In the 2019 General Election, Prime Minister Narendra Modi’s Bhartiya Janta Party (BJP) has scored a victory bigger than in 2014.The Party has crossed 300 mark and emerged as the single largest party with strong majority to form the Government at the Center. Like 2014, the second term of Prime Minister Narendra Modi comes with huge expectations from travel and hospitality sector.
Five years ago when NaMo led BJP came in power with ‘Tourism’ as one of the important components of its agenda, the stakeholders of this industry got very excited and offered humungous support to the party. There has been a strong expectation that this industry will achieve unprecedented growth as ‘Tourism’ was the priority for a government at the centre. Also, looking at the achievements of tourism in Gujarat under his leadership, the stakeholders were very optimistic to have a Prime Minister who understands the importance of the tourism and
hospitality sector.
Well after having an eventful tenure, the same trend continues in 2019 as well. However, there are a lot of industry concerns – be it high taxation on hotels & tourism products, safety & security, fresh marketing ideas, good understanding between various state departments and officials of the Ministry of Tourism etc. should be addressed by Modi Government 2.0 for the unprecedented growth of the tourism and hospitality sector.
“We do believe that there are certain dysfunction at the departmental level and bureaucratic red-tape and delays that inevitably slows down the pace of development and growth. This needs to change. Deadlines and targets have never been a concern to us. That needs to change. I am sure that the government is already working in this direction and we will see better days ahead,” says
S N Srivastava, Founder & President, Clarks Inn Group of Hotels.
“I see the 28% GST on hotels as an absolute disaster for the industry and am very disappointed that while the Finance Ministry has reviewed GST slabs for all sectors, this one has been left out till now. It is unheard of globally to have such a high tax bracket,” says Himmat Anand, Founder, Tree of Life.
Speaking on the same lines, Pronab Sarkar, President, Indian Association of Tour Operators says that GST on tourism products in India is the highest in the world and all tourists find India as an expensive destination. Also, fee for E-Visa have been increased, whereas our neighbouring countries offering free visa for tourism. “Visa fee should be removed during summer months (April to September), and reduce normal fee at par with our neighbouring countries to attract more foreign tourist to India,” added Sarkar.
Industry feels that the arrival figures into the country have grown, but the real revenue generating arrivals in the organised tourism segment have not shown any significant movement. It showing the growth in low yield markets that do not benefit the country and are hurting travel companies significantly.
“It is time to start from the beginning and create a whole new game plan for Indian tourism. The government needs to be bold and speak to the industry at large, not to a few association heads who do not hold the trust of their own stakeholders. It’s time to think out of the box. To be bold and to act differently, adds, Rajeev Kohli, Jt. Managing Director, Creative Travel.
“Government should understand the nuances of the Tourism Industry and support it fully. Policies should be tourism friendly, taxation should be supportive of tourism. A deliberate effort has to be taken to project India as an appealing destination. Government should be constantly in touch with the private sector tourism industry to know the pulse. Also let us project to the world that India is a youthful country that offers vibrant attractions to all,” says E M Najeeb, Sr Vice President, IATO.
President of Association of Domestic Tour Operators of India, PP Khanna says, “Government keeps applying balms for the tourism industry but not taking concrete steps to boost tourism in the country. Simply showcasing India’s tourism potential without providing comforts to tourists visiting destinations will not bring more tourists to the country as they opt to travel to other countries to spend their holiday which are cost effective and value for money destination.”
“Centre Government should work with State Government as facilitator in implementing various schemes related to tourism to provide the required infrastructure i. e. good roads, clean and hygiene tourist places, safety and security to the visiting tourists etc.,” he added.
Despite all this there are many impediments that have stood in the way of tourism development. The country has somehow lost the image of a peaceful destination due to incidents of violence, atrocities over women and communal tensions, which the global markets have been watching over. More than harmony there are tensions prevailing at critical areas. And probably this is the great concern for the stakeholders of this industry which should be addressed properly by
Modi Sarkar 2.0.
KEY POINTS
- HIGH GST RATES ON HOSPITALITY & TOURISM PRODUCTS
- NEED FRESH MARKETING IDEAS, TAP NEW EMERGING MARKETS
- TWO POINT AGENDA FOR TOURISM AND HOSPITALITY (YEARLY)
- WOMEN SAFETY/COMMUNAL ISSUE/ POLLUTION
- NEED TO COUNTER ADVISORIES AGAINST TRAVEL TO INDIA, ADVERSE PUBLICITY BY FOREIGN MEDIA
- HIKE IN E-VISA FEE
Undoubtedly, the tourism sector is a cash cow which the government, so far, has failed to milk. Instead, they have milked it dry. If the taxes are rationalised, the inflow of tourists will increase manifold, thereby creating valuable foreign exchange for the country and providing thousands of jobs for the educated youth, who are presently, highly qualified but find no jobs due to lack of opportunities.
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