Tag Archives: tour operators

Ministry of Tourism (MOT) has decided that provisional certificates can be issued in favour of all categories of Tour Operators (Inbound, Domestic, Adventure) / Travel Agencies / Tourist Transport Operators who have submitted fresh applications, complete in all respects and have also made the required payment for grant of recognition as a new case. This has been done at this time, when physical inspection of office premises of applicants is not being undertaken by the Inspection Committee headed by the Regional Director, India tourism Offices in India. The Provisional Certificate would be valid for a period of six months from the date of submission of complete fresh application or till the time of actual physical verification / inspection and subsequent final decision of the Ministry with reference to grant of recognition, whichever is earlier. However, such Tour Operators/ Travel Agencies / Tourist Transport Operators who are issued  Provisional Certificates, shall not be eligible for any financial benefits under MDA or any other scheme of the Ministry, till such time a final decision regarding grant of  recognition is taken by the Ministry.

A recent Travel Consul survey that analyses the impact and outlook of the COVID-19 outbreak on tour operators and agency owners suggests that at least 42 per cent of the businesses surveyed will not be able to sustain themselves for more than three months in the absence of any government intervention. While a meagre 3 per cent of the respondents said that they have a chance of survival for a period of 7-10 months, those who will be able to sustain themselves for a longer period in the absence of government intervention made up only 12 per cent of the total respondents.

According to a recent ruling, starting January 22 2017, tour operators will have to pay a service tax on 60 per cent of the amount they bill the customer. The move might make the cost of the tours to go up by 10-15 per cent. Before this, tour operators had to pay service tax on 25 per cent of the bill amount if they offered a packaged tour, and in case of offering their service for booking a hotel as part of a tour, they paid service tax on only 10 per cent of the bill amount. For any other tour-related service, the service tax was on 40 per cent of the bill amount.