Tourism is quite a sensitive topic during COVID-19 times. It is rare to have policymakers talk about the sector given the present scenario. However, Minister of Tourism, Prahlad Singh Patel, in a candid email interview with Jescilia Karayamparambil and R N Bhaskar responded to all the questions shared with him.
Tourism sector which also includes hospitality is badly hit during COVID-19. So, how do you plan to revive it?
One should understand that the Tourism Industry including the hospitality sector which is one of the biggest segments of tourism, has been badly hit across the world due to a sudden fall in demand. Therefore, our aim is to revive the demand for travel as soon as possible.As a measure to combat the spread of the pandemic, the Ministry of Home Affairs decided to impose the lockdown in the public interest and many segments of the business including the restaurants were restricted. The Ministry of Tourism approached MoHFW (Ministry of Health and Family Welfare)and it has been permitted to resume business and with new guidelines from MoHFW as well as the Ministry of Tourism. These businesses are expected to bounce back to the previous level while ensuring public safety and hygiene.The Ministry of Tourism has been continuously engaging with the stakeholders of the industry on matters related to the challenges faced by them. The initiatives of the Government of India provided to MSMEs, including service sectors, have been highlighted to the industry. Besides, the Ministry of Tourism has also shared the issues raised by the tourism sector with the concerned levels in the Government.The Ministry of Tourism has also had a discussion with State Governments and Union Territory Administrations to encourage them to consider various relief measures for the tourism sector under their ambit waiver of penalty or interest to be levied on payment of any dues owed to State Government bodies, relief from excise fees, electricity duty reduction of property tax among others.A national task force under my chairmanship consisting of relevant Central Ministries and State authorities has been set up to look into the measures to be taken up for revival and growth of the sector.
What is the approximate estimated revenue from the tourism-related business for the country? What percentage of GDP would that account for?
For 2019, India in the international tourism list ranked 24th, according to the UNWTO (World Tourism Organisation) barometer for May 2020. For 2019, India in world tourism receipt ranked 12th, according to the UNWTO barometer for May 2020. Data on estimated foreign exchange earnings from tourism in 2019 was Rs 2,11,661 crore.
As per estimation in accordance with the third Tourism Satellite Account (TSA), the share of tourism in GDP in FY 2017-18 is 5.07 per cent.
How many people benefit from tourism – an approximate number will help. What percentage of the working population would that be?
As per estimation in accordance with the third Tourism Satellite Account (TSA), tourism accounted for 87.50 million jobs in the country during 2018-19. The travel and tourism sector in India accounted for an estimated 12.75 per cent of the total employment opportunities generated in the country in 2018-19.
Do we see robotics or automation taking over the jobs post-pandemic? Have you evaluated that area?
Tourism is all about personal care and customised service. We do not see robotics taking over the jobs in the tourism sector for now.
In the tourism business, it is always the first mover who benefits. Do we see India preparing to be that first mover?
We are watching the situation across the world, analysing consumer sentiments, what competition is doing and how are the erstwhile top tourism destinations responding to the pandemic situation. Today, all our communication with the outside world is over social media. The focus has been kept on promoting the strengths of India, increasing engagement through various activities, uploading more user-generated content, increasing the number of interactive content (gifs and short videos) and building relationships with State Governments handles to showcase India’s diversity. We also have to wait for our borders to open. We will be ready to reach out to our markets once normalcy returns.
Has investment into the sector dried up? Or are there investments coming into space?
The impact of the pandemic is that demand has collapsed across the world. We have customers who will not travel in the near future not only because of health but also because of economic reasons. New segments like quarantine, corporate retreats, health retreats etc are likely to see growth. The new entrants and more corporations like hospitals and retreats might collaborate and enter the market. The government has introduced several programmes over the past years like the ease of doing business, encouragement of digitalisation, skill development, foster entrepreneurship etc which will become significant contributors to the country’s economic growth going forward. The acceleration of investment-friendly policies, structural reforms and low commodity prices have provided a strong impetus for growth in the past. These are still in place and once the demand is revived investments will flow.
What is the percentage of tourism infrastructure projects that are stalled? How much are they worth?
The Ministry of Tourism has not stalled any of its infrastructure projects. The Ministry has been actively working towards the development of quality tourism infrastructure at various tourist destinations and circuits in the States / Union Territories by sanctioning expenditure budgets across schemes like SWADESH DARSHAN and PRASHAD.
What is the strategy for the future?
People must first leave their home and become ready to travel to neighbourhood parks and temples, then do day trips, then do drive trips, then do domestic air trips, then do neighbouring country trips, then do intercontinental trips. So, our priorities to support travel will have to begin at the local level.First and foremost, domestic travel has to be encouraged. The domestic travel will be to beat the ‘lockdown fatigues’, as short travel is believed to be an antidote to ‘stress’. The travel post-COVID-19 will have facets of responsible consumption that is responsible for tourism. So anticipate travel to places -- which offer natural social distancing like wildlife parks, wilderness travel, treks in the mountains and hills, wellness retreats, rural destinations etc -- to get the attention of travellers in times to come. Post curbs, promotion of domestic tourism will be our focus.During the present lockdown period, we are making all efforts to engage with our stakeholders and the citizens of our country and to sustain their interest in travelling within the country, once travel restrictions are lifted. A series of webinars on tourism destinations in the country are being organised under the theme of Dekho Apna Desh. Participants in these webinars will include tourism stakeholders, students and the general public from all across the country.
What is your promotional spend each year? How much of it is for Incredible India?
Development and promotion of Tourism in the country are central to all activities undertaken by the Ministry of Tourism including the promotion of brand campaign ‘Incredible India’. Thus everything that the Ministry of does is to enhance the brand value of ‘Incredible India’. The overall budget outlay for the Ministry of Tourism during the current financial year is Rs 2, 500 crore.
