Category Archives: Associations

After signing an MoU with Rwanda recently to promote bilateral tourism from and into India, the Travel Agents Federation of India (TAFI) might also be looking at it as the venue for its upcoming annual convention that will be held in August or September of this year. As part of the protocol, it is in talks with a couple of destinations for this and one of them is Rwanda, hints Zakkir Ahmed, President of TAFI. “We will be able to announce the destination only by March end or early April. Our MoU with Rwanda includes not just outbound but inbound as well. It is not very well-known to tourists in India. So we will help them do some promotions through our members and familiarization tours. If possible, we will also do our convention there,” he says.

Highly dissatisfied with the Union Budget,  Sunil Kumar, President, Travel Agents Association of India (TAAI), says tourism has been again been put on the back burner. “It is a big tragedy for an industry that has so much to offer many countries of the world. Wonder when India will consider this industry as an important economic success strategy.” Kumar reiterates that the budget does not meet up to the expectations of the industry, which has been projecting innovation with wide reforms and a more dynamic India. “There were expectations on Service Tax reliefs; boost to tourism sector; incentives for foreign exchange earnings, and these appear to have missed out. The income tax relief should have been on most classes, but is only done for lower slabs. The focus on Voluntary Disclosure is not too strategic and may not yield good results. Whatever must happen in the areas of travel, tourism and aviation, will not be dependent on this budget at all. In fact, the new 0.5% cess is going to add liability to all. The new budget has hardly any positive impact on our industry, which is sad,” he says. “For Travel industry to grow, especially during a time when the challenges are too many and the industry does require a boost, government must address the issues concerned, including sustainability. For this industry being a very large employer of people and generator of huge revenues for government in the form of taxes, government’s attention is rather disappointing,” Kumar added. Unless the government firmly reviews the challenges of all stakeholders in this industry, it will not be able to support the growth that is available in plenty. The TAAI President says …

Guldeep Singh Sahni, President, Outbound Tour Operators Association of India (OTOAI), says the only positive point in the Budget is making non-functional airports operational. “It is a very neutral budget, and there is nothing in it for the tourism industry. The only positive point is that the government is considering making non-functional airports operational, which would give a boost to inbound tourism. However, nothing substantial is there for the travel industry,” he says.

Rajan Sehgal, President (Northern Region), Travel Agents Association of India (TAAI), said, “There is hardly anything for the travel industry in this budget. The only positive thing in this Budget is that the Finance Minister has addressed the connectivity issue by saying that there are 160 airstrips in India which can be developed. Many small destinations are not easily accessible for tourists and this announcement would give fillip to domestic tourism. We are still waiting for more details. However, there is no direct mention of anything positive for the tourism industry.”

Commenting on the General Budget 2016-17, Jyotsna Suri, immediate past president of FICCI, said, “Nothing for tourism this year, is it something new? Overall the budget this year was on infrastructure, rural development and spending on buildings. That is what is the need of the hour. This is going to increase the economy and that will somehow affect tourism altogether. Though we didn’t have much for tourism this time like last year I think if economy grows tourism will grow.”

Expressing disatisfaction over the Budget ’16, Conrad Clifford, Regional Vice President, Asia Pacific, International Air Transport Association (IATA), said, “The budget had a minimal focus on aviation. We hope the government will do a better job with the National Civil Aviation Policy. While the NCAP is a step in the right direction, there are areas of concern, especially where it adds costs to the industry or where it deviates from well-established global standards. We hope the government will address three priority areas – retract the 2 per cent Regional Connectivity Fund levy, abandon the plan to auction traffic rights, and allow AERA to perform its functions independently by not enshrining any ‘Till’ for airport charges in the Policy document.”

Jyoti Kapur, President, ADTOI, says, “With the Finance Minister talking about old airstrips to be developed, we believe that it would result in boosting domestic and inbound tourism. With the Ek Bharat Shreshtha Bharat scheme, now in full swing the connectivity to remote areas will increase, and it looks like a positive approach for attracting tourists to destinations in India beyond just pilgrimage sites. Also, in the budget, the government has sanctioned a huge amount for developing infrastructure and Swacch Bharat, and we believe that this too will boost tourism within the country. Cleanliness is a huge issue in India and if that is tackled, it will do wonders for tourism. It is still to be seen how the government is going to initiate these programs. However, since nothing has been done about the taxes plaguing the industry, we are a bit disappointed. Domestic tourism in India is suffering despite the rupee being weak, owing to poor infrastructure, higher taxes and connectivity. While two of these things have been addressed, we would’ve been happier had the taxes been rationalised.

Reacting on the General Budget 2016-17, Bharat Malkani, President, FHRAI, said, “The hospitality industry has not been acknowledged in the budget. We reserve our further comments till we have evaluated the notifications of the Budget, which we understand will be out shortly.”  

Expressing disappointment over the General Budget 2016-17, Sarabjit Singh, Vice Chairman, FAITH, said, “It is disappointing to see that the Union Budget has overlooked the suggestions made by tourism and hospitality sector. The Government has looked at debt and dying sectors and it seems tourism industry will be considered only when the sector is dead. This sector  has been dying for the last one year and the Government’s negligence shows that it is not an important sector. The benefits given to the start up companies shows that we, the tour operators/travel agencies may have to wind up their businesses and set up new companies to avail benefits of the start-up sector if we need any kind of government support to grow the revenue from tourism. During the last one year, the industry has met all concerned in the Government policies and most of them have agreed that tourism needs extra flip and support like Export Sector in order to increase revenue in foreign exchange, but seems all efforts gone down the drain. Tourism export is the only segment where all State & Central Taxes are imposed.”

The Association of Domestic Tour Operators of India (ADTOI) is going to have its convention in Khajuraho from April 8-11, 2016, in partnership with Madhya Pradesh Tourism. Jyoti Kapur, President, ADTOI, says  that the curtain raiser for the convention will happen on March 2, 2016. Sanjay Aggarwal, VP, ADTOI, says that the theme of the convention, sessions and number of delegates will be announced on the same day. It was further revealed that the approximate cost for the package for 3N/4D trip is 7000/- which includes train travel from Delhi to Jhansi by Shatabdi Express; travel by road to Khajuraho; stay and sightseeing.