Lok Sabha Question No. 2008 (UNSTARRED), answered on 2023-03-13
Subject: Impact of Russia-Ukraine War on Tourism Sector
Ministry: TOURISM
Asked by: Ravindra Kushawaha, Ravi Kishan Shukla, Subrata Pathak

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.2008 ANSWERED ON 13.03.2023

## IMPACT OF RUSSIA-UKRAINE WAR ON TOURISM SECTOR

## 2008. SHRI RAVINDRA KUSHWAHA:

SHRI RAVI KISHAN:

SHRI SUBRAT PATHAK:

Will the Minister of TOURISM be pleased to state:

- (a)    whether the Indian Tourism Industry has been hit hard due to the Russia-Ukraine war and if so, the details thereof;
- (b) the number of Russian and Ukrainian tourists who visited India during each of the last three years and the current year;
- (c) whether the Government has assessed the loss of  the  tourism sector, loss of employment opportunity and tax revenue loss to the Government due to Russia-Ukraine war and if so, the details thereof;
- (d) whether the Government has also issued any travel advisory to Indian tourists visiting Russia and Ukraine and if so, the details thereof; and
- (e) whether the Government proposes to announce sector specific package for the tourism industry and if so, the details thereof?

## ANSWER

THE MINISTER OF TOURISM                           (SHRI G. KISHAN REDDY)

(a) to (c): No formal study has been instituted by Ministry of Tourism to  assess  the  impact  of  Russia-Ukraine  war  on  tourism  sector. However, as per information received from Bureau of Immigration, the details of Foreign Tourist Arrivals (FTAs) in India during 2021 and 2022 is given below:

| Year                                           |   2021 |   2022(P) |
|------------------------------------------------|--------|-----------|
| Foreign Tourist Arrivals in India (in Million) |   1.52 |      6.19 |

P: Provisional;

There has been a decline in FTAs in India during pandemic. However, there has been a sharp increase in FTAs in India during year 2022 over year 2021 with a growth of 305.4%.

The details of Foreign Tourist Arrivals (FTAs) in India from Russia & Ukraine during 2020 to 2022 and January 2023 are given below:

| Year         |   Russia |   Ukraine |
|--------------|----------|-----------|
| 2020         |   102166 |     10619 |
| 2021         |    17567 |      5197 |
| 2022 (P)     |    95522 |      6478 |
| Jan 2023 (P) |    25843 |       938 |

(P): Provisional Source: Bureau of Immigration (d): As per information received from Embassy  of  India, Kyiv, Ukraine, keeping in view the security situation in Ukraine, Mission had issued travel advisories on February 28, October 10, 19 & 25, 2022 to all Indian nationals to leave Ukraine immediately and advised against travelling to Ukraine. The situation continues to remain uncertain and volatile. (e): No sector specific package is announced by Government of India in  the  wake  of  Russia-Ukraine  war.  However,  Government  of  India announced several fiscal and non-fiscal relief measures for post-covid recovery of tourism sector which is placed at Annexure.

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## ANNEXURE

STATEMENT  IN  REPLY  TO  PART  (e)  OF  LOK  SABHA  UNSTARRED QUESTION NO. 2008 ANSWERED ON 13.03.2023 REGARDING IMPACT OF RUSSIA-UKRAINE WAR ON TOURISM SECTOR

The  following  are  the  various  fiscal  and  non-fiscal  relief  measures announced  by  the  Government  for  redeveloping  post-covid  tourism sector of the country:

- i. The Government announced Atmanirbhar Bharat Package vide which  Rs.3.00  lakh  crore  collateral  free  automatic  loan  has been  made  available  for  MSMEs.  The  loan  will  have  4-year
2. tenure and 12-month moratorium.
- ii. Under  Atmanirbhar  Bharat  package,  PF  contribution  of  both employer  and  employee  had  been  reduced  to  10%  each  from existing 12% each for all establishments covered by EPFO for three months.
- iii. Return  filing  deferred  for  three  months  with  no  penal  interest for companies up to Rs.5.00 Crore, rest @ 9% penal interest.
- iv. The Central government also gave 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.
- v. The Government announced the Emergency Credit Line Guarantee Scheme (ECLGS) 3.0 on 31.3.2021 to support eligible Micro,  Small  and  Medium  Enterprises  (MSMEs)  and  business enterprises in meeting their operational liabilities and restarting their business. The scope of the scheme was enlarged to cover business enterprises in Hospitality, Travel &Tourism and Leisure  &  Sporting  sectors.  Provision  of  additional  corpus  of Rs.50,000  crores  have  also  been  made  for  hospitality  sector. The validity of ECLGS (ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0) has been extended till 31.03.2023 or till guarantees for an amount of Rs.5.00 lakh crore are issued.
- vi. On  28 th   June  2021,  the  Government  announced  a  stimulus package  to  boost  diverse  sectors  of  economy  affected  by COVID-19 pandemic and provide impetus for growth and employment  measures.  The  package  comprises  a  total  of  17 measures in three broad categories, which inc luded 'Economic relief from Pandemic, with special focus on health and reviving
8. travel and  tourism sectors'  and 'Impetus for  Growth  and employment'.
- vii. Ministry of Tourism launched 'Loan Guarantee Scheme for Covid Affected  Tourism  Service  Sector  (LGSCAT SS)',  which  aims  at extending collateral free loan to the distressed tourism sector to help them discharge their liabilities and restart their business affected due to Covid-19 pandemic. Under this scheme, collateral  free  Loan  upto  Rs.10.00  lakh  each  may  be availed by MoT approved Tour operator/ Travel Agents/ Tourist Transport Operators and upto Rs.1.00 lakh each may be availed by RLGs/IITGs approved by MoT and Tourist Guides approved by State  Government/UT  Administration.  The  scheme  is  already operational  through  18  Scheduled  Commercial  Banks.  Validity of the scheme has been extended by one more year i.e. till 31 st March, 2023 or till the guarantee of Rs.250.00 crore are issued under the scheme.
- viii. An initiative called SAATHI (System for Assessment, Awareness &  Training  for  Hospitality  Industry)  has  been  developed  for effective implementation of Guidelines/ SOPs issued with reference to COVID-19 and beyond for safe operations of Hotels, Restaurants, B&B sand other units.
- ix. Validity of approval or certification of hotels and other accommodation units whose project approval/ re-approval and classification/ re-classification have expired/were likely to expire was extended up to 31 st  March 2022.
- x. With an aim to incentivize stakeholders in the Tourism industry, the Guidelines for the scheme of Market Development Assistance (MDA) for providing financial support to stakeholders for the promotion of Domestic Tourism have been modified to enhance the scope and reach of the scheme, so as to  provide  maximum  benefits  to  the  stakeholders.  Additional promotional activities have been incorporated including online promotions  and  the  extent  of  financial  assistance  permissible has been enhanced. The Guidelines of the Marketing Development Assistance Programme under the Overseas Promotion and Publicity Scheme has been modified to enhance the scope and reach of the scheme, so as to provide maximum benefits to the stake holders in the tourism industry.
- xi. For  the  purpose  of  restarting  inbound  tourism  and  attracting foreign  tourists  in  the  country,  Government  of  India  extended first 5 lakh visas to the foreign tourists from potential tourism markets,  free  of  cost.  The  benefit  of  free  of  charge  visa  was

available only once per tourist during the issuance of the first 5 lakh tourist visas. xii. Owing to the situation which arose out of COVID-19 pandemic, Ministry  of  Tourism  in  consultation  with  Ministry  of  Health  & Family  Welfare  issued  guidelines/directions  to  the  Tourism Stakeholders,  Hotels  and  Restaurants  to  facilitate  smooth resumption of business. xiii. Ministry  of  Home  Affairs  restored-  Tourist  Visa  for  foreign nationals  of  156  countries  w.e.f.  15 th   March,  2022.  Also,  after having  recognized  the  increased  vaccination  coverage  across the globe and  in consultation with the stakeholders, the Government of India resumed scheduled commercial international passenger services to/from India w.e.f. 27 th  March, 2022.

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