The Travel Agents Association of India (TAAI) said its representatives met Union Tourism Minister Prahlad Singh Patel and sought the Centre’s intervention to revive the sector which has been hit by the coronavirus outbreak.
The industry is witnessing about 70-80 percent cancellation in bookings following the coronavirus outbreak, according to the association.
“A complete GST holiday for tourism, travel and hospitality industry for the next 12 months till the time the recovery happens,” TAAI president Jyoti Mayal told PTI, detailing the suggestions submitted to the minister.
The association urged the minister to provide funds from the MGNREGA scheme to support the salaries of employees in the industry. The association also demanded six to nine months’ moratorium on all principal and interest payments on loans and overdrafts, besides deferment of GST and advance tax payments and asked the minister for removal of fees for any upcoming licenses, permits renewal, excise exemption for liquor for the hospitality and travel industry across the country. The association also sought interest reduction or subvention on term loans and working capital loans.
Mayal said the industry apprehends large scale job loss owing to the restrictions from the outbreak. Almost 50 percent of the annual business in the tourism sector takes place during this period, she said.
Restaurant owners have also suggested aggressive measures to beat the loss in business. These include deferment of principal and interest for three quarters, with the deferred amount to be paid over 12 months; a 4% reduction in working capital interest rates; 50% increase in working capital credit limits for a period of six months; 50% deferment of GST liability for the same period, and extension of existing licenses for six months without charge.
Industry body National Restaurant Association of India (NRAI) will seek relief on rents, energy costs, overall credit limits and taxation, as malls and restaurants have registered a 30-35% decline in footfalls with the spread of the infection in the country.
