Lok Sabha Question No. 2968 (UNSTARRED), answered on 2022-03-21
Subject: Revival of Tourism Sector after Pandemic
Ministry: TOURISM
Asked by: Ramesh Bidhuri, Gowdar Mallikarjunappa Siddeshwara

MINISTER OF TOURISM

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA

## UNSTARRED QUESTION NO. 2968 ANSWERED ON 21.03.2022

## REVIVAL OF TOURISM SECTOR AFTER PANDEMIC

2968. SHRI RAMESH BIDHURI: SHRI G.M. SIDDHESHWAR:

Will the Minister of TOURISM be pleased to state:

- (a) whether the Government has taken any steps for the development of tourism industry in the country which has incurred huge losses due to Covid-19 pandemic;
- (b) if  so,  the  details  thereof  and  the  number  of  people  who  lost employment  in  tourism  sector  along with the financial loss incurred in the sector due to spread of corona virus;
- (c) whether the Government has provided any relief  package  to  the jobless;
- (d) if  so,  the  details  thereof  and  the  steps  taken/being  taken  by  the Government  to  protect  and  revive  the  tourism  industry  of  the country; and
- (e) whether  the  Government  has  prepared  any  plan  to  revive  the tourism sector and if so, the details thereof?

## ANSWER

(SHRI G. KISHAN REDDY)

- (a)  to  (e):  The  detail  of  various  fiscal  and  non-fiscal  relief  measures announced by the Government of India, which are expected to assist the tourism industry are given at Annexure.

A  study  undertaken  through  the  National Council  of  Applied Economic Research (NCAER) on 'India and the Coronavirus Pandemic: Economic Losses for Households Engaged in Tourism and Policies for Recovery' resulted in the following key findings:

-  Due to overall economic slowdown during 2020-21, tourism economy or  Tourism  Direct  Gross  Value  Added  (TDGVA)  saw  a  fall  of  42.8
- percent in Quarter 1 (Q1); 15.5 percent in Q2 and fall of 1.1 percent in Q3.  Due to significant drop in tourist arrivals and hence tourism expenditure, during the pandemic,  it is  estimated  that  TDGVA plummeted by as much as 93.3 percent in Q1 of 2020-21 over its level in  the  same quarter of previous year. It picked up slightly to post a fall of 79.5 percent in Q2 and that of 64.3 percent in Q3.  A  significant  number  of  direct  jobs  were  lost  in  the  tourism  sector once the lockdown was implemented.  14.5 million direct jobs during Q1,  5.2  million  during  Q2  and  1.8  million  direct  jobs  during  Q3  are expected to have lost as compared to estimated 34.8 million direct jobs in tourism sector in the pre-pandemic period of 2019-20.
- *******

## ANNEXURE

STATEMENT IN REPLY TO PARTS (a) TO (e) OF LOK SABHA UNSTARRED QUESTION NO. 2968 ANSWERED ON 21.03.2022 REGARDING REVIVAL OF TOURISM SECTOR AFTER PANDEMIC

The  following  are  the  various  fiscal  relief  measures  announced  by  the Government, expected to benefit the Indian Tourism Industry:

- 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
3. 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. The Central Government has also given relief from various regulatory compliances under Income Tax Act, Companies Act and GST Act for varying  periods  in  the  wake  of  Covid-19  crisis  to  ensure  business continuity and survival.
- ix. 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:
- x. 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.
- xi. 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'.
- 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-
16. 19 and beyond for safe operations of Hotels, restaurants, B&Bs and other units. 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. 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 stakeholders in the tourism industry. xvi. Free  Tourist  Visa  to  5  Lakh:  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. xvii. Financial  support  under  the  'Loan  Guarantee  Scheme  for  Covid Affected Tourism Service Sector (LGSCATSS)'. The scheme will cover Regional Level Tourist Guides recognised by the Ministry of Tourism and Tourist Guides recognised by the State Governments/  UT Administrations and Travel and Tourism Stakeholders (TTS) recognized by the Ministry of Tourism. TTS's will be eligible to get a loan upto Rs. 10 lakh each while tourist guides can avail loan upto Rs 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.

| Emergency Credit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 31.01.2022   | Emergency Credit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 31.01.2022   | Emergency Credit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 31.01.2022   | Emergency Credit Line Guarantee Scheme (ECLGS) Tourism and Hospitality Scheme wise data as on 31.01.2022   |
|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
| 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                                                                                                  | 3,092                                                                                                      | 1,696.42                                                                                                   |
| Hospitality                                                                                                | ECLGS 3.0                                                                                                  | 3,853                                                                                                      | 6,841.91                                                                                                   |
| Hotels, Restaurants, Tourism                                                                               | ECLGS 2.0                                                                                                  | 220                                                                                                        | 3,426.40                                                                                                   |
| Tourism, Hotels & Restaurants                                                                              | ECLGS 1.0                                                                                                  | 96,550                                                                                                     | 3,569.68                                                                                                   |
| Total                                                                                                      |                                                                                                            | 1,03,715                                                                                                   | 15,534.41                                                                                                  |

*****