FF & E reserves will be used to support hotel owners.