Lok Sabha Question No. 3410 (UNSTARRED), answered on 2021-08-09
Subject: Reports of UN Conference
Ministry: TOURISM
Asked by: Manne Srinivas Reddy, Kotha Prabhakar  Reddy

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.3410 ANSWERED ON 09.08.2021

## Reports of UN Conference

## 3410. SHRI MANNE SRINIVAS REDDY: SHRI KOTHA PRABHAKAR REDDY:

Will the Minister of TOURISM be pleased to state:

- (a) whether  the  collapse  of  international  tourism  due  to  COVID-19 could cost the world at least $4 trillion in terms of global GDP for 2020 and 2021, as India experienced a 54% drop in tourist arrivals in 2020 and if so, the details thereof; and
- (b) the  reports  of  the  UN  Conference  on  Trade  and  Development (UNCTAD) and the UN World Tourist Organization (UNWTO) in this regard  and  their  proposals  taken  into  consideration  so  far  and rejected so far?

## ANSWER

(SHRI G. KISHAN REDDY)

MINISTER OF TOURISM

(a) & (b): As per the report entitled 'Covid-19 and Tourism an update: Assessing the economic consequences' published by the UN Conference  on  Trade  and  Development  (UNCTAD)  and  the  UN  World Tourist Organization (UNWTO), the collapse of international tourism due to COVID-19 could cost the world at least $4 trillion in terms of global GDP  for  2020  and  2021,  and  India  experienced  a  54%  drop  in  tourist arrivals in 2020.

In  order  to  address  the  affects  of  covid-19  pandemic  on  Tourism sector, Government of India has taken several measures which are at

Annexure.

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## ANNEXURE

STATEMENT IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 3410 ANSWERED ON 09.08.2021 REGARDING REPORTS OF UN CONFERENCE

The  following  are  the  various  fiscal  and  relief  measures  announced  by  the Government of India in order to address the affects of Covid-19 pandemic on tourism sector:

- i. The  Government  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 12-month moratorium.
- ii. The  Government  waived  off  PF  contribution  for  three  months  for organisations with less than 100 pax and 90% of their employees earn below Rs.15000.
- iii. 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 three months
- iv. Deferment of TCS up to October 2020.
- v. Return  filing  deferred  for  three  months  with  no  penal  interest  for companies up to Rs.5 Crore, rest @ 9% penal interest.
- vi. 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.
- vii. The RBI extended moratorium on term loans till 31 st  December 2020.
- viii. Suitable provision for funds for implementing the Service Exports from India Scheme (SEIS) for services rendered in FY 2019-20 has now been made by the Ministry of Finance.
- ix. The Government of India has launched Emergency Credit Line Guarantee Scheme (ECLGS) to support eligible Micro, Small and Medium Enterprises (MSMEs) and business enterprises in meeting their operational liabilities and restarting their business.
- x. The scope of the scheme has been enlarged with introduction of ECLGS 3.0. to cover business enterprises in Hospitality, Travel & Tourism and Leisure & Sporting sectors. The scheme is valid till 31.03.2021.
- xi. The validity of ECLGS (ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0) have been extended upto 30.06.2021 or till guarantees for an amount of Rs. 3 lakh
12. crore are issued. Last date of disbursement under the scheme has been extended to 30.09.2021.
- xii. On  16.06.2021,  Hon'ble  Finance  Minister  announced  release  of  SEIS scrips for 2019-20.
- xiii. Financial support to more than 11,000 registered Tourist Guides / Travel and Tourism Stakeholders. Under the new Loan Guarantee Scheme for Covid Affected Sectors, working capital / personal loans will be provided to  people  in  tourism  sector  to  discharge  liabilities  and  restart  after being  impacted  due  to  COVID-19.  The  scheme  will  cover  10,700 Regional Level Tourist Guides recognised by the Ministry of Tourism and Tourist  Guides  recognised  by  the  State  Governments  and  Travel  and Tourism  Stakeholders  (TTS)  recognized  by  the  Ministry  of  Tourism. TTS's will be eligible to get a loan uptoRs. 10 lakh each while tourist guides can avail loan uptoRs 1 lakh each. There will be no processing charges, waiver of foreclosure / prepayment charges and no requirement of additional collateral. Scheme to be administered by the Ministry of Tourism through NCGTC.
- xiv. Free 5 Lakh Tourist Visa: As per the announcement, once Visa issuance is restarted, the first 5 lakh Tourists Visas will be issued free of charge. The benefit of free of charge visa will be available only once per tourist during  the  issuance  of  the  first  5  lakh  tourist  visas  (free  of  charge visas).  The  scheme  will  be  applicable  till  31st  March  2022  or  till 5,00,000 visas are issued, whichever is earlier.
- xv. Ministry of Finance has given concurrence to release SEIS scrips on 16.06.2021.  Earlier, several Industry stakeholders had flagged appeals to the government to release SEIS Scrips for 2019-20 and DGFT had put a detailed proposal for the allocation for SEIS for exports made during 2019-20. Taking all circumstances  into  account,  the  Department  of  Expenditure,  Ministry  of Finance has given concurrence to the proposal of Department of Commerce for continuation of SEIS for 2019-20 with a financial allocation of Rs.2061 crores subject to the condition that the amount will be provided through Expenditure Budget following the procedure of providing a New Minor Head.
- xvi. These above moves are expected to immensely help the stakeholders in the sector by providing them much required liquidity and gear up for the operations in near future. Similarly, it is also expected to provide much needed relief to the government approved tourist guides who have been affected by the ongoing slowdown in the sector due to the pandemic.
- xvii. Vide notification  dated  17th  October,  2017  of  the  Ministry  of  Finance, Government of India, the following sub-categories were included under the category of 'Social and Commercial Infrastructure' in the Harmonized Master List of Infrastructure Sub-Sectors: Tourism infrastructure  viz.  (i)  three-star  or  higher  category  classified  hotels located  outside  cities  with  population  of  more  than  1  million,  (ii) ropeways and cable cars.
- xviii. Further, vide notification dated 26th April 2021, 'Exhibition-cumConvention Centre' has been included in the Harmonized Master List of Infrastructure Sub-sectors by insertion of a new item in the category of 'Social and Commercial Infrastructure ' , with a footnote defining Exhibition-cum-Convention Centre.
- xix. The Ministry has been in regular touch with the industry stakeholders through several rounds of discussions and brainstorming sessions and examined  their  suggestions  carefully.  All  such  proposals  have  been taken up with the concerned Ministries and Departments of Government of India. Similarly, the issues pertaining to the relief measures expected from the States/UTs have been pursued with them at the highest level.
- xx. Operational  Recommendations  for  safe  resumption  of  business  with easing of lockdown restrictions have been issued for various segments of the travel and  hospitality  industry  and  circulated  amongst  all stakeholders.
22. xxi.
23. With  a  view  to  prepare  for  a  post-COVID  19  revival,  the  Ministry  has formulated and issued detailed operational guidelines for Covid safety and  hygiene  for  hotels,  restaurants,  B&Bs/Home  stays  and  Tourism Service  Providers  on  08.06.2020  to  facilitate  smooth  resumption  of business.
- xxii. 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&Bs and other units.
- xxiii. Further,  the  Ministry  of  Tourism  has  issued  modified  guidelines  for Recognition  of  Tourism  Service  Providers  dated  08.12.2020  which  are effective from January, 2021. As per the modified guidelines, Category of Greenshoot / Start-up- Agencies is being introduced for the first time. This is in keeping with the policy of the Govt. of India for encouraging Start-Ups and will also further the cause of 'Atmanirbhar India'.
- xxiv. 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 and the extent of financial assistance permissible has been enhanced.
- xxv. Recognising the fact that revival  in  the  tourism  sector  will  be  largely spearheaded  by  Domestic  tourism,  the  Ministry  initiated  arranging  a series  of  webinars  under  the  overall  theme  of  DekhoApnaDesh.  The objective  is  to  generate  awareness  and  at  the  same  time  sustain interest amongst stakeholders, students and the general public. xxvi. Validity of approval or certifications of hotels and other accommodation units whose project approval/re-approval and classification/reclassification  have  expired/were  likely  to  expire,  has  been  extended upto 30th September, 2021. xxvii. Recognition of Travel Agents, Tour Operators, Tourist Transport Operators by the Ministry of Tourism has been extended automatically by six months. Those who have submitted applications for recognition by the Ministry have been given provisional recognition for six months, pending completion of required procedures. 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
- xxviii. maximum benefits to the stakeholders in the tourism industry.

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