YSRCP MP seeks sops for tourism sector

Hoteliers, travel agents incurred losses to the tune of ₹10,000 crore, he says

Lavu Krishnadevarayalu

The cascading impact of the Coronoavirus is crippling the tourism and hospitality sector. In this turbulent times of the COVID-19 pandemic, the tourism and hospitality sector has been hit the most.

Taking up the cause of the stakeholders in this sector in Andhra Pradesh, Member of Parliament from Narasaraopet Parliamentary segment Lavu Sri Krishna Devarayalu, also a member of the HRD standing committee, has written to Union Minister of State for Tourism and Culture Prahalad Singh Patel, drawing his attention to the plight of the lakhs of workers rendered jobless due to the lockdown.

Explaining to him the dismal scenario in Andhra Pradesh, the MP said sectors such as adventure tourism, including water sports, were closed down from August 2019 due to various reasons like floods and later due to COVID-19 from March.

Job loss

Hoteliers and travel agents had incurred revenue losses to the tune of ₹10,000 crore since January, while there were salaries, statutory liabilities and interest moratoriums to the tune of ₹7,000 crore to be addressed.

Almost 50 % of the tour operators, fast food owners and boating operators had shut shop and nearly 75% of the close to five lakh employees in the tourism sector had lost jobs.

Quick fix solutions

The YSR Congress Party leader said the need of the hour was to help this sector rejuvenate by providing succour to people associated with it.

A few ‘quick fix solutions’ suggested by him include: the Reserve Bank of India should set up a Tourism Fund to enable banks to support the MSME tourism investors and entrepreneurs, thereby enabling them the required payroll support; grant a 12-month waiver on all Central and State statutory taxes, levies and duties on tourism companies, including GST and Income Tax Holiday for Tourism for financial year 2020-21.

The YSRCP leader also sought a moratorium on interest by the RBI extending from July 2020 to July 2021 or one-time restructuring for tourism firms. Completion of all regulatory inspections and permits by the governments (both State and Central) and extend all certifications required by the Ministry of Tourism, extension of incentives to tourism companies on the lines of MSME and steps to promote the concept of adventure tourism.