Lok Sabha Question No. 50 (UNSTARRED), answered on 2020-09-14
Subject: Loss of Revenue in Tourism Sector due to Covid-19
Ministry: TOURISM
Asked by: Dushyant Singh, Uttam Kumar Nalamada Reddy

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.50 ANSWERED ON 14.09.2020

## LOSS OF REVENUE IN TOURISM SECTOR DUE TO COVID-19

50. SHRI DUSHYANT SINGH:

SHRI UTTAM KUMAR REDDY NALAMADA:

Will the Minister of TOURISM be pleased to state:

- (a) the contribution of tourism sector to GDP, jobs generated, tax revenue received from tourism sector in 2018-2019;
- (b) the  loss  of  revenue,  loss  of  employment  opportunities  &  tax revenue  loss  to  the  Government  due  to  Covid-19  in  tourism sector;
- (c) whether the Government has plans for sector specific package for tourism industry along with the steps being taken to revive the industry during the Pandemic;
- (d) whether the Government considers the impact due to Covid-19 on tourism sector to be at par with other sectors and if so, the details thereof;
- (e) whether  the  Government  will  consider  extending  moratorium period and working capital at subsidized or lower interest rate for  the  tourism  sector  and  the  amount  of  loans  disbursed  in Tourism  sector from the Rs.3 lakh crore collateral free automatic loans for MSME under Atmanirbhar Bharat; and
- (f) whether  the  loan  disbursed  and  support  extended  to  the Tourism  Sector  is  at  par  with  the  damages  suffered  by  the industry?

## ANSWER

MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE) (SHRI PRAHLAD SINGH PATEL)

(a):  As per the estimation in accordance with 3rd TSA on the basis of  latest  available  NAS  2020,  contribution  of  Tourism  in  GDP  and jobs in  year  2018-19  is  5.00%  and   12.  95  %  respectively. Further data  on  tax  revenue  received  is  not  maintained  by  Ministry  of tourism, Government of India.

(b):  No  formal  study  has  been  instituted  for  assessment  of  the impact  on  the  Tourism  sector,  tax  revenue  loss  and  job  losses. However, several rounds of discussions and brainstorming sessions with industry stakeholders indicate massive loss of revenue, foreign exchange and jobs. In view of the highly unorganized nature of the sector,  the  impact  in  numerical  terms  can  only  be  ascertained  in due course.

(c) &(d): The stimulus packages announced by the various agencies and  ministries  of  Government  of  India  are  given  in  annexure  I. Further steps which have been taken to overcome the crisis caused by Covid-19 pandemic in the tourism sector is given in Annexure II. (e) & (f): All the prominent stakeholders have given representations regarding  extension  of  moratorium  and  other  provisions  including information about the amount of loan disbursed to Tourism sector under Atmanirbhar Bharat Package which are being taken up with the concerned Ministries/ Departments of Government of India and the States/UTs  on a regular basis.

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Annexure I

STATEMENT  IN  REPLY  TO  PARTS  (C)  &  (D)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 50 TO BE ANSWERED ON 14.09.2020 REGARDING LOSS  OF  REVENUE  IN  TOURISM  SECTOR  DUE  TO COVID-19

## Packages announced by the various agencies and ministries of Government of India are given below:

-  RBI  has  extended  moratorium  on  term  loans  till  31 st   August 2020.
-  The  government  has  further  announced  Atmanirbhar  Bharat Package vide which Rs 3 lakh crore collateral free automatic loan has been made available for MSMEs. The loan will have 4-year tenure and will have 12-month moratorium.
-  The Government waived off PF contribution for three months for organizations with less than 100 pax and 90% employees having  salary  below  Rs.15000.  Under  Atmanirbhar  Bharat package, PF contribution of both employer and employee has been  reduced  to  10%  each  from  existing  12%  each  for  all establishments  covered  by  EPFO  for  the  next  three  months i.e. up to September 2020.
-  Deferment of TCS upto October 2020.
-  Return filing deferred for three months with no penal interest for companies upto 5 Crore, rest @ 9% penal interest.
-  The  Central  government  has  also  given  relief  from  various regulatory compliances under Income Tax Act, companies Act and GST Act for varying period in the wake of COVID-19 crisis to ensure business continuity and survival.

Annexure II

STATEMENT  IN  REPLY  TO  PARTS  (C)  &  (D)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 50 TO BE ANSWERED ON 14.09.2020 REGARDING LOSS  OF  REVENUE  IN  TOURISM  SECTOR  DUE  TO COVID-19

The  following  steps  have  been  taken  by  Ministry  of  Tourism  to overcome  the  crisis  caused  by  Covid-19  pandemic  in  the  tourism sector:

- (i) Detailed operational guidelines for Covid safety and hygiene has been  prepared  in  order  to  create  awareness,  training  and assessment  of  compliance  of  the  guidelines.  The  program  is aimed  at  building  the  capacity  of  the  Hospitality  industry particularly  small  and  medium  units  to  restart  and  grow  their business.
- (ii) A  robust  information  system  /  comprehensive  data  base  of various accommodation units throughout the country has been created for coordinating and ensuring registration of all  unclassified accommodation units.
- (iii) Operational  recommendations  for  hotels,  restaurants,  B&Bs/ Home stays and Tourism Service Providers have been formulated  and  issued  on  08.06.2020  to facilitate  smooth resumption of business.
- (iv) Validity of approval or certifications of hotels and other accommodation units whose project approval / re-approval and classification  /  re-classification  have  expired  /  were  likely  to expire, has been extended upto 30 th  September, 2020.
- (v) The  Ministry,  in  collaboration  with  QCI,  has  developed  an initiative called SAATHI (System for Assessment, Awareness & Training  for  Hospitality  Industry),  for  effective  implementation of  Guidelines/SOPs  issued  with  reference  to  COVID  19  and beyond  for  safe  operations  of  Hotels,  Restaurants,  B&Bs  and other units.
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