Lok Sabha Question No. 1158 (UNSTARRED), answered on 2021-12-06
Subject: Impact of Covid-19 on Tourism Sector
Ministry: TOURISM
Asked by: Mala Roy, Mahesh Sahoo

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.1158 ANSWERED ON 06.12.2021

## IMPACT OF COVID-19 ON TOURISM SECTOR

1158. SHRIMATI MALA ROY: SHRI MAHESH SAHOO:

Will the Minister of TOURISM be pleased to state:

- (a)
- the impact of Covid-19 pandemic on the tourism sector;
- (b) the economic  impact on the tourism sector during the pandemic period along with the expected financial loss during the current financial year;
- (c) the number of tourists that came to India in between 1 April, 2021 to 30 October, 2021;
- (d) whether  the  Government  has  any  plan/policy/  compensation package  to  help  the  medium  and  small  private  operators involved in the tourism sector; and
- (e) if  so,  the  details  of  the  plan/strategy  to  revive  the  tourism sector in various States of the country particularly in Odisha?

## ANSWER

MINISTER OF TOURISM                                 (SHRI G. KISHAN REDDY)

- (a) & (b): To  assess  the  impact  of  Covid-19  pandemic  on  the tourism sector, the Ministry of Tourism engaged National Council of Applied Economic Research (NCAER) to conduct study on 'India and the  Corona  Virus  Pandemic:  Economic  Losses  for  Households Engaged in Tourism and Policies for Recovery'. As per the results of the  study,  the  tourism  industry  faced  significant  impact  due  to COVID-19 pandemic and subsequent lockdowns.
- (c): The  details  of  Foreign  Tourist  Arrivals  during  April  2021  to
- October 2021 are at Annexure-I.

(d): 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 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                                                                                                  |

(e): Government  of  India  has  announced  various  fiscal  and  nonfiscal relief measures which are expected to revive tourism sector in various States of the country including Odisha. Those measures are at Annexure-II.

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ANNEXURE-I STATEMENT  IN  REPLY  TO  PART  (c)  OF  UNSTARRED  QUESTION NO.1158 ANSWERED ON 06.12.2021 REGARDING IMPACT OF COVID19 ON TOURISM SECTOR. Foreign Tourist Arrivals (FTAs) during 1 April, 2021 to 30 October,

2021 are:

| Month     | Foreign Tourist Arrivals (FTAs) (P)   |
|-----------|---------------------------------------|
| January   | 83,822                                |
| February  | 99,640                                |
| March     | 1,23,179                              |
| April     | 69,442                                |
| May       | 13,307                                |
| June      | 29,397                                |
| July      | 64,566                                |
| August    | 84,955                                |
| September | 1,06,704                              |
| October   | 1,81,325                              |
| Total     | 8,56,337                              |

P: Provisional Source: Bureau of Immigration

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## ANNEXURE-II

STATEMENT  IN  REPLY  TO  PART  (e)  OF  UNSTARRED  QUESTION NO.1158 ANSWERED ON 06.12.2021 REGARDING IMPACT OF COVID19 ON TOURISM SECTOR

The following are the various fiscal and non-fiscal relief measures announced  by  Government  of  India  which  are  expected  to  revive tourism industry in India including boosting arrivals of tourists 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
2. 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
5. iv.
6. 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. 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
11. amount will be provided through Expenditure Budget following
12. the procedure of providing a New Minor Head.
- ix. 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 travel  and  tourism  sectors'  and  'Impetus  for  Growth  and employment'.
- x. 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.
- xi. 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.
- xii. 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.
- xiii. 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.
- xiv. 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.
- xv. 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
20. the  scheme,  so  as  to  provide  maximum  benefits  to  the stakeholders in the tourism industry.
- xvi. 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  eTourist  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.
- 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 [issuance of LGSCATSS guidelines by National Credit Guarantee  Trustee  Company  (NCGTC)]  till  31.03.2022.  No guarantee fee will be charged  from the  Money  Lending Institutions (MLIs) by NCGTC for the credit facilities provided under the Scheme.

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