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GOVERNMENT OF INDIA
MINISTRY OF TOURISM
LOK SABHA
UNSTARRED QUESTION NO: 187
ANSWERED ON:  14.09.2020
Economic Stimulus Package for Revival of Tourism Sector
Raja Amareshwara Naik
DNV Senthilkumar. S.
Parvatagouda Chandanagouda Gaddigoudar
Supriya Sadanand Sule
Manickam Tagore B
Sangeeta Kumari Singh Deo
Bhola Singh
Vinod Kumar Sonkar
Subhash Ramrao Bhamre
Prathap Simha
Faizal P.P. Mohammed
Kuldeep Rai Sharma
Amol Ramsing Kolhe
Sanjay Sadashivrao Mandlik
Sukanta Majumdar
Jayanta Kumar Roy
Will the Minister of



TOURISM be pleased to state:-


(a) whether the tourism and travel industry has been worst affected by lockdown due to Covid-19 pandemic in the country and if so, the details thereof;
(b) whether inflow of foreign tourist in the country has been severely affected due to Covid-19 and if so, the details of estimated loss of foreign exchange;
(c) whether the Government has provided any compensation or stimulus package to provide relief to the tourism sector and if so, the details thereof;
(d) whether the Government has received proposals from various States for increased allocation of funds for development and promotion of tourism in view of the covid-19 pandemic along with the response of the Government in this regard;
(e) whether the Government has framed any guidelines for Hotels and tourism industry in the country and if so, the details thereof; and
(f) whether the Government proposes to compensate the tourism industry by other methods like tax rebate or reduced liability on terms of Employee Provident Fund and more and if so, the details thereof?


ANSWER
MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE)
(SHRI PRAHLAD SINGH PATEL)

(a) and (b): Yes, Sir. The sector has been severely impacted by the Covid-19 pandemic.
No formal study has been instituted for assessment of the impact on the Tourism sector and job losses. However, several rounds of discussions and brainstorming sessions with industry stakeholders indicate massive loss of revenue, foreign exchange and jobs. In view of the highly unorganized nature of the sector, the impact in numerical terms can only be ascertained in due course.

(c) to (f): The stimulus packages announced by the various agencies and ministries of Government of India are outlined as under:
• RBI has extended moratorium on term loans till 31st August 2020.
• The government has further announced Atmanirbhar Bharat Package vide which Rs 3 lakh crore collateral free automatic loan has been made available for MSMEs. The loan will have 4-year tenure and will have 12-month moratorium.
• The Government waived off PF contribution for three months for organizations with less than 100 pax and 90% employees having salary below Rs.15000. Under Atmanirbhar Bharat package, PF contribution of both employer and employee has been reduced to 10% each from existing 12% each for all establishments covered by EPFO for the next three months i.e. up to September 2020.
• Deferment of TCS upto October 2020.
• Return filing deferred for three months with no penal interest for companies upto 5 Crore, rest @ 9% penal interest.
• The Central government has also given relief from various regulatory compliances under Income Tax Act, companies Act and GST Act for varying period in the wake of COVID-19 crisis to ensure business continuity and survival.

The Ministry of Tourism has not received any proposal from any state for increased allocation of funds for development and promotion of tourism in view of the covid-19 pandemic.

The following steps have been taken to overcome the crisis caused by Covid-19 pandemic in the tourism sector:

(i) Detailed operational guidelines for Covid safety and hygiene for hotels, restaurants, B&Bs/ Home stays and Tourism Service Providers have been formulated and issued on 08.06.2020 to facilitate smooth resumption of business.
(ii) Validity of approval or certifications of hotels and other accommodation units whose project approval / re-approval and classification / re-classification have expired / were likely to expire, has been extended upto 30th September, 2020.
(iii) The Ministry, has developed an initiative called SAATHI (System for Assessment, Awareness & Training for Hospitality Industry), for effective implementation of Guidelines/SOPs issued with reference to COVID 19 and beyond for safe operations of Hotels, Restaurants, B&Bs and other units.
(iv) Operational Recommendations for safe resumption of business with easing of lockdown restrictions have been issued for various segments of the travel and hospitality industry and circulated amongst all stakeholders.
(v) Recognition of Travel Agents, Tour Operators, Tourist Transport Operators by the Ministry of Tourism has been extended automatically by six months. Those who have submitted applications for recognition by the Ministry have been given provisional recognition for six months, pending completion of required procedures.

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