According to research by the National Council of Applied Economic Research on the impact of the coronavirus on tourism, the pandemic resulted in substantial employment losses in the tourism sector following the lockdown.
After the lockdown was imposed, the tourism ministry cited the NCAER report in response to a question from Lok Sabha MPs Ramesh Kaushik and Raju Bista, which stated that 14.5 million jobs were lost in the first quarter, 5.2 million jobs in the second quarter, and another 1.8 million jobs in the third quarter of FY21.
The NCAER report has yet to be released, although a draft has already been authorised by the tourist ministry. The funded research produced an analytical report that employed mathematical models to estimate the damage to the economy in terms of tourism expenditure, forecasts that the entire recovery would take 3-4 years, assesses the loss to household incomes, and includes recommendations for the resurrection of the tourism industry.
In January 2021, the ministry commissioned NCAER to produce a report titled "India and the Coronavirus Pandemic: Economic Losses for Households Engaged in Tourism and Recovery Policies." It also established a Task Force led by the tourism minister to "address the challenge provided by COVID-19 and offer suitable suggestions for the recovery of the country's tourist and hospitality sector." However, no official research was performed to analyse the impact of Covid-19 on the tourist business at the state/UT level.
Foreign Exchange Earnings (FEE) decreased by 76.3% between January and December 2020, compared to the same period in 2019. The travel and tourist sector in India, which accounts for almost 2.5% of GDP, has made many requests to the government for assistance for travel and tourism firms on the verge of failure owing to the coronavirus epidemic.
Representative organisations from the tourist industry, ranging from hotels to travel and tour operators and tour guides, have submitted several petitions to the government, stressing the pandemic's severe financial impact on the travel and hospitality sector in 2020-21.
The industry group also requested that all licences, permits, and permissions due to expire in FY 2021-22 be automatically renewed without any fees or penalties, as well as an industry status for tourism, travel, and hospitality, as well as a refund of unutilized GST credit for the travel sector's liquidity needs.
The sector's reaction to the finance minister's "bailout package" was equally depressing, because companies have stated that cash inflows, not monetary policy measures, are needed to keep their operations viable.
Source: Times of India