ANALYSIS
STIMULUS PACKAGE
DOES IT REALLY MEAN TO IMPETUS GROWTH AND EMPLOYMENT? Rajesh Tiwari
The Government of India announced Stimulus Package – for tourism and hospitality sector (first and worst industry affected by the spread out of Covid-19) atlast by recognisng the demand of the industry stakeholders facing unprecedented difficult situation and fighting for its survival. In an attempt to understand its importance and relief, Whereabouts interacted with the representatives of the sector to know that ‘Is it what the industry wanted from the Government as a relief to minimise the adverse impact of the pandemic? Among varied opinions i. e. extention of free visa deadline, interest free loan, one time financial assistance, rebates and moratoriums, one thing is clear that the Stimulus Package – in its current form, fails to attract the industry stakholders for various reasons. Find out the detailed reactions from the leading industry associations and representatives.
FIVE LAKHS FREE VISAS, LOAN GUARANTEE SCHEME
U
personal loans will be provided to people in tourism sector to discharge liabilities and restart businesses impacted due to the pandemic. The scheme will cover 10,700 Regional Level Tourist Guides recognised by Ministry of Tourism and Tourist Guides recognised by the State Governments, and about 1,000 Travel and Tourism Stakeholders (TTS) recognised by Ministry of Tourism.
nion Finance & Corporate Affairs Minister Nirmala Sitharaman announced a slew of measures to provide relief to diverse sectors affected by the second wave of COVID-19 pandemic. The measures announced aims to provide impetus for growth and employment.
FREE ONE MONTH TOURIST VISA TO 5 LAKH TOURISTS Free one month tourist visa to 5 lakh tourists is aimed at boosting the tourism and hospitality sector. It envisages that once Visa issuance is restarted, the first 5 lakh Tourists Visas will be issued free of charge to visit India. However, the benefit will be available only once per tourist. The facility will be applicable till 31st March, 2022 or till
5 lakh visas are issued, whichever is earlier. Total financial implications of the scheme to the government will be Rs 100 crore.
LOAN GUARANTEE SCHEME FOR TOURISM STAKEHOLDERS
Travel and tourism stakeholders will be eligible to get a loan up to Rs. 10 lakh each while tourist guides can avail loan up to Rs 1 lakh each. There will be no processing charges, waiver of foreclosure/prepayment charges and no requirement of additional collateral. Scheme to be administered by the Ministry of Tourism through NCGTC.
Under new ‘Loan Guarantee Scheme’ for COVID- 19 affected sectors, working capital/
EXTEND FREE VISA FOR NEXT TWO YEARS
W
hile reacting to the Stimulus Package announced by the Government, India Convention Promotion Bureau’s (ICPB) Chairman Amaresh Tiwari says that Hon’ble Finance Minister’s announcement is a good sign that Government of India atlast recognised our plight. While elaborating on the package he further says, “Five lakh free tourist visa scheme is surely a welcoming gesture but if the Government can extend the deadline till 2023 (instead of 2022 as proposed) will be the real game changer for sure. We all are
6 July 2021
aware that the war against pandemic is still on and there is no clarity by what time ‘Visa Processing’ will begin and the airlines will start regular international operations. It seems that half of the Inbound season will be going in managing the pandemic and dealing with restrictions.” “Similarly Loan Guarantee scheme for Guides and operator will definitely help our small operator. But the of employees of these MOT recognised companies are not covered , they should have been covered,” says ICPB Chairman.
