FAITH estimates the loss of 3.8 Cr travel jobs; calls for urgent intervention by Prime Minister Modi

In a letter to Prime Minister Narendra Modi, the Federation of Indian Tourism and Hospitality Associations (FAITH) asked, for the Atwelvemonths moratorium on our principle EMIs and payments interest on loans and working capital of financial institutions (bank and non-bank) In addition, we request the doubling of our working capital limits and on conditions without interest and without guarantee. This will prevent all of our tourism businesses from going bankrupt, tdid he declare. In addition, FAITH also asked, AIn addition, to avoid insolvency, we ask that you postpone for twelve months all statutory taxes, be it GST, advance payments, PF, ESIC, customs duties at central government level or at any level of state government excise charges, levies, taxes, electricity and water. charges,bank guarantees and security deposits andadjournment of all renewals in the tourism, travel, hotel and aviation industries.

T3 reproduces the letter FAITH to PM Narendra Modi:

Dear Sir,

Greetings from FAITH – Federation of Indian Tourism and Hospitality Associations. We are the political federation of all national associations representing the entire tourism, travel and hospitality sector in India, in close interaction with the Ministry of Tourism on various political issues.

Sir, for starters, the whole tourism industry would like to thank you because you have been the greatest brand ambassador that our country has ever seen, both for inbound travel from & # 39; 39; foreigners and for domestic trips of Indians.

You have given Destination India the respect it has always deserved. You make us proud as Indians. Tourism, in particular, has always been one of your main priorities. From adventure, heritage, meetings and conventions, cruises, rural to all other segments of tourism.

Sir, we also want to thank you for guiding us through our proactive and honorable Minister of Tourism, Shri Prahlad Singh Patel and the entire Ministry of Tourism. They constantly guide us in all our initiatives.

Sir, the entire tourism industry fully appreciates the breathtaking speed with which your government has worked to contain the spread of COVID-19 in India while evacuating stranded Indians from around the world.

Sir, as a result of this pandemic, your tourism industry in India has reached a desperate situation today and is looking at mass unemployment and bankruptcies. We urgently request your kind intervention.

With declining revenues, almost all tourism businesses are running out of working capital. However, with the responsibility of the personnel and the payment of their salaries, the EMI in the service, the withholding tax, the FP, the ESIC, the GST, excise and other state levies, bank guarantees security deposits, this industry needs your support more than ever.

Sir, this is a time of unprecedented emergency and our request is for an equally suitable response for the immediate survival of the tourism industry.

Sir, we are asking for a twelve month moratorium on our principle NDEs and interest payments on loans and working capital from financial institutions (banking and non-banking). In addition, we request that our working capital limits be doubled and on interest-free and unsecured terms. This will prevent all of our tourism businesses from going bankrupt.

In addition, to avoid insolvency, we ask for a twelve-month postponement of all statutory taxes, be it GST, advance payments, PF, ESIC, customs duties at central government level or at any level of state government. excise duties, levies, taxes, electricity and water fees, bank guarantees and security deposits and deferral of all renewals in the tourism, travel, hospitality and aviation industries.

Sir, we ask you to set up a twelve-month support fund based on the MNREGA model to support basic salaries with direct transfer to the tourism employees concerned.

Sir, the TCS (tax collected at source) on travel was proposed in the 2020 finance bill to be levied from April 1, 2020 and we request that it not be introduced as it will move the business from India to overseas, which will result in the closure of most Indian tourism businesses.

Sir, we are requesting an adjournment of the increase in any insurance premium for a period of 12 months, such as for example for standard fire and the rate of special perils for fire, loss or profit.

Sir, in order for Indian tourism to start preparing for the renaissance, we are requesting a full tax holiday for the tourism, travel and hospitality sector for a period of twelve months. With almost zero revenue, there will be virtually no GST collection. But a gesture of this nature will make a very strong statement and will encourage domestic and international travel.

Sir, we ask you to grant a weighted exemption of 200% for twelve months on the expenses of Indian companies to organize exhibitions, conferences and incentive trips to India. It will be a big blow in the arm and will help revitalize the industry.

Sir, in order to promote foreign exchange earnings for the start of the recovery, we are asking for the reinstatement of the 10% duty credit on SEIS certificates. In addition, to boost working capital, foreign exchange earnings from previous years can be taken as a benchmark for credit.

Sir, finally, we ask you to create, under your inspiring leadership, a national working group on tourism from all the relevant ministries of The government, the Department of Tourism and the chief secretaries of state governments and industry stakeholders will meet regularly to expedite all tourism investment approvals.

Sir, following this pandemic, the Indian tourism industry is considering bankruptcies in India, business closings and mass unemployment. It is estimated that about 70% of a total workforce estimated at 5.5 crores (direct and indirect) could be unemployed (~ 3.8 crores). This effect of job losses and layoffs has already started all over the country …

A large% of India's total tourism activity, which is estimated at $ 28 billion + in forex and more than 2 lakh crores in domestic tourism activity, will be threatened by 39 economy throughout the year. Thus, more than 5 lakh crores of the direct tourism industry and almost double the total economic activity are threatened.

Sir, you are our Prime Minister and the whole tourism industry is waiting for you to get us out of this hour of darkness.

Sir, our country, the safety and health of its citizens comes first and the whole tourism industry is with you and behind you until it costs for complete recovery.