Categories: Economy

Crippled tourism sector needs to look inward

<p style="font-weight: 400;">The deadly COVID-19 has directly and badly impacted the travel and tourism sector across the world. Flights have been grounded and hotels, small and big, are empty, many of them shut.</p>
<img class="alignnone size-full wp-image-490" src="https://indianarrative.com/wp-content/uploads/2020/04/travel.jpg" alt="" />
<p style="font-weight: 400;">The situation will not improve anytime soon, even after India decides to lift the lockdown. First, foreign travel ban is likely to remain in place in many parts of the world for several months. Second, with jobs and salaries coming under pressure, many will opt against any discretionary travel, official or personal.</p>
<p style="font-weight: 400;">As the world grapples with this pandemic, the hotel industry in India, just like in other parts of the globe, is staring at huge losses. Estimates vary between Rs 4 lakh crore and Rs 6 lakh crore, analysts said.</p>
<p style="font-weight: 400;">Government data show that the number of domestic tourist visits was at 1,854.9 million in 2018, while 26.3 million Indian nationals went outside the country. Over 10 million foreign tourists visited India in the same year.</p>
<p style="font-weight: 400;">According to the tourism ministry, foreign tourist arrivals into India dropped by about 67 per cent annually in the January-March quarter, while it was 40 per cent lower in the case of domestic tourists, the figure is lower by nearly 40 per cent.</p>
<p style="font-weight: 400;">The travel and tourism sector accounts for 9.2 per cent of India's GDP. It also generates millions of jobs—both direct and indirect. In 2018 alone, about 26.7 million jobs were created in this sector, the Indian Chamber of Commerce said.</p>
<p style="font-weight: 400;">While the hospitality sector has sought a relief package from the government, several hotel chains have started re-strategizing. Drastic price slash to woo travellers is one option. That apart, most of them are set to come up with packages with many value added services including meals, spas, and sightseeing.</p>
<p style="font-weight: 400;">What is required now is aggressive promotion of domestic tourism with attractive offers. The number of foreign tourists visiting India will continue to remain low at least for the next four to five months, but once things stabilize in India and the spread of the disease is contained, the hotel industry must look inward, re-price their deals—and make itself more affordable for Indians.</p>
<p style="font-weight: 400;">A senior executive at a high-end hotel chain said that several places in India such as Kerala, parts of Rajasthan, and even Goa during the winters have primarily attracted foreigners or Indians who fall under the high-income category. “That must change. Why can’t we look at our own people, who love travelling and are looking to go outside India?”</p>
<p style="font-weight: 400;">Take for instance, Palace on Wheels—a royal high-end luxury train service run by Indian Railways—giving a glimpse of the old Indian Maharaja culture with visits to several cities in Rajasthan. It has attracted primarily foreign tourists until now. Why can’t the pricing be appropriate to woo the discerning Indian tourists as well? Analysts said that Indian tourism has lost out an opportunity to attract its own people and now is the time to re-chart out the contours.</p>.

Mahua Venkatesh

Mahua Venkatesh specialises in covering economic trends related to India and the world along with developments in South Asia.

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