When it comes to welcoming visitors to Indian shores, hospitality and tourism sectors have always been in the forefront. Whether it is the business traveller for participating in exhibitions and events, the leisure traveller coming to explore places in India, or the medical traveller, coming for availing treatment, hospitality sector has played a crucial role in making them feel at home.
Very importantly these sectors play a significant role in generating foreign exchange. A large-scale exhibition organized in a local region generates employment and business opportunities. The Covid-19 pandemic has already grinded the travel and tourism sector to a complete halt. The series of regional lockdowns further aggravated it and now many firms are facing challenges in availing credit due to lenders’ negative outlook for the industry.
Some of the leading hotels have taken loans from banks for their operations but are unable to repay as businesses have been hit badly. For example, Asian Hotels (West) has temporarily shut down Hyatt Regency in Mumbai as its lender Yes Bank is not releasing funds since it defaulted on loans.
Between the first and second wave, the only silver lining is that travel didn’t shut down completely as it had in the first wave and with several states relaxing lockdown restrictions, travelling may pick up in the coming quarters. Vaccination will be a big boost to the sector as people will start having confidence to move out. Globally also many countries will be opening up for international tourists and as people movement happen within and outside India, hotels and airlines can expect some uptick in their business.
Indian government on its part has made some big announcements such as allowing the first 5 lakh tourist visas, once India allows entry for foreign visitors, free of charge, and will be applicable upto March 31, next year. Also, government recognized travel agents will be eligible for loan of Rs. 10 lakhs while tour guides will be eligible for loan of Rs. 1 lakh.
Well, it is important to bring the virus and its variants under control to restore confidence among stakeholders which will result in big box MICE events and corporate travel. Hotels, airlines and other peripheral businesses can then look forward to some good days and job aspirants would also be attracted to work in these sectors.
