Travel and tourism may lose ₹5 lakh crore: study
‘Sector needs urgent steps for revival’
The Indian travel and tourism industry, one of the worst-impacted sectors by the COVID-19 pandemic, may suffer a loss of ₹5 lakh crore, or $65.6 billion, this year, according to the latest research report from the Confederation of Indian Industry (CII) and hospitality consulting firm Hotelivate.
“The entire value chain linked to travel and tourism is likely to lose around ₹5 lakh crore, or $65.6 billion, with the organised sector alone likely to lose $25 billion,” they said in the report submitted to the Ministry of Tourism.
“The figures are quite alarming and the industry needs immediate measures for survival,” they added.
While it was expected that the impact on revenue streams due to the shutdown and slowdown will last till October, current trends indicate only 30% occupancy in hotels till the start of the next year as opposed to an average annual occupancy of 68%.
“…hotels will see an 80%-85% erosion in revenue streams,” they said report said, adding that estimated revenue loss in the hotel sector — for both branded and unbranded segments, for this year is estimated to be $19.31 billion. For travel agents and tour operators, both online and offline, the estimated loss for this year is $4.77 billion.
However, it added these are the worst-case scenarios. and “in the best-case scenario, industry revenue will improve by 10 -15%.” “The coronavirus pandemic has given a crippling blow to the Indian travel and tourism industry. This is the one of the worst crises ever to hit the Indian tourism industry impacting all its geographical segments — inbound, outbound and domestic — and almost all tourism verticals — leisure , adventure, heritage, MICE, cruise, corporate and niche segments,” the report said. The industry accounts for 9.2% of India’s GDP and employs 8% of the population, with a total foreign exchange contribution of about $28 billion.
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