News Buzz
May 2021
An Open Letter To PM For The Revival Of Industry
Jyoti Mayal, TAAI President, penned an open letter to the Indian PM, citing the dire need for intervention to save the industry. Excerpts; e are compelled to write to you and divert your attention from more important matters prevailing in the country. Our members of travel and tourism trade at large is affected phenomenonly since over 14 months. We highlight a few points which require your immediate attention. Travel and Tourism employs over 11% of the total work force in the country.
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We generated 10% of the National GDP. The largest in services sector contributing to USD 234 billion in 2018 and Foreign Exchange earning over USD 30 billion in 2019. From 2015-19 there were 14.62 million additional jobs that were created. 1. Livelihood / Survival of Our Trade: Our member entrepreneurs; travel agents and tour operators and their employees; have not even been able to do a business of more than 5% as compared to the pre-lockdown/prepandemic times since the last 14+ months. Basic Survival has become a challenge.
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While our members tried their level best to sustain their staff for a few months, however with the global scenario undergoing the second and third wave, are compelled to reach out to you for guidance, assistance and encouragement so as to take care of the livelihood of the personnel working in the trade. The worst hit are our junior and mid level teams, who are unable to survive ever for basic needs. They include, frontline counter staff, ticketing staff, tour planners, accountants, the airport representatives, porters, drivers, guides, sales and marketing staff, administrative team etc. The middle and senior members, including the owners are affected too. Bad debts from clients, interest on bank loans/ overdrafts, EMI’s, increased insurance premiums for staff etc. Further, with no respite whatsoever in statutory complainces like PF, ESIC, Professional Tax, GST, Income Tax, TDS etc. and with the introduction of the New Irrational Tax like TCS ensures that our establishments are forced to close down. Although respite through MSME loans was given by the Hon. Finance Minister, to existing loan/overdraft holders, who had obtained them prior to February’20. However, there has been no consideration for our members who were working on their own finances, to obtain new co-lateral free loans/overdraft and rebated interest thereon. Many banks and financial institutions have blacklisted Travel and Tourism organisations being non-revenue
generators since April’20. Even the existing limits, if any have been reduced We seek your attention in providing immediate support to all engaged in travel and tourism: A. Moratorium for atleast 2 years from all loan EMIs for our staff and members. B. Grant of Rs 10,000/- per month per employee for the next one year until normalcy resumes. This shall be paid back, free of interest to the Government in installments over 24 months thereafter or deducted at 15% of their salary and paid back to the exchequer. C. Fresh co-lateral free loans/overdraft faciltities to our member organisations and personnel be provided at rebated interest for a period of atleast 5 years until things are restored back to normalcy. This shall give support to them to meet their administrative overheads and promote travel and tourism effectively. The same could be computed on last 3 years average.and personnel be provided at rebated interest for a period of atleast 5 years until things are restored back to normalcy. This shall give support to them to meet their administrative overheads and promote travel and tourism effectively. The same could be computed on last 3 years average. D. Income Tax Holiday for next 5 years for member Travel Agents and Tour Operators. E. Rebates on Digital payments: The Credit Card companies / Banks are charging between 2% to 3.5% for payments received through credit card or wallets. This is hindering the purpose, revenue and ease of doing business. In todays Digital India, which was initiated by your goodself, has lost its steam for people making payments to us by debit/credit cards.
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