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New Delhi, Mar 3 () The Indian Association of Tour Operators (IATO) on Tuesday asked the government to screen all travellers coming to India, irrespective of which country they are coming from amid rising number of coronavirus cases. IATO has learnt from its members and travellers that there is weak or no screening being done at Indian airports upon arrival at international airports other than the nationals from the affected countries, the association said in a statement. It was thought that India is relatively safe with no cases of COVID-19 virus being reported but the scenario has changed in the last two days with cases being detected in various parts of the country, it said. "In view of this fast-moving development, IATO urges government to screen all travellers irrespective of the country from where they are travelling to India," the statement said. More recent cases of coronavirus have been reported from Delhi, Telangana and Jaipur (Rajasthan). IATO said that at some of the international airports in other countries, thermal screening is being done for everyone in the flight starting from cockpit crew, cabin crew and all the passengers. This is being done inside the aircraft before passengers de-board the aircraft. Keeping in view the sensitivity of the matter and risk involved, IATO said, "All the international travellers, including aircraft crew members, should be screened upon arrival from all the countries in similar way to avoid outbreak or spreading of coronavirus in our country." There must be 100 per cent screening for all the international travellers at all international airports in India and "no flight must be excluded as we get airlines flying in from hubs that have passengers from all over the world", it added. RKL HRS

Screen all coming to India for coronavirus irrespective of flight's country of origin: IATO

New Delhi, Mar 6 () Indian Association of Tour Operators (IATO) on Friday said it has sought intervention of the tourism ministry in the wake of certain hotels across the country denying check in to foreign tourists especially from countries like Italy, South Korea, Iran and Japan. IATO said the hotels are denying check in to all these tourists despite all of them holding proper visa and were already travelling in India before restrictions were even announced. The organisation has taken up the matter with tourism ministry seeking its urgent intervention as the matter is sensitive and will hurt our image badly as a trusted destination among foreign tourists, IATO said in a statement. "The tourism ministry has assured that communication is being sent to states to see that tourists are not unnecessarily harassed. Also, health ministry is being asked to issue travel advisory for those not affected by the virus. In case of any suspect, medical check-up can be conducted locally," IATO President Pronab Sarkar said. The organisation has also requested the Ministry of Tourism to set up a 24x7 operational control room to assist the foreign tourists in any emergency and have an online mechanism to know whom to reach out to in case of distress, IATO said. Besides, issues like Government of Sikkim withdrawing the Inner Line Permit from March 5, 2020 for all foreign tourists, have also been taken up with the central government. The Chief Minister of Sikkim has been approached with a request to withdraw this order and allow foreign tourists to enter Sikkim including tourists from Italy, Japan, South Korea and Iran which have valid permission and are already in India. If need arises, medical checkups can be conducted locally, IATO said. "While we all stand for the safety of our fellow countrymen, we should also guard against unnecessary harassment and panic for the visiting tourists. We request the government to take steps that boosts confidence of foreign nationals to visit India," it added. MSS SHWSHW

Sought central govt help to stop harassment of foreign tourists in wake of coronavirus: IATO

The cash crunch, thanks to demonetization, has affected the travel and tour operators in India and that too right at the beginning of the holiday season. 
 "December is an important month for travel as this is the holiday season, especially in the north, but November has taken a 20% hit even as we slip into December,” Rajji Rai, ex-president, <keyword id="642357" type="ORGANIZATION" weightage="20" keywordseo="Travel-Agents-Association-of-India">Travel Agents Association of India</keyword> (<keyword id="196742" type="ORGANIZATION" weightage="20" keywordseo="TAAI">TAAI</keyword>), told ET. 
 
Travel operators are frustrated. Though, the airlines have reduced their prices, people aren’t still ready to spend on a vacation. 
 "Even though airlines have reduced their fares, people aren't interested. There's also a sense of panic while travelling abroad. Usually, it's busy this time of the year, but we are hardly getting calls. "If the situation doesn't improve, we might have to resort to costcutting and layoffs,” <keyword id="1628352" type="UNKNOWN" weightage="20" keywordseo="Reji-Philip">Reji Philip</keyword>, proprietor, <keyword id="3928963" type="UNKNOWN" weightage="20" keywordseo="cosmos-agencies">Cosmos Agencies</keyword>, a prime travelling agency in Mumbai,told ET. 
 
Manoj Samuel, executive director at Riya Travels, one of India's largest brick-and-mortar travel agents, echoed similar worries. "Cash component of our business has definitely declined to a large extent,, he said, adding that short-term sentiment will dent overall bookings. 
 "Foreigners are restricted to exchanging currency up to only Rs 5000 per week. They want to spend, but Rs 5000 is way too little for them. So, they are either postponing their trips or are cancelling them. There has been at least a 25-35% decline in both outbound and inbound travel,” <keyword id="356114" type="PERSON" weightage="20" keywordseo="Subhash-Goyal">Subhash Goyal</keyword>, former-president, Indian Association of Tour Operators (<keyword id="707078" type="ORGANIZATION" weightage="20" keywordseo="IATO">IATO</keyword>), told ET. 
 
Demonetisation has also thrown up a whole bunch of obstacles for tourists travelling in India. For instance, lack of point-of-sale machines at monuments, long queues for forex at airports due to fewer counters are some of the problems they have to face. Online tickets for monuments have to be scanned, but there are no scanning machines installed in monuments. 
 
However, the situation is expected to get better by February-March.

Indian travel industry won’t be able to flourish much this holiday season, thanks to demonetisation

In a bid to further strengthen the trade relation between India and Australia, the tourism industry has suggested that Australia should also introduce visa-on-arrival facility for Indian tourists visiting the country. India has already initiated the process of extending visa-on-arrival to Australian tourists. 
	 “Tourism plays an important role in cementing the bilateral trade between the two countries. A lot of Indians visit Australia every year and hence, we should be extended visa-on-arrival facility by the Australian government,” <keyword id="356114" type="PERSON" weightage="20" keywordseo="Subhash-Goyal">Subhash Goyal</keyword>, president of Indian Association of Tour Operators (<keyword id="707078" type="ORGANIZATION" weightage="20" keywordseo="IATO">IATO</keyword>) told BI India. 
	 According to a report by <keyword id="90194" type="UNKNOWN" weightage="20" keywordseo="Tourism-Australia">Tourism Australia</keyword>, India is expected to contribute anywhere between $1.9 billion and $2.3 billion every year by 2020. In 2013, India was the 11th largest inbound tourism market, with Indian tourists spending $0.7 billion in Australia in 2013. 
	 
	“India is one of the world’s fastest growing outbound travel markets, with the United Nations World Tourism Organisation predicting 50 million outbound travellers by 2020. The industry estimates that visitor arrivals from India will increase by 6% in 2014-15, with an annual compound growth rate of 7% expected until 2017-18,” stated a report on Australia’s bi-annual tourism forecasts by Tourism Australia. 
	 
	“Starting from a low base of 41,000 in 2000, Indian arrivals have grown at a compound annual growth rate of 12.3% to reach 148,200 visitors in 2011. In the Tourism 2020 projections, India has the second fastest rate of growth, behind China, however from a much smaller base,” the reported added. 
	 
	Interestingly, India, too, witnessed a surge by 29% in the arrival of Australian tourists in 2012 while an estimated 2,20,000 Australian tourists flocked India in 2013. 
	 
	(Here, ‘$’ refers to Australian dollar.)

Tourism
Industry Demands Visa-On-Arrival For Indians In Australia

Mumbai, Apr 17 () A tour operators' grouping on Friday urged the government to ensure airlines refund money to domestic and international travellers whose tickets were booked for travel during the lockdown period.The nationwide lockdown to curb spreading of coronavirus infections has been extended till May 3. Initially, the lockdown, which began from May 25, was to end on April 14.The Indian Tour Operators' Association (IATO), which claims to represent around 1,700 members, also said that airfares accrued by domestic carriers from foreign travellers should also be refunded as their visas were cancelled by the government.The grouping's statement comes a day after the civil aviation ministry issued an advisory to airlines regarding refund of airfares.Commercial flights remain suspended till May 3 due to the lockdown.On Thursday, the ministry advised airlines to provide full refund within three weeks to passengers who want to cancel their tickets booked for domestic and international travel during the first lockdown period -- March 25-April 14. It was also applicable for bookings made for travel during the extended lockdown period, which is till May 3.Initially, carriers refused to make refund and passengers' money has been kept with them by creating a credit shell."IATO estimates about three crore jobs will be lost. The association was expecting some relief from the government in terms of refund of airfares but Thursday's announcement about asking the airlines to refund the fares booked only during the first lockdown has left the body completely disappointed," it said in the statement.Claiming that "crores of rupee" is lying with the domestic carriers on account of bookings made by the foreign travellers for local flights, the association said these these fares should be completely refunded as part of good business practice."This will not only send positive signal to the foreign travelers but will help the country get them back when the normal times return," it added.Similarly, the grouping said all domestic travelers who had booked before the lockdown and their travel date fell during the lockdown, should be given complete refund.However, the ministry has not mentioned about tickets that were booked prior to the lockdown and for travel during the lockdown period.Many airlines have announced resumption of services from May 4. Earlier, carriers took bookings for travel from April 15 at a time when there was no official word on whether there would extension of lockdown. An announcement of extending the lockdown till May 3 was made only on April 14.Against this backdrop, queries sent by to all private domestic airlines on whether they would refund customers in cash in the eventuality of another extension remained unanswered. IAS RAM BALBAL

Tour operators' association demand full refund on air tickets booked for travel during lockdown

In an uncharacteristic response from an industry body which tend to be mellow in their take on government policies, the Federation of Associations in the Indian Tourism &amp; Hospitality (<keyword id="6389686" type="UNKNOWN" weightage="20" keywordseo="faith">FAITH</keyword>), said on Sunday that the Indian tourism industry has "gone into a state of disbelief and shock". This is the policy federation of all the national associations representing the complete tourism, travel and hospitality industry of India. <div type="Article" hostid="261" msid="75790707" title="Lockdown 4.0 ⁠— India issues new guidelines allowing states to decide the red, green, and orange zones" mstype="2" mssubtype="0"></div> "The industry has gone numb from a lack of any umbrella direction from the government or without any fiscal &amp; monetary support," it said. The industry body said, "Indian Tourism industry goes into a state of shock and disbelief as there were no announcements to support tourism, 10 weeks of constant discussions come to a naught and industry has gone directionless". With no visibility of cash inflows the Indian tourism industry is now looking at large scale bankruptcies, business closures which will lead to job losses across cities, towns and hinterlands of India. This has the potential to set back the Indian tourism, travel and hospitality industry by many years, it said. The body said that the Indian tourism industry was looking forward to deep set of survival measures for tourism from the Rs 20 lakhs crore package announced over 5 days, which however were not addressed. The Indian tourism, travel and hospitality sector impacts almost 10 per cent of GDP through its direct and indirect impact. It has already seen over one quarter of accumulated losses which began from February onwards. There is no cash inflow expected for many quarters over FY20-21 as the key segments of the Indian tourism economy will be down. The international inbound tourists, inbound and VFR - (visiting friends and relatives) and the outbound travel will remain mostly non-performing due to international flight restrictions and tragic impact in most key markets tourism markets of India, the association said. "Domestic travel and corporate travel within the country may slightly ease up post lockdown but will be highly restricted due to fear of travel among elders and children, the new social distancing norms, corporate travel freeze and the closure of the holiday season which will impacting all leisure, adventure, heritage, spiritual, cruise and niche tourism segments," it said. The meetings incentives exhibitions &amp; events segment will be severely impacted due to the meeting size restrictions. Consequently all tourism service providers, the hotels, travel agents, tour operators tourist transporters, restaurants, guides will be compromised and the tourism industry of India will be operating with extreme under capacities making most tourism businesses unviable on a cash operating basis. To prevent this and to ensure survival, FAITH had proposed a dedicated interest and collateral free long term fund for paying salaries and operating costs and for a minimum of 12 months of complete waiver of fixed central &amp; state statutory and banking liabilities without any penal or compounding interest which have not been addressed. The proposed MSME fund with its many underlying restrictions may have a very limited usage. FAITH &amp; its ten member associations (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI) had been constantly dialoguing with all factions of the government over the past 10 weeks the PMO, ministries of Finance, Commerce , Aviation, and Tourism, with RBI, with all 28 Chief Ministers, Niti Aayog and with the Empowered Group 6. Indian tourism travel and hospitality impacts 10-12 per cent of India's employment which covers almost 5 crore plus direct and indirect jobs. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/indian-firms-can-now-directly-list-in-foreign-markets-there-are-a-few-more-big-changes-to-companies-act/articleshow/75785648.cms">Indian firms can now directly list in foreign markets – there are a few more big changes to Companies Act</a> <a href="https://www.businessinsider.in/politics/policy/news/india-will-merge-some-government-companies-and-privatise-some-cpse/articleshow/75785709.cms">India will reduce the number of central government companies⁠— some of them will get bigger and some will be sold to private players</a> <a href="https://www.businessinsider.in/finance/news/india-puts-a-pause-on-new-bankruptcy-cases-for-a-year-and-other-changes-that-will-cap-the-rise-in-bad-loans/articleshow/75785508.cms">India puts a pause on new bankruptcy cases for a year ⁠— and other changes that will cap the rise in bad loans</a>

'Indian tourism industry is in a state of shock and disbelief'

To give greater emphasis on tourism in the upcoming budget, industry body <keyword id="6355988" type="CITY" weightage="20" keywordseo="Assocham">ASSOCHAM</keyword> has recommended the government to reduce tax burden on the industry. The chamber also suggested that the government should work towards setting up tourism circuits around different themes, in order to attract larger number of foreign tourists in the country. 
 “Launch projects to create 50 tourist circuits around themes of Heritage, Culture, Himalayas, Desert, North East Region, Coastal, Sports and Films. Create a Hindu Circuit akin to Buddhist Circuit; explore synergy with North East, <keyword id="8470" type="ORGANIZATION" weightage="20" keywordseo="SAARC">SAARC</keyword> and South East Asian countries which have a strong ‘India’ connect,” said DS Rawat, general secretary of ASSOCHAM. 
 Commenting on the issue of multiple taxes, Subhash Goyal, chairman of STIC Travel Group and President of Indian Association of Tour Operators (IATO), stated that the industry expected relief once the Goods &amp; Services Tax (<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>) is implemented. 
 
“The problem is that tourism is not treated at par with other export-based sectors. While sectors that export goods are exempted from service tax, the tourism industry, which is a part of service sector, is made to pay the service tax. We want the government to treat us as other foreign currency earner,” stated Goyal. 
 
He further added the government must focus on reducing the taxes on aviation turbine fuel (ATF) as it has made airfare in India expensive, which has adversely impacted the sector. 
 
According to Goyal, since the tax paid on ATF varies in different states, hence, the implementation of GST becomes although more imperative. “The government should restrict the tax levied on ATF to a maximum of 5% as anything more than that can make air travel in India expensive, thus benefitting other Southeast Asian destination such as Thailand, Singapore, Indonesia and Malaysia, which are more cost-competitive,” noted Goyal. 
 
Addressing the issue of shortage of room inventory in the major tourist destinations, the chamber stated that the government should focus on finding ways to increase the number of budget hotels for more room inventory. 
 
“The government should accord ‘Infrastructure’ status for hotel projects with minimum 50-100 rooms (from current cost-based criteria of Rs 200 crore) and reduce availability constraints by expanding mid-segment hotels of 2-3 star categories,” added Rawat.

Govt must reduce tax burden on tourism industry

To give greater emphasis on tourism in the upcoming budget, industry body <keyword id="6355988" type="CITY" weightage="20" keywordseo="Assocham">ASSOCHAM</keyword> has recommended the government to reduce tax burden on the industry. The chamber also suggested that the government should work towards setting up tourism circuits around different themes, in order to attract larger number of foreign tourists in the country in its <keyword id="2549811" type="UNKNOWN" weightage="20" keywordseo="Budget-2015">Budget 2015</keyword>. 
	 “Launch projects to create 50 tourist circuits around themes of Heritage, Culture, Himalayas, Desert, North East Region, Coastal, Sports and Films. Create a Hindu Circuit akin to Buddhist Circuit; explore synergy with North East, SAARC and South East Asian countries which have a strong ‘India’ connect,” said <keyword id="547365" type="ORGANIZATION" weightage="20" keywordseo="DS-Rawat">DS Rawat</keyword>, general secretary of ASSOCHAM. 
	 Commenting on the issue of multiple taxes, <keyword id="356114" type="PERSON" weightage="20" keywordseo="Subhash-Goyal">Subhash Goyal</keyword>, chairman of STIC Travel Group and President of Indian Association of Tour Operators (IATO), stated that the industry expected relief once the Goods &amp; Services Tax (GST) is implemented. 
	 
	“The problem is that tourism is not treated at par with other export-based sectors. While sectors that export goods are exempted from service tax, the tourism industry, which is a part of service sector, is made to pay the service tax. We want the government to treat us as other foreign currency earner,” stated Goyal. 
	 
	He further added the government must focus on reducing the taxes on aviation turbine fuel (ATF) as it has made airfare in India expensive, which has adversely impacted the sector. 
	 
	According to Goyal, since the tax paid on ATF varies in different states, hence, the implementation of GST becomes although more imperative. “The government should restrict the tax levied on ATF to a maximum of 5% as anything more than that can make air travel in India expensive, thus benefitting other Southeast Asian destination such as Thailand, Singapore, Indonesia and Malaysia, which are more cost-competitive,” noted Goyal. 
	 
	Addressing the issue of shortage of room inventory in the major tourist destinations, the chamber stated that the government should focus on finding ways to increase the number of budget hotels for more room inventory. 
	 
	“The government should accord ‘Infrastructure’ status for hotel projects with minimum 50-100 rooms (from current cost-based criteria of Rs 200 crore) and reduce availability constraints by expanding mid-segment hotels of 2-3 star categories,” added Rawat.

Govt Must Set Up Tourism Circuits To Attract Foreign Tourists

Indians love travelling to both domestic as well as international destinations. And while the country offers diverse <keyword id="20048" type="CITY" weightage="20" keywordseo="tourism">tourism</keyword> experiences to travellers from all corners of the world, travel industry players are still hoping that the government realises the strategic role that tourism and hospitality sector plays in growing the country’s economy. 
 According to a report on tourism and hospitality sector under the ‘<keyword id="6354869" type="UNKNOWN" weightage="20" keywordseo="make-in-India">Make in India</keyword>’ campaign, the sector has contributed Rs 2,17,810 crore to the GDP in 2013 and its share in the pie is expected to rise by another 7.5% by end of this fiscal. The report also recognised that tourism sector in India is one of the largest employment generator as well. 
 
However, industry players have often complained that even though the successive governments have recognised the contribution made by the sector, they have hardly given the industry its rightful due. 
 Nevertheless, this time the travel industry is hopeful of the <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> government and is anticipating greater support from the Centre in terms of policies. Swaminathan Vedaranyam, CEO of Via.com, an online travel booking site, said, “As far as the travel industry is concerned, I think there is an urgent need for well-defined policies and clear commitments to ensure that all cultural heritage points are given more attention with improved infrastructural facilities”. 
 
Taxation: Killing the golden goose? 
 
Players have often asserted that multiplicity of taxes coupled with a complex taxation policy have marred the travel agents in the country. “Travel as a sector is considerably dependent on foreign transactions and can contribute substantially to the nation’s foreign exchange reserves. The taxation policy for the sector is especially nuanced and has several facets that need to be reviewed,” says Rakshit Desai, managing director India, FCm Travel Solutions and Flight Shop. 
 
He added, “By extending the measures introduced in the previous budget, we look forward to some fundamental changes to simplify tax structures. A case in point is the CENVAT credit for services benefiting from an abated tax rate. Currently applicable to rent-a-cab services and tour operators, this needs to be expanded to cover the complete gamut of travel related services covered by abatement to limit taxation to value addition.” 
 
It should be noted that most players have often complained that multiplicity of taxes in India gives an edge to other Southeast Asian countries such as Singapore, Indonesia, Thailand and Malaysia. 
 
Is it an unfair treatment? 
 
Subhash Goyal, chairman of STIC Travel Group and president of Indian Association of Tour Operators (IATO), said, the industry may get some relief on implementation of the Goods &amp; Services Tax (GST). 
 
“The problem is that tourism is not treated at par with other export-based sectors. While sectors that export goods are exempted from service tax, the tourism industry, which is a part of service sector, is made to pay the service tax. We want the government to treat us as other foreign currency earner,” averred Goyal. 
 
Desai of FCm Travel added that a slash in service tax will be a much needed relief to foster the sector’s growth. “This would be especially beneficial for travel operators in case of services rendered to foreign offices of global and multi-national companies, where travel originates outside India and payments are received in foreign exchange,” he noted. 
 
Revitalisation of associate industries 
 
India has a large base of air passengers. However, complex tax structure and lack of infrastructure is not allowing the airline companies to harness this resource to the fullest. 
 
Industry players have asked the government must focus on reducing the taxes on aviation turbine fuel (ATF) as it has made airfare in India expensive, which has adversely impacted the sector. 
 
According to Goyal, since the tax paid on ATF varies in different states, the implementation of GST becomes more imperative. “The government should restrict the tax levied on ATF to a maximum of 5% as anything more than that can make air travel in India expensive, thus benefiting other Southeast Asian destination such as Thailand, Singapore, Indonesia and Malaysia, which are more cost-competitive,” he pointed out. 
 
Also, the lack of infrastructure has adversely impacted the growth of the aviation industry. Vedaranyam said, “There is a recent spurt in domestic travel as well as a higher influx of foreign tourists in India and with dedicated upkeep of the tourist hotspots, we can ensure higher growth for the travel industry. Additionally, I wish that there is an allocation towards revitalising all unused airports in tier II and III cities as these geographies hold immense potential today. There should also be a rationalisation of air travel taxes for competitive pricing to boost travel and tourism”. 
 
In terms of the availability of adequate rooms, the travel industry expects the government to address the issue of shortage of room inventory in the major tourist destinations. DS Rawat, general secretary of ASSOCHAM, said that the government should focus on finding ways to increase the number of budget hotels for more room inventory. 
 
“The government should accord ‘Infrastructure’ status for hotel projects with minimum 50-100 rooms (from current cost-based criteria of Rs 200 crore) and reduce availability constraints by expanding mid-segment hotels of 2-3 star categories,” suggested Rawat. 
 
Innovation: the key to success? 
 To ward off the fear of cut-throat competition, Rawat recommends “Launch projects to create 50 tourist circuits around themes of Heritage, Culture, Himalayas, Desert, North East Region, Coastal, Sports and Films. Create a Hindu Circuit akin to Buddhist Circuit; explore synergy with North East, <keyword id="8470" type="ORGANIZATION" weightage="20" keywordseo="SAARC">SAARC</keyword> and South East Asian countries which have a strong ‘India’ connect”. 
 
Our view 
 
BI India feels that the government must protect the interest of the players in this sector especially since it employs a large part of our working population. The government must also realize that the industry is also responsible for bringing together several disorganised sectors and hence should implement measures that promote the growth of the travel industry. 
 
At present, India does not even contribute 1% to the international travel market. Nevertheless, it can be turned around as the country as a tourism destination has a huge potential to woo both foreign and domestic travellers.

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