Update on IATOs meeting with the Honble Minister of State for Tourism (IC), Government of India

Update on IATOs meeting with the Honble Minister of State for Tourism (IC), Government of India

To All Members

Sub: Update on IATOs meeting with the Honble Minister of State for Tourism (IC), Government of India   

Dear Colleagues,

An IATO  delegation led by the President along with Presidents of ADTOI, ATOAI and OTOAI met the Tourism Minister at his office yesterday to   apprise him about the acute distress that the tourism industry is undergoing especially the tour operators. Mrs. Meenakshi Sharma, Director General (Tourism) and Mr. Rakesh Kumar Verma, Joint Secretary (Tourism), Government of India were also present.   

The delegation impressed upon the Honble Minister that tour operators are not in a position to pay salaries to their staff since there is no business and they are under acute financial crisis and requested for the following support:-

• Financial support to tour operators so that tour operators do not close down their business and continue their business with their experience staff after the Covid - 19 is controlled and tourism is back to business. If no financial support is provided, all these young tourism professionals will have no other option but to be without job and wait for the tourism to revive or to leave the tourism industry and wait for long to learn other jobs and join other industries, which will be great loss of skilled tourism professionals and service providers.

• Special collateral free and interest free long term loans (5-10 years) to be provided to the tour operators for revival of business and aggressive marketing once tourism is back to business. 

• To support tour operators on request made to the Ministry of Commerce regarding enhancing the SEIS from 7% to 10%  for 2019-20 and recommending our case to the Ministry of Finance.

• Issue of revision in Marketing Development Assistance (MDA) guidelines was also taken up and we were assured that this will be considered favourably.

It was assured to the Hon’ble Minister that once the situation is improved and we come out of the crisis due to Covid -19, tourism will be back on track and within the period of 6 -12 months our business will grow fast and we will try our best to retain all jobs. We will follow all guidelines of MoH&FW with regard to precautions our members need to take in their offices, tourist vehicle, monuments and tourists spots.

The Hon’ble Minister gave a patient hearing and promised to take up the matters with the Hon’ble Finance Minister. The Hon’ble Minister also informed that MoT shall try to remove some clauses to make it possible for the tour operators to be part of MSME benefits like other industries are getting. The Minister also assured to expedite the pending MDA cases, liberalization in MDA Guidelines and Major thrust will be given to Domestic Tourism by enhancing the value under MDA Scheme. 

We thanked the Honble Minister, Director General (Tourism) and Joint Secretary Tourism for sparing their valuable time and meeting the delegation.

We still have hope and believe that the government will come out with some measures which will help alleviate our sector’s pain.

Stay Home, Stay Safe and Take Care.

Thanks and regards,

Pronab Sarkar

President