Giving much relief to the stakeholders of the State’s tourism industry badly hit by COVID-19, the government has come up with a ₹455-crore package for the small and big entrepreneurs and 50,000 tourism personnel working in the sector.
Working capital loans to the tune of ₹355 crore will be made available to 5,000 small and big entrepreneurs in the tourism sector and ₹100 crore for Tourism Employment Support Scheme.
The State Level Bankers Committee (SLBC), at its recent meeting, has agreed to make available the ₹355 crore to entrepreneurs through various banks as loan, Minister for Tourism and Cooperation Kadakampally Surendran said on Tuesday. In the first year, the Department of Tourism will pay 50% of the interest as subsidy and there will be a six-month moratorium on the repayment of the loan.
As many as 2,500 small entrepreneurs in the sector will get ₹1 lakh to ₹3 lakh as loans and another 2,500 big entrepreneurs will get ₹5 lakh to ₹25 lakh. The government has made available ₹15 crore from the Plan fund to the Department of Tourism for paying subsidy.
Through Kerala Bank
Under the Tourism Employment Support Scheme, ₹20,000 to ₹30,000 will be disbursed as loan through Kerala Bank to 50,000 workers engaged in the sector.
Of the 9% interest, the Department of Tourism will pay 6%. The rest will have to be borne by those availing themselves of the loan. There will be a four-month moratorium on the repayment of loans provided by Kerala Bank. The government has provided ₹9 crore from the Plan fund to the Department of Tourism for part-payment of the interest to 50,000 workers in the sector. Mr. Surendran said the employees would have to submit applications through the Deputy Director, Tourism, of the district concerned to secure the loan.
The State’s tourism sector, which generated a revenue of ₹45,000 crore last year, had suffered a loss of ₹20,000 crore already. More schemes were being worked out to help the sector to overcome the present crisis and to attract tourists to the State, he added.
Welcoming the package, E.M. Najeeb, chairperson, Confederation of Kerala Tourism Industry (CKTI), said it would help the sector overcome the present crisis since March.
