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Tourism experts say finance minister’s 500K tourist visas, ₹1-lakh loan offer an eyewash
A day after finance minister Nirmala Sitharaman announced 500,000 tourist visas for free as well a loan of ₹1 lakh each to the regional level guides (RLGs), tourist associations and federations have called the government’s move an eye wash
A day after finance minister Nirmala Sitharaman announced 500,000 tourist visas for free as well a loan of ₹1 lakh each to the regional level guides (RLGs), tourist associations and federations have called the government’s move an eye wash. According to them, the government’s announcements that claim to boost inbound tourism have no practical holding.
Jerroo Bharrucha, president of tourist guide association (TOGA), Mumbai, said, “RLGs have existed long before the Ministry of Tourism and Culture (MOTC) was formed, but the way we have been treated in recent times is depressing. We represent and showcase all that is good in India and hence, we are the face of India as tourists spend maximum time with us.”
“We have helped tour operators to build their tourism empires as all rolling business is brought by our work. The government of India should be doling out cash compensation to us instead of asking us to apply for loans. They know very well that many tour operators have not paid RLGs throughout India for work done in 2018 to 2020,” added Bharrucha.
Tourist guides alleged that the finance minister’s announcement was like being given a beautifully-wrapped box only to find castoffs inside.
“We were euphoric about were getting something but later realised what we will actually be getting. Which bank is going to give us a loan on a licence that the tourism ministry is not renewing till we sign on dotted lines? In case we get the bank loan, how are we supposed to repay when there’s no work,” Bharrucha questioned
Dr Subhash Goyal, president, Confederation of Tourism Professionals of India, said that the finance minister’s announcement is too late and too little.
“Already, 10 million people have become jobless and thousands of companies have become bankrupt. Without the announcement of the date for issuance of e-tourist visas and free visas will be meaningless. The money saved by not giving free tourist visas can be utilised for giving grants to the tourist guides and tourism workforce,” Dr Goyal said, adding, “Giving loans to tourist guides and small tour operators is also meaningless because how will they return the loan and pay the interest when there is no business? ”
The highly-fragmented tourism sector includes stakeholders such as travel agencies, individual travel agents, car rental agencies and tourist guides whose businesses were practically wiped out as the pandemic put a stop to travel.
CRISIL Ratings Limited said the sector critically needs opening up of inbound and outbound travel, which is currently very restricted.
“With improved vaccination rates, we expect opening up in the second half of this fiscal, but that would also be contingent on policies of foreign countries. Domestic travel though should start to bounce back, as state-level lockdowns ease,” CRISIL said.
Manish Gupta, senior director, CRISIL Ratings said, “The move to provide 500,000 free one-month tourist visas till March 31, 2022, amounts to only ₹100-crore allocation, but importantly, it sends out a message that India is getting ready to welcome tourists. This could provide a boost to budget-conscious travellers before the inbound season, which typically starts from October.”
Sourav Mukherjee, head, India and Middle East of travel tech services firm RateGain, said that giving 500,000 free visas will give the much-needed start to the inbound segment, mainly for tourists.
“This is a much-needed move for the industry and leisure destinations. However, we still need to wait till the process starts. This will not be a boost as such but will act as a kick start. We could have said this was a boost only when the inbound sector would have had some movement already. But if the government could also create confidence among the tourists, it will immediately have a positive effect on the leisure segment,” he added.
