The tourism and hospitality sectors have been given a raw deal in the Central stimulus package under the Atmanirbhar Bharat Abhiyan, alleged Federation of Andhra Pradesh Chambers of commerce and Industry (FAPCCI) president C.V. Atchut Rao on Sunday.
“The tourism and hospitality sectors are disappointed towards the attitude of the Centre. The sectors, considered to be major contributor to economic growth and job creation, are the worst hit by the COVID-19 which is ensuring closure of businesses and mass unemployment,” a statement quoted Mr. Atchut Rao saying.
It is believed that the pandemic has taken a toll on around 70 % of the total estimated workforce of 5.5 crore in the tourism industry. The immediate impact is on travel tourism as about 15 lakh foreign tourists have cancelled their trips in the past two months, he said.
Foreign exchange
“The total tourism business in India is estimated to be US$28 billion including ₹2 lakh crore generated from domestic tourism and the loss of foreign exchange has been put at ₹15,000 crore,” he said.
The tourism and hospitality sectors are vulnerable to economic slowdown, natural disasters, exchange rates and etc. The small and medium-sized businesses in this sector are most at risk, as are those who depend on tourism in the most affected parts of the world such as Italy, Spain etc. It will take 6-12 months for travellers to start surfacing, and Many businesses will not survive the pandemic without government support as it is a low-margin industry, he said and urged the government to consider the difficulties faced by the sectors and extend support for their survival.
