In today’s time when our travel industry got hit by Corona Virus when no one travelling. It’s hard to survive to keep the dice rolling. We have to overcome it with the right strategies and with the help of the senior authorities. To take the right action. This has been the worst hit on Travel and Tourism and we are sure to help you with some information.
So, Travel Mail asked the Travel & Tourism Industry specialists to answer some questions.
Here are Question and Answers by Shri Subhash Goyal.
Subhash Goyal, Chairman – STIC Travel Group and Hony. Secretary- Federation of Associations in Indian Tourism & Hospitality (FAITH) replied to the Questions.
Q-1: What are the key steps taken by Association during the Present Situation in India on the Global Arena?
Ans-1: The most important step by the Travel & Tourism industry of the country is by speaking with one voice.
We have had regular video conferences amongst all the member associations of FAITH – Federation of Associations in Indian Tourism and Hospitality and its members like Federation of Hotel & Restaurant Association of India- FHRAI, Hotel Association of India-HAI, Indian Association of Tour Operators-IATO, TravelAgents Association of India-TAAI, Travel Agents Federation of India-TAFI, Association of Domestic Tour Operators of India-ADTOI, Adventure Tour Operators Association of India- ATOAI, Indian Convention Promotion Bureau-ICPB, Indian Heritage Hotels Association- IHHA, Indian Tourist Transporters Association-ITTA along with the major three chambers of commerce FICCI, CII & Assocham.
All Associations above also had a video conference with the Tourism Secretary coordinated by FAITH. We also had a meeting with the Commerce Ministry. Along with the above associations and are hopeful in getting some relief.
Q-2. Why should a common man prefer a tour operator to plan his holidays?
Ans2. A common man should always buy his travel, tour or holiday package from only recognised travel agents. Tour Operators because they follow a code of business ethics. They are answerable to their associations, the government for delivering what they promise.
It is only when through the internet they get in touch with unrecognised fly by night tour operators and then they suffer.
So, it is very important for anyone to check the credentials of the organisation before buying any travel or tour package.
Q-3. What is the future of tourism in India after COVID -19 ? AND Q-4. What are the expectations of Travel & Tourism fraternity from the government?
Ans3&4: The future of India after COVID-19 is going to be very dark unless the government is able to give us a bailout package and one year tax holiday. It will be difficult for more than 50% of the travel and tour operators to survive.
Q-5. What is your advise about safety and security of all tourists, domestic as well as international?
Ans5: For the safety and security of all tourists – both domestic and international, it is veryimportant that the government intervenes and ensures that every tourism site and its surroundings are maintain in an absolute clean hygienic and perfect condition – the rest rooms and all public areas have to be clean. Even though our airports haveimproved, but our railway stations need to be upgrade on international standards of cleanliness. For the future generations, to understand hygiene and public health must be a compulsory subject in all government and private schools. Along with security check. At all airports, railway stations, bus terminals, hotels, restaurants and other public places compulsory health check and thermal screening has to be introduce.
Q-6. What major bold steps to be taken or advise by Travel Trade to Government after COVID 19?
Ans6: After COVID-19 we need to focus more on digital and social media marketing. Not only in English but in the major other languages like Chinese, Spanish, Arabic, Japanese, Korean, German, Russian etc. We also need to ensure that taxation both direct & indirect on this industry, under no circumstances add up to more than 5%. If we do not want to “kill the geese that lay golden eggs” by outpricing ourselves with high taxes and lose out from our neighbouring countries like Dubai, Srilanka, Thailand, Malaysia etc.
Q -7. How Association members help Governments and Tourism Departments for cleanliness at prominent places of tourist significance?
Ans7. Lot of our members have taken up ASI monuments for maintenance and cleanliness under public private partnership. So that we are able to maintain our monuments to international standards.
Q-8.What you say about to make ‘Incredible India Trip’?
Ans8. Every state in India is different, so every state needs to be marketed in its own unique way like Kerala markets its backwaters as God’s own country. Rajasthan’s markets forts, palaces and deserts. Goa markets its beautiful beaches and its carnival. Madhya Pradesh markets its historical monuments like Khajuraho and wildlife. Punjab the Golden Temple and Sikh Heritage. Uttarakhand the snow-covered mountains and adventure tourism. In this way, entire India becomes an incredible experience.
Q-9. How does the customer have to deal with delays, hidden charges and other problems created due to travel booking agents?
Ans9: I am sorry, I don’t agree with you. None of the travel booking agents professional and recognised by the government try to hide anything. But they are very transparent, the more transparent they are the better it is for their business.
Q-10. Due to major competition between the tour operator and online tour portals. Do you think that online portals increased market share? Are they providing the best rates and services to the customers?
Ans10: Online portals are very good if you need a point to point fares or you want to book a hotel. But for package tours and customised services, you have to come to a recognised tour & travel agent. Internet plays a very import role. It can never replace face to face contact. for e.g: every medicine for every disease is available on the internet but one is still never satisfied until he visits a Doctor.
So, the online portal will play an important role but they will never replace a face to face interaction with a Travel Agent.
Q-11. The outbound travel market has grown over the past three years. After COVID 19 is the outbound tourism boom?
Ans11: I don’t think so, that immediately after COVID 19 there will be an outbound tourism boom. It will take at least one year to come back on track. During the second year we will have to spend a lot of money in source markets. It will help identify theareas and countries where visas to India and flight connections are available.
Q-12. For a large part of the middle class India, the definition of holidaying today is essential & traveling abroad. Is domestic travel suffering due to this?
Ans12: No, I don’t think so that domestic travel is suffering because of this. Sometimes, it is cheaper to have a holiday abroad than in our own country because of high taxes in India.
If taxes on tourism in India is reduce to 5% then I am sure, Indian destinations will be able to compete with destinations abroad.
Q-13. Some outbound destinations are very economical rather than holidaying in Kerala, Karnataka, Tamil Nadu, Orissa or NorthEast? With traveling becoming so cheap, are people looking forward to getting more value out of their money? What more do you plan to offer to your customer. ?
Ans13: The customer is the king. Many a times, he is more informed than even the travel agent, price is not always the consideration. If, you are able to give a personalised better and reliable service, the customer will come to you even if you are slightly more expensive than the competition.
We as STIC Travels provide in giving quality service rather than competing on the price.
Q-14. Impact of COVID-19 on Global travel and tourism revenue in 2019 and forecast for 2020? AND 15. What has been the biggest challenge in navigating COVID-19 till date?
Ans14 &15: COVID-19 has been the biggest challenge not only India but the entire world is facing. In my life time, I have seen a lot of crises like the Indo-Bangladesh war, Indo- Pakistan war, Indo-China war etc.
This is not only the mother of all crises but a complete disaster. It seems we are going through an undeclared third world war where the enemy is not visible. It is not any country but a virus which we till now have not been successful in destroying.
The Aviation, Travel & Tourism Industry has come to a grinding halt. Since no visas are being issued, no airline is operating even buses & trains have stopped. This has never happened in the history of the world.
Q-16. What actions are been taken now to ensure that you are ready to get leisure & business travellers back after COVID-19 pandemic is over?
Ans16. I do not know how many travel agents and tour operators will be able to survive after this COVID-19 pandemic.
Still, we are trying our best with all the associations under Federation of Associations in Indian Tourism and Hospitality (FAITH) and its members like Federation of Hotel & Restaurant Association of India-FHRAI, Hotel Association of India-HAI, Indian Association of Tour Operators-IATO, Travel Agents Association of India-TAAI, Travel Agents Federation of India-TAFI, Association of Domestic Tour Operators of India-ADTOI, Adventure Tour Operators Association of India-ATOAI, Indian Convention Promotion Bureau-ICPB, Indian Heritage Hotels Association-IHHA, Indian Tourist Transporters Association-ITTA; by writing to the Prime Minister, Finance Minister, Commerce Minister, Civil Aviation Minister and Tourism Minister on the following lines:
The Indian Tourism industry is looking at pan India bankruptcies. The closure of businesses and mass unemployment as a result of this pandemic.
It is estimate that around 70% out of a total estimated workforce of 52 million (5.2 crores) could get unemployed (38 million in the first phase and 50 million direct and indirect). If a bailout package is not given immediately. A large % of total tourism business activity of India, which is estimate at $ 28 billion+ in forex and upwards of ₹ 2 lakh crores in domestic tourism activity will be at economic risk through the year.
Thus, more than ₹ 5 lakh crores of the direct tourism industry. With almost double that of total economic activity is at risk.
We have requested for immediate support for revival & survival from the Government:
1. A twelve months moratorium on our EMIs of principle and interest payments on loans. Working capital from all Financial Institutions (banking & non-banking).
Additionally, we request for doubling of our working capital limits. With interest-free & collateral-free terms.
2. A deferment for twelve months of all statutory dues. Whether GST, Advance Tax payments, PF, ESIC, customs duties at the Central Government level or at any state government level.
The excise fees, levies, taxes, power & water charges, deferred renewals periods for all permits, licenses, bank guarantees & security deposits across the tourism, travel, hospitality & aviation industry.
3. A support fund for twelve months on the lines of MNREGA to support basic salaries with ‘direct transfer’ to affected tourism employees.
4. TCS (tax collected at source) on travel as proposed in Finance Bill 2020 from April 1st not to be introduced.
5. A deferment of increase in any insurance premium for a period of 12 months. Such as forex: for Standard fire and special perils rate for fire, loss of profits.
6. The restoration of 10% duty credit of SEIS scrips and the previous year’s foreign exchange earnings should be as a reference point for credit.
7. A 200% weighted exemption for 12 months on expenses to Indian corporates. On holding exhibitions, conferences and incentive trips in India.
8. A national tourism task force of all relevant ministries. From the Central Government along with the ministry of tourism and chief secretaries of State governments and industry stakeholders headed by the Honourable Prime Minister of India.
Q- 17. How can the tourism industry overcome disasters?
Ans17. If we will be able to survive with the help of the Government, we can have complete restructure and reorient of our businesses.
International Outbound & Inbound Tourism will take at least 6-7 months more or may be an year. So the only segments which will bounce back fast are:-
a) Domestic Tourism
b) Yoga & Wellness Tourism
c) Spiritual Tourism
d) Medical Tourism
Another sector which will bounce back slow is M.I.C.E.
That is events, weddings, marriages, conferences would now take place in India rather than abroad. If the government gives incentives to these sectors, they will bounce back faster.
The government instead of giving LTC once a year should give LTC twice a year for all banks and government departments.
The private sector should give a tax incentive for sending their staffs on travel & tourism leave once a year. This would help the industry to bounce back.
It will be hard once this pandemic is over. We keep our hopes in our government and people to bring our Tourism Industry back on it’s roots.
We hope this Q&A session by Shri Subhash Goyal Ji has helped you, readers, in any way possible. We would like to thank our 10K plus subscribers and active reader. if you have not subscribed yet do so to keep it in touch with upcoming content.
Stay strong & stay inside!
Jai Hind!
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