Lok Sabha Question No. 984 (UNSTARRED), answered on 2021-02-08
Subject: Job Loss in Kerala Tourism Sector
Ministry: TOURISM
Asked by: Suresh Kodikunnil

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.984 ANSWERED ON 08.02.2021

## JOB LOSS IN KERALA TOURISM SECTOR

## 984. SHRI KODIKUNNIL SURESH:

Will the Minister of TOURISM be pleased to state:

- (a) whether the Government is aware of the fact that Job Loss In Kerala  Tourism  sector  that  contributes  approximately  10  per cent of the State GDP is anticipating a cumulative loss of Rs 25,000 crores;
- (b) if so, whether the Government has received any representation  from  the  Government  of  Kerala  in  this  regard and also seeking fiscal support for the tourism sector;
- (c) if so, the details  thereof  and  measures  initiated  by  the Government in this regard;
- (d) whether  the  Government  is  further aware  of the losses suffered by backwater tourism and houseboats sector as well as home stay sector; and
- (e) if so, the details thereof along with the details of aid provided to the sector for its revival by the Government?

## ANSWER

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

(a): No  formal  study  has  been  instituted  by  Ministry  of  Tourism, Government  of  India  to  assess  job  losses  in  Kerala  Tourism sector.However, as per the information received from Department of Tourism, Government of Kerala  loss of Rs.30,711/- crores has been estimated in tourism sector in Kerala due to Covid -19.

(b) & (c): Ministry has not received any proposal from Government of Kerala with regard to the issue and seeking fiscal support for the tourism sector. (d): Government is aware of the fact that the closure of the travel and tourism industry has had a cascading effect on the livelihood of people  dependent  on  tourism  including  backwater  tourism  and houseboats sector as well as home stay sector in Kerala. Details  of  Initiatives  taken  by  Kerala  State  Government  are

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(e): given at Annexure.

## ANNEXURE

STATEMENT IN REPLY TO PART (e) OF THE LOK SABHA UNSTARRED QUESTION NO.984 ANSWERED ON 08.02.2021 REGARDING JOB LOSS IN KERALA TOURISM SECTOR.

Tourism  sector  is  one  of  the  major  contributors  to  the  State's exchequer. Kerala's Tourism sector was grounded to a halt by the COVID 19 pandemic with 10 months of zero tourist arrivals and zero occupancy  in  hotels  and  resorts.  It  has  severely  affected  the livelihood of thousands. Taking this into consideration, Department of Tourism government of Kerala has launched the 'Chief Minister's Loan  Assistance  ''  schemes  and  Financial  assistance  schemes  to support the tourism industry in Kerala to overcome the losses due to COVID-19 global pandemic. Details of the schemes is as follows:-

- (i) Tourism working Capital Support Scheme

This  loan  scheme  is  envisaged  to  make  available  a  working capital facility for the Entrepreneurs in the tourism sector who have been affected by the  detrimental  effect  of  COVID-19  pandemic.  In this  scheme,  the  interested  Tourism  Industry  stakeholders  can apply for working capital loan up to Rs25 lakhs from the banks at a rate of interest as per the approved policy of the respective banks. The repayment of the loan shall be made by the loanee in 42 months including an initial repayment holiday of 6 months. 50 percentage of the interest applied by the bank for the first year of the loan subject the maximum of 4.50 percentage.

- (ii) Tourism Employment support scheme

In  this  scheme,  Kerala  Bank  will  provide  short  term  loans  to the employees as requested to by the establishments at an interest rate of 9 percentage per annum. Department of Tourism will absorb 6 percentage of the interest for the total period of 18 months and the remaining 3 percentage will have to be borne by the borrower concerned. The employer shall submit the list of  employees (permanent/contract/daily  wages)  working  in  their  establishment and can avail a loan upto Rs 30,000 per employee. The repayment shall  be  done  by  the  loanee  in  18  months  including  4  months moratorium.

(iii) Tourism Houseboat support scheme

As per the scheme, Department of Tourism will provide a nonrefundable  financial  assistance  to  houseboat  owners  to  get  the vessels repaired and maintained as detailed below.

|   Sl. No. | Category                            | Rate of financial assistance   |
|-----------|-------------------------------------|--------------------------------|
|         1 | Houseboats with 1 to 2 bedrooms     | Upto a maximum of Rs 80000     |
|         2 | Houseboats with 3-4 bedrooms        | Upto a maximum of Rs 100000    |
|         3 | Houseboat with 5 and above bedrooms | Upto a maximum of Rs 120000    |

(iv) Tourism Guide Support Scheme

As  per  the  'Tourism  Guide  support  Scheme  ''  one  time financial assistance of Rs.10, 000/- will be paid to licensed tourist guides  working  in  Kerala.  Department  of  Tourism  has  already released financial assistance to 268 guides.

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