Tag Archives: Federation of Associations in Indian Tourism and Hospitality

The Federation of Associations in Indian Tourism and Hospitality (FAITH) has decided that making a fund to help the ailing tourism industry would be part of their future course of action, after the tourism industry was snubbed by the Government and no stimulus package was announced by the Finance Minister for the same. Subhash Goyal, Secretary General, FAITH, said “We have a board meeting today at 9’o clock, and our next course of action will be decided there. We are making a final appeal to the Tourism Minister and the Prime Minister, and then we’ll see what action we shall take. Ultimately, we’ll have to create our own fund, on which we are working, and we will decide what name we’d give it today.”

Federation of Associations in Indian Tourism and Hospitality (FAITH) has been sharing a regular updates with the Ministry of Tourism(MOT) and Prime Minister’s Office (PMO) on the impact of COVID-19 on the industry and apprise the Government on the effect of the outbreak has been till now. The update letter reads, “This is one of the worst crisis ever to hit the Indian tourism industry  impacting all its geographical segments – inbound, outbound & domestic, almost all tourism verticals— leisure, adventure, heritage, mice, cruise, corporate & niche segments. The whole tourism value chain across hotels, travel agents, tour operations, destinations, restaurant, family entertainment venues & air, land & sea transportation.” – Inbound foreign tourism of $ 28 bn + in value terms accounts for on an average basis almost 60-65%  between October to March. As the news of the virus started picking up from November, the percentage  of cancellations started going up in this segment exponentially and is reaching a peak of almost 80% now in March in many Indian locations. The value at risk from this segment will be in multiples of tens of thousands of crores. – The forward bookings for the inbound season of October 2020 – March 2021, which should have started picking are all muted.  These are showing highly discouraging signs with cancellations of important global travel marts which are marketplaces for contracting for the next season. – The value of NRI segment from developed markets whose major season for visit to their families and relatives is around 60% + during April to September. There are reports of large-scale forward cancellations from these and unless the progression of the virus stops the almost entire value …

The India Tourism Mart (ITM), organised by the Federation of Associations in Indian Tourism and Hospitality (FAITH) and the Ministry of Tourism (MOT), will be tentatively held from September 29 to October 1, 2019, announced Subhash Goyal, Secretary General, FAITH. He also told that these dates are tentative, considering that any other inbound travel show like KTM as well as the National Tourism Awards would not clash with the same. This year, ITM had around 250 foreign buyers in attendance with an equal number of exhibitors. He also revealed that they are expecting around 500 buyers to come for the next year’s edition as they will have enough time to plan the event unlike this time, when they organised it within 2.5 months.

The Federation of Associations in Indian Tourism and Hospitality (FAITH) has elected its new team with Nakul Anand, Executive Director, ITC, as the Chairman, who was nominated by Hotel Association of India (HAI). The Vice Chairman is Akshay Kumar, CEO, Mercury Himalayan Explorations, who was nominated by Adventure Tour Operators Association of India (ATOAI). The association also created an additional position of Vice Chairman, for which they have elected Sunil Kumar R, CEO, Travel World, who was nominated by Travel Agents Association of India (TAAI).  Subhash Goyal, Chairman, STIC Travel Group, who was nominated by Indian Association of Tour Operators (IATO), is the new Honorary Secretary, while Garish Oberoi, Partner, Hotel Uberoi Anand, has been declared as the Treasurer. Aashish Gupta continues as the Consulting CEO of FAITH. All the above positions have been unanimously elected by the FAITH Board.

The Federation of Associations in Indian Tourism and Hospitality (FAITH) has suggested an upper GST rate of 12 per cent for the tourism and hospitality industry and handed its detailed recommendations to the Ministry of Finance. The industry comprises of air travel agents, business exhibition services, hotel and hospitality services, tour operators, rent a cab and vacation ownership. The representation has been made considering strategic forex, employment, economic and GST rationale and rates for tourism, travel and hospitality sector of India. An upper limit of 12 per cent has been suggested for hotels and hospitality and vacation ownership segment. For the air travel agents the recommendation was given to continue presumptive rate on all income and keep GST at 1 per cent or less. For the tour operators, FAITH requested to introduce a presumptive rates mechanism of GST at 1.2 per cent considering difficulty of getting GST input credits from unorganised sector and the burden of compliance of registration with different states. It has been requested to exempt outbound tour operators and business exhibitions selling outbound from India from GST since provision of services are out of India. In the case of rent a car, a GST rate of 5 per cent has been suggested failing which, maximum 12 per cent has been deemed acceptable. FAITH has urged for a special GST exemption on forex income for tour operators, hotels and businesses earning forex if it can be a criteria with MoF for GST. Addressing the adventure tourism industry, FAIH has requested MoF to consider special GST exemption based on J&K and a very high component of local, unorganised labour involved.

The Federation of Associations in Indian Tourism and Hospitality (FAITH) has sought amendments to the draft Goods and Services Tax law that include making an exception for tourism and hospitality businesses, and classifying them under 6-8 per cent tax slab. FAITH has asked the GST commissionerate and the revenue secretary to provide an amendment under Section 2 (44)c to the tourism & hospitality industry. According to a letter from FAITH, Section 2(44)c, under the draft GST model law describes an export service as one which is rendered abroad. FAITH has put forwarded the rationale that tourism services to foreign exchange paying tourists can’t be rendered abroad as all our destinations are within India and it is an intangible product & hence an exception needs to be provided in the law itself to the tourism & hospitality industry. Once tourism & hospitality is classified as an export service, FAITH will request the GST council for a 0% rating of GST on tourism & hospitality exports. This will make our tourism industry extremely competitive globally & remove the uncompetitive 18-25% indirect taxation. FAITH will also ask the GST council for a below 10% GST rating on domestic tourism. This is in line with global practices where the introduction of GST has seen tourism GST kept at less than half the standard rate of GST. Implementation of both of these recommendations have the potential to spur our tourism forex earnings to $30-$35 billion from 13-15 million foreign tourists & has our domestic tourism to 1.8- 2 billion domestic visitations. This could double the employment induced by tourism to 9 crore jobs from 4.5 crore jobs. They have also shared their concerns with the …