Tag Archives: OTOAI

The Outbound Tour Operators Association of India (OTOAI) addressed its members’ queries regarding the recently implemented GST regime. Chartered Accountant Ashok Batra made a presentation to explain the nitty-gritty of this new tax structure and also elaborated on how this would affect the members of the association in day-to-day business activities. The members attended the seminar with full enthusiasm and raised various queries, all of which were addressed during the event itself.

According to Guldeep Singh Sahni, President, OTOAI, the government went two steps back and now they have come one step ahead with the current GST rate. He revealed, “We were giving 4.5 per cent tax before January 22, 2017 and then we had CENVAT available. After January 22, we were under 9 per cent service tax. This step disturbed our summer bookings and there was a major loss of business to international OTAs. The new rates which will be implemented after the GST council’s meeting is 5% on supply of tour operators’ services. We need to clarify the meaning of this. If it is on the profit or add-on, then it’s very good. But if it is on the total amount, then we again stand expensive by 5 per cent than our international suppliers, because if we are taxing international hotels, then we are taxing them again. As input credit is not available it has direct impact on us.”

The Outbound Tour Operators Association of India (OTOAI) will be organising its 2017 Convention in Ras Al Khaimah in September. Guldeep Singh Sahni, President, OTOAI, and Haitham Mattar, CEO, Ras Al Khaimah Tourism Development, signed a MOU for the same at the Ras Al Khaimah Roadshow in Delhi. Sahni said, “We are going to have our convention most probably from September 12-14 in Ras Al Khaimah. The dates are tentative and will be finalised soon. We will be coming out with more details about the convention very soon. Our intention is to introduce new markets to the tour operators so that they have another destination in their kitty, which will add value to the already existing markets that they sell. If one looks at the numbers, there is a big gap between Dubai and Ras Al Khaimah, and we are looking at utilising that for the benefit of the tour operators so that they can extend their tours to this destination, with an added cost.”

Malaysian Prime Minister Dato’ Sri Haji Mohammad Najib bin Tun Haji Abdul Razak has announced the launch of multiple entry e-visa valid for 15 days for Indian nationals. The announcement came a day after Guldeep Singh Sahni, President, Outbound Tour Operators Association of India (OTOAI), met Dato’ Seri Mohd. Nazir Abdul Aziz, Minister of Tourism & Culture, Govt. of Malaysia, along with Raghuvinder Singh of D Pauls Travel and suggested that e-visa facility being offered to Indians should be made multiple entry. The suggestion led the Minister to take action and decision was taken within a day, and the Malaysian Prime Minister announced, “I would like more Indians to visit Malaysia and I have informed the Prime Minister that we have decided to allow no visa fee, online application approval within 48 hours and multiple entry to be accorded for Indian nationals.” The Malaysian Prime Minister met Prime Minister Narendra Modi on his official visit to the country on April 1. Sahni said, “Thanks to Datuk Seri Mirza Mohd Taiyab, Director General Tourism Malaysia, Dato Daljit Singh, Indian Community Relations Advisor to the Minister of Tourism and Culture, Malaysia, Datuk Siew Ka Wei, Chairman Tourism Malaysia and Sulaiman Suip as the new Director, North & East India operations, for their contribution. We acknowledge Hon. Dato Seri’ Mohd Nazir Abdul Aziz and his team for taking action so quickly.”

The Outbound Tour Operators Association of India (OTOAI) has revived its Turkey Educational Tour for its members from May 3-7, 2017. Organised in association with Turkish Indian Tourism Council (TITC), the registration for the tour started on March 20, 2017. Riaz Munshi, Vice President, OTOAI, revealed the details saying initially the educon will take members to Mugla.

In a bid to educate the travel trade about Nanjing’s diverse tourism offerings, Outbound Tour Operators’ Association of India (OTOAI) organised a workshop in association with Nanjing Municipal Tourism Garden Bureau. Through a series of presentations, the main highlights in the Ming dynasty’s home, such as the ancient philosopher Confucius’ temple, Ming Great Wall, Linggu Temple, to name a few, were shown to the gathering along with other details about the destination. Guldeep Singh Sahni, President, OTOAI said, “We are promoting various regions instead of the whole country in order to give elaborate information on the destination. Nanjing is China’s ancient capital and is replete in history and culture. It can cater to a wide variety of travellers and would make for an ideal break, thanks to the array of products it has to offer.” Additionally, Xia Jun, Deputy Director, Nanjing Municipal Tourism Garden Bureau said, “We received around 10,000 Indians last year and would like to see more Indian tourists visiting the region. Nanjing is best visited during autumn and is famous for its history as well as cuisine. We are hoping for a direct connection between Nanjing and New Delhi to start soon which will definitely give a boost to the numbers,” she commented.

Guldeep Singh Sahni, President, OTOAI, says, “Most of the tour operators and outbound agents have been working with Emirates as it has great connectivity to all the destinations that they are selling. On top of it, the 3 per cent commission was a great attraction. However, now after the commission has gone down, the cost of the package would go up and tour operators would tend to pick up other airlines for their clients. I find it difficult to understand that when most of the airline tickets are sold by ticketing agents and tour operators, why do the airlines do not think that it’s justified in rewarding them with commission?

In a move to boost Indian arrivals, Malaysia has launched a 15-day e-visa for travellers on a short visit. This was announced at a press conference in New Delhi by Malaysia’s Minister of Tourism and Culture, Dato’ Seri Mohamed Nazri Abdul Aziz. “India and Malaysia share great relations that go a long way back and we want to foster these ties. We decided to launch this e-visa for the benefit of travellers who visit the country for a short while and since it takes only 48 hours for approval, it is also useful for those who require it urgently,” he said. The e-visa includes a single-entry and costs $20. Tourism Malaysia and leaders from TAAI, TAFI and OTOAI also signed a commitment plaque fortifying each other’s commitment to promoting travel from India.With a focus on sustainable tourism, Malaysia is also pushing its special interest packages for premium shopping, luxury travels, sports tourism such as golf, and Malaysia as a wedding and honeymoon destination. India is the sixth top tourist generating market for Malaysia with a total 722,141 Indian visitors recorded in 2015. Last year, from January to October, Malaysia received a total of 540,530 Indian tourists. Malaysia hopes to achieve 1 million arrivals from the India market this year.

Guldeep Singh Sahni, President, OTOAI, says, “We were very disappointed with the budget, especially when the government has been talking about tourism being a major pillar of growth. I don’t understand how it cannot be important when budget is concerned, except for the fact that the passports can now be applied in the GPOs.” He took a poignant view on the taxation. “While this is a good move on one side, on the other hand taxing outbound tourism would make us less competitive than people sitting overseas. This will kill the industry, which is making 20 million people travelling outside India, which is not using infrastructure available across the country and still generating revenue,” he adds.

Riaz Munshi, Managing Director, N. Chirag Travels and Vice President, OTOAI, says it is a negative and an unfortunate move for the tourism and hospitality industry. “The increase in service tax is almost nine per cent more and a deterrent to our business as it reduces the competitiveness of our packages. The government has to understand that the products sold are available globally and an Indian traveller might as well buy a package for Singapore from a travel agency based in Singapore rather than pay 9 per cent extra tax to an Indian travel agency. The travel agencies based abroad do not need to pay this service tax and thus can sell packages at a much cheaper rate than us. We as OTOAI will put forward our concerns to the government and highlight how this move is a dampener to the growth of our tourism industry.