Category Archives: Associations

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.    

Federation of Associations in Indian Tourism & Hospitality (FAITH) has appealed to the Chief Ministers of each state for coming up with a state specific package. FAITH has shared with each state their share of domestic and foreign tourists and how most of those total tourist footfalls will now not be available for 2020-21. A statement released by the association mentioned that almost all of India’s top performing foreign source markets for tourism (USA, Canada, UK, Germany, China, Japan, Singapore, Russia, Italy, Spain), are severely impacted and are not likely to travel before FY 2021 – 22. Owing to this, tourism business has come to a standstill in FY 2020-21. “The interstate domestic season which happens almost 60%+ in the April – July period has collapsed for the year FY 2020 – 21 and will be negligent for the rest of year with stringent travel restrictions and reduced connectivity across Indian states. FAITH has been repeatedly saying to all key Government bodies that the Tourism industry of India first needs to SURVIVE, then needs to REVIVE and then only can it THRIVE,” read the statement. FAITH has appealed to the Chief Ministers of each state for coming up with a state specific package. A complete waiver of all fixed electricity and other utility charges for FY 2020-21 without any penalties. A complete waiver of all excise duties for FY 2020-21 without any penalties. A renewal of all licenses, permits, permissions which were expiring in FY 2020-21 without any financial charges or penalties. A refund of the FY 2019-20 of SGST collected from all travel agents, tourist transporters, hotels, tour operators, restaurants and any other tourism, travel & hospitality enterprises in …

The Indian Association of Tour Operators (IATO) has written a letter to PM Narendra Modi for formulating survival and revival plans for the crisis-ridden tourism industry in the country. Fearing a huge impact of COVID-19 on the industry, the association has demanded a sectoral bail-out package. In its recommendations, IATO listed out several immediate relief measures required for survival on both short-term and long-term basis. Along with that, the association also listed out steps to be taken by government for revival of the industry post pandemic. The demands include measures such as enhanced value of SEIS to 10 %; extension of SEPC membership till 31st March 2021; payroll support for salaries; deferment of statutory loans and withdrawal of TCS among others.

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.”

Asia is predicted to spearhead a return to visitor growth across Asia Pacific in 2021 according to the newly updated forecasts released last week by the Pacific Asia Travel Association (PATA). During the expected recovery phase in 2021, Asia is expected to generate significantly improved arrival numbers, rebounding from a loss of almost 104 million visitors between 2019 and 2020 to growth of 5.6% in 2021 relative to 2019, delivering more than 18 million more arrivals over that period. Taking into account the impacts of the COVID-19 pandemic, the volume of arrivals under a most likely scenario is now expected to return to over 610 million in 2021, barring any other unforeseen interventions. This initial recovery is expected to see growth of around three percent above 2019 levels and herald a return to the initial forecast levels shortly thereafter. This growth in international visitor arrivals (IVAs) is likely to vary by source regions, with Asia expected to rebound with the fastest growth rates relative to 2019. The Americas, which is expected to show the lowest contraction in its rate of growth in 2020, is forecast to continue with much weaker growth rates over the years to 2024. Arrivals into the Americas are expected to be relatively strong in 2021, with a net increase of 2.9 million visitors relative to the volume generated in 2019. This is expected to be driven largely by intra-regional flows (Americas-to-Americas) which, after a decline of 4.3 million arrivals between 2019 and 2020, are expected to recover rapidly and generate more than 2.5 million arrivals into the Americas relative to 2019. By the end of 2021, total IVAs into the Americas are projected to be close to three percent above …

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 …