Travel and Tourism sector reeling under negative growth
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Despite contributing near 10% to the GDP, the journey and tourism is among the many worst-hit sectors ever because the outbreak of the COVID-19 pandemic.
The sector is estimated to be seeing a negative growth for the previous 17 months, beginning even earlier than the pandemic had struck India, and not using a ray of hope within the close to future.
In the State, the sector had seen a negative growth of about 83% from April to December 2020, through the first wave of the pandemic which worsened through the second wave, regardless of the State authorities asserting some proactive steps, in accordance with business captains.
“As per a McKinsey report, the recovery of the sector to the 2019 level may kick-start as late as 2024,” stated K. Vijay Mohan, president, Tours and Travel Associations of Andhra.
The sector is taking a look at bankruptcies, closure of companies and mass unemployment.
On the verge of closure
In a letter addressed to Chief Minister Y.S. Jagan Mohan Reddy, the affiliation identified that with no revenue and lack of correct help each from State and Central governments, banks weren’t giving loans and there was no fund to keep up places of work and pay salaries.
“It is estimated that about 50% of the travel agents have almost become bankrupt and are on the verge of closing down their businesses, and if the situation continues 90% of them will go out of trade by year-end,” opined Mr. Vijay Mohan.
According to him, the journey brokers within the State employed shut to six,000 individuals and 95% of the roles had been under risk.
The affiliation members urged the Chief Minister to come back out with some stimulus bundle to bail out the journey sector.
Bailout bundle
“We have asked the Chief Minister to constitute a committee with officials from the Tourism and Finance Departments and stakeholders and design a financial package to bail out travel agents,” stated Mr. Vijay Mohan.
Other concessions sought embrace waiver of energy payments, deferment of property tax for the years 2020 and 21, exemption from inter-State street taxes and intra-city tax for vacationer buses and notifying tourism as a precedence for vaccination.
Hoping that the second wave would subside quickly, the affiliation members demanded that the federal government give business standing to journey sector, declare 2022 because the 12 months of go to to Andhra Pradesh, open up seashores with a shack coverage and personal zones for foreigners. They additionally needed Vizag to be declared as the primary open sky airport within the nation and gateway vacation spot with visa on arrival facility and put it up for sale as a spiritual vacationer vacation spot.
Other measures resembling beginning evening safari on the Vizag zoo and opening of midnight eating places may increase the prospects of the sector, they stated.
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