Port Blair, May 28: Mr. G.Bhasker, President, A&N Hoteliers Association in a letter to the Lt Governor has said that the year 2020 could be a complete washout for the Travel and Tourism industry in India, including in the Andaman and Nicobar Islands. Countries around the world have sealed international borders, international and domestic flight services have been suspended, which has been compounded further by country wide lockdown with intercity and interstate travel completely forbidden- it is a situation that has no parallel at this scale.
In his letter, which was also copied to media houses in Andaman, he added that it has been observation that the COVID -19 pandemic may cut about 50 million jobs globally in the travel and tourism industry. The virus is hitting organisations hard from all over the world. It may take up to 12 months or even beyond to return its normal level In India and Andaman Islands. If we don’t take immediate steps not just to contain the impact of virus on lives but also its devastating impact on business that supports millions of livelihoods. According to Confederation of Indian Industry (CII), the tourism industry is staring an overall loss of Rs.5 lakh crores and job cuts impacting up to five Crore people.
“The organised sector in the Tourism Industry which consists of branded hotels, tour operators and travel agencies- may be the worst hit with an estimated loss of Rs.1.5 lakh crore. Other than the organised sector, the tourism industry is a source of employment for home stays, small and budget hotel operators, tour guides and others for whom this is going to be an existential crisis that they couldn’t survive without support for more than a few months. For an industry that contributes nearly 10 percent to India’s GDP- immediate intervention of the Government of India, Ministry of Tourism, Ministry of Home Affairs, Ministry of Civil Aviation and the Andaman and Nicobar Administration for its survival measures to prevent mass bankruptcy and layoffs by the Thousands. The immediate need of the industry i.e., the aviation sector and various other big tourism projects are liquidity for the short and midterm in order to meet the fixed costs during the lockdown period as well as for rebuilding business almost from scratch. At this point any support on loan with easy term would be of immense help. Loan could be extended after assessing the track record of the companies and their potential paying capacity but with long term view rather than taking a conventional super conservative collateral based lending approach,” Mr. Bhasker added.
He further mentioned that on the ground of assessment of the situation points towards the fact that the tourism Industry would need more liquidity support and therefore, the current moratorium period of three months need to be extended for a further period of one year.
“This apart the Government of India and the Administration also need to consider deferment of statutory liabilities including GST and advance Tax payment timelines and removal of fees for upcoming licences, permit renewals and excise exemption for the travel and hospitality industry. The Government should also bring Aviation Turbine Fuel under the GST ambit to offer long term relief to airlines apart from offering relating on landing, parking and housing charges, otherwise, the airline companies will certainly enhance the ticket fares to fill their loss which people living in remote and far flung Andaman and Nicobar Islands will not be able to shoulder the burden of such sky rocketing airfares. Travel and hospitality is a sector that creates massive direct and indirect employment, drives consumption, earn foreign exchange and invigorates the domestic economy across a range of other sectors including transportation, food, beverages, life style, culture, recreation, sports and many more. Covid-19 has brought a momentum of the travel industry to a halt but with timely intervention and requisite support from the Government of India and the Administration, it is a sector that can help lead recovery for the economy while continuing to support millions of jobs. COVID-19 Pandemic has severely hit the Tourism industry in the Andaman and Nicobar Islands. Following the imposition of curfew by the District Administration on 20th March, 2020 and the subsequent lockdown by the Ministry of Home Affairs on 25th March,2020, activities of all the Hotels, Restaurants, Home stays, Tea Stalls, Trade, Commerce, industries, government and private inter-island and mainland – island shipping services, mainland-island flight services, tourism activities, beaches, shopping establishments, barber shops, medical shops, private hospitals and clinics, small tourist boat operations, laundry services, Bars, Cinema halls, private offices, Tour and travel agency offices, Textiles, Autos, Taxis, Tourist Cars and Vans, Private Tourist and Passenger Buses etc. which are directly connected with the tourism activities have been suspended as a result of which Hoteliers, Tour and Travel owners, Scuba Diving Operators, Glass bottom boat operators, Travel Guides, Barbers, Petty
shops owners, Laundry operators and other ancillary workers are badly suffering and not able to maintain their day to day lives. Due to the sudden suspension of the operation of private luxury boat services between Port Blair and Swaraj Deep, between Port Blair and Shaheed Deep and vice versa, operation of Tourist boats from Aberdeen Jetty to Ross Island, Viper Island and North Bay, operation of Glass bottom and other big boats from Wandoor to Grub, Redskin and Jolly Buoy Islands, glass bottom boats being operated at the vicinities of Swaraj Deep, Shaheed Deep, Corbyn’s Cove Beach, Baratang, Diglipur, Mayabunder, Rangat etc. are badly affected with acute financial crisis and not able to maintain their day to day lives. Now all the ships and boats that have been berthed /anchored at various ports since 20th of March, 2020 without movement need extensive and cost effective repairs before its further launches to avoid causality for which heavy amount has to be incurred which at the present condition no boat owner will be able to bear. In addition berthing charges for boats being charged by PMB has to be suspended. We would like to inform you that approximately 20 to 25, 000 people working in the tourism sector are severely affected with this lockdown and we would like to inform that their survival may take at least one year even if the Covid-19 pandemic is brought under normalcy on the mainland and all over the world. They don’t have any source of livelihood for the past more than two months and for the next six months also their plight will be the same. Many of the boat owners, Tourist Vehicle owners and Hoteliers have taken loan from various banks functioning in these islands for doing their business on tourism sector and they will not be able to repay the monthly instalments for the next one year or till they pick up the business. In a similar situation occurred in 2004 due to devastating Tsunami and earthquake, all the tourism and other business activities had been severely affected and stalled and people were mentally depressed about repayment of loan taken from the banks for their business. However, we are happy to inform that at the intervention of the Government of India and the A&N Administrations, the Ministry of Finance on the recommendation of the Administration has waived off the loan of the respective borrowers of the Banks which was an immense help to them at that time,” he added in his letter.
Mr. Bhasker further stated that 20 lakh crores ‘Atmanirbhar Abhyan’ package was announced by the the Prime Minister of India and the subsequent bifurcation of amount made by the Finance Minister of India in five trenches to revive the MSME, Agricultural Farmers, Fish farmers, Fishermen, Animal husbandry, MGNREGA, Construction Workers Welfare Fund, COVID- 19 Health Facilities etc. are wholeheartedly welcomed by us and in this crucial situation this action of the Hon’ble PM will be a great support to them.
“However, the main concern and assessment are that none of the aforementioned categories of people working in the Tourism Industry in the A & N Islands will not be benefitted with this Atmanirbhar Abhyan packages. Under such situation a special package for the above categories of people mainly incorporating Hoteliers, Restaurant owners, owners of Home Stay accommodations, Bar owners, Tour Operators such as Tourist and Private Bus owners, Small, medium and large scale boat owners, scuba divers, private luxury boats operators etc. are needed to be framed and announced by the Government of India, Ministry of Finance to render financial support in this emergent situation. He has requested the A&N Administration to graciously consider the request and proposal may please be recommended to the concerned Ministries of the Government of India and obtain a favourable financial package within the ‘Atmanirbhar Abhyan’ itself for the benefit of these financially depriving people of the A & N Islands. However, before doing so, a meeting of all Stakeholders involving ACCI, Grain Dealers Association, Bar Owners Association and the like may please be called at the level of the Chief Secretary, Principal Secretary (Finance), Secretary (Tourism) and Deputy Commissioner, South Andaman District to have a detailed deliberations and list out the problems. Meanwhile, all the banks functioning in the islands may please be directed to extend a moratorium period of one year against the loan taken by the borrowers who purchased tourist boats, tourist Cars, Jeeps, and Tourist Buses, Construction of Hotels and Resorts in the islands, pending approval of the proposed financial package from the Government of India as has been done during the time of Tsunami in 2004. He has also requested the Lt Governor to withdraw the suspension imposed on all the tourism activities in the islands and allow us to open our Hotels, Resorts, Bars and boat services as soon as the flight and ship services resume its services,” he mentioned.
