Category Archives: Associations

The latest data from UNWTO shows that at least 100 million direct tourism jobs are at risk across the world even if international borders are gradually opened and travel restrictions are eased as early as July 2020. Should these closures and restrictions be extended up to early September or early December, the international tourism community faces the risk of as many as 120 million direct job losses. Prospects for the year have been downgraded several times since the outbreak and uncertainty continues to dominate. Though domestic demand is expected to recover faster than international demand, a majority of the industry feels, according to UNWTO, that signs of recovery will be visible only by Q4 2020, but mostly in 2021.

Pradip Lulla, President, Travel Agents Federation of India (TAFI) has revealed that the association has asked the Supreme Court to intervene in a petition concerning the refund of air tickets bought for travel during the COVID-19 lockdown period. The primary plea was moved by the NGO Pravasi Legal Cell on April 27, 2020. He says, “This was done on May 6, 2020 through NGO Pravasi Legal on behalf of TAFI. But this is for all air ticket issuing agents in India. I estimate that the total volume of refunds would come to around Rs 800-Rs 900 crore as bookings were made not just for the summer holidays but also for student travel. This is for bookings made for all airlines – Indian as well as international. While we have approached the concerned authorities in the past through FAITH, the airlines have said that they will give refunds only after three months.” crucial funds remain blocked with the airlines for travel not undergone and which, in fact, has been cancelled. Lulla adds that some airlines have divided their bookings as per zones where Zone 1 is US, Zone 2 is Europe, and Zone 3 is South East Asia and for these they are giving refunds, but not for India that comes under Zone 4. “In Zone 4, they are changing penalty for cash refunds even when flight schedules are cancelled. We hope to hear from the Supreme Court on this issue soon,” Lulla adds on a positive note.    

The World Travel & Tourism Council (WTTC) has outlined what the ‘new normal’ will look like as countries begin to end their COVID-19 lockdowns and ease travel restrictions. As travel gradually returns to normal over the coming months, WTTC predicts that the first to return will be domestic markets with staycations, then to a country’s nearest neighbours before expanding across regions, and then finally across continents to welcome the return of journeys to long-haul international destinations. WTTC also believes that younger travellers in the 18-35 age group, who appear to be less vulnerable to COVID-19, may also be among the first to begin travelling once again. The tourism council also informs that new protocols and standards are being defined following feedback and multiple conversations with WTTC members, as well as collaboration from associations who represent the different travel sectors.

According to a newly updated forecast by Pacific Asia Travel Association (PATA), growth in international arrivals relative to 2019 figures is expected to rebound the fastest in Asia over the years to 2024. The release also suggests that this growth will be driven by intra-regional travel (Asia-to-Asia), with a rebound from a loss of almost 98 million arrivals between 2019 and 2020 to an increase of over 17 million between 2019 and 2021. All the source regions of Asia are projected to show growth between 2019 and 2021, with Europe and the Americas in particular, adding increases in arrivals of 2.5 million and 1.7 million, respectively over that period. By the end of 2021, Asia is predicted to have visitor arrivals numbering five per cent more than in 2019.

Jyoti Mayal, President, Travel Agents Association of India (TAAI), has said that they have had several meetings with the Ministry of Civil Aviation regarding protecting the interest of their members, in the wake of the losses they have suffered because of not getting refunds from airlines amidst the COVID-19 crisis and the eventual shutting down of airline operations. She adds, “Tourism and aviation are inter-dependent. Both airlines and travel agents depend on each other for business and hence we have requested the Ministry of Civil Aviation to look at a solution that is a win-win situation for both. We don’t want airlines to go out of business, but also want to save our businesses. While airlines across the world are seeking monetary support for their survival, they should not be holding back the agents’ or customers’ money, which is lying with them as per advance bookings. They should refund the agents and customers, instead of giving credit shells.”

In a bid to analyse the impact of the Covid-19 crisis on staff salaries across the industry, TravTalk has initiated the ‘Travel and Tourism Salary Survey 2020’. The 2-minute survey is anonymous can be taken by clicking on https://www.surveymonkey.com/r/3WP3JHM. Share your inputs without having to reveal your name or email. The survey would gauge how every sector is dealing with the crisis and possibly trigger discussions on best employment practices in the industry.

Under the newly updated forecasts from the Pacific Asia Travel Association (PATA), the most likely scenario for international visitor arrivals into South Asia in 2020 is that visitor numbers are likely to reduce by 31% year-on-year. That effectively takes visitor volume back to levels last seen in 2012. At this stage, growth is expected to resume in 2021, returning to forecast levels by 2023. Much of course, depends on how quickly and completely the COVID-19 pandemic is contained and controlled. South Asia is also expected to suffer a loss of US$13.3 billion.

FAITH appeals to the Govt of India for immediate survival package as Indian tourism industry is on the brink of collapse. All the cash inflows of the industry have completely frozen and are likely to stay that way for the financial year 2020-21.  To address the issues of cash outflows, FAITH has recommended immediate measures for survival that need to be addressed parallelly. The industry is facing its biggest economic challenge with the larger and combined effect of 9/11 and the slowdown of 2009 and estimated bigger effect than the Economic Depression and World War II. Indian Tourism industry, in 2018-19 handled business of over 10.5 million foreign tourists, more than 5 million visiting NRIs, 1.8 billion domestic tourist visits & over 26 million outbound travellers.   A complete deferment for twelve months of all statutory dues payable by tourism, travel & hospitality industry at the Central Government level, state and municipal government level without attracting any penal interest. These would include GST, Advance Tax payments, PF, ESI, customs duties, excise fees, fixed power & water charges and any fees for licenses and renewal at the state level.   A support fund ‘Tourism COVID 19 Relief fund’ to be set up by RBI or Ministry of Finance or Tourism to support salaries and establishment costs. It should be either in the form of an interest free loan to Tourism companies for repayment of the principle over 10 years. The industry estimates the value of the fund to be minimum of Rs.50,000 crores which is almost equal to gross banking credit to the Indian Tourism industry.   RBI has already provided for three months moratorium on EMIs of principle and interest …

Gurbaxish Singh Kohli, VP, FHRAI, says, “Hospitality, Travel & Tourism’ has been worst hit and a strong push from the government is required to ensure that these sectors are not wiped out. The first thing that comes to my mind is to explore ways to promote domestic tourism among India’s 22 million outbound travellers. What we must focus on today along-with the various state governments is creating awareness and putting together fantastic attractive packages to promote domestic tourism. We can make this happen when each State in India pulls up its socks and considers the neighboring State its competitor. Mere words will not work. We will have to read ourselves now, for international as well as domestic competition. We need to focus now on projecting the market condition, when it eventually will open and offer the inbound and outbound travelers offers they can’t refuse. For this, we need the help of the Government, without which nothing can happen. We can plan a lot but without the right backing and implementation, nothing can happen.”

The World Travel & Tourism Council (WTTC) has launched a new marketing campaign, #TogetherInTravel, aimed at galvanizing the global travel and tourism community and showing how the sector is a vital part of our zest for life. The campaign, which went live on April 20, encourages travellers from around the world to share the hashtag #TogetherInTravel along with a video simultaneously uniting everyone in solidarity at the same moment. The marketing campaign comprises three key elements; a highly visual and emotive video; a hashtag, #TogetherInTravel, to stimulate the conversation across social platforms and a microsite, TogetherInTravel.com, to host the video and user generated content and stories. WTTC has developed the campaign in conjunction with one of its members. Gloria Guevara, President & CEO, WTTC, says, “Dreaming is part of our zest for life and our new campaign encourages thoughts of the brighter days ahead. Travel & Tourism is a critical sector to the global economy, accounting for one in four of all new jobs worldwide and contributing 10.3% to GDP. Our sector touches everyone. It builds communities, reduces poverty in the world and improves the social impact of everyday lives. Yet, we are uniquely exposed at this time due to COVID-19. The concept for the #TogetherInTravel campaign was born out of a desire to rally everyone who is passionate about travel, to unify those who are working hard to rebuild the sector and to spread a message of solidarity that we are one global community and one where travel brings us closer, at the right time. Our message is that everyone can still stay inspired with future travel ideas and bookings – and in the meantime be part of a virtual …