Lok Sabha Question No. 1276 (UNSTARRED), answered on 2021-12-06
Subject: Special Package for Tourism Industry
Ministry: TOURISM
Asked by: Sougata Ray

## GOVERNMENT OF INDIA

## MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.1276 ANSWERED ON 06.12.2021

## SPECIAL PACKAGE FOR TOURISM INDUSTRY

1276. PROF. SOUGATA RAY:

Will the Minister of TOURISM be pleased to state:

- (a) whether the tourists inflow in the country has declined in the wake of pandemic;
- (b) if  so,  the  percentage  decrease  of  tourist  inflow  compared  to corresponding period and previous years;
- (c) whether the Government proposes to provide packages for the tourism industry of the country;
- (d)
- if so, the details in this regard; and
- (e) the remedial steps taken by the Government to boost arrival of tourists in the country?

## ANSWER

MINISTER OF TOURISM                                (SHRI G. KISHAN REDDY)

- (a) & (b): As per information received from Bureau of Immigration, Foreign  Tourist  Arrivals  (FTAs)  during  2020  were  27,44,766  as compared  to  1,09,30,355  in  2019  registering  a  negative  growth  of 74.9%.  Further,  Foreign  Tourist  Arrivals  (FTAs)  during  the  period January-September 2021 were 6,75,012 (Provisional) as compared to 25,41,751 in January-September 2020 registering a negative growth of 73.4%.
- (c) & (d): Government  of  India  has  announced  various  fiscal  and non-fiscal  relief  measures  which  are  expected  to  revive  tourism industry in the country. Those measures are at Annexure-I.
- (e): The  details  of  remedial  steps  taken  by  the  Government  to boost arrival of tourists in the country are at Annexure-II.

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- special

## ANNEXURE-I

STATEMENT  IN  REPLY  TO  PARTS  (c)  &  (d)  OF  LOK  SABHA UNSTARRED QUESTION NO.1276 ANSWERED ON 06.12.2021

REGARDING SPECIAL PACKAGE FOR TOURISM INDUSTRY

The following are the various fiscal and non-fiscal relief measures announced  by  Government  of  India  which  are  expected  to  revive tourism industry in 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 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.5.00 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. 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. The validity of ECLGS (ECLGS  1.0,  ECLGS  2.0  &  ECLGS  3.0)  was  extended  up  to 30.06.2021  or  till  guarantees  for  an  amount  of  Rs.  3.00  lakh
9. crore are issued. Last date of disbursement under the scheme

was extended to 30.09.2021. The details of guarantees issued under the scheme are given below:

| Emergency Credit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 30.09.2021   | Emergency Credit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 30.09.2021   | Emergency Credit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 30.09.2021   | Emergency Credit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 30.09.2021   |
|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
| Industry Nature                                                                                            | Support Under                                                                                              | No. of Guarantees Issued                                                                                   | Amount of Guarantees issued on account of loans sanctioned under the scheme (in Rs. crore)                 |
| Travel and Tourism                                                                                         | ECLGS 3.0                                                                                                  | 2,732                                                                                                      | 1,371.62                                                                                                   |
| Hospitality                                                                                                | ECLGS 3.0                                                                                                  | 3,160                                                                                                      | 5,430.96                                                                                                   |
| Hotels, Restaurants, Tourism                                                                               | ECLGS 2.0                                                                                                  | 218                                                                                                        | 3,403.90                                                                                                   |
| Tourism, Hotels & Restaurants                                                                              | ECLGS 1.0                                                                                                  | 96,219                                                                                                     | 3559.43                                                                                                    |
| Total                                                                                                      |                                                                                                            | 1,02,329                                                                                                   | 13,765.91                                                                                                  |

- xi. Ministry of Finance has given concurrence to release Service Exports from India Scheme  (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  crore  subject  to  the  condition  that  the amount will be provided through Expenditure Budget following the procedure of providing a New Minor Head.
- x. 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 included 'Economic relief from Pandemic, with special focus on health and reviving
3. travel  and  tourism  sectors'  and  'Impetus  for  Growth  and
4. employment'.
- xi. 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.
- xii. 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/Homestays and Tourism Service Providers on 08.06.2020 to facilitate smooth resumption of business.
- xiii. 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.
- xiv. 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.
- xv. 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 has been extended up to 31 st  March 2022.
- xvi. 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 stakeholders in the tourism industry.
- xvii. An announcement by the Ministry of Finance on 28.06.2021 to provide  relief  to  the  tourism  sector,  Ministry  of  Tourism  has implemented the "Loan Guarantee Scheme for Covid Affected Tourism Service Sector (LGSCATSS)". Under this loan guarantee scheme, loan upto Rs. 10.00 lakh will be extended to  each  Tour  Operators/  Travel  Agents/  Tourist  Transport Operators  approved/  recognized  by  the  Ministry  of  Tourism,

upto Rs. 1.00 lakh will be extended to each Regional Tourist Guide/  Incredible  India  Tourist  Guide  approved/recognized  by the Ministry of Tourism and Tourist Guides approved/

recognized by the State Govt./ UT Administration. The purpose of the LGSCATSS of the Ministry of Tourism is to provide  guarantee  coverage  for  the  loans  provided  by  the Scheduled Commercial Banks to the above mentioned beneficiaries,  to  discharge  their  liabilities  and  restart  their business affected due to Covid-19 pandemic. Validity  of  the  said  scheme  is  till  31.03.2022  or  till  the guarantee of Rs. 250.00 crores are issued under the scheme, whichever  is  earlier  and  would  be  applicable  to  all  eligible loans  sanctioned  under  the  scheme  on  or  after  04.10.2021 Credit Guarantee  Trustee  Company  (NCGTC)]  till  31.03.2022.  No the  Money  Lending Institutions (MLIs) by NCGTC for the credit facilities provided

[issuance of LGSCATSS guidelines by National guarantee fee will be charged  from under the Scheme.

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STATEMENT IN  REPLY  TO  PART  (e)  OF  LOK  SABHA  UNSTARRED QUESTION NO.1276 ANSWERED ON 06.12.2021 REGARDING SPECIAL PACKAGE FOR TOURISM INDUSTRY

The following are the remedial steps taken by Government of India to boost arrival of tourists in the country:

- (i) The Ministry of Home Affairs, Government of India, has relaxed the restriction for all foreign nationals intended to visit India for Tourism purposes subject to the Covid related guidelines of the Ministry of Health and Family Welfare (MoH&FW).The e-Tourist Visa  /  Tourist  Visa  is  fully  restored  for  all  individual  foreign nationals intended to visit India for tourism purposes w.e.f. 15th November ,2021. Initially, the e- Tourist / Tourist Visa is being issued with the validity of 30 days. Further, he Government of India has announced first 500,000 free visa to the international tourists.
- (ii) The Ministry of Tourism has revised the Guidelines for Scheme of Market DevelopmentAssistance (MDA) for promotion of Domestic Tourism in November 2020 to enhance the scope and reach  of  the  scheme.  As  per  the  guidelines,  the  stakeholders are provided with financial support for the promotion of Domestic Tourism. Additional promotional activities have been incorporated  including  online  promotions  and  the  extent  of financial  assistance  permissible  has  been  enhanced.  Tourism Departments  of  State  Governments  /  UT  Administrations  are also  now  eligible  for  obtaining  financial  support  under  the scheme Approval of Travel Trade Service Provider.
- (iii) The  Ministry  of  Tourism  has  revised  the  guidelines  for  the recognition/approval of Service provider into a consolidated one single  Guideline  for  'Recognition  of  Tourism  Service  Providers by the Ministry of Tourism' in December, 2020 so as to enhance their reach and scope.

The revised Guidelines is effective from January, 2021. Recognition, under the revised guidelines, will be granted under three broad sub-categories (1) Tour Operators (Inbound, Domestic,  Adventure,  MICE),(2)  Travel  Agents,  and  (3)  Tourist Transport Operators.

These  three  sub-categories  will  include  Operators/  Agencies making  required  arrangements  for  tourists  through  online mode also.

A Category of Greenshoot/ Start-up Agencies has been introduced  for  the  first  time,  to  encourage  the  principles  of Aatmanirbhar.

- (iv) The  Ministry had launched the Dekho  Apna  Desh initiative in January 2020, which is being promoted extensively on social media  accounts  and  website  of  the  Ministry  and  by  Domestic India  Tourism  offices.  Under  this  initiative Ministry  has  been organizing  webinars,  quiz,  pledge,  discussions,  road  shows  to keep  connected  with  the  stake-holders  and  to  encourage citizens  to  travel  within  the  country.  A  total  of  109  Webinars under the Dekho Apna Desh brand line have been organized by the Ministry, since its launch.
- (v) Promotional campaigns are carried out on social media handles of  the  Ministry  and  Domestic  Offices  promoting  destinations, products, festivals, cuisines etc. of the country.

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